Logo image of CTSH

COGNIZANT TECH SOLUTIONS-A (CTSH) Stock Fundamental Analysis

USA - NASDAQ:CTSH - US1924461023 - Common Stock

67.42 USD
-0.63 (-0.93%)
Last: 10/28/2025, 10:06:05 AM
Fundamental Rating

7

Overall CTSH gets a fundamental rating of 7 out of 10. We evaluated CTSH against 85 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 has a correct valuation and a medium growth rate. This makes CTSH very considerable for quality investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year CTSH was profitable.
CTSH had a positive operating cash flow in the past year.
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.
CTSH Yearly Net Income VS EBIT VS OCF VS FCFCTSH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

CTSH's Return On Assets of 12.08% is amongst the best of the industry. CTSH outperforms 91.76% of its industry peers.
CTSH's Return On Equity of 15.93% is fine compared to the rest of the industry. CTSH outperforms 78.82% of its industry peers.
The Return On Invested Capital of CTSH (14.18%) is better than 87.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTSH is significantly below the industry average of 21.61%.
Industry RankSector 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%
CTSH Yearly ROA, ROE, ROICCTSH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

CTSH's Profit Margin of 11.89% is amongst the best of the industry. CTSH outperforms 83.53% of its industry peers.
CTSH's Profit Margin has been stable in the last couple of years.
CTSH has a better Operating Margin (15.52%) than 81.18% of its industry peers.
In the last couple of years the Operating Margin of CTSH has remained more or less at the same level.
With a Gross Margin value of 34.18%, CTSH perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
CTSH's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CTSH Yearly Profit, Operating, Gross MarginsCTSH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

8

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.
Compared to 1 year ago, CTSH has less shares outstanding
CTSH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CTSH is higher compared to a year ago.
CTSH Yearly Shares OutstandingCTSH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
CTSH Yearly Total Debt VS Total AssetsCTSH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

CTSH has an Altman-Z score of 6.95. This indicates that CTSH is financially healthy and has little risk of bankruptcy at the moment.
CTSH's Altman-Z score of 6.95 is amongst the best of the industry. CTSH outperforms 82.35% of its industry peers.
CTSH 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.
CTSH has a Debt to FCF ratio of 0.26. This is amongst the best in the industry. CTSH outperforms 88.24% 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 has a Debt to Equity ratio of 0.04. This is in the better half of the industry: CTSH outperforms 72.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.26
Altman-Z 6.95
ROIC/WACC1.56
WACC9.09%
CTSH Yearly LT Debt VS Equity VS FCFCTSH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.3 Liquidity

CTSH has a Current Ratio of 2.41. This indicates that CTSH is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.41, CTSH is doing good in the industry, outperforming 72.94% of the companies in the same industry.
A Quick Ratio of 2.41 indicates that CTSH has no problem at all paying its short term obligations.
CTSH has a Quick ratio of 2.41. This is in the better half of the industry: CTSH outperforms 72.94% of its industry peers.
Industry RankSector Rank
Current Ratio 2.41
Quick Ratio 2.41
CTSH Yearly Current Assets VS Current LiabilitesCTSH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

5

3. Growth

3.1 Past

CTSH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.99%.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
The Revenue has been growing slightly by 6.34% in the past year.
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.
CTSH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.30% yearly.
EPS Next Y10.77%
EPS Next 2Y8.97%
EPS Next 3Y8.94%
EPS Next 5Y9.47%
Revenue Next Year6.22%
Revenue Next 2Y5.43%
Revenue Next 3Y5.66%
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.
CTSH Yearly Revenue VS EstimatesCTSH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B 25B
CTSH Yearly EPS VS EstimatesCTSH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.48, CTSH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CTSH indicates a rather cheap valuation: CTSH is cheaper than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, CTSH is valued rather cheaply.
CTSH is valuated reasonably with a Price/Forward Earnings ratio of 11.95.
80.00% of the companies in the same industry are more expensive than CTSH, based on the Price/Forward Earnings ratio.
CTSH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.48
Fwd PE 11.95
CTSH Price Earnings VS Forward Price EarningsCTSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

81.18% of the companies in the same industry are more expensive than CTSH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTSH indicates a somewhat cheap valuation: CTSH is cheaper than 77.65% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.43
EV/EBITDA 8.58
CTSH Per share dataCTSH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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)1.25
PEG (5Y)3.86
EPS Next 2Y8.97%
EPS Next 3Y8.94%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.82%, CTSH has a reasonable but not impressive dividend return.
CTSH's Dividend Yield is rather good when compared to the industry average which is at 2.50. CTSH pays more dividend than 88.24% of the companies in the same industry.
CTSH's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
Industry RankSector Rank
Dividend Yield 1.82%

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
CTSH Yearly Dividends per shareCTSH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

24.92% 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.
DP24.92%
EPS Next 2Y8.97%
EPS Next 3Y8.94%
CTSH Yearly Income VS Free CF VS DividendCTSH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
CTSH Dividend Payout.CTSH Dividend Payout, showing the Payout Ratio.CTSH Dividend Payout.PayoutRetained Earnings

COGNIZANT TECH SOLUTIONS-A

NASDAQ:CTSH (10/28/2025, 10:06:05 AM)

67.42

-0.63 (-0.93%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)07-30 2025-07-30/amc
Earnings (Next)10-29 2025-10-29/bmo
Inst Owners101.96%
Inst Owner Change-0.27%
Ins Owners0.1%
Ins Owner Change1.05%
Market Cap32.93B
Revenue(TTM)20.49B
Net Income(TTM)2.44B
Analysts71.88
Price Target88.44 (31.18%)
Short Float %5.65%
Short Ratio6.98
Dividend
Industry RankSector Rank
Dividend Yield 1.82%
Yearly Dividend1.21
Dividend Growth(5Y)8.46%
DP24.92%
Div Incr Years5
Div Non Decr Years7
Ex-Date08-18 2025-08-18 (0.31)
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)-0.12%
PT rev (3m)-0.99%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.66%
Valuation
Industry RankSector Rank
PE 13.48
Fwd PE 11.95
P/S 1.61
P/FCF 14.43
P/OCF 12.84
P/B 2.15
P/tB 4.96
EV/EBITDA 8.58
EPS(TTM)5
EY7.42%
EPS(NY)5.64
Fwd EY8.37%
FCF(TTM)4.67
FCFY6.93%
OCF(TTM)5.25
OCFY7.79%
SpS41.95
BVpS31.3
TBVpS13.61
PEG (NY)1.25
PEG (5Y)3.86
Graham Number59.34
Profitability
Industry RankSector 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%
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-Score6
Asset Turnover1.02
Health
Industry RankSector 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 6.95
F-Score6
WACC9.09%
ROIC/WACC1.56
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 Y10.77%
EPS Next 2Y8.97%
EPS Next 3Y8.94%
EPS Next 5Y9.47%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y2.17%
Revenue growth 5Y3.29%
Sales Q2Q%8.14%
Revenue Next Year6.22%
Revenue Next 2Y5.43%
Revenue Next 3Y5.66%
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%

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 13.48 and the Price/Book (PB) ratio is 2.15.


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 24.92%.