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64.38 (1y: +6%)
Market Cap 18.74 B P/E(ttm) 17.90
Enterprise Value 16.32 B P/B 4.10
CTSH- NAS (USA)
Cognizant Technology Solutions Corporation
  • Currently 4/5
Business Predictability Rank: 4-Star
Back Testing Results:
Average gain of all 4-Star stocks: 9.8% per year.
% of Stocks that are in still loss if held for 10yrs: 8%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$64.38
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GuruFocus Financial Strength Rank measures how strong a companyย’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 : 9/10

vs
industry		 vs
history
Cash to Debt No Debt
CTSH's Cash to Debt is ranked higher than
59% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 10000.00 vs. CTSH: No Debt )
CTSH' s 10-Year Cash to Debt Range
Min: No Debt   Max: No Debt
Current: No Debt
Equity to Asset 0.684
CTSH's Equity to Asset is ranked higher than
75% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.49 vs. CTSH: 0.684 )
CTSH' s 10-Year Equity to Asset Range
Min: 0.59   Max: 0.78
Current: 0.68
0.59
0.78
Interest Coverage No Debt
CTSH's Interest Coverage is ranked higher than
62% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 10000.00 vs. CTSH: No Debt )
CTSH' s 10-Year Interest Coverage Range
Min: No Debt   Max: No Debt
Current: No Debt
F-Score: 4
Z-Score: 11.21
M-Score: -2.43
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 : 8/10

vs
industry		 vs
history
Operating margin (%) 18.50
CTSH's Operating margin (%) is ranked higher than
87% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.40 vs. CTSH: 18.50 )
CTSH' s 10-Year Operating margin (%) Range
Min: 17.9   Max: 20.1
Current: 18.5
17.9
20.1
Net-margin (%) 14.3
CTSH's Net-margin (%) is ranked higher than
85% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.50 vs. CTSH: 14.3 )
CTSH' s 10-Year Net-margin (%) Range
Min: 12.5   Max: 18.8
Current: 14.3
12.5
18.8
ROE (%) 21.7
CTSH's ROE (%) is ranked higher than
92% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.80 vs. CTSH: 21.7 )
CTSH' s 10-Year ROE (%) Range
Min: 20.2   Max: 26.7
Current: 21.7
20.2
26.7
ROA (%) 16.1
CTSH's ROA (%) is ranked higher than
95% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.00 vs. CTSH: 16.1 )
CTSH' s 10-Year ROA (%) Range
Min: 14.9   Max: 19.1
Current: 16.1
14.9
19.1
ROC (Joel Greenblatt) (%) 88.10
CTSH's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.20 vs. CTSH: 88.10 )
CTSH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 65   Max: 169
Current: 88.1
65
169
Revenue Growth (%) 21.9
CTSH's Revenue Growth (%) is ranked higher than
97% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.20 vs. CTSH: 21.9 )
CTSH' s 10-Year Revenue Growth (%) Range
Min: 20.3   Max: 36.6
Current: 21.9
20.3
36.6
EBITDA Growth (%) 20.5
CTSH's EBITDA Growth (%) is ranked higher than
93% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.90 vs. CTSH: 20.5 )
CTSH' s 10-Year EBITDA Growth (%) Range
Min: 19.7   Max: 34.1
Current: 20.5
19.7
34.1
EPS Growth (%) 17.9
CTSH's EPS Growth (%) is ranked higher than
92% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.85 vs. CTSH: 17.9 )
CTSH' s 10-Year EPS Growth (%) Range
Min: 17.9   Max: 42.8
Current: 17.9
17.9
42.8
ยป CTSH's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

CTSH Guru Trades in Q2 2012

Paul Tudor Jones 11,500 sh (New)
Joel Greenblatt 3,509 sh (New)
Ruane Cunniff 154,950 sh (New)
Lee Ainslie 5,587,749 sh (+659.96%)
Jim Simons 568,076 sh (+345.98%)
David Rolfe 1,072,106 sh (+58.74%)
Steve Mandel 8,499,329 sh (+46.27%)
Steven Cohen 72,938 sh (+44.58%)
Andreas Halvorsen Sold Out
Ron Baron Sold Out
RS Investment Management 76,680 sh (-2.29%)
Jeremy Grantham 270,797 sh (-23.42%)
Murray Stahl 20,000 sh (-44.44%)
» More
Q3 2012

CTSH Guru Trades in Q3 2012

Ray Dalio 60,707 sh (New)
Alan Fournier 1,050,000 sh (New)
Steve Mandel 10,591,794 sh (+24.62%)
David Rolfe 1,199,352 sh (+11.87%)
Murray Stahl 20,000 sh (unchged)
Ruane Cunniff 154,950 sh (unchged)
Joel Greenblatt Sold Out
Jim Simons Sold Out
RS Investment Management Sold Out
Jeremy Grantham 225,197 sh (-16.84%)
Lee Ainslie 3,046,440 sh (-45.48%)
Paul Tudor Jones 4,000 sh (-65.22%)
Steven Cohen 13,874 sh (-80.98%)
» More
Q4 2012

CTSH Guru Trades in Q4 2012

Jim Simons 5,300 sh (New)
George Soros 529,800 sh (New)
Alan Fournier 1,886,977 sh (+79.71%)
David Rolfe 1,507,856 sh (+25.72%)
Steve Mandel 10,912,591 sh (+3.03%)
Jeremy Grantham 199,202 sh (unchged)
Murray Stahl 20,000 sh (unchged)
Ruane Cunniff 154,950 sh (unchged)
Ray Dalio Sold Out
Paul Tudor Jones Sold Out
Steven Cohen 12,100 sh (-12.79%)
Lee Ainslie 1,191,269 sh (-60.9%)
» More
Q1 2013

CTSH Guru Trades in Q1 2013

Ray Dalio 35,507 sh (New)
Joel Greenblatt 16,390 sh (New)
Paul Tudor Jones 6,700 sh (New)
Jim Simons 1,253,176 sh (+23544.8%)
Steven Cohen 188,702 sh (+1459.52%)
Jeremy Grantham 279,319 sh (+40.22%)
David Rolfe 1,854,397 sh (+22.98%)
Ruane Cunniff 154,950 sh (unchged)
Murray Stahl 20,000 sh (unchged)
Alan Fournier 1,886,977 sh (unchged)
George Soros Sold Out
Steve Mandel 8,663,768 sh (-20.61%)
Lee Ainslie 659,709 sh (-44.62%)
» More
» Details

Insider Trades

Latest Guru Trades with CTSH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Steve Mandel 2013-03-31 Reduce -20.61%1.05%$73.882 - $80.7 $ 64.53-16%8663768
Lee Ainslie 2013-03-31 Reduce -44.62%0.58%$73.882 - $80.7 $ 64.53-16%659709
George Soros 2013-03-31 Sold Out 0.47%$73.882 - $80.7 $ 64.53-16%0
Joel Greenblatt 2013-03-31 New Buy0.06%$73.882 - $80.7 $ 64.53-16%16390
Ray Dalio 2013-03-31 New Buy0.03%$73.882 - $80.7 $ 64.53-16%35507
Lee Ainslie 2012-12-31 Reduce -60.9%1.71%$64.29 - $74.26 $ 64.53-7%1191269
George Soros 2012-12-31 New Buy0.47%$64.29 - $74.26 $ 64.53-7%529800
Steve Mandel 2012-12-31 Add 3.03%0.15%$64.29 - $74.26 $ 64.53-7%10912591
Ray Dalio 2012-12-31 Sold Out 0.06%$64.29 - $74.26 $ 64.53-7%0
Lee Ainslie 2012-09-30 Reduce -45.48%2.23%$55.35 - $71 $ 64.533%3046440
Steve Mandel 2012-09-30 Add 24.62%0.89%$55.35 - $71 $ 64.533%10591794
Ray Dalio 2012-09-30 New Buy0.06%$55.35 - $71 $ 64.533%60707
Joel Greenblatt 2012-09-30 Sold Out 0.02%$55.35 - $71 $ 64.533%0
Lee Ainslie 2012-06-30 Add 659.96%4.26%$56.51 - $77.29 $ 64.53-1%5587749
Steve Mandel 2012-06-30 Add 46.27%0.95%$56.51 - $77.29 $ 64.53-1%8499329
Ruane Cunniff 2012-06-30 New Buy0.08%$56.51 - $77.29 $ 64.53-1%154950
Joel Greenblatt 2012-06-30 New Buy0.02%$56.51 - $77.29 $ 64.53-1%3509
Ron Baron 2012-06-30 Sold Out 0.01%$56.51 - $77.29 $ 64.53-1%0
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Cognizant Technology Solutions Corporation

Wedgewood Comments on Cognizant Technology - Aug 31, 2012

Cognizant Technology (CTSH) also detracted from performance during the quarter, in part when shares fell -19.2%, in one day, after the company revised its forecasts to include slightly slower future revenue growth due to the challenging macroeconomic environment. The last time Cognizant lowered revenue growth guidance was in July 2008, a period that also featured a challenging macroeconomic environment. Regardless of the economic environment, the company continues to maintain its competitive advantage in the highly attractive IT consulting industry. As is typical of most companies in this industry, nearly all of Cognizant's cost structure is variable. This affords the company tremendous bargaining power relative to customers, since Cognizant has few fixed costs to justify. Cognizant continues to further differentiate itself from its industry peers by aggressively reinvesting in the company's value chain. Specifically, Cognizant continues to expand its outsourced-IT offerings into new and existing industry verticals, such as Manufacturing and Retail & Logistics, by attracting experienced talent from the same industry verticals, and then converting these veterans into world-class consultants. Cognizant further arms their consultants with IT-delivery resources that are primarily located in India, which, thanks to wage-arbitrage, lowers the overall cost of an IT-based function, relative to insourcing. This unique value chain consistently enables Cognizant to offer products and services that enable cost-conscious clients to convert traditionally fixed-IT costs into variable expenses. Clients are then more able to focus on their respective core competencies. This value proposition is still intact and has led Cognizant to quite a bit of market share take over the past few years. Cognizant's financial strength consists of record free cash flow and ample net balance sheet cash, which enables much of this reinvestment flexibility. During the quarter, we added to the position at what we believe were compelling valuations.

From Tony Guerrerio's second quarter letter.


Check out David Rolfe latest stock trades

Top Ranked Articles about Cognizant Technology Solutions Corporation

Introducing New Guru David Rolfe, Added to EXPD, CTSH, VAR, QCOM in Q2
September 4, 2012
David Rolfe - Introducing New Guru David Rolfe, Added To EXPD, CTSH, VAR, QCOM In Q2
Wedgewood Partners is a new firm that GuruFocus tracks. The firm manages assets of about $2 billion and employs a long-term, long-only, value approach for its portfolio of 18-24 stocks. Its CIO is David Rolfe, and it has returns of 38.4% compared to a 1.1% loss for the S&P 500 cumulatively for the last five years, and 316.1% compared to 124.3% cumulatively for the last fifteen years. Read more...
Wedgewood Comments on Cognizant Technology
August 31, 2012
Cognizant Technology (CTSH) also detracted from performance during the quarter, in part when shares fell -19.2%, in one day, after the company revised its forecasts to include slightly slower future revenue growth due to the challenging macroeconomic environment. The last time Cognizant lowered revenue growth guidance was in July 2008, a period that also featured a challenging macroeconomic environment. Regardless of the economic environment, the company continues to maintain its competitive advantage in the highly attractive IT consulting industry. As is typical of most companies in this industry, nearly all of Cognizant's cost structure is variable. This affords the company tremendous bargaining power relative to customers, since Cognizant has few fixed costs to justify. Cognizant continues to further differentiate itself from its industry peers by aggressively reinvesting in the company's value chain. Specifically, Cognizant continues to expand its outsourced-IT offerings into new and existing industry verticals, such as Manufacturing and Retail & Logistics, by attracting experienced talent from the same industry verticals, and then converting these veterans into world-class consultants. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 18.00
CTSH's P/E(ttm) is ranked higher than
75% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 25.05 vs. CTSH: 18.00 )
CTSH' s 10-Year P/E(ttm) Range
Min: 11.21   Max: 108.76
Current: 18
11.21
108.76
P/B 4.10
CTSH's P/B is ranked lower than
79% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.90 vs. CTSH: 4.10 )
CTSH' s 10-Year P/B Range
Min: 2.53   Max: 27.74
Current: 4.1
2.53
27.74
P/S 2.60
CTSH's P/S is ranked lower than
75% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.40 vs. CTSH: 2.60 )
CTSH' s 10-Year P/S Range
Min: 1.75   Max: 13.53
Current: 2.6
1.75
13.53
PFCF 24.60
CTSH's PFCF is ranked lower than
59% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.41 vs. CTSH: 24.60 )
CTSH' s 10-Year PFCF Range
Min: 15.9   Max: 138.02
Current: 24.6
15.9
138.02
EV-to-EBIT 11.5
CTSH's EV-to-EBIT is ranked higher than
81% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.35 vs. CTSH: 11.5 )
CTSH' s 10-Year EV-to-EBIT Range
Min: 8.5   Max: 73.5
Current: 11.5
8.5
73.5
PEG 0.7
CTSH's PEG is ranked higher than
97% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.37 vs. CTSH: 0.7 )
CTSH' s 10-Year PEG Range
Min: 0.25   Max: 1.85
Current: 0.7
0.25
1.85
Shiller P/E 26.8
CTSH's Shiller P/E is ranked higher than
84% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 22.91 vs. CTSH: 26.8 )
CTSH' s 10-Year Shiller P/E Range
Min: 21.05   Max: 149.09
Current: 26.8
21.05
149.09

Valuation & Return

vs
industry		 vs
history
Price/Net Cash 16.3
CTSH's Price/Net Cash is ranked higher than
94% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.20 vs. CTSH: 16.3 )
CTSH' s 10-Year Price/Net Cash Range
Min: 15.3   Max: 37.8
Current: 16.3
15.3
37.8
Price/Net Current Asset Value 16.9
CTSH's Price/Net Current Asset Value is ranked higher than
85% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 13.80 vs. CTSH: 16.9 )
CTSH' s 10-Year Price/Net Current Asset Value Range
Min: 12.4   Max: 73
Current: 16.9
12.4
73
Price/Tangible Book 4.4
CTSH's Price/Tangible Book is ranked higher than
84% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.85 vs. CTSH: 4.4 )
CTSH' s 10-Year Price/Tangible Book Range
Min: 3.1   Max: 14
Current: 4.4
3.1
14
Price/DCF (Projected) 1.7
CTSH's Price/DCF (Projected) is ranked higher than
93% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.40 vs. CTSH: 1.7 )
CTSH' s 10-Year Price/DCF (Projected) Range
Min: 1.5   Max: 6.8
Current: 1.7
1.5
6.8
Price/Median PS Value 0.5
CTSH's Price/Median PS Value is ranked higher than
65% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.80 vs. CTSH: 0.5 )
CTSH' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 2
Current: 0.5
0.4
2
Price/Peter Lynch Fair Value 0.7
CTSH's Price/Peter Lynch Fair Value is ranked higher than
91% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.90 vs. CTSH: 0.7 )
CTSH' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.5   Max: 2.4
Current: 0.7
0.5
2.4
Price/Graham Number 1.9
CTSH's Price/Graham Number is ranked higher than
85% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.20 vs. CTSH: 1.9 )
CTSH' s 10-Year Price/Graham Number Range
Min: 1.3   Max: 6.1
Current: 1.9
1.3
6.1
Earnings Yield (Greenblatt) 8.70
CTSH's Earnings Yield (Greenblatt) is ranked higher than
88% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.80 vs. CTSH: 8.70 )
CTSH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.4   Max: 11.8
Current: 8.7
1.4
11.8
Forward Rate of Return (Yacktman) 29.35
CTSH's Forward Rate of Return (Yacktman) is ranked higher than
97% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.38 vs. CTSH: 29.35 )
CTSH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 29.3   Max: 49
Current: 29.35
29.3
49

Business Description

Cognizant Tech Sol is a provider of custom IT consulting and technology services as well as outsourcing services for Global 2000 Companies located in North America, Europe and Asia. Its core competencies include Technology Strategy Consulting, Complex Systems Development, Enterprise Software Package Implementation and Maintenance, Data Warehousing & Business Intelligence, Application Testing, Application Maintenance, Infrastructure Management, and Vertically-Oriented Business Process Outsourcing. Cognizant tailors its services to specific industries, and utilizes an integrated on-site/offshore business model. This on-site/offshore business model combines technical and account management teams located on-site at the customer location and offshore at dedicated development centers located in India. The company's business is organized and managed primarily around its four vertically-oriented business segments: Financial Services; Healthcare; Manufacturing, Retail & Logistics; and Other - which include Telecommunications, Information Services, Media and High Technology. Its Financial Services segment provides services to its customers operating in the following industries: Capital Markets, Banking and Insurance. Its Health Care segment provides services to its customers operating in the following industries: Healthcare and Life Sciences. It's Manufacturing, Logistics, and Retail segment services customers in the following industry groups; Manufacturing and Logistics and Retail. The Other business segment includes telecommunications, information services media and high technology operating segments. The Company markets and sells its services directly through its professional staff, senior management and direct sales personnel operating out of its Teaneck, New Jersey headquarters and its business development offices located across the country and the world in Atlanta, Chicago, Dallas, Minneapolis, Phoenix, Los Angeles, San Francisco, Teaneck, London, Amsterdam, Frankfurt, Zurich, Geneva, Paris, Shanghai, Toronto, Tokyo, Melbourne and Singapore. Its competitors include, among others, Accenture, Capgemini, Computer Sciences Corporation, HCL Technologies, HP Enterprise (formerly Electronic Data Systems), IBM Global Services, Infosys Technologies, Perot Systems (acquired by Dell Inc.), Tata Consultancy Services and Wipro.
Company Website
SEC Reports
Industry: Information Technology Services
Compare:ACN, INFY, IT, CIOXY, AMADY
Traded in other countries:COZ.Germany
ยป More Articles for CTSH

Headlines

Articles On GuruFocus.com
My Top 10 Fairly Valued Fast-Growing Stocks May 14 2013 
Wedgewood Partners Third Quarter 2012 Review and Outlook Nov 12 2012 
Growth Stocks: There Is a Lot of Value in this Market Part 2 Sep 27 2012 
Cognizant Adds Diversity to Board, But Problems Linger Sep 20 2012 
Introducing New Guru David Rolfe, Added to EXPD, CTSH, VAR, QCOM in Q2 Sep 04 2012 
Wedgewood Comments on Cognizant Technology Aug 31 2012 
Wedgewood Partners' Second Quarter Letter Aug 31 2012 
Volatility Is Not Risk Apr 12 2012 
What Are Hedge Fund Gurus Buying? Find Out on GuruFocus Nov 29 2011 
Steve Mandel Top Picks = Growth at Attractive Prices Nov 24 2011 

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