Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

Request Deep Dive(50 Feathers)

CTSH

STRONG BUYAPPROVE

Cognizant Technology Solutions Corporation · Technology · United States · $21.5B · Avg Vol: $576M/d

93
StockRank
Get insider-trade alerts
Q
76
V
79
M
40
P/E (TTM)
12.5x
ROE
14.9%
D/E
0.1x
Dividend %
2.3%
AI CONVICTION THESIS

Cognizant Technology Solutions is a large IT services provider screening very cheap on value (V86) with a strong quality score (Q77), a net-cash balance sheet and consistent buybacks and dividends, and it has stabilised revenue growth after several years of underperformance. Nothing adverse is known on accounting, solvency or governance.

COMPANY DESCRIPTION

Cognizant Technology Solutions is a global provider of IT consulting, digital transformation, and business process outsourcing services, helping clients modernize technology and transform experiences. The company leverages its deep industry expertise and global delivery model to serve a diverse client base, maintaining a strong competitive position among top-tier IT service providers. Its scale and comprehensive service offerings are key characteristics in the highly competitive technology services market.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue19.4B19.4B19.7B21.1B2.8%21.6B22.2B23.3B5.0%
EPS4.424.214.524.571.1%4.664.965.469.4%
Shares509.0M498.0M495.0M479.0M-5.9%450.4M
Debt1.5B1.3B1.5B1.2B-9.1%2.1B
Equity12.3B13.2B14.4B15.0B6.8%
Op CF2.6B2.3B2.1B2.9B3.9%2.9B
Inv CF-106.0M-331.0M-1.6B-230.0M
Fin CF-1.9B-1.6B-915.0M-2.3B
Loading 1Y...
PRICE (1Y)+51.3%
38.7343.7048.6653.6358.60Jun 30Jul 22Aug 11
SMA 50SMA 200

Close
$58.60
RSI (14)
86.8
52W High
$85.98
From 52W High
0.7%

SCORE BREAKDOWN

Quality
76
ROIC
20.6%87.3
ROE
14.9%73.2
GP/Assets
35.0%75.5
Op. Margin
17.5%78.9
FCF/Assets
9.2%76.4
Piotroski
780.5
Int. Cover
50.0x84.6
D/E Ratio
0.14x57.7
Current Ratio
2.18x55.8
Value
79
P/E (TTM)
12.5x86.9
EV/EBITDA
6.8x86.5
P/FCF
11.3x76.5
P/B
1.8x71.3
P/S
1.2x75.0
Div Yield
2.3%66.9
Momentum
40
52W High %
68%55.5
RS 6M
-32%24.6
SMA 50/200
0.76x9.5
EPS Rev 4W
+2.1%70.8
EPS Rev 12W
+2.5%67.7
EPS Improve
+35%30.5
Q Growth
-1%31.2

FUNDAMENTALS

Market Cap
$21.5B
P/E (Forward)
9.2x
Gross Margin
33.4%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of CTSH are excluded.

TickerCompanyMkt CapStockRankSignal
CTSHCognizant Technology Solutions Corporation(you)$21.5B93STRONG BUY
BRBroadridge Financial Solutions, Inc.$17.2B81STRONG BUY
CDWCDW Corporation$17.1B80STRONG BUY
ITGartner, Inc.$9.4B91STRONG BUY
INGMIngram Micro Holding Corporation$6.8B93STRONG BUY
JKHYJack Henry & Associates, Inc.$10.7B80STRONG BUY
LDOSLeidos Holdings, Inc.$14.1B73BUY
CACICACI International Inc$10.8B78BUY
FISFidelity National Information Services, Inc.$21.5B61HOLD
SAICScience Applications International Corporation$5.0B90STRONG BUY

Peer medians: ROE 7.8% · P/E 38.7x · Gross margin 54.2%

Cognizant Technology Solutions Corporation (CTSH): Stock Score Summary

Cognizant Technology Solutions Corporation (CTSH) has a MoatMap StockRank of 93/100 based on Quality (76/100), Value (79/100), and Momentum (40/100) factor scores. The current signal is STRONG BUY. Cognizant Technology Solutions is a large IT services provider screening very cheap on value (V86) with a strong quality score (Q77), a net-cash balance sheet and consistent buybacks and dividends, and it has stabilised revenue growth after several years of underperformance. Nothing adverse is known on accounting, solvency or governance.

Cognizant Technology Solutions is a global provider of IT consulting, digital transformation, and business process outsourcing services, helping clients modernize technology and transform experiences. The company leverages its deep industry expertise and global delivery model to serve a diverse client base, maintaining a strong competitive position among top-tier IT service providers. Its scale and comprehensive service offerings are key characteristics in the highly competitive technology services market.

Key Financial Metrics

Price$58.60
Market Cap$21.5B
P/E (TTM)12.51
P/E (Forward)9.23
Price/Book1.82
Return on Equity14.9%
Return on Invested Capital20.6%
Debt/Equity0.14x
Gross Margin33.4%
Operating Margin17.5%
Revenue Growth4.5%
Dividend Yield2.3%
Free Cash Flow$1.9B

Cognizant Technology Solutions Corporation operates in the Information Technology Services industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Cognizant Technology Solutions Corporation’s (CTSH) StockRank?
MoatMap’s StockRank for Cognizant Technology Solutions Corporation (CTSH) is 93/100, with a Strong Buy signal. It is a composite of Quality (76), Value (79), and Momentum (40) factor ranks across MoatMap’s 20,000+ stock universe.
Does Cognizant Technology Solutions Corporation have an economic moat?
Cognizant Technology Solutions Corporation (CTSH) has a Quality factor score of 76/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Cognizant Technology Solutions Corporation a buy, hold, or sell?
MoatMap’s current signal for Cognizant Technology Solutions Corporation (CTSH) is Strong Buy, based on a StockRank of 93/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Cognizant Technology Solutions Corporation in?
Cognizant Technology Solutions Corporation (CTSH) operates in the Technology sector, specifically the Information Technology Services industry (United States).