74.5 USD
-8.41 (-10.14%)
At close: Feb 3, 2026
76.51 USD
+2.01 (+2.7%)
After Hours: 2/3/2026, 7:35:05 PM
Taking everything into account, CTSH scores 7 out of 10 in our fundamental rating. CTSH was compared to 88 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making CTSH a very profitable company, without any liquidiy or solvency issues. 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.
- CTSH had a positive operating cash flow in the past year.
- In the past 5 years CTSH has always been profitable.
- CTSH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 10.57%, CTSH belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- CTSH has a better Return On Equity (14.28%) than 77.27% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.88%, CTSH belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CTSH is significantly below the industry average of 29.07%.
- 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 77.27% of its industry peers.
- CTSH's Profit Margin has been stable in the last couple of years.
- The Operating Margin of CTSH (15.70%) is better than 82.95% of its industry peers.
- CTSH's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 34.06%, CTSH is in line with its industry, outperforming 50.00% of the companies in the same industry.
- CTSH'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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTSH is creating some value.
- Compared to 1 year ago, CTSH has less shares outstanding
- 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 7.47. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
- CTSH has a better Altman-Z score (7.47) than 86.36% of its industry peers.
- CTSH has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
- The Debt to FCF ratio of CTSH (0.22) is better than 89.77% 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.
- CTSH's Debt to Equity ratio of 0.04 is fine compared to the rest of the industry. CTSH outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.47 |
ROIC/WACC1.6
WACC9.29%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
- The Current ratio of CTSH (2.36) is better than 67.05% 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 70.45% 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.
- The Revenue has been growing slightly by 7.44% in the past year.
- The Revenue has been growing slightly by 3.29% on average over the past years.
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
- CTSH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
- CTSH 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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.49, which indicates a correct valuation of CTSH.
- Based on the Price/Earnings ratio, CTSH is valued a bit cheaper than 71.59% of the companies in the same industry.
- CTSH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.98, CTSH is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 73.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, CTSH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CTSH is valued a bit cheaper than 78.41% of the companies in the same industry.
- 73.86% of the companies in the same industry are more expensive than CTSH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 9.99 |
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 CTSH may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)4.15
EPS Next 2Y9.93%
EPS Next 3Y9.55%
5. Dividend
5.1 Amount
- CTSH has a Yearly Dividend Yield of 1.50%.
- CTSH's Dividend Yield is rather good when compared to the industry average which is at 0.45. CTSH pays more dividend than 86.36% of the companies in the same industry.
- CTSH's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
- The dividend of CTSH is nicely growing with an annual growth rate of 8.46%!
- 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 2Y9.93%
EPS Next 3Y9.55%
74.5
-8.41 (-10.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-04 2026-02-04/bmo
Inst Owners104.24%
Inst Owner Change-1.51%
Ins Owners0.1%
Ins Owner Change-0.91%
Market Cap35.96B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts72.94
Price Target89.5 (20.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend1.21
Dividend Growth(5Y)8.46%
DP28.62%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
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)1.71%
PT rev (3m)4.11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.72 | ||
| P/FCF | 13.56 | ||
| P/OCF | 12.21 | ||
| P/B | 2.41 | ||
| P/tB | 5.68 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)5.14
EY6.9%
EPS(NY)5.74
Fwd EY7.7%
FCF(TTM)5.49
FCFY7.37%
OCF(TTM)6.1
OCFY8.19%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.13
PEG (5Y)4.15
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 | 7.47 |
F-Score7
WACC9.29%
ROIC/WACC1.6
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 Y12.78%
EPS Next 2Y9.93%
EPS Next 3Y9.55%
EPS Next 5Y9.23%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
Revenue Next Year6.88%
Revenue Next 2Y5.76%
Revenue Next 3Y5.71%
Revenue Next 5Y4.89%
EBIT growth 1Y9.5%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year30.42%
EBIT Next 3Y13.67%
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
What is the ChartMill fundamental rating of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CTSH.
What is the valuation status of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?
ChartMill assigns a valuation rating of 5 / 10 to COGNIZANT TECH SOLUTIONS-A (CTSH). This can be considered as Fairly Valued.
Can you provide the profitability details for COGNIZANT TECH SOLUTIONS-A?
COGNIZANT TECH SOLUTIONS-A (CTSH) has a profitability rating of 7 / 10.
What are the PE and PB ratios of COGNIZANT TECH SOLUTIONS-A (CTSH) stock?
The Price/Earnings (PE) ratio for COGNIZANT TECH SOLUTIONS-A (CTSH) is 14.49 and the Price/Book (PB) ratio is 2.41.
Can you provide the expected EPS growth for CTSH stock?
The Earnings per Share (EPS) of COGNIZANT TECH SOLUTIONS-A (CTSH) is expected to grow by 12.78% in the next year.