Cognizant Technology Solutions Corp

Technology
EDP Services
www.cognizant.com

Earnings Score
Moat Score
Safety Score

Market Cap $38.31B
PE 16
Debt $600.00M
Cash $1.98B
EV $36.93B
FCF $2.13B

Earnings

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Sales & Net Margins

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Earnings	$2.36B
EBIT	$3.01B
ROE	16%
ROA	15%
FCF	$2.13B
Equity	$14.90B
Growth Stability	77%
PE	16.25
PEG	1.75
PB	2.57
P/FCF	17.95
P/S	1.91
Price/Cash	0.05
Debt/Equity	0.04
Debt/FCF	0.28
Net Margins	13%
Gross Margins	34%
Op. Margins	15%
Earnings CAGR	5%
Sales Growth YoY	7%
Sales Growth QoQ	1%
Sales CAGR	5%
FCF CAGR	1%
Equity CAGR	4%
Earnings Stability	0.47
Earnings Growth YoY	21%
Earnings Growth QoQ	21%
Earnings CAGR 5Y	9%

Sales CAGR 5Y	4%
FCF CAGR 5Y	-10%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	-12%
Equity CAGR 3Y	9%
Market Cap	$38.31B
Revenue	$20.09B
Dividend Yield	2%
Payout Ratio	26%
Assets	$19.97B
Total Debt	$600.00M
Cash	$1.98B
Shares Outstanding	493M
EV	36.93B
Earnings Score	22%
Moat Score	94%
Safety Score	96%
Final Score	71%
Working Capital	4.14B
Current Ratio	2.22
Gross Profit	$6.88B
Shares Growth 3y	-2%
Equity Growth QoQ	3%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.

SEC Filings

Direct access to Cognizant Technology Solutions Corp (CTSH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cognizant Technology Solutions Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cognizant Technology Solutions Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability 47%

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Cognizant Technology Solutions Corp Discounted Cash Flow

Fully customizable DCF calculator online for Cognizant Technology Solutions Corp.

Years

Calculation mode

= $23B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.1B	$2.2B	$2.2B	$2.2B	$2.3B	$2.3B	$2.3B	$2.4B	$2.4B	$2.4B	$2.5B	$25B
DCF		$2B	$1.8B	$1.7B	$1.5B	$1.4B	$1.3B	$1.2B	$1.1B	$1B	$947M	$9.5B
Value	$23B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	13%	12%	10%	13%	11%	8%	12%	12%	11%	11%	13%
ROA	-	17%	18%	18%	16%	13%	16%	17%	15%	14%	15%
ROE	-	14%	14%	18%	17%	13%	18%	19%	16%	16%	16%

Good Net Margins (12.96%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	0.73	0.46	0.34	0.35	0.24	0.3	0.29	0.32	0.5	0.28
Debt over Equity	0.14	0.09	0.09	0.07	0.07	0.06	0.06	0.05	0.05	0.06	0.04
Growth Stability	-	-	-	100%	100%	77%	100%	100%	100%	100%	77%

Good Debt/FCF ratio (0.28)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.04)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (77%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	9%	10%	9%	4%	-1%	11%	5%	-0%	2%	4%
Earnings YoY growth	-	-4%	-3%	40%	-12%	-24%	54%	7%	-7%	5%	9%
Equity YoY growth	-	16%	-1%	7%	-4%	-2%	11%	3%	7%	9%	7%
FCF YoY growth	-	-30%	61%	4%	-5%	38%	-24%	1%	-10%	-9%	-10%