COGNIZANT TECH SOLUTIONS-A (COZ.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:COZ • US1924461023
68.86 EUR
-1.38 (-1.96%)
Last: Jan 29, 2026, 07:00 PM
Taking everything into account, COZ scores 7 out of 10 in our fundamental rating. COZ was compared to 70 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making COZ a very profitable company, without any liquidiy or solvency issues. COZ is not valued too expensively and it also shows a decent growth rate. These ratings would make COZ suitable for quality investing!
1. Profitability
1.1 Basic Checks
- COZ had positive earnings in the past year.
- COZ had a positive operating cash flow in the past year.
- Each year in the past 5 years COZ has been profitable.
- In the past 5 years COZ always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 10.57%, COZ belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- The Return On Equity of COZ (14.28%) is better than 67.14% of its industry peers.
- With an excellent Return On Invested Capital value of 14.88%, COZ belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for COZ is significantly below the industry average of 26.75%.
- The last Return On Invested Capital (14.88%) for COZ is above the 3 year average (14.72%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 10.20%, COZ belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
- COZ's Profit Margin has been stable in the last couple of years.
- COZ has a Operating Margin of 15.70%. This is amongst the best in the industry. COZ outperforms 87.14% of its industry peers.
- COZ's Operating Margin has been stable in the last couple of years.
- COZ's Gross Margin of 34.06% is on the low side compared to the rest of the industry. COZ is outperformed by 70.00% of its industry peers.
- COZ's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so COZ is still creating some value.
- COZ has less shares outstanding than it did 1 year ago.
- COZ has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for COZ is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.45 indicates that COZ is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.45, COZ belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
- The Debt to FCF ratio of COZ is 0.22, which is an excellent value as it means it would take COZ, only 0.22 years of fcf income to pay off all of its debts.
- COZ's Debt to FCF ratio of 0.22 is amongst the best of the industry. COZ outperforms 97.14% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that COZ is not too dependend on debt financing.
- The Debt to Equity ratio of COZ (0.04) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.45 |
ROIC/WACC1.61
WACC9.25%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that COZ has no problem at all paying its short term obligations.
- COZ has a better Current ratio (2.36) than 94.29% of its industry peers.
- A Quick Ratio of 2.36 indicates that COZ has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.36, COZ belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.90% over the past year.
- The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
- COZ shows a small growth in Revenue. In the last year, the Revenue has grown by 7.44%.
- Measured over the past years, COZ 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, COZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
- COZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y12.78%
EPS Next 2Y9.93%
EPS Next 3Y9.55%
EPS Next 5Y9.23%
Revenue Next Year6.88%
Revenue Next 2Y5.76%
Revenue Next 3Y5.71%
Revenue Next 5Y4.89%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 16.05 indicates a correct valuation of COZ.
- COZ's Price/Earnings ratio is a bit cheaper when compared to the industry. COZ is cheaper than 72.86% of the companies in the same industry.
- COZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 14.36, the valuation of COZ can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of COZ indicates a somewhat cheap valuation: COZ is cheaper than 67.14% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. COZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as COZ.
- COZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of COZ may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)4.59
EPS Next 2Y9.93%
EPS Next 3Y9.55%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.47%, COZ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.27, COZ has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, COZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
- The dividend of COZ is nicely growing with an annual growth rate of 8.46%!
Dividend Growth(5Y)8.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 28.62% of the earnings are spent on dividend by COZ. This is a low number and sustainable payout ratio.
- The dividend of COZ is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.62%
EPS Next 2Y9.93%
EPS Next 3Y9.55%
COGNIZANT TECH SOLUTIONS-A / COZ.DE FAQ
Can you provide the ChartMill fundamental rating for COGNIZANT TECH SOLUTIONS-A?
ChartMill assigns a fundamental rating of 7 / 10 to COZ.DE.
Can you provide the valuation status for COGNIZANT TECH SOLUTIONS-A?
ChartMill assigns a valuation rating of 5 / 10 to COGNIZANT TECH SOLUTIONS-A (COZ.DE). This can be considered as Fairly Valued.
How profitable is COGNIZANT TECH SOLUTIONS-A (COZ.DE) stock?
COGNIZANT TECH SOLUTIONS-A (COZ.DE) 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 (COZ.DE) is 16.05 and the Price/Book (PB) ratio is 2.67.
What is the earnings growth outlook for COGNIZANT TECH SOLUTIONS-A?
The Earnings per Share (EPS) of COGNIZANT TECH SOLUTIONS-A (COZ.DE) is expected to grow by 12.78% in the next year.