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Also traded in: Austria, Brazil, Germany, Mexico, Switzerland, UK

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 5.73
NAS:CTSH's Cash-to-Debt is ranked lower than
53% of the 1984 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.56 vs. NAS:CTSH: 5.73 )
Ranked among companies with meaningful Cash-to-Debt only.
NAS:CTSH' s Cash-to-Debt Range Over the Past 10 Years
Min: 2.31  Med: No Debt Max: No Debt
Current: 5.73
Equity-to-Asset 0.75
NAS:CTSH's Equity-to-Asset is ranked higher than
76% of the 1901 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. NAS:CTSH: 0.75 )
Ranked among companies with meaningful Equity-to-Asset only.
NAS:CTSH' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.6  Med: 0.75 Max: 0.85
Current: 0.75
0.6
0.85
Debt-to-Equity 0.08
NAS:CTSH's Debt-to-Equity is ranked higher than
75% of the 1109 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.26 vs. NAS:CTSH: 0.08 )
Ranked among companies with meaningful Debt-to-Equity only.
NAS:CTSH' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.08  Med: 0.11 Max: 0.25
Current: 0.08
0.08
0.25
Debt-to-EBITDA 0.28
NAS:CTSH's Debt-to-EBITDA is ranked higher than
78% of the 1011 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.30 vs. NAS:CTSH: 0.28 )
Ranked among companies with meaningful Debt-to-EBITDA only.
NAS:CTSH' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.28  Med: 0.51 Max: 0.77
Current: 0.28
0.28
0.77
Interest Coverage 108.41
NAS:CTSH's Interest Coverage is ranked lower than
53% of the 1499 Companies
in the Global Information Technology Services industry.

( Industry Median: 148.96 vs. NAS:CTSH: 108.41 )
Ranked among companies with meaningful Interest Coverage only.
NAS:CTSH' s Interest Coverage Range Over the Past 10 Years
Min: 108.41  Med: No Debt Max: No Debt
Current: 108.41
Piotroski F-Score: 6
Altman Z-Score: 10.15
Beneish M-Score: -2.38
WACC vs ROIC
8.60%
27.18%
WACC
ROIC
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 : 8/10

vs
industry
vs
history
Operating Margin % 16.51
NAS:CTSH's Operating Margin % is ranked higher than
82% of the 1924 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.78 vs. NAS:CTSH: 16.51 )
Ranked among companies with meaningful Operating Margin % only.
NAS:CTSH' s Operating Margin % Range Over the Past 10 Years
Min: 16.51  Med: 18.45 Max: 18.97
Current: 16.51
16.51
18.97
Net Margin % 13.42
NAS:CTSH's Net Margin % is ranked higher than
81% of the 1925 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.43 vs. NAS:CTSH: 13.42 )
Ranked among companies with meaningful Net Margin % only.
NAS:CTSH' s Net Margin % Range Over the Past 10 Years
Min: 11.51  Med: 14.38 Max: 16.4
Current: 13.42
11.51
16.4
ROE % 18.47
NAS:CTSH's ROE % is ranked higher than
80% of the 1866 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.42 vs. NAS:CTSH: 18.47 )
Ranked among companies with meaningful ROE % only.
NAS:CTSH' s ROE % Range Over the Past 10 Years
Min: 15.53  Med: 23.31 Max: 27.55
Current: 18.47
15.53
27.55
ROA % 13.82
NAS:CTSH's ROA % is ranked higher than
87% of the 1992 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.97 vs. NAS:CTSH: 13.82 )
Ranked among companies with meaningful ROA % only.
NAS:CTSH' s ROA % Range Over the Past 10 Years
Min: 11.37  Med: 17.5 Max: 22.13
Current: 13.82
11.37
22.13
ROC (Joel Greenblatt) % 96.69
NAS:CTSH's ROC (Joel Greenblatt) % is ranked higher than
75% of the 1954 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.87 vs. NAS:CTSH: 96.69 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
NAS:CTSH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 75.96  Med: 103.07 Max: 111.21
Current: 96.69
75.96
111.21
3-Year Revenue Growth Rate 15.10
NAS:CTSH's 3-Year Revenue Growth Rate is ranked higher than
76% of the 1618 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.30 vs. NAS:CTSH: 15.10 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
NAS:CTSH' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 7.3  Med: 31.1 Max: 51.7
Current: 15.1
7.3
51.7
3-Year EBITDA Growth Rate 14.00
NAS:CTSH's 3-Year EBITDA Growth Rate is ranked higher than
62% of the 1432 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.30 vs. NAS:CTSH: 14.00 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
NAS:CTSH' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 14  Med: 32 Max: 48.3
Current: 14
14
48.3
3-Year EPS without NRI Growth Rate 8.10
NAS:CTSH's 3-Year EPS without NRI Growth Rate is ranked higher than
50% of the 1341 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.10 vs. NAS:CTSH: 8.10 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
NAS:CTSH' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 8.1  Med: 29.6 Max: 60.9
Current: 8.1
8.1
60.9
GuruFocus has detected 5 Warning Signs with Cognizant Technology Solutions Corp NAS:CTSH.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» NAS:CTSH's 30-Y Financials

Financials (Next Earnings Date: 2018-02-08)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q4 2016

CTSH Guru Trades in Q4 2016

Ken Fisher 3,598 sh (New)
George Soros 4,500 sh (New)
Joel Greenblatt 4,783 sh (New)
Manning & Napier Advisors, Inc 253,760 sh (New)
Ray Dalio 45,970 sh (New)
Paul Singer 1,124,440 sh (New)
Alan Fournier 1,739,800 sh (New)
Jana Partners 1,444,283 sh (New)
Richard Pzena 4,732,694 sh (+403.24%)
Jeff Auxier 32,023 sh (+147.32%)
Diamond Hill Capital 989,306 sh (+81.42%)
Charles Brandes 207,416 sh (+79.45%)
Lee Ainslie 58,180 sh (+9.65%)
Zeke Ashton 67,500 sh (+5.47%)
Jeremy Grantham 4,002,864 sh (+4.76%)
Matthews Pacific Tiger Fund 2,436,600 sh (+4.28%)
Paul Singer 3,000,000 sh (unchged)
Jim Simons Sold Out
Pioneer Investments 5,031,362 sh (-3.77%)
David Rolfe 2,526,738 sh (-53.00%)
Paul Tudor Jones 19,195 sh (-56.30%)
» More
Q1 2017

CTSH Guru Trades in Q1 2017

Steven Cohen 832,860 sh (New)
Jerome Dodson 400,000 sh (New)
Jana Partners 2,634,603 sh (+82.42%)
Richard Pzena 6,713,981 sh (+41.86%)
Joel Greenblatt 6,296 sh (+31.63%)
Charles Brandes 262,862 sh (+26.73%)
Diamond Hill Capital 1,220,005 sh (+23.32%)
Jeff Auxier 35,073 sh (+9.52%)
Jeremy Grantham 4,349,611 sh (+8.66%)
Paul Tudor Jones 19,756 sh (+2.92%)
Paul Singer 1,124,440 sh (unchged)
Alan Fournier 1,500,000 sh (unchged)
George Soros Sold Out
Lee Ainslie Sold Out
Manning & Napier Advisors, Inc Sold Out
Zeke Ashton Sold Out
Ken Fisher 3,521 sh (-2.14%)
David Rolfe 2,320,261 sh (-8.17%)
Matthews Pacific Tiger Fund 2,186,600 sh (-10.26%)
Alan Fournier 1,263,100 sh (-27.40%)
Pioneer Investments 3,442,180 sh (-31.59%)
Ray Dalio 21,477 sh (-53.28%)
» More
Q2 2017

CTSH Guru Trades in Q2 2017

Yacktman Focused Fund 330,000 sh (New)
Yacktman Fund 630,000 sh (New)
Donald Yacktman 1,344,261 sh (New)
Jeff Auxier 37,523 sh (+6.99%)
Richard Pzena 7,010,880 sh (+4.42%)
Joel Greenblatt 6,565 sh (+4.27%)
Jeremy Grantham 4,507,196 sh (+3.62%)
Pioneer Investments 3,549,988 sh (+3.13%)
Jerome Dodson 400,000 sh (unchged)
Matthews Pacific Tiger Fund 2,186,600 sh (unchged)
Paul Singer 1,124,440 sh (unchged)
Ken Fisher Sold Out
Ray Dalio Sold Out
Steven Cohen Sold Out
Diamond Hill Capital 1,219,853 sh (-0.01%)
Paul Tudor Jones 19,590 sh (-0.84%)
Charles Brandes 258,052 sh (-1.83%)
Alan Fournier 1,075,100 sh (-14.88%)
Jana Partners 2,212,130 sh (-16.04%)
David Rolfe 1,689,346 sh (-27.19%)
» More
Q3 2017

CTSH Guru Trades in Q3 2017

John Hussman 1,100 sh (New)
Ronald Muhlenkamp 92,220 sh (New)
Ray Dalio 85,695 sh (New)
Jim Simons 551,752 sh (New)
Caxton Associates 2,800 sh (New)
Joel Greenblatt 6,992 sh (+6.50%)
Jerome Dodson 400,000 sh (unchged)
Yacktman Focused Fund 330,000 sh (unchged)
Yacktman Fund 630,000 sh (unchged)
Matthews Pacific Tiger Fund 2,186,600 sh (unchged)
Jeff Auxier 37,523 sh (unchged)
Paul Singer 1,124,440 sh (unchged)
Jana Partners Sold Out
Diamond Hill Capital 1,217,946 sh (-0.16%)
Donald Yacktman 1,339,969 sh (-0.32%)
Pioneer Investments 3,517,647 sh (-0.91%)
Richard Pzena 6,925,051 sh (-1.22%)
Jeremy Grantham 4,020,182 sh (-10.81%)
David Rolfe 1,373,146 sh (-18.72%)
Alan Fournier 850,313 sh (-20.91%)
Charles Brandes 136,684 sh (-47.03%)
Paul Tudor Jones 4,605 sh (-76.49%)
» More
» Details

Insider Trades

Latest Guru Trades with CTSH

(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
Richard Pzena 2017-09-30 Reduce -1.22%0.03%$66.29 - $72.84 $ 71.913%6,925,051
Donald Yacktman 2017-09-30 Reduce -0.32%$66.29 - $72.84 $ 71.913%1,339,969
Charles Brandes 2017-09-30 Reduce -47.03%0.13%$66.29 - $72.84 $ 71.913%136,684
Ronald Muhlenkamp 2017-09-30 New Buy2.12%$66.29 - $72.84 $ 71.913%92,220
Joel Greenblatt 2017-09-30 Add 6.50%$66.29 - $72.84 $ 71.913%6,992
Richard Pzena 2017-06-30 Add 4.42%0.11%$57.78 - $67.91 $ 71.9114%7,010,880
Donald Yacktman 2017-06-30 New Buy0.87%$57.78 - $67.91 $ 71.9114%1,344,261
Yacktman Fund 2017-06-30 New Buy0.67%$57.78 - $67.91 $ 71.9114%630,000
Yacktman Focused Fund 2017-06-30 New Buy0.67%$57.78 - $67.91 $ 71.9114%330,000
Charles Brandes 2017-06-30 Reduce -1.83%$57.78 - $67.91 $ 71.9114%258,052
Joel Greenblatt 2017-06-30 Add 4.27%$57.78 - $67.91 $ 71.9114%6,565
Ken Fisher 2017-06-30 Sold Out $57.78 - $67.91 $ 71.9114%0
Richard Pzena 2017-03-31 Add 41.86%0.66%$51.68 - $60.25 $ 71.9125%6,713,981
Charles Brandes 2017-03-31 Add 26.73%0.05%$51.68 - $60.25 $ 71.9125%262,862
Joel Greenblatt 2017-03-31 Add 31.63%$51.68 - $60.25 $ 71.9125%6,296
Ken Fisher 2017-03-31 Reduce -2.14%$51.68 - $60.25 $ 71.9125%3,521
George Soros 2017-03-31 Sold Out 0.01%$51.68 - $60.25 $ 71.9125%0
Richard Pzena 2016-12-31 Add 403.24%1.21%$49.71 - $57.1 $ 71.9134%4,732,694
Charles Brandes 2016-12-31 Add 79.45%0.08%$49.71 - $57.1 $ 71.9134%207,416
Joel Greenblatt 2016-12-31 New Buy$49.71 - $57.1 $ 71.9134%4,783
George Soros 2016-12-31 New Buy0.01%$49.71 - $57.1 $ 71.9134%4,500
Ken Fisher 2016-12-31 New Buy$49.71 - $57.1 $ 71.9134%3,598
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Business Description

Industry: Application Software » Information Technology Services    NAICS: 541511    SIC: 7371
Compare:TSE:6501, NSE:INFY, XMCE:AMS, NYSE:DXC, BOM:507685, XPAR:CAP, NSE:HCLTECH, XPAR:ATO, TSE:9613, TSX:GIB.A, TSE:6702, XKRX:034730, XKRX:018260, BOM:532540, NYSE:IT, NAS:CDW, TSE:4307, NYSE:LDOS, NYSE:XRX, HKSE:00696 » details
Traded in other countries:CTSH.Austria, CTSH34.Brazil, COZ.Germany, CTSH.Mexico, CTSH.Switzerland, 0QZ5.UK,
Headquarter Location:USA
Cognizant Technology Solutions Corp is an IT services provider. The company provides services such as technology consulting, application outsourcing, systems integration, business process services, and cloud services.

Cognizant is an IT services provider with headquarters in Teaneck, New Jersey. The company was founded in 1994, employs close to 260,000 people, and provides such services as technology consulting, application outsourcing, systems integration, business process services, and cloud services. The firm generates approximately 78% of group revenue from the North American market and roughly 90% of group revenue from its three main industries: financial services, healthcare, and manufacturing, retail, and logistics.

Guru Investment Theses on Cognizant Technology Solutions Corp

David Rolfe Comments on Cognizant - Oct 16, 2017

Cognizant (NASDAQ:CTSH) has been a strong performer throughout the year. In 2016 it proved to be a bit sluggish, particularly when the strong and steady revenue growth typically reported by the Company experienced headwinds in multiple business segments. In their Financial Services segment, 2016 was marked by large money center bank customers spending more cautiously due to the low interest rate environment. Political uncertainty in the U.S. during the election year also impacted spending by their customers. While these large banks continue to take a conservative approach to spending, management has noted some stability in the banking sector relative to last year.

Recall that when we last wrote on Cognizant's performance (about a year ago) we mentioned four Cognizant clients in the HMO industry were all attempting to merge with or acquire each other. This M&A activity caused these clients to pause their project spending until the mergers were either finalized or abandoned. It did not help that these large industry M&A transactions were slowed by regulatory hurdles. Both transactions were ultimately blocked by the Department of Justice and, as we predicted a year ago, spending has since bounced back as these clients are now looking to invest.

Perhaps the largest contributor to Cognizant's performance has been the announcement and implementation of their Strategic Plan earlier this year. The plan focusses mainly on accelerating the Company's shift to Digital Services (from a majority IT Services today) through both organic investments and acquisitions. Digital Services make up approximately 26% of total Company revenue (this is up from 23% of total revenue when the plan was first announced). However, these revenues are growing well above the Company average. While the digital market is not without competition, we certainly believe there is enough addressable market for Cognizant to take a reasonable share.

Additional initiatives of the Strategic Plan include improving margins and enhancing capital deployment. Historically, management has targeted a fairly steady operating margin level of 19-20%. As part of this plan, Cognizant is targeting 22% operating margins by 2019, a fairly substantial expansion but one we believe is achievable as the Company optimizes its cost structure. The shift to digital also helps in this area as these revenues generate higher margins in addition to growing faster than the Company average. Capital deployment plans include increased capital returns which include both share buybacks and dividends (the Company had not paid a dividend prior to the announcement of this plan), with a plan in place to return 75% of U.S.-generated free cash flow from 2019 onward.



From David Rolfe (Trades, Portfolio)'s Wedgewood Partners 3rd quarter shareholder letter.

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Jerome Dodson Comments on Cognizant - Apr 26, 2017

The second stock we added was Cognizant (NASDAQ:CTSH), the information technology (IT) consultant. The company’s revenue grew at an amazing 30% annualized rate between 2005 and 2015, as technology transformed business models in its focus areas of financial services and healthcare. Over the past year, growth has slowed to an 8%-10% range as some IT projects have shifted to data centers and the cloud, while banks and health insurers have reduced spending due to regulatory uncertainty. Even if Cognizant grows at a high single-digit clip, we believe our upside is significant due to management’s newfound focus on increasing margins and returning cash to shareholders.

Jerome Dodson (Trades, Portfolio)'s first quarter 2017 Parnassus Funds commentary.

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Zeke Ashton Comments on Cognizant Solutions - Jan 06, 2017

Cognizant Solutions (NASDAQ:CTSH) is a leading provider of outsourced business processing and technology solutions, providing mission-critical services to a base of over 1,200 mostly large global corporate customers primarily in the areas of banking and insurance, healthcare, logistics, and manufacturing. As an indication of just how successful Cognizant has been, a quick review of the financials from 2005 to 2015 reveals a business that grew top-line revenue roughly 14-fold from $885 million to $12.4 billion. Even more impressively, cash flow profitability improved from $68 million to $1.8 billion (roughly 26-fold) during the same span as the company achieved scale and operating leverage. We initially began buying Cognizant stock following the “Brexit” vote. We added to the Fund’s position when the stock sold off further in late September after the company disclosed an internal investigation related to improper payments made by company personnel in India that could be in violation of U.S. anti-bribery laws. We made this incremental investment in the belief that this unfortunate situation is likely to be an issue that will ultimately be resolved without significant financial liability or reputational damage to Cognizant. The stock had already recovered some of its losses by the end of October.




From Zeke Ashton (Trades, Portfolio)'s Centaur Management 2016 annual letter to investors.

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David Rolfe Comments on Cognizant - Oct 21, 2016

Cognizant (NASDAQ:CTSH) also detracted from overall performance during the quarter, due to management’s cautious commentary related to the demand environment in two of their core customer verticals. Management’s caution about IT spend in Cognizant’s BFS (Banking and Financial Services) segment trace back to the prolonged low interest rate environment along with increased uncertainty in the macro environment—particularly attributed to the “Brexit” vote, which was relatively fresh news at the time of management’s comments. We do not think this weakness has materialized in the near-term, at least to the extent that management was implying. In addition, but not necessarily new, Cognizant has four clients in the HMO (health-maintenance organization) industry, all attempting to merge with or acquire the other. Though the extended timeline of these M&A deals likely pushes out the timing of expected work for Cognizant at each of these four clients, we think Cognizant’s longer-term positioning as a key partner at all four HMOs will continue to allow them to capture wallet share, regardless of M&A outcomes. Near-term, we expect investors to remain skittish around the shares, if only because the investor base has been skittish for years, with the NTM P/E multiple of Cognizant typically vacillating 20%-30% per year. Despite these recent headwinds to topline growth, we think Cognizant maintains a long- term runway for generating attractive organic growth, as the company benefits from the secular shift of IT spend towards digital solutions. The Company maintains excellent financial strength, with nearly $8 billion in borrowing capacity before reaching the average net debt to operating income leverage of the S&P 500—close to 25% of the current market cap.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners third-quarter 2016 shareholder letter.

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David Rolfe Comments on Cognizant - Oct 17, 2016

Cognizant (NASDAQ:CTSH) also detracted from overall performance during the quarter, due to management’s cautious commentary related to the demand environment in two of their core customer verticals. Management’s caution about IT spend in Cognizant’s BFS (Banking and Financial Services) segment trace back to the prolonged low interest rate environment along with increased uncertainty in the macro environment—particularly attributed to the “Brexit” vote, which was relatively fresh news at the time of management’s comments. We do not think this weakness has materialized in the near-term, at least to the extent that management was implying. In addition, but not necessarily new, Cognizant has four clients in the HMO (health-maintenance organization) industry, all attempting to merge with or acquire the other. Though the extended timeline of these M&A deals likely pushes out the timing of expected work for Cognizant at each of these four clients, we think Cognizant’s longer-term positioning as a key partner at all four HMOs will continue to allow them to capture wallet share, regardless of M&A outcomes. Near-term, we expect investors to remain skittish around the shares, if only because the investor base has been skittish for years, with the NTM P/E multiple of Cognizant typically vacillating 20%-30% per year. Despite these recent headwinds to topline growth, we think Cognizant maintains a long- term runway for generating attractive organic growth, as the company benefits from the secular shift of IT spend towards digital solutions. The Company maintains excellent financial strength, with nearly $8 billion in borrowing capacity before reaching the average net debt to operating income leverage of the S&P 500—close to 25% of the current market cap.



From Wedgewood Partners' third quarter 2016 shareholder commentary.



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Top Ranked Articles about Cognizant Technology Solutions Corp

Cognizant to Present at the Credit Suisse 21st Annual Technology, Media & Telecom Conference
Consolidated Research: 2018 Summary Expectations for Cognizant Technology Solutions, Brinker International, Skyworks Solutions, Tahoe Resources, DISH Network, and Planet Fitness — Fundamental Analysis, Key Performance Indications
Cognizant to Present at the 4th Annual Bernstein Tech Summit
Cognizant to Acquire Zone, a Leading Full-Service Digital Agency
Cognizant to Acquire Digital Experience and Marketing Expert Netcentric
Cognizant Cloud-Enables ANHAM FZCO's SAP Infrastructure and Provides the Foundation for Digital Transformation
David Rolfe Comments on Cognizant Guru stock highlight
Cognizant (NASDAQ:CTSH) has been a strong performer throughout the year. In 2016 it proved to be a bit sluggish, particularly when the strong and steady revenue growth typically reported by the Company experienced headwinds in multiple business segments. In their Financial Services segment, 2016 was marked by large money center bank customers spending more cautiously due to the low interest rate environment. Political uncertainty in the U.S. during the election year also impacted spending by their customers. While these large banks continue to take a conservative approach to spending, management has noted some stability in the banking sector relative to last year.

Recall that when we last wrote on Cognizant's performance (about a year ago) we mentioned four Cognizant clients in the HMO industry were all attempting to merge with or acquire each other. This M&A activity caused these clients to pause their project spending until the mergers were either finalized or abandoned. It did not help that these large industry Read more...
Cognizant Schedules Third Quarter 2017 Earnings Release and Conference Call
5 Companies Reach 52-Week Highs Baidu, Cognizant, Rockwell among those achieving milestones
According to GuruFocus' list, these stocks have reached their 52-week highs. Read more...
Hills Partners with Cognizant to Drive Digital Transformation

Ratios

vs
industry
vs
history
PE Ratio 22.20
CTSH's PE Ratio is ranked higher than
57% of the 1260 Companies
in the Global Information Technology Services industry.

( Industry Median: 26.92 vs. CTSH: 22.20 )
Ranked among companies with meaningful PE Ratio only.
CTSH' s PE Ratio Range Over the Past 10 Years
Min: 11.21  Med: 23.28 Max: 60.49
Current: 22.2
11.21
60.49
Forward PE Ratio 16.56
CTSH's Forward PE Ratio is ranked higher than
71% of the 298 Companies
in the Global Information Technology Services industry.

( Industry Median: 22.88 vs. CTSH: 16.56 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 22.20
CTSH's PE Ratio without NRI is ranked higher than
58% of the 1254 Companies
in the Global Information Technology Services industry.

( Industry Median: 27.17 vs. CTSH: 22.20 )
Ranked among companies with meaningful PE Ratio without NRI only.
CTSH' s PE Ratio without NRI Range Over the Past 10 Years
Min: 11.13  Med: 23.17 Max: 60.64
Current: 22.2
11.13
60.64
Price-to-Owner-Earnings 24.65
CTSH's Price-to-Owner-Earnings is ranked lower than
54% of the 744 Companies
in the Global Information Technology Services industry.

( Industry Median: 25.49 vs. CTSH: 24.65 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
CTSH' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 15.33  Med: 27.17 Max: 81.55
Current: 24.65
15.33
81.55
PB Ratio 3.87
CTSH's PB Ratio is ranked lower than
61% of the 1848 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.13 vs. CTSH: 3.87 )
Ranked among companies with meaningful PB Ratio only.
CTSH' s PB Ratio Range Over the Past 10 Years
Min: 2.46  Med: 4.57 Max: 12.56
Current: 3.87
2.46
12.56
PS Ratio 2.99
CTSH's PS Ratio is ranked lower than
58% of the 1840 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.37 vs. CTSH: 2.99 )
Ranked among companies with meaningful PS Ratio only.
CTSH' s PS Ratio Range Over the Past 10 Years
Min: 1.76  Med: 3.3 Max: 10
Current: 2.99
1.76
10
Price-to-Free-Cash-Flow 23.12
CTSH's Price-to-Free-Cash-Flow is ranked higher than
51% of the 681 Companies
in the Global Information Technology Services industry.

( Industry Median: 26.25 vs. CTSH: 23.12 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
CTSH' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 15.78  Med: 26.81 Max: 96.93
Current: 23.12
15.78
96.93
Price-to-Operating-Cash-Flow 20.00
CTSH's Price-to-Operating-Cash-Flow is ranked lower than
59% of the 850 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.64 vs. CTSH: 20.00 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
CTSH' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 11.32  Med: 21.05 Max: 56.58
Current: 20
11.32
56.58
EV-to-EBIT 15.25
CTSH's EV-to-EBIT is ranked higher than
59% of the 1275 Companies
in the Global Information Technology Services industry.

( Industry Median: 19.16 vs. CTSH: 15.25 )
Ranked among companies with meaningful EV-to-EBIT only.
CTSH' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.5  Med: 15.9 Max: 52.9
Current: 15.25
8.5
52.9
EV-to-EBITDA 13.06
CTSH's EV-to-EBITDA is ranked higher than
55% of the 1386 Companies
in the Global Information Technology Services industry.

( Industry Median: 15.27 vs. CTSH: 13.06 )
Ranked among companies with meaningful EV-to-EBITDA only.
CTSH' s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.4  Med: 14.2 Max: 46.7
Current: 13.06
7.4
46.7
EV-to-Revenue 2.68
CTSH's EV-to-Revenue is ranked lower than
55% of the 1894 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.40 vs. CTSH: 2.68 )
Ranked among companies with meaningful EV-to-Revenue only.
CTSH' s EV-to-Revenue Range Over the Past 10 Years
Min: 1.5  Med: 3 Max: 9.6
Current: 2.68
1.5
9.6
PEG Ratio 1.28
CTSH's PEG Ratio is ranked higher than
64% of the 600 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.99 vs. CTSH: 1.28 )
Ranked among companies with meaningful PEG Ratio only.
CTSH' s PEG Ratio Range Over the Past 10 Years
Min: 0.24  Med: 0.81 Max: 1.53
Current: 1.28
0.24
1.53
Shiller PE Ratio 37.10
CTSH's Shiller PE Ratio is ranked lower than
51% of the 336 Companies
in the Global Information Technology Services industry.

( Industry Median: 38.33 vs. CTSH: 37.10 )
Ranked among companies with meaningful Shiller PE Ratio only.
CTSH' s Shiller PE Ratio Range Over the Past 10 Years
Min: 29.27  Med: 46.24 Max: 84
Current: 37.1
29.27
84
Current Ratio 3.29
CTSH's Current Ratio is ranked higher than
76% of the 1846 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.89 vs. CTSH: 3.29 )
Ranked among companies with meaningful Current Ratio only.
CTSH' s Current Ratio Range Over the Past 10 Years
Min: 2.48  Med: 4.17 Max: 5.68
Current: 3.29
2.48
5.68
Quick Ratio 3.29
CTSH's Quick Ratio is ranked higher than
77% of the 1846 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.75 vs. CTSH: 3.29 )
Ranked among companies with meaningful Quick Ratio only.
CTSH' s Quick Ratio Range Over the Past 10 Years
Min: 2.48  Med: 4.17 Max: 5.68
Current: 3.29
2.48
5.68
Days Sales Outstanding 73.01
CTSH's Days Sales Outstanding is ranked lower than
52% of the 1588 Companies
in the Global Information Technology Services industry.

( Industry Median: 66.91 vs. CTSH: 73.01 )
Ranked among companies with meaningful Days Sales Outstanding only.
CTSH' s Days Sales Outstanding Range Over the Past 10 Years
Min: 66.23  Med: 70.17 Max: 80.61
Current: 73.01
66.23
80.61
Days Payable 7.65
CTSH's Days Payable is ranked lower than
90% of the 1405 Companies
in the Global Information Technology Services industry.

( Industry Median: 42.91 vs. CTSH: 7.65 )
Ranked among companies with meaningful Days Payable only.
CTSH' s Days Payable Range Over the Past 10 Years
Min: 7.45  Med: 8.97 Max: 10.95
Current: 7.65
7.45
10.95

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 0.63
CTSH's Dividend Yield % is ranked lower than
88% of the 1394 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.44 vs. CTSH: 0.63 )
Ranked among companies with meaningful Dividend Yield % only.
CTSH' s Dividend Yield % Range Over the Past 10 Years
Min: 0.21  Med: 0.23 Max: 0.63
Current: 0.63
0.21
0.63
Dividend Payout Ratio 0.09
CTSH's Dividend Payout Ratio is ranked higher than
99% of the 834 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.33 vs. CTSH: 0.09 )
Ranked among companies with meaningful Dividend Payout Ratio only.
CTSH' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0.09
Current: 0.09
0
0.09
Forward Dividend Yield % 0.83
CTSH's Forward Dividend Yield % is ranked lower than
75% of the 1308 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.64 vs. CTSH: 0.83 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 0.63
CTSH's 5-Year Yield-on-Cost % is ranked lower than
89% of the 1752 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.00 vs. CTSH: 0.63 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
CTSH' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.21  Med: 0.23 Max: 0.63
Current: 0.63
0.21
0.63

Valuation & Return

vs
industry
vs
history
Price-to-Net-Cash 38.25
CTSH's Price-to-Net-Cash is ranked lower than
82% of the 579 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.00 vs. CTSH: 38.25 )
Ranked among companies with meaningful Price-to-Net-Cash only.
CTSH' s Price-to-Net-Cash Range Over the Past 10 Years
Min: 9.84  Med: 23.94 Max: 877.67
Current: 38.25
9.84
877.67
Price-to-Net-Current-Asset-Value 8.56
CTSH's Price-to-Net-Current-Asset-Value is ranked lower than
57% of the 1147 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.83 vs. CTSH: 8.56 )
Ranked among companies with meaningful Price-to-Net-Current-Asset-Value only.
CTSH' s Price-to-Net-Current-Asset-Value Range Over the Past 10 Years
Min: 4.96  Med: 9.85 Max: 32.57
Current: 8.56
4.96
32.57
Price-to-Tangible-Book 5.72
CTSH's Price-to-Tangible-Book is ranked lower than
58% of the 1546 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.70 vs. CTSH: 5.72 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
CTSH' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 2.98  Med: 7 Max: 24.07
Current: 5.72
2.98
24.07
Price-to-Intrinsic-Value-Projected-FCF 1.49
CTSH's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
66% of the 811 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.20 vs. CTSH: 1.49 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
CTSH' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 1.15  Med: 2.36 Max: 7.31
Current: 1.49
1.15
7.31
Price-to-Intrinsic-Value-DCF (Earnings Based) 0.78
CTSH's Price-to-Intrinsic-Value-DCF (Earnings Based) is ranked higher than
85% of the 130 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.59 vs. CTSH: 0.78 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-DCF (Earnings Based) only.
CTSH' s Price-to-Intrinsic-Value-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.43  Med: 0.8 Max: 1.12
Current: 0.78
0.43
1.12
Price-to-Median-PS-Value 0.90
CTSH's Price-to-Median-PS-Value is ranked higher than
67% of the 1639 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.12 vs. CTSH: 0.90 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
CTSH' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.58  Med: 1.24 Max: 3.88
Current: 0.9
0.58
3.88
Price-to-Peter-Lynch-Fair-Value 1.46
CTSH's Price-to-Peter-Lynch-Fair-Value is ranked higher than
56% of the 381 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.62 vs. CTSH: 1.46 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
CTSH' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.49  Med: 1.11 Max: 2.35
Current: 1.46
0.49
2.35
Price-to-Graham-Number 2.38
CTSH's Price-to-Graham-Number is ranked higher than
51% of the 920 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. CTSH: 2.38 )
Ranked among companies with meaningful Price-to-Graham-Number only.
CTSH' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.28  Med: 2.74 Max: 8.39
Current: 2.38
1.28
8.39
Earnings Yield (Greenblatt) % 6.55
CTSH's Earnings Yield (Greenblatt) % is ranked higher than
74% of the 1997 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.11 vs. CTSH: 6.55 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
CTSH' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 1.9  Med: 6.3 Max: 11.8
Current: 6.55
1.9
11.8
Forward Rate of Return (Yacktman) % 18.54
CTSH's Forward Rate of Return (Yacktman) % is ranked higher than
70% of the 818 Companies
in the Global Information Technology Services industry.

( Industry Median: 11.39 vs. CTSH: 18.54 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
CTSH' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 18.4  Med: 32 Max: 48.6
Current: 18.54
18.4
48.6

More Statistics

Revenue (TTM) (Mil) $14,444.00
EPS (TTM) $ 3.24
Beta1.07
Short Percentage of Float1.48%
52-Week Range $51.35 - 76.51
Shares Outstanding (Mil)589.65

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $) 14,791 16,125 17,478
EPS ($) 3.69 4.30 4.87
EPS without NRI ($) 3.69 4.30 4.87
EPS Growth Rate
(Future 3Y To 5Y Estimate)
14.41%
Dividends per Share ($) 0.53 0.63 0.67

Piotroski F-Score Details

Piotroski F-Score: 66
Positive ROAY
Positive CFROAY
Higher ROA yoyY
CFROA > ROAY
Lower Leverage yoyY
Higher Current Ratio yoyN
Less Shares Outstanding yoyY
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

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