* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:CTSH vs FISV, FIS, BR: FCF Margin % Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cognizant Technology Solutions FCF Margin % vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cognizant Technology Solutions (MEX:CTSH) has a FCF Margin % of 3.66% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Cognizant Technology Solutions and its competitors. This is 70% below median its historical median of 12.13. Over the past decade, Cognizant Technology Solutions' FCF Margin % has ranged from 9.26 to 17.42. According to the industry distribution chart, Cognizant Technology Solutions ranks #750 out of 2811 companies in the Software industry, placing it in the top 26.7%.
Is Cognizant Technology Solutions' FCF Margin % too high?
Cognizant Technology Solutions' current FCF Margin % of 3.66% is 70% below median its 10-year median of 12.13. Over the past 10 years, this metric has ranged from a low of 9.26 to a high of 17.42. The Software industry median FCF Margin % is 2.40. Cognizant Technology Solutions' value of 3.66% is 52.5% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #750 out of 2811 companies in the Software industry, which is above the industry midpoint. Overall, Cognizant Technology Solutions has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' FCF Margin % compare to FISV and FIS?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #750 out of 2811 companies for FCF Margin %. This puts Cognizant Technology Solutions in the upper half of its industry. The industry median FCF Margin % is 2.40. Cognizant Technology Solutions' value of 3.66% is 52.5% above this benchmark. Historically, Cognizant Technology Solutions' own FCF Margin % has ranged from 9.26 to 17.42 over the past decade. While the company's 10-year median is 12.13 vs. the industry median of 2.40, Cognizant Technology Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.40, based on 2,811 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current FCF Margin % of 3.66% is 52.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median FCF Margin % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current FCF Margin % is 3.66%, which is 70% below median its own 10-year median of 12.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cognizant Technology Solutions stock overvalued right now?
Based on GuruFocus' analysis, Cognizant Technology Solutions (MEX:CTSH) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,477.03, compared to a current price of MXN722.03 — trading 51.1% below its estimated fair value. The current FCF Margin % is 3.66%, which is 70% below median its 10-year median of 12.13 and 52.5% above the Software industry median of 2.40. Cognizant Technology Solutions' overall GF Score™ is 66/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current FCF Margin % is 3.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cognizant Technology Solutions (MEX:CTSH) Overvalued in 2026?
Based on GuruFocus' analysis, Cognizant Technology Solutions stock appears to be undervalued.
The current stock price of MXN722.03 is trading 51.1% below its estimated GF Value™ of MXN1,477.03.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
FCF Margin %: 3.66% (70% below median its 10-year median of 12.13)
GF Value™: MXN1,477.03 vs. price of MXN722.03 (51.1% below fair value)
Industry Position: 52.5% above the Software median (#750 of 2811)
No single metric tells the full story. See the MEX:CTSH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cognizant Technology Solutions Business Description
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries. With most of its workforce located in India, Cognizant leverages a global delivery model that helps clients outsource their IT needs to offshore labor.
66GF Score
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