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18.27 (1y: +27%)
Market Cap 1.92 B P/E(ttm) 21.40
Enterprise Value 1.37 B P/B 1.40
CVG- NYSE (USA)
Convergys Corporation
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$18.27
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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 : 8/10

vs
industry		 vs
history
Cash to Debt 10.536
CVG's Cash to Debt is ranked higher than
62% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 7.41 vs. CVG: 10.536 )
CVG' s 10-Year Cash to Debt Range
Min: 0.1   Max: 11.42
Current: 10.54
0.1
11.42
Equity to Asset 0.673
CVG's Equity to Asset is ranked higher than
71% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.56 vs. CVG: 0.673 )
CVG' s 10-Year Equity to Asset Range
Min: 0.41   Max: 0.7
Current: 0.67
0.41
0.7
Interest Coverage 2.8
CVG's Interest Coverage is ranked higher than
52% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 25.60 vs. CVG: 2.8 )
CVG' s 10-Year Interest Coverage Range
Min: 3   Max: 42
Current: 2.8
3
42
F-Score: 6
Z-Score: 4.43
M-Score: -2.05
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 : 7/10

vs
industry		 vs
history
Operating margin (%) 1.90
CVG's Operating margin (%) is ranked higher than
55% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 4.30 vs. CVG: 1.90 )
CVG' s 10-Year Operating margin (%) Range
Min: -6.9   Max: 15.2
Current: 1.9
-6.9
15.2
Net-margin (%) 5
CVG's Net-margin (%) is ranked higher than
70% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 2.70 vs. CVG: 5 )
CVG' s 10-Year Net-margin (%) Range
Min: -3.3   Max: 14.8
Current: 5
-3.3
14.8
ROE (%) 7.3
CVG's ROE (%) is ranked higher than
70% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 4.70 vs. CVG: 7.3 )
CVG' s 10-Year ROE (%) Range
Min: -8.1   Max: 23.7
Current: 7.3
-8.1
23.7
ROA (%) 4.9
CVG's ROA (%) is ranked higher than
72% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 2.90 vs. CVG: 4.9 )
CVG' s 10-Year ROA (%) Range
Min: -3.3   Max: 14.4
Current: 4.9
-3.3
14.4
ROC (Joel Greenblatt) (%) 8.50
CVG's ROC (Joel Greenblatt) (%) is ranked higher than
66% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: 8.50 )
CVG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.8   Max: 104.7
Current: 8.5
-30.8
104.7
Revenue Growth (%) -7.1
CVG's Revenue Growth (%) is ranked lower than
70% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: -7.1 )
CVG' s 10-Year Revenue Growth (%) Range
Min: -7.1   Max: 7
Current: -7.1
-7.1
7
EBITDA Growth (%) 67
CVG's EBITDA Growth (%) is ranked higher than
99% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: 67 )
CVG' s 10-Year EBITDA Growth (%) Range
Min: -56.2   Max: 67
Current: 67
-56.2
67
ยป CVG's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

CVG Guru Trades in Q2 2012

Chuck Royce 3,188,033 sh (+1440.11%)
Paul Tudor Jones Sold Out
NWQ Managers 3,468,295 sh (-24.8%)
Joel Greenblatt 25,693 sh (-82.69%)
Steven Cohen 174,206 sh (-91.55%)
Jim Simons 20,422 sh (-93.43%)
» More
Q3 2012

CVG Guru Trades in Q3 2012

Paul Tudor Jones 25,300 sh (New)
Joel Greenblatt 107,990 sh (+320.31%)
Chuck Royce 4,171,533 sh (+30.85%)
Steven Cohen Sold Out
Jim Simons Sold Out
NWQ Managers 1,949,933 sh (-43.78%)
» More
Q4 2012

CVG Guru Trades in Q4 2012

Steven Cohen 15,627 sh (New)
Joel Greenblatt 159,819 sh (+47.99%)
Paul Tudor Jones 37,400 sh (+47.83%)
Chuck Royce 5,181,422 sh (+24.21%)
NWQ Managers 1,682,577 sh (-13.71%)
» More
Q1 2013

CVG Guru Trades in Q1 2013

John Hussman 231,000 sh (New)
Jim Simons 338,600 sh (New)
Chuck Royce 6,415,617 sh (+23.82%)
Steven Cohen Sold Out
Joel Greenblatt Sold Out
Paul Tudor Jones 21,600 sh (-42.25%)
NWQ Managers 353,244 sh (-79.01%)
» More
» Details

Insider Trades

Latest Guru Trades with CVG

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 Sold Out 0.15%$16.03 - $17.2 $ 18.279%0
John Hussman 2013-03-31 New Buy0.14%$16.03 - $17.2 $ 18.279%231000
Joel Greenblatt 2012-12-31 Add 47.99%0.05%$15.02 - $17.23 $ 18.2714%159819
Joel Greenblatt 2012-09-30 Add 320.31%0.08%$14.42 - $16.25 $ 18.2719%107990
Joel Greenblatt 2012-06-30 Reduce -82.69%0.14%$12.62 - $14.75 $ 18.2734%25693
Joel Greenblatt 2012-03-31 Add 21.77%0.03%$12.19 - $14.02 $ 18.2752%148422
Ray Dalio 2012-03-31 Sold Out 0.0035%$12.19 - $14.02 $ 18.2752%0
Ray Dalio 2011-12-31 New Buy$8.61 - $12.93 $ 18.2760%16213
Joel Greenblatt 2011-09-30 Add 165.81%0.1%$9.2 - $13.97 $ 18.2764%102394
George Soros 2011-09-30 Sold Out 0.0039%$9.2 - $13.97 $ 18.2764%0
Joel Greenblatt 2011-06-30 Add 76.31%0.03%$12.32 - $14.5 $ 18.2736%38521
George Soros 2011-06-30 Reduce -46.86%$12.32 - $14.5 $ 18.2736%20300
Charles Brandes 2011-06-30 Sold Out $12.32 - $14.5 $ 18.2736%0
Joel Greenblatt 2011-03-31 New Buy0.09%$13.17 - $14.72 $ 18.2730%21849
Charles Brandes 2011-03-31 Reduce -57.41%$13.17 - $14.72 $ 18.2730%14779
Charles Brandes 2010-12-31 Reduce -43.78%$10.61 - $13.45 $ 18.2748%34698
George Soros 2010-12-31 Add 56.18%$10.61 - $13.45 $ 18.2748%44200
George Soros 2010-09-30 Reduce -65.36%$9.52 - $11.17 $ 18.2777%28300
Charles Brandes 2010-09-30 Add 68.44%$9.52 - $11.17 $ 18.2777%61718
Charles Brandes 2010-06-30 New Buy$9.8 - $13.72 $ 18.2757%36640
David Dreman 2010-03-31 Sold Out 0.01%$10.68 - $13.05 $ 18.2754%0
George Soros 2010-03-31 Add 44.66%0.01%$10.68 - $13.05 $ 18.2754%88100
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

Ratios

vs
industry		 vs
history
P/E(ttm) 21.40
CVG's P/E(ttm) is ranked higher than
60% of the 1023 Companies
in the Global Software - Application industry.

( Industry Median: 20.80 vs. CVG: 21.40 )
CVG' s 10-Year P/E(ttm) Range
Min: 4.54   Max: 79.79
Current: 21.4
4.54
79.79
P/B 1.40
CVG's P/B is ranked higher than
70% of the 1370 Companies
in the Global Software - Application industry.

( Industry Median: 2.02 vs. CVG: 1.40 )
CVG' s 10-Year P/B Range
Min: 0.44   Max: 8.58
Current: 1.4
0.44
8.58
P/S 1.05
CVG's P/S is ranked higher than
69% of the 1452 Companies
in the Global Software - Application industry.

( Industry Median: 1.69 vs. CVG: 1.05 )
CVG' s 10-Year P/S Range
Min: 0.2   Max: 4.3
Current: 1.05
0.2
4.3
PFCF 63.00
CVG's PFCF is ranked lower than
65% of the 1019 Companies
in the Global Software - Application industry.

( Industry Median: 17.43 vs. CVG: 63.00 )
CVG' s 10-Year PFCF Range
Min: 4.44   Max: 1643.77
Current: 63
4.44
1643.77
EV-to-EBIT 29.4
CVG's EV-to-EBIT is ranked lower than
58% of the 1019 Companies
in the Global Software - Application industry.

( Industry Median: 14.50 vs. CVG: 29.4 )
CVG' s 10-Year EV-to-EBIT Range
Min: 6.1   Max: 41
Current: 29.4
6.1
41
Shiller P/E 37.6
CVG's Shiller P/E is ranked lower than
100% of the Companies
in the Global Software - Application industry.

( Industry Median: vs. CVG: 37.6 )
CVG' s 10-Year Shiller P/E Range
Min: 5.23   Max: 54.52
Current: 37.6
5.23
54.52

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.15
CVG's Dividend Yield is ranked higher than
66% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: 1.15 )
CVG' s 10-Year Dividend Yield Range
Min: 0.32   Max: 1.32
Current: 1.15
0.32
1.32
Dividend Payout 0.6524
CVG's Dividend Payout is ranked higher than
88% of the 550 Companies
in the Global Software - Application industry.

( Industry Median: 0.40 vs. CVG: 0.6524 )
CVG' s 10-Year Dividend Payout Range
Min: 0.18   Max: 0.18
Current: 0.65
Yield on cost (5-Year) 1.20
CVG's Yield on cost (5-Year) is ranked higher than
68% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: 1.20 )
CVG' s 10-Year Yield on cost (5-Year) Range
Min: 0.32   Max: 1.32
Current: 1.2
0.32
1.32
Share Buyback Rate 1.2
CVG's Share Buyback Rate is ranked higher than
95% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: 1.2 )
CVG' s 10-Year Share Buyback Rate Range
Min: 4.4   Max: -1.8
Current: 1.2

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 8.1
CVG's Price/Net Current Asset Value is ranked higher than
69% of the 930 Companies
in the Global Software - Application industry.

( Industry Median: 13.40 vs. CVG: 8.1 )
CVG' s 10-Year Price/Net Current Asset Value Range
Min: 2.1   Max: 25
Current: 8.1
2.1
25
Price/Tangible Book 2.5
CVG's Price/Tangible Book is ranked higher than
64% of the 1116 Companies
in the Global Software - Application industry.

( Industry Median: 3.30 vs. CVG: 2.5 )
CVG' s 10-Year Price/Tangible Book Range
Min: 2.5   Max: 19.2
Current: 2.5
2.5
19.2
Price/DCF (Projected) 1
CVG's Price/DCF (Projected) is ranked higher than
79% of the 551 Companies
in the Global Software - Application industry.

( Industry Median: 1.30 vs. CVG: 1 )
CVG' s 10-Year Price/DCF (Projected) Range
Min: 0.3   Max: 1.7
Current: 1
0.3
1.7
Price/Median PS Value 1.2
CVG's Price/Median PS Value is ranked higher than
59% of the 1300 Companies
in the Global Software - Application industry.

( Industry Median: 1.00 vs. CVG: 1.2 )
CVG' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 3.7
Current: 1.2
0.3
3.7
Price/Graham Number 3.1
CVG's Price/Graham Number is ranked lower than
56% of the 813 Companies
in the Global Software - Application industry.

( Industry Median: 1.80 vs. CVG: 3.1 )
CVG' s 10-Year Price/Graham Number Range
Min: 0.8   Max: 5.6
Current: 3.1
0.8
5.6
Earnings Yield (Greenblatt) 3.40
CVG's Earnings Yield (Greenblatt) is ranked higher than
62% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 3.30 vs. CVG: 3.40 )
CVG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.4   Max: 16.4
Current: 3.4
2.4
16.4
Forward Rate of Return (Yacktman) 4.31
CVG's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 1618 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CVG: 4.31 )
CVG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -1.9   Max: 13
Current: 4.31
-1.9
13

Business Description

Convergys Corporation is a relationship management. The Company provides solutions that drive more value from the relationships its clients have with their customers and employees. Convergys turns these everyday interactions into a source of profit and strategic advantage for its clients. The Company has Two segments: Customer Management, which provides agent-assisted services, automated self-service and technology solutions; Information Management, which provides business support system and operational support system solutions. Convergy's Customer management segment mainly focuses on developing long-term strategic outsourcing relationships with companies in customer-intensive industries and governmental agencies. It focuses on these types of clients because of the complexity of services required, the anticipated growth of their market segments and their increasing need for more cost-effective customer management services. The Company provides customer management services to Sprint Nextel as a subcontractor to International Business Machines . Convergy's Information Management segment serves clients mainly by providing and managing complex BSS/OSS services that address all segments of the communications industry. In terms of Convergys' revenues, its Information Management clients during 2009 were AT&T, Cincinnati Bell Inc.,MetroPCS Communications, Inc., PT Telkomunikasi Seluar (Telkomsel) and Time Warner, Inc.The Company operates approximately 69 contact centers averaging approximately 70,000 square feet per center, with approximately 43,000 production workstations with 24 hours a day and seven days week availability. Convergy's contact centers are located in various parts of the world including the United States, Canada, India and the Philippines. New contact centres are established to accommodate anticipated growth in business or in response to a specific customer need. It is currently adding contact center capacity in the Philippines to accommodate client needs. Convergy's contact centers Employ a range of technology including digital switching, intelligent call routing and tracking, proprietary workforce management systems, case management tools, proprietary software systems, computer telephony integration, interactive voice response, advanced speech recognition, web-based tools and relational database management systems. To protect the Company's proprietary rights, it relies mainly on a combination of U.S. and foreign copyright, trade secret and trademark laws, confidentiality agreements with employees and third parties and protective contractual provisions such as those contained in licenses and other agreements with consultants, suppliers, strategic partners and clients. The Company is subject to certain contractual terms, as well as federal, state and foreign laws and regulations designed to protect personally identifiable information.
Company Website
SEC Reports
Industry: Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE
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