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Company Analysis

Cognizant Technology Solutions CTSH

A comprehensive view of key metrics, scores, and financial health for Cognizant Technology Solutions

Overview of Cognizant Technology Solutions Corporation

CTSH NMS
Technology Information Technology Services Framework: Software & SaaS Large Cap
Cognizant Technology Solutions Corporation (CTSH), is a Large Cap company, in the Information Technology Services industry, last closed at $65.09, about 212.1% undervalued vs fair value, -10.6% 1Y return, ranked 307/780 in sector.
Metrics P/E 18.2× Rev Growth 7.0% ROE 15.2% Gross Margin 33.7% Div Yield 1.52%
USD 65.09
-0.03%
(Delayed)
• Vol 90d: 47.9%
52-Week Range
Market Cap
$29.10B
Enterprise Value
$29.62B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 100%
Confidence: 96%
Updated: Oct 31
Top Beats
No strong beats yet

Quick Facts

Website https://www.cognizant.com
HQ Teaneck, NJ
Employees 351,600
Fiscal year Dec 31

Next Events

Dividend Nov 13

Fair Value Snapshot

Bear Base Bull
$186
$203
$223
Current: $65.09 +212% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$21.1B
7%%
Gross Profit
$7.1B
5%%
Operating Income (GAAP)
$3.4B
17.2%%
Operating Cash Flow
$2.9B
35.7%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
33.7%
Good

Gross Profit / Revenue — delivery margin (IT services benchmark: 30–50%)

Locked Metric
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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$2.0B
76.6% of FCF

Where It Leaks

Cash Flow Health healthy
Strong cash conversion with minimal leakage across profit-to-cash-to-value chain.
1
Active Leaks
1/1
Improving
0
High Impact
0
Critical
Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Cognizant Technology Solutions 's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
69
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Premium Software Margins Gross margin quality is strong versus peers (score 0.70), consistent with premium software economics.
  • Consistent Subscription Growth Revenue consistency is strong (score 0.86), pointing to a sticky customer base.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 98% Coverage
Trade-Off Triangle Visualization A ternary plot showing CTSH's balance between Growth (28.4%), Profitability (31.9%), and Safety (39.7%). Growth 28% Safety 40% Profitability 32%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

48th percentile vs peers
48
Key Signals
Rev Growth YoY 7.0% 42p Def Rev Growth 12.1% 58p Revenue CAGR 3Y 2.8% 33p TSR 9.6% 61p Buyback % -3.2% 84p
Strengths
  • Interest Coverage Ratio in top 20% of peers (95.03, 91th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Operating Margin in top 20% of peers (16.1%, 83th percentile)
  • Strong liquidity position vs peers
Risks

No significant risks identified for this axis.

Profitability

54th percentile vs peers
54
Key Signals
Strengths
Risks
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Safety

67th percentile vs peers
68
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for Cognizant Technology Solutions .

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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

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  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$203.14
- - -
+212.1% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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