83.86 USD
+0.64 (+0.77%)
CTSH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. CTSH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTSH has a correct valuation and a medium growth rate. These ratings could make CTSH a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
CTSH had positive earnings in the past year.
In the past year CTSH had a positive cash flow from operations.
Each year in the past 5 years CTSH has been profitable.
CTSH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTSH has a better Return On Assets (10.57%) than 85.88% of its industry peers.
With a decent Return On Equity value of 14.28%, CTSH is doing good in the industry, outperforming 76.47% of the companies in the same industry.
The Return On Invested Capital of CTSH (14.88%) is better than 89.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTSH is significantly below the industry average of 29.59%.
The 3 year average ROIC (14.72%) for CTSH is below the current ROIC(14.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 14.28% | ||
| ROIC | 14.88% |
ROA(3y)11.85%
ROA(5y)11.15%
ROE(3y)16.74%
ROE(5y)16.18%
ROIC(3y)14.72%
ROIC(5y)14.56%
1.3 Margins
CTSH has a better Profit Margin (10.20%) than 76.47% of its industry peers.
In the last couple of years the Profit Margin of CTSH has remained more or less at the same level.
CTSH's Operating Margin of 15.70% is amongst the best of the industry. CTSH outperforms 82.35% of its industry peers.
In the last couple of years the Operating Margin of CTSH has remained more or less at the same level.
The Gross Margin of CTSH (34.06%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CTSH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 10.2% | ||
| GM | 34.06% |
OM growth 3Y-0.1%
OM growth 5Y-0.74%
PM growth 3Y-0.57%
PM growth 5Y0.67%
GM growth 3Y-2.71%
GM growth 5Y-1.29%
2. Health
2.1 Basic Checks
CTSH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CTSH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTSH has less shares outstanding
CTSH has a worse debt/assets ratio than last year.
2.2 Solvency
CTSH has an Altman-Z score of 7.49. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.49, CTSH belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
The Debt to FCF ratio of CTSH is 0.22, which is an excellent value as it means it would take CTSH, only 0.22 years of fcf income to pay off all of its debts.
CTSH's Debt to FCF ratio of 0.22 is amongst the best of the industry. CTSH outperforms 88.24% of its industry peers.
CTSH has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, CTSH is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.49 |
ROIC/WACC1.69
WACC8.81%
2.3 Liquidity
CTSH has a Current Ratio of 2.36. This indicates that CTSH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CTSH (2.36) is better than 69.41% of its industry peers.
CTSH has a Quick Ratio of 2.36. This indicates that CTSH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.36, CTSH is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
CTSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.90%, which is quite good.
CTSH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
Looking at the last year, CTSH shows a small growth in Revenue. The Revenue has grown by 7.44% in the last year.
Measured over the past years, CTSH shows a small growth in Revenue. The Revenue has been growing by 3.29% on average per year.
EPS 1Y (TTM)8.9%
EPS 3Y4.86%
EPS 5Y3.5%
EPS Q2Q%11.2%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
3.2 Future
Based on estimates for the next years, CTSH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
Based on estimates for the next years, CTSH will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y12.57%
EPS Next 2Y9.78%
EPS Next 3Y9.46%
EPS Next 5Y9.23%
Revenue Next Year6.85%
Revenue Next 2Y5.78%
Revenue Next 3Y5.75%
Revenue Next 5Y4.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CTSH is valuated correctly with a Price/Earnings ratio of 16.32.
Based on the Price/Earnings ratio, CTSH is valued a bit cheaper than 70.59% of the companies in the same industry.
CTSH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
CTSH is valuated correctly with a Price/Forward Earnings ratio of 14.65.
Based on the Price/Forward Earnings ratio, CTSH is valued a bit cheaper than 76.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, CTSH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTSH is valued a bit cheaper than the industry average as 78.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CTSH is valued a bit cheaper than 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
CTSH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CTSH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)4.67
EPS Next 2Y9.78%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
CTSH has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
CTSH's Dividend Yield is rather good when compared to the industry average which is at 1.95. CTSH pays more dividend than 88.24% of the companies in the same industry.
CTSH's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
On average, the dividend of CTSH grows each year by 8.46%, which is quite nice.
CTSH has been paying a dividend for over 5 years, so it has already some track record.
CTSH has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.46%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
28.62% of the earnings are spent on dividend by CTSH. This is a low number and sustainable payout ratio.
The dividend of CTSH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.62%
EPS Next 2Y9.78%
EPS Next 3Y9.46%
NASDAQ:CTSH (12/11/2025, 10:04:09 AM)
83.86
+0.64 (+0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.25%
Inst Owner Change1.48%
Ins Owners0.1%
Ins Owner Change0.37%
Market Cap40.48B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts73.53
Price Target86.8 (3.51%)
Short Float %N/A
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend1.21
Dividend Growth(5Y)8.46%
DP28.62%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.25%
Min EPS beat(2)1.85%
Max EPS beat(2)4.65%
EPS beat(4)4
Avg EPS beat(4)3.22%
Min EPS beat(4)0.64%
Max EPS beat(4)5.75%
EPS beat(8)7
Avg EPS beat(8)4.16%
EPS beat(12)10
Avg EPS beat(12)4%
EPS beat(16)13
Avg EPS beat(16)3.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.15%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.15%
Revenue beat(8)0
Avg Revenue beat(8)-1.21%
Revenue beat(12)0
Avg Revenue beat(12)-1.16%
Revenue beat(16)0
Avg Revenue beat(16)-1.55%
PT rev (1m)0.97%
PT rev (3m)-1.92%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 14.65 | ||
| P/S | 1.94 | ||
| P/FCF | 15.27 | ||
| P/OCF | 13.74 | ||
| P/B | 2.72 | ||
| P/tB | 6.4 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)5.14
EY6.13%
EPS(NY)5.72
Fwd EY6.83%
FCF(TTM)5.49
FCFY6.55%
OCF(TTM)6.1
OCFY7.28%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.3
PEG (5Y)4.67
Graham Number59.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 14.28% | ||
| ROCE | 19.6% | ||
| ROIC | 14.88% | ||
| ROICexc | 17.32% | ||
| ROICexgc | 43.02% | ||
| OM | 15.7% | ||
| PM (TTM) | 10.2% | ||
| GM | 34.06% | ||
| FCFM | 12.71% |
ROA(3y)11.85%
ROA(5y)11.15%
ROE(3y)16.74%
ROE(5y)16.18%
ROIC(3y)14.72%
ROIC(5y)14.56%
ROICexc(3y)17.57%
ROICexc(5y)17.67%
ROICexgc(3y)42.32%
ROICexgc(5y)42.39%
ROCE(3y)19.4%
ROCE(5y)19.19%
ROICexgc growth 3Y-3.2%
ROICexgc growth 5Y-0.62%
ROICexc growth 3Y-4.44%
ROICexc growth 5Y-4.72%
OM growth 3Y-0.1%
OM growth 5Y-0.74%
PM growth 3Y-0.57%
PM growth 5Y0.67%
GM growth 3Y-2.71%
GM growth 5Y-1.29%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 53.16% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.95% | ||
| Profit Quality | 124.58% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 7.49 |
F-Score7
WACC8.81%
ROIC/WACC1.69
Cap/Depr(3y)56.75%
Cap/Depr(5y)58.01%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.75%
Profit Quality(3y)91.3%
Profit Quality(5y)117.2%
High Growth Momentum
Growth
EPS 1Y (TTM)8.9%
EPS 3Y4.86%
EPS 5Y3.5%
EPS Q2Q%11.2%
EPS Next Y12.57%
EPS Next 2Y9.78%
EPS Next 3Y9.46%
EPS Next 5Y9.23%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
Revenue Next Year6.85%
Revenue Next 2Y5.78%
Revenue Next 3Y5.75%
Revenue Next 5Y4.89%
EBIT growth 1Y9.5%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year30.42%
EBIT Next 3Y13.64%
EBIT Next 5Y10.18%
FCF growth 1Y34.84%
FCF growth 3Y-6.23%
FCF growth 5Y-2.81%
OCF growth 1Y28.32%
OCF growth 3Y-5.22%
OCF growth 5Y-3.2%
COGNIZANT TECH SOLUTIONS-A / CTSH FAQ
Can you provide the ChartMill fundamental rating for COGNIZANT TECH SOLUTIONS-A?
ChartMill assigns a fundamental rating of 7 / 10 to CTSH.
What is the valuation status for CTSH stock?
ChartMill assigns a valuation rating of 5 / 10 to COGNIZANT TECH SOLUTIONS-A (CTSH). This can be considered as Fairly Valued.
What is the profitability of CTSH stock?
COGNIZANT TECH SOLUTIONS-A (CTSH) has a profitability rating of 7 / 10.
What is the valuation of COGNIZANT TECH SOLUTIONS-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COGNIZANT TECH SOLUTIONS-A (CTSH) is 16.32 and the Price/Book (PB) ratio is 2.72.
Can you provide the dividend sustainability for CTSH stock?
The dividend rating of COGNIZANT TECH SOLUTIONS-A (CTSH) is 6 / 10 and the dividend payout ratio is 28.62%.