COGNIZANT TECH SOLUTIONS-A (COZ.DE) Stock Fundamental Analysis
Europe - FRA:COZ - US1924461023 - Common Stock
57.16 EUR
-1.61 (-2.74%)
Taking everything into account, COZ scores 7 out of 10 in our fundamental rating. COZ was compared to 73 industry peers in the IT Services industry. COZ gets an excellent profitability rating and is at the same time showing great financial health properties. COZ has a correct valuation and a medium 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.
In the past 5 years COZ has always been profitable.
Each year in the past 5 years COZ had a positive operating cash flow.
1.2 Ratios
COZ has a Return On Assets of 12.08%. This is amongst the best in the industry. COZ outperforms 93.15% of its industry peers.
With a decent Return On Equity value of 15.93%, COZ is doing good in the industry, outperforming 75.34% of the companies in the same industry.
COZ's Return On Invested Capital of 14.18% is amongst the best of the industry. COZ outperforms 86.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COZ is above the industry average of 11.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.08% | ||
| ROE | 15.93% | ||
| ROIC | 14.18% |
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
COZ has a better Profit Margin (11.89%) than 93.15% of its industry peers.
In the last couple of years the Profit Margin of COZ has remained more or less at the same level.
COZ's Operating Margin of 15.52% is amongst the best of the industry. COZ outperforms 91.78% of its industry peers.
COZ's Operating Margin has been stable in the last couple of years.
COZ has a Gross Margin of 34.18%. This is in the lower half of the industry: COZ underperforms 65.75% of its industry peers.
In the last couple of years the Gross Margin of COZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.52% | ||
| PM (TTM) | 11.89% | ||
| GM | 34.18% |
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
COZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for COZ has been reduced compared to 1 year ago.
Compared to 5 years ago, COZ has less shares outstanding
The debt/assets ratio for COZ is higher compared to a year ago.
2.2 Solvency
COZ has an Altman-Z score of 6.96. This indicates that COZ is financially healthy and has little risk of bankruptcy at the moment.
COZ's Altman-Z score of 6.96 is amongst the best of the industry. COZ outperforms 98.63% of its industry peers.
COZ has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
COZ has a Debt to FCF ratio of 0.26. This is amongst the best in the industry. COZ outperforms 97.26% of its industry peers.
COZ 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, COZ belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 6.96 |
ROIC/WACC1.65
WACC8.59%
2.3 Liquidity
COZ has a Current Ratio of 2.41. This indicates that COZ is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.41, COZ belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
COZ has a Quick Ratio of 2.41. This indicates that COZ is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.41, COZ belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.99% over the past year.
COZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
COZ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.34%.
The Revenue has been growing slightly by 3.29% on average over the past years.
EPS 1Y (TTM)7.99%
EPS 3Y4.86%
EPS 5Y3.5%
EPS Q2Q%11.97%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%8.14%
3.2 Future
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.30% on average over the next years.
EPS Next Y9.89%
EPS Next 2Y9.03%
EPS Next 3Y8.93%
EPS Next 5Y9.47%
Revenue Next Year6.24%
Revenue Next 2Y5.46%
Revenue Next 3Y5.71%
Revenue Next 5Y5.3%
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
Based on the Price/Earnings ratio of 13.26, the valuation of COZ can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of COZ indicates a somewhat cheap valuation: COZ is cheaper than 76.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of COZ to the average of the S&P500 Index (27.02), we can say COZ is valued rather cheaply.
A Price/Forward Earnings ratio of 11.75 indicates a reasonable valuation of COZ.
Based on the Price/Forward Earnings ratio, COZ is valued a bit cheaper than the industry average as 72.60% of the companies are valued more expensively.
COZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as COZ.
The rest of the industry has a similar Price/Free Cash Flow ratio as COZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.2 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
COZ's 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)1.34
PEG (5Y)3.79
EPS Next 2Y9.03%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
COZ has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.36, COZ has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, COZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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
COZ pays out 24.92% of its income as dividend. This is a 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.
DP24.92%
EPS Next 2Y9.03%
EPS Next 3Y8.93%
FRA:COZ (10/10/2025, 7:00:00 PM)
57.16
-1.61 (-2.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap27.92B
Analysts71.88
Price Target75.61 (32.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend1.03
Dividend Growth(5Y)8.46%
DP24.92%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.25%
Min EPS beat(2)0.64%
Max EPS beat(2)1.85%
EPS beat(4)4
Avg EPS beat(4)3.77%
Min EPS beat(4)0.64%
Max EPS beat(4)6.84%
EPS beat(8)7
Avg EPS beat(8)4.16%
EPS beat(12)9
Avg EPS beat(12)3.54%
EPS beat(16)12
Avg EPS beat(16)3.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.47%
Revenue beat(12)0
Avg Revenue beat(12)-1.55%
Revenue beat(16)0
Avg Revenue beat(16)-1.63%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 11.75 | ||
| P/S | 1.58 | ||
| P/FCF | 14.2 | ||
| P/OCF | 12.64 | ||
| P/B | 2.12 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)4.31
EY7.54%
EPS(NY)4.86
Fwd EY8.51%
FCF(TTM)4.02
FCFY7.04%
OCF(TTM)4.52
OCFY7.91%
SpS36.13
BVpS26.96
TBVpS11.72
PEG (NY)1.34
PEG (5Y)3.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.08% | ||
| ROE | 15.93% | ||
| ROCE | 18.69% | ||
| ROIC | 14.18% | ||
| ROICexc | 15.87% | ||
| ROICexgc | 36.79% | ||
| OM | 15.52% | ||
| PM (TTM) | 11.89% | ||
| GM | 34.18% | ||
| FCFM | 11.14% |
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%
ROICexcg growth 3Y-3.2%
ROICexcg 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-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 51.36% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.77% | ||
| Profit Quality | 93.68% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 6.96 |
F-Score6
WACC8.59%
ROIC/WACC1.65
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)7.99%
EPS 3Y4.86%
EPS 5Y3.5%
EPS Q2Q%11.97%
EPS Next Y9.89%
EPS Next 2Y9.03%
EPS Next 3Y8.93%
EPS Next 5Y9.47%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%8.14%
Revenue Next Year6.24%
Revenue Next 2Y5.46%
Revenue Next 3Y5.71%
Revenue Next 5Y5.3%
EBIT growth 1Y6.79%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year28.81%
EBIT Next 3Y13.14%
EBIT Next 5Y9.54%
FCF growth 1Y5.45%
FCF growth 3Y-6.23%
FCF growth 5Y-2.81%
OCF growth 1Y2.64%
OCF growth 3Y-5.22%
OCF growth 5Y-3.2%