-0.18%
7.43%
10.75%
9.16%
7.12%
-3.29%
34.59%
AI Spotlight on CTSH
Company Description
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally.It operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology.The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies.
It also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to information, media and entertainment, and communications and technology companies.The company was founded in 1994 and is headquartered in Teaneck, New Jersey.
Market Data
| Last Price | 82.61 |
| Change Percentage | -0.18% |
| Open | 82.98 |
| Previous Close | 82.76 |
| Market Cap ( Millions) | 40960 |
| Volume | 2462746 |
| Year High | 83.4 |
| Year Low | 63.79 |
| M A 50 | 78.97 |
| M A 200 | 74.05 |
Financial Ratios
| FCF Yield | 4.03% |
| Dividend Yield | 1.45% |
| ROE | 16.36% |
| Debt / Equity | 12.89% |
| Net Debt / EBIDTA | -4.28% |
| Price To Book | 2.84 |
| Price Earnings Ratio | 18.19 |
| Price To FCF | 24.84 |
| Price To sales | 2.11 |
| EV / EBITDA | 11.65 |
News
- Jan -30 - Josh Brown's best stocks list: IBM, Gartner, Cognizant Tech, Accenture, Cloudflare and GoDaddy
- Jan -30 - Cognizant Collaborates with Medidata to Provide Specialized Support for Life Sciences Clients
- Jan -30 - Cognizant and Gilead Expand Partnership to Drive Greater Value Through Advanced Technology Applications
- Jan -22 - McDonald's Extends Partnership With Cognizant, Boosts Digital Growth
- Jan -22 - Can Cognizant's Collaboration With McDonald's Push the Stock Higher?
- Jan -21 - Cognizant and McDonald's Renew Strategic Partnership to Transform Global Enterprise Systems, Focus on AI & Cloud Solutions
- Jan -21 - Cognizant and CrowdStrike Partner to Drive Enterprise Cybersecurity Transformation
- Jan -17 - Cognizant Study Shows Consumers Who Embrace AI Could Drive $4.4 Trillion in Spending Over Five Years
- Jan -16 - Cognizant Leads Enterprises into Next Generation of AI Adoption with Neuro® AI Multi-Agent Accelerator and Multi-Agent Services Suite
- Jan -15 - Cognizant Schedules Fourth Quarter 2024 Earnings Release and Conference Call
- Jan -13 - Cognizant Launches Stores 360 to Transform Retail Operations in Collaboration with ServiceNow
- Jan -10 - Cognizant CEO Ravi Kumar S Honored with Prestigious Pravasi Bharatiya Samman Award
- Jan -10 - India's Infosys accuses rival Cognizant of anti-competitive practices
- Jan -09 - Can Cognizant's Collaboration With Siemens Push the Stock Higher?
- Jan -08 - Cognizant Collaborates with Siemens on Solution Accelerator for Software-Defined Vehicles
- Jan -03 - Zacks Industry Outlook Cognizant, Tyler, Guidewire and Q2 Holdings
- Jan -02 - 4 Stocks to Watch From the Robust Business-Software Services Industry
- Dec -20 - CTSH or WIT: Which Is the Better Value Stock Right Now?
- Dec -16 - Cognizant First to Achieve ISO/IEC 42001:2023 Accredited Certification for Artificial Intelligence Management Systems
- Dec -13 - Can Cognizant's Expanding Partner Base Push the Stock Higher in 2025?
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Financial Services
Expected Growth : 4.5 %
What the company do ?
Cognizant's Financial Services segment provides consulting, IT, and business process outsourcing services to banking, insurance, and capital markets companies, helping them transform and thrive in a digital economy.
Why we expect these perspectives ?
Cognizant's 4.5% growth in Financial Services is driven by increasing demand for digital transformation, cloud adoption, and regulatory compliance. Banks and insurers are investing in modernizing their core systems, adopting AI and analytics, and enhancing customer experience. Cognizant's expertise in these areas, combined with its strong relationships with top financial institutions, has enabled the company to capitalize on these trends.
Segment n°2 -> Health Sciences
Expected Growth : 4.8 %
What the company do ?
Health Sciences from Cognizant Technology Solutions Corporation refers to the application of technology solutions to improve healthcare outcomes, enhance patient care, and streamline clinical operations.
Why we expect these perspectives ?
Cognizant's Health Sciences segment growth of 4.8% is driven by increasing demand for digital healthcare solutions, investments in precision medicine, and the need for pharmaceutical companies to optimize their clinical trials and R&D processes. Additionally, the segment benefits from the company's strong relationships with top pharmaceutical and biotech companies, as well as its expertise in regulatory compliance and data analytics.
Segment n°3 -> Products and Resources
Expected Growth : 4.2 %
What the company do ?
Cognizant Technology Solutions Corporation offers a range of products and resources, including digital transformation services, IT consulting, and business process outsourcing, to help clients improve efficiency and reduce costs.
Why we expect these perspectives ?
Cognizant's 4.2% growth in Products and Resources is driven by increasing demand for digital transformation, cloud adoption, and IoT integration. Strong relationships with key clients, expansion into new markets, and strategic acquisitions also contribute to growth. Additionally, the company's investments in emerging technologies such as AI, blockchain, and 5G, as well as its focus on innovation and R&D, further fuel growth in this segment.
Segment n°4 -> Communications, Media and Technology
Expected Growth : 5.5 %
What the company do ?
Communications, Media and Technology (CMT) from Cognizant Technology Solutions Corporation provides industry-specific solutions and services for communications, media, and technology companies.
Why we expect these perspectives ?
Cognizant's Communications, Media and Technology segment growth of 5.5% is driven by increasing demand for digital transformation, cloud adoption, and 5G network deployment. Additionally, growing need for cybersecurity, IoT, and AI solutions, as well as rising investments in digital media and entertainment, contribute to this growth.
Cognizant Technology Solutions Corporation Products
| Product Range | What is it ? |
|---|---|
| Digital Engineering | Cognizant's Digital Engineering services help clients design, build, and implement digital products and platforms that drive business outcomes. |
| Digital Operations | Cognizant's Digital Operations services help clients automate, optimize, and transform their business operations to achieve greater efficiency and agility. |
| Cloud and Infrastructure | Cognizant's Cloud and Infrastructure services help clients migrate, manage, and optimize their IT infrastructure to achieve greater agility, scalability, and cost savings. |
| Data and Artificial Intelligence | Cognizant's Data and Artificial Intelligence services help clients unlock insights, automate decision-making, and drive business outcomes with data-driven solutions. |
| Cybersecurity | Cognizant's Cybersecurity services help clients protect their digital assets from cyber threats and vulnerabilities. |
| Consulting | Cognizant's Consulting services help clients develop business strategies, optimize operations, and implement digital solutions to drive business outcomes. |
Cognizant Technology Solutions Corporation's Porter Forces
Threat Of Substitutes
Cognizant Technology Solutions Corporation faces moderate threat from substitutes due to the presence of various IT service providers and digital transformation companies. However, the company's strong brand reputation and diversified service offerings mitigate this threat to some extent.
Bargaining Power Of Customers
Cognizant's customers have low bargaining power due to the company's strong market position, diversified customer base, and customized service offerings. This reduces the risk of customers negotiating prices or switching to competitors.
Bargaining Power Of Suppliers
Cognizant has a low dependence on suppliers, and its suppliers have limited bargaining power. The company's strong financial position and diversified supply chain mitigate the risk of supplier negotiations or disruptions.
Threat Of New Entrants
The threat of new entrants is low in the IT services industry due to high barriers to entry, including significant capital requirements, complex technology infrastructure, and the need for specialized skills. Cognizant's established brand and strong market position further reduce the threat of new entrants.
Intensity Of Rivalry
The IT services industry is highly competitive, with several established players competing for market share. Cognizant faces intense rivalry from companies like Accenture, Infosys, and Wipro, which can lead to pricing pressures and reduced margins.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 5.65% |
| Debt Cost | 4.10% |
| Equity Weight | 94.35% |
| Equity Cost | 9.36% |
| WACC | 9.06% |
| Leverage | 5.99% |
Cognizant Technology Solutions Corporation : Quality Control
Cognizant Technology Solutions Corporation passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| FI | Fiserv, Inc., together with its subsidiaries, provides payment and financial services technology worldwide. The company operates through Acceptance, Fintech, and Payments segments. The Acceptance segment provides point-of-sale merchant acquiring and … |
| IT | Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. … |
| FIS | Fidelity National Information Services, Inc. provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. The Merchant … |
| IBM | International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and … |
| BR | Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
IBM
A-Score
1-Year Total Return ->
🥈
Fiserv
A-Score
1-Year Total Return ->
🥉
Cognizant
A-Score
1-Year Total Return ->
4
Broadridge Financial Solutions
A-Score
1-Year Total Return ->
5
Gartner
A-Score
1-Year Total Return ->
6
