Cognizant Technology Solutions Corp (CTSH, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $70.19 and a daily gain of 1.93%, despite a three-month decline of -9.26%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Cognizant Technology Solutions Corp as a contender for significant future success.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, assessing stocks based on five key valuation aspects. This system, which has been backtested from 2006 to 2021, reveals that stocks with higher GF Scores typically yield superior long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Cognizant Technology Solutions Corp boasts a GF Score of 92, suggesting a strong potential for market-leading returns.
- Financial strength rank: 9/10
- Profitability rank: 9/10
- Growth rank: 8/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding Cognizant Technology Solutions Corp Business
Cognizant Technology Solutions Corp, with a market cap of $34.90 billion and annual sales of $19.30 billion, is a leading global IT services provider. The company specializes in consulting and outsourcing services across various industries including financial services, healthcare, and consumer products. Headquartered in Teaneck, New Jersey, Cognizant employs nearly 300,000 people worldwide, with a significant presence in India. Its operating margin stands at 15.2%, reflecting efficient management and strong profitability.
Financial Strength Breakdown
Cognizant Technology Solutions Corp's financial robustness is evident through its impressive Interest Coverage ratio of 68.23, significantly surpassing the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 7.03 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.07 showcases prudent debt management.
Profitability and Growth Metrics
The company's Profitability Rank and Predictability Rank of 3.5 stars reflect its consistent operational performance and ability to generate profits. Growth is also a strong suit for Cognizant, with a 3-Year Revenue Growth Rate of 7.6% and notable EBITDA growth, highlighting its ongoing expansion and market penetration.
Conclusion
Considering Cognizant Technology Solutions Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's strong position for potential market outperformance. For investors seeking similar opportunities, explore more high-scoring companies with our GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
