85.18 USD
-0.03 (-0.04%)
85.18 USD
0 (0%)
CTSH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. CTSH gets an excellent profitability rating and is at the same time showing great financial health properties. CTSH has a decent growth rate and is not valued too expensively. These ratings could make CTSH a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year CTSH was profitable.
In the past year CTSH had a positive cash flow from operations.
Each year in the past 5 years CTSH has been profitable.
Each year in the past 5 years CTSH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CTSH (10.57%) is better than 86.36% of its industry peers.
CTSH has a better Return On Equity (14.28%) than 77.27% of its industry peers.
CTSH's Return On Invested Capital of 14.88% is amongst the best of the industry. CTSH outperforms 89.77% 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 29.60%.
The last Return On Invested Capital (14.88%) for CTSH 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
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.
In the last couple of years the Operating Margin of CTSH has remained more or less at the same level.
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
CTSH 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 CTSH has been reduced compared to 1 year ago.
CTSH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CTSH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.60 indicates that CTSH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.60, CTSH belongs to the best of the industry, outperforming 85.23% of the companies in the same industry.
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.
CTSH has a Debt to FCF ratio of 0.22. This is amongst the best in the industry. CTSH outperforms 88.64% 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.
The Debt to Equity ratio of CTSH (0.04) is better than 71.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.6 |
ROIC/WACC1.63
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.36 indicates that CTSH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.36, CTSH is doing good in the industry, outperforming 69.32% of the companies in the same industry.
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.
CTSH has a better Quick ratio (2.36) than 71.59% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y12.68%
EPS Next 2Y9.8%
EPS Next 3Y9.46%
EPS Next 5Y9.23%
Revenue Next Year6.88%
Revenue Next 2Y5.79%
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.
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
A Price/Earnings ratio of 16.57 indicates a correct valuation of CTSH.
73.86% 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 26.61, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.87, which indicates a correct valuation of CTSH.
Based on the Price/Forward Earnings ratio, CTSH is valued a bit cheaper than 76.14% of the companies in the same industry.
CTSH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.57 | ||
| Fwd PE | 14.87 |
4.2 Price Multiples
CTSH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTSH is cheaper than 79.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 70.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.51 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
The 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)1.31
PEG (5Y)4.74
EPS Next 2Y9.8%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
CTSH has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.43, CTSH pays a better dividend. On top of this CTSH pays more dividend than 87.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.87, CTSH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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.
CTSH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP28.62%
EPS Next 2Y9.8%
EPS Next 3Y9.46%
85.18
-0.03 (-0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.25%
Inst Owner Change1.49%
Ins Owners0.1%
Ins Owner Change-0.19%
Market Cap41.11B
Revenue(TTM)20.86B
Net Income(TTM)2.13B
Analysts73.53
Price Target88 (3.31%)
Short Float %6.16%
Short Ratio6.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)2.36%
PT rev (3m)-0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.32%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.57 | ||
| Fwd PE | 14.87 | ||
| P/S | 1.97 | ||
| P/FCF | 15.51 | ||
| P/OCF | 13.96 | ||
| P/B | 2.76 | ||
| P/tB | 6.5 | ||
| EV/EBITDA | 10.28 |
EPS(TTM)5.14
EY6.03%
EPS(NY)5.73
Fwd EY6.72%
FCF(TTM)5.49
FCFY6.45%
OCF(TTM)6.1
OCFY7.16%
SpS43.21
BVpS30.87
TBVpS13.1
PEG (NY)1.31
PEG (5Y)4.74
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 | 7.6 |
F-Score7
WACC9.12%
ROIC/WACC1.63
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 Y12.68%
EPS Next 2Y9.8%
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 Year6.88%
Revenue Next 2Y5.79%
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 16.57 and the Price/Book (PB) ratio is 2.76.
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%.