75.98 USD
+3.63 (+5.02%)
75.98 USD
0 (0%)
CTSH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. CTSH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTSH is not valued too expensively and it also shows a decent growth rate. These ratings would make CTSH suitable 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
Looking at the Return On Assets, with a value of 10.57%, CTSH belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
CTSH has a Return On Equity of 14.28%. This is in the better half of the industry: CTSH outperforms 76.74% of its industry peers.
The Return On Invested Capital of CTSH (14.88%) is better than 88.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTSH is significantly below the industry average of 29.74%.
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
With a decent Profit Margin value of 10.20%, CTSH is doing good in the industry, outperforming 77.91% of the companies in the same industry.
CTSH's Profit Margin has been stable in the last couple of years.
CTSH's Operating Margin of 15.70% is amongst the best of the industry. CTSH outperforms 82.56% 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.
CTSH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTSH has less shares outstanding
Compared to 1 year ago, CTSH has a worse debt to assets ratio.
2.2 Solvency
CTSH has an Altman-Z score of 7.09. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
CTSH has a Altman-Z score of 7.09. This is amongst the best in the industry. CTSH outperforms 87.21% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.22, CTSH belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
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 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.09 |
ROIC/WACC1.71
WACC8.72%
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.
CTSH has a Current ratio of 2.36. This is in the better half of the industry: CTSH outperforms 72.09% of its industry peers.
A Quick Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.36, CTSH is doing good in the industry, outperforming 74.42% 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.
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 Y12.32%
EPS Next 2Y9.73%
EPS Next 3Y9.5%
EPS Next 5Y9.23%
Revenue Next Year6.81%
Revenue Next 2Y5.76%
Revenue Next 3Y5.74%
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
The Price/Earnings ratio is 14.78, which indicates a correct valuation of CTSH.
75.58% of the companies in the same industry are more expensive than CTSH, based on the Price/Earnings ratio.
CTSH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.29, CTSH is valued correctly.
CTSH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 77.91% of the companies in the same industry.
CTSH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTSH is valued cheaply inside the industry as 81.40% of the companies are valued more expensively.
CTSH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
CTSH's 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)1.2
PEG (5Y)4.23
EPS Next 2Y9.73%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
CTSH has a Yearly Dividend Yield of 1.71%.
CTSH's Dividend Yield is rather good when compared to the industry average which is at 2.07. CTSH pays more dividend than 89.53% of the companies in the same industry.
CTSH's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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.
As CTSH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.46%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
CTSH pays out 28.62% of its income as dividend. This is a 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 2Y9.73%
EPS Next 3Y9.5%
75.98
+3.63 (+5.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner Change1.44%
Ins Owners0.1%
Ins Owner Change0.97%
Market Cap36.67B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts72.35
Price Target86.62 (14%)
Short Float %6.12%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)-2.06%
PT rev (3m)-2.91%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)1.4%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 13.29 | ||
| P/S | 1.76 | ||
| P/FCF | 13.83 | ||
| P/OCF | 12.45 | ||
| P/B | 2.46 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)5.14
EY6.76%
EPS(NY)5.72
Fwd EY7.53%
FCF(TTM)5.49
FCFY7.23%
OCF(TTM)6.1
OCFY8.03%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.2
PEG (5Y)4.23
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 | 7.09 |
F-Score7
WACC8.72%
ROIC/WACC1.71
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 Y12.32%
EPS Next 2Y9.73%
EPS Next 3Y9.5%
EPS Next 5Y9.23%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%7.36%
Revenue Next Year6.81%
Revenue Next 2Y5.76%
Revenue Next 3Y5.74%
Revenue Next 5Y4.89%
EBIT growth 1Y9.5%
EBIT growth 3Y2.07%
EBIT growth 5Y2.53%
EBIT Next Year28.81%
EBIT Next 3Y13.14%
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 6 / 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 14.78 and the Price/Book (PB) ratio is 2.46.
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%.