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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.85
CSC's Cash to Debt is ranked lower than
54% of the 1700 Companies
in the Global Information Technology Services industry.

( Industry Median: 19.19 vs. CSC: 0.85 )
CSC' s 10-Year Cash to Debt Range
Min: 0.03   Max: 0.88
Current: 0.85

0.03
0.88
Equity to Asset 0.35
CSC's Equity to Asset is ranked lower than
56% of the 1653 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.59 vs. CSC: 0.35 )
CSC' s 10-Year Equity to Asset Range
Min: 0.25   Max: 0.52
Current: 0.35

0.25
0.52
Interest Coverage 7.20
CSC's Interest Coverage is ranked lower than
57% of the 1081 Companies
in the Global Information Technology Services industry.

( Industry Median: 554.09 vs. CSC: 7.20 )
CSC' s 10-Year Interest Coverage Range
Min: 3.21   Max: 11.92
Current: 7.2

3.21
11.92
F-Score: 6
Z-Score: 2.48
M-Score: -2.98
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 8.15
CSC's Operating margin (%) is ranked higher than
76% of the 1664 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.60 vs. CSC: 8.15 )
CSC' s 10-Year Operating margin (%) Range
Min: -27.38   Max: 8.15
Current: 8.15

-27.38
8.15
Net-margin (%) 5.19
CSC's Net-margin (%) is ranked higher than
72% of the 1663 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.69 vs. CSC: 5.19 )
CSC' s 10-Year Net-margin (%) Range
Min: -26.72   Max: 6.66
Current: 5.19

-26.72
6.66
ROE (%) 17.22
CSC's ROE (%) is ranked higher than
91% of the 1622 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.80 vs. CSC: 17.22 )
CSC' s 10-Year ROE (%) Range
Min: -152.64   Max: 30.65
Current: 17.22

-152.64
30.65
ROA (%) 5.92
CSC's ROA (%) is ranked higher than
77% of the 1683 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.56 vs. CSC: 5.92 )
CSC' s 10-Year ROA (%) Range
Min: -37.91   Max: 8.54
Current: 5.92

-37.91
8.54
ROC (Joel Greenblatt) (%) 43.49
CSC's ROC (Joel Greenblatt) (%) is ranked higher than
75% of the 1665 Companies
in the Global Information Technology Services industry.

( Industry Median: 30.29 vs. CSC: 43.49 )
CSC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -147.41   Max: 43.49
Current: 43.49

-147.41
43.49
Revenue Growth (%) -5.60
CSC's Revenue Growth (%) is ranked higher than
51% of the 1399 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.80 vs. CSC: -5.60 )
CSC' s 10-Year Revenue Growth (%) Range
Min: -5.6   Max: 17.6
Current: -5.6

-5.6
17.6
EBITDA Growth (%) -1.80
CSC's EBITDA Growth (%) is ranked higher than
62% of the 1147 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.90 vs. CSC: -1.80 )
CSC' s 10-Year EBITDA Growth (%) Range
Min: -9.9   Max: 20.5
Current: -1.8

-9.9
20.5
EPS Growth (%) -1.50
CSC's EPS Growth (%) is ranked higher than
63% of the 1069 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.60 vs. CSC: -1.50 )
CSC' s 10-Year EPS Growth (%) Range
Min: -16.3   Max: 43.1
Current: -1.5

-16.3
43.1
» CSC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

CSC Guru Trades in Q3 2013

Jim Simons 86,600 sh (New)
Louis Moore Bacon 15,000 sh (New)
Ray Dalio 11,420 sh (New)
Steven Cohen 82,288 sh (+39.24%)
Joel Greenblatt 173,488 sh (+39.19%)
Chuck Royce 1,900 sh (unchged)
Dodge & Cox 10,627,420 sh (-2.22%)
Brian Rogers 3,678,300 sh (-2.65%)
Larry Robbins 6,571,110 sh (-9.68%)
David Einhorn 3,556,864 sh (-13.39%)
Jeremy Grantham 12,843 sh (-22.89%)
Paul Tudor Jones 8,300 sh (-49.7%)
David Dreman 1,906 sh (-96.73%)
» More
Q4 2013

CSC Guru Trades in Q4 2013

Paul Tudor Jones 16,026 sh (+93.08%)
Ray Dalio 14,620 sh (+28.02%)
Joel Greenblatt 185,195 sh (+6.75%)
David Einhorn 3,556,864 sh (unchged)
Chuck Royce 1,900 sh (unchged)
Brian Rogers 3,678,300 sh (unchged)
Jim Simons Sold Out
Jeremy Grantham Sold Out
Louis Moore Bacon Sold Out
Dodge & Cox 9,972,770 sh (-6.16%)
Larry Robbins 5,350,689 sh (-18.57%)
Steven Cohen 22,935 sh (-72.13%)
David Dreman 530 sh (-72.19%)
» More
Q1 2014

CSC Guru Trades in Q1 2014

Jim Simons 16,426 sh (New)
Louis Moore Bacon 6,810 sh (New)
David Dreman 2,413 sh (+355.28%)
Joel Greenblatt 511,073 sh (+175.96%)
Chuck Royce Sold Out
Larry Robbins 5,254,142 sh (-1.8%)
Brian Rogers 3,228,300 sh (-12.23%)
David Einhorn 3,100,000 sh (-12.84%)
Dodge & Cox 6,985,814 sh (-29.95%)
Steven Cohen 15,593 sh (-32.01%)
Paul Tudor Jones 8,300 sh (-48.21%)
Ray Dalio 3,520 sh (-75.92%)
» More
Q2 2014

CSC Guru Trades in Q2 2014

Jim Simons 811,900 sh (+4842.77%)
Paul Tudor Jones 22,265 sh (+168.25%)
Joel Greenblatt 777,766 sh (+52.18%)
David Dreman 2,601 sh (+7.79%)
Ray Dalio 3,720 sh (+5.68%)
Louis Moore Bacon 6,597 sh (-3.13%)
David Einhorn 2,325,000 sh (-25%)
Brian Rogers 2,328,300 sh (-27.88%)
Larry Robbins 3,595,901 sh (-31.56%)
Dodge & Cox 2,329,186 sh (-66.66%)
» More
» Details

Insider Trades

Latest Guru Trades with CSC

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Dodge & Cox 2014-06-30 Reduce -66.66%0.29%$58.02 - $64.07 $ 60.44-2%2329186
Joel Greenblatt 2014-06-30 Add 52.18%0.21%$58.02 - $64.07 $ 60.44-2%777766
Joel Greenblatt 2014-03-31 Add 175.96%0.3%$53.4 - $63.61 $ 60.442%511073
Dodge & Cox 2014-03-31 Reduce -29.95%0.17%$53.4 - $63.61 $ 60.442%6985814
Ray Dalio 2014-03-31 Reduce -75.92%0.01%$53.4 - $63.61 $ 60.442%3520
David Dreman 2014-03-31 Add 355.28%0.01%$53.4 - $63.61 $ 60.442%2413
David Dreman 2013-12-31 Reduce -72.19%0.01%$49.26 - $55.83 $ 60.4415%530
Ray Dalio 2013-12-31 Add 28.02%$49.26 - $55.83 $ 60.4415%14620
David Dreman 2013-09-30 Reduce -96.73%0.09%$44.51 - $54.2 $ 60.4421%1906
Joel Greenblatt 2013-09-30 Add 39.19%0.08%$44.51 - $54.2 $ 60.4421%173488
Ray Dalio 2013-09-30 New Buy0.01%$44.51 - $54.2 $ 60.4421%11420
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Computer Sciences Corp

David Einhorn Comments on Computer Sciences Corp - Jan 23, 2013

Computer Sciences Corp. (CSC) is an IT consulting and outsourcing business. In 2011, the stock declined more than 50% due to deteriorating profitability, missed estimates, and controversy relating to the company's large contract with the U.K. National Health Service.We began purchasing shares in February 2012, after the company announced a change in management. We continued purchasing shares throughout the year and established a position at an average price of $27.78 per share. We view CSC as a fundamentally sound business that has had margins well below that of its peers as a result of organizational inefficiencies, historical mismanagement, and various non-recurring charges that obscured underlying earnings. In addition, the company owned several valuable assets, including its high-margin Equifax credit services affiliate that we believed could be monetized at an attractive multiple.

We believe that CSC has earnings power in excess of $4.00 per share and that the new management team is capable of turning the company around to achieve those earnings, and possibly more. The early results have been promising, as CSC has reported two quarters of above-consensus earnings, monetized its Equifax affiliate and initiated a share repurchase program. CSC shares closed the year at $40.05 each. While the stock has appreciated in response to management’s progress to date, we continue to believe that the company has significant opportunities for margin improvement, free cash flow conversion and capital deployment under the leadership of its well incentivized and shareholder-friendly management team.

From David Einhorn's fourth quarter letter.


Check out David Einhorn latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 13.70
CSC's P/E(ttm) is ranked higher than
90% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 47.80 vs. CSC: 13.70 )
CSC' s 10-Year P/E(ttm) Range
Min: 4.37   Max: 39.6
Current: 13.7

4.37
39.6
P/B 2.10
CSC's P/B is ranked higher than
70% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.90 vs. CSC: 2.10 )
CSC' s 10-Year P/B Range
Min: 0.54   Max: 2.52
Current: 2.1

0.54
2.52
P/S 0.70
CSC's P/S is ranked higher than
82% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.25 vs. CSC: 0.70 )
CSC' s 10-Year P/S Range
Min: 0.22   Max: 0.76
Current: 0.7

0.22
0.76
PFCF 9.80
CSC's PFCF is ranked higher than
94% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 104.07 vs. CSC: 9.80 )
CSC' s 10-Year PFCF Range
Min: 4.38   Max: 123.48
Current: 9.8

4.38
123.48
EV-to-EBIT 8.44
CSC's EV-to-EBIT is ranked higher than
90% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 33.95 vs. CSC: 8.44 )
CSC' s 10-Year EV-to-EBIT Range
Min: 6.4   Max: 28.9
Current: 8.44

6.4
28.9
Shiller P/E 261.90
CSC's Shiller P/E is ranked higher than
71% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. CSC: 261.90 )
CSC' s 10-Year Shiller P/E Range
Min: 5.84   Max: 1201.75
Current: 261.9

5.84
1201.75
Current Ratio 1.66
CSC's Current Ratio is ranked higher than
57% of the 1130 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.98 vs. CSC: 1.66 )
CSC' s 10-Year Current Ratio Range
Min: 0.89   Max: 2.33
Current: 1.66

0.89
2.33
Quick Ratio 1.66
CSC's Quick Ratio is ranked higher than
61% of the 1130 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.85 vs. CSC: 1.66 )
CSC' s 10-Year Quick Ratio Range
Min: 0.89   Max: 2.33
Current: 1.66

0.89
2.33

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.40
CSC's Dividend Yield is ranked lower than
55% of the 880 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.62 vs. CSC: 1.40 )
CSC' s 10-Year Dividend Yield Range
Min: 0.3   Max: 3.49
Current: 1.4

0.3
3.49
Dividend Payout 0.21
CSC's Dividend Payout is ranked higher than
93% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. CSC: 0.21 )
CSC' s 10-Year Dividend Payout Range
Min: 0.06   Max: 0.77
Current: 0.21

0.06
0.77
Dividend growth (3y) 4.60
CSC's Dividend growth (3y) is ranked higher than
78% of the 515 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.30 vs. CSC: 4.60 )
CSC' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 4.6
Current: 4.6

0
4.6
Yield on cost (5-Year) 1.40
CSC's Yield on cost (5-Year) is ranked lower than
55% of the 912 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.70 vs. CSC: 1.40 )
CSC' s 10-Year Yield on cost (5-Year) Range
Min: 0.3   Max: 3.49
Current: 1.4

0.3
3.49
Share Buyback Rate 1.30
CSC's Share Buyback Rate is ranked higher than
90% of the 1183 Companies
in the Global Information Technology Services industry.

( Industry Median: -1.20 vs. CSC: 1.30 )
CSC' s 10-Year Share Buyback Rate Range
Min: 6.7   Max: -3.5
Current: 1.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 7.70
CSC's Price/Tangible Book is ranked higher than
52% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.00 vs. CSC: 7.70 )
CSC' s 10-Year Price/Tangible Book Range
Min: 1.68   Max: 194.24
Current: 7.7

1.68
194.24
Price/DCF (Projected) 0.90
CSC's Price/DCF (Projected) is ranked higher than
92% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. CSC: 0.90 )
CSC' s 10-Year Price/DCF (Projected) Range
Min: 0.48   Max: 4.01
Current: 0.9

0.48
4.01
Price/Median PS Value 1.30
CSC's Price/Median PS Value is ranked higher than
54% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.20 vs. CSC: 1.30 )
CSC' s 10-Year Price/Median PS Value Range
Min: 0.45   Max: 3.56
Current: 1.3

0.45
3.56
Price/Graham Number 2.20
CSC's Price/Graham Number is ranked higher than
76% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.90 vs. CSC: 2.20 )
CSC' s 10-Year Price/Graham Number Range
Min: 0.92   Max: 10.05
Current: 2.2

0.92
10.05
Earnings Yield (Greenblatt) 11.30
CSC's Earnings Yield (Greenblatt) is ranked higher than
84% of the 1440 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.60 vs. CSC: 11.30 )
CSC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.5   Max: 15.7
Current: 11.3

3.5
15.7
Forward Rate of Return (Yacktman) 5.93
CSC's Forward Rate of Return (Yacktman) is ranked higher than
73% of the 1246 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.02 vs. CSC: 5.93 )
CSC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 6   Max: 20.9
Current: 5.93

6
20.9

Business Description

Industry: Application Software » Information Technology Services
Compare:ACN, INFY, CTSH, IT, CIOXY » details
Traded in other countries:CS9.Germany
Computer Sciences Corporation is a Nevada corporation founded in 1959. The company provides information technology and business process outsourcing, consulting, systems integration and other information technology services to its customers. The Company targets the delivery of these services within three lines of business or sectors: North American Public Sector (NPS), Managed Services Sector (MSS), and Business Solutions and Services (BSS). Its reportable segments includes : The NPS segment provides services to the U.S. federal government and its agencies, civil departments and branches of military, and operates principally within a regulatory environment subject to governmental contracting and accounting requirements, including Federal Acquisition Regulations, Cost Accounting Standards and audits by various U.S. federal agencies. The MSS segment provides large-scale infrastructure and application outsourcing solutions offerings as well as mid-size services delivery to customers globally. The BSS segment provides industry-specific consulting and systems integration services, business process outsourcing, and intellectual property-based software solutions. Geographically, CSC has major operations throughout North America, Europe, Asia and Australia. During fiscal 2013, the Company announced contract awards, or bookings, with a total contract value (TCV) of approximately $13.8 billion, consisting of $3.5 billion of NPS awards, $6.9 billion of MSS awards, and $3.4 billion of BSS awards. For NPS, announced values for indefinite delivery and indefinite quantity (IDIQ) awards represent the expected contract value at the time a task order is awarded under the contract. The acquisition complements and strengthens CSC's software products, healthcare integration and services portfolio, and its healthcare research and development capabilities as iSOFT provides advanced application solutions across both the public and private sectors. Its operations are subject to the local legal and political environments.
» More Articles for CSC

Headlines

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David Einhorn Comments on Computer Sciences Corp Jan 23 2013 
How Are GuruFocus Model Portfolios Faring Beside the Market in 2012? Dec 28 2012 
Richard Pzena’s Q3 Portfolio Updates: Top Reductions in AVP, CSC and PPG Nov 13 2012 
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