GURUFOCUS.COM » STOCK LIST » USA » NAS » Cognizant Technology Solutions Corp (NAS:CTSH) » Definitions » Piotroski F-Score
Switch to:

Cognizant Technology Solutions Piotroski F-Score

: 8 (As of Today)
View and export this data going back to 1998. Start your Free Trial

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cognizant Technology Solutions has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Cognizant Technology Solutions's Piotroski F-Score or its related term are showing as below:

CTSH' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Cognizant Technology Solutions was 9. The lowest was 3. And the median was 6.


Cognizant Technology Solutions Piotroski F-Score Historical Data

The historical data trend for Cognizant Technology Solutions's Piotroski F-Score can be seen below:

* 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.

* Premium members only.

Cognizant Technology Solutions Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 8.00 4.00 5.00 9.00

Cognizant Technology Solutions Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 9.00 9.00 8.00

Competitive Comparison

For the Information Technology Services subindustry, Cognizant Technology Solutions's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Software industry and Technology sector, Cognizant Technology Solutions's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Cognizant Technology Solutions's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 544 + 576 + 563 + 577 = $2,260 Mil.
Cash Flow from Operations was 948 + 825 + 306 + 528 = $2,607 Mil.
Revenue was 4744 + 4777 + 4826 + 4906 = $19,253 Mil.
Gross Profit was 1797 + 1747 + 1729 + 1787 = $7,060 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(16829 + 17232 + 17852 + 17434 + 17258) / 5 = $17321 Mil.
Total Assets at the begining of this year (Jun21) was $16,829 Mil.
Long-Term Debt & Capital Lease Obligation was $1,355 Mil.
Total Current Assets was $7,023 Mil.
Total Current Liabilities was $3,153 Mil.
Net Income was 348 + 316 + 505 + 512 = $1,681 Mil.

Revenue was 4243 + 4184 + 4401 + 4585 = $17,413 Mil.
Gross Profit was 1596 + 1522 + 1637 + 1722 = $6,477 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(18216 + 18787 + 16923 + 16660 + 16829) / 5 = $17483 Mil.
Total Assets at the begining of last year (Jun20) was $18,216 Mil.
Long-Term Debt & Capital Lease Obligation was $1,487 Mil.
Total Current Assets was $6,451 Mil.
Total Current Liabilities was $3,183 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cognizant Technology Solutions's current Net Income (TTM) was 2,260. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cognizant Technology Solutions's current Cash Flow from Operations (TTM) was 2,607. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=2260/16829
=0.134292

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1681/18216
=0.09228151

Cognizant Technology Solutions's return on assets of this year was 0.134292. Cognizant Technology Solutions's return on assets of last year was 0.09228151. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Cognizant Technology Solutions's current Net Income (TTM) was 2,260. Cognizant Technology Solutions's current Cash Flow from Operations (TTM) was 2,607. ==> 2,607 > 2,260 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=1355/17321
=0.07822874

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=1487/17483
=0.08505405

Cognizant Technology Solutions's gearing of this year was 0.07822874. Cognizant Technology Solutions's gearing of last year was 0.08505405. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=7023/3153
=2.22740247

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=6451/3183
=2.02670437

Cognizant Technology Solutions's current ratio of this year was 2.22740247. Cognizant Technology Solutions's current ratio of last year was 2.02670437. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Cognizant Technology Solutions's number of shares in issue this year was 521. Cognizant Technology Solutions's number of shares in issue last year was 528. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=7060/19253
=0.3666961

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6477/17413
=0.37196348

Cognizant Technology Solutions's gross margin of this year was 0.3666961. Cognizant Technology Solutions's gross margin of last year was 0.37196348. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=19253/16829
=1.14403708

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=17413/18216
=0.95591787

Cognizant Technology Solutions's asset turnover of this year was 1.14403708. Cognizant Technology Solutions's asset turnover of last year was 0.95591787. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+1+0+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cognizant Technology Solutions has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Cognizant Technology Solutions  (NAS:CTSH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Cognizant Technology Solutions Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Cognizant Technology Solutions's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Cognizant Technology Solutions Business Description

Cognizant Technology Solutions logo
Address
300 Frank W. Burr Boulevard, Suite 36, 6th Floor, Teaneck, NJ, USA, 07666
Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.
Executives
Rohleder Stephen J director C/O ACCENTURE 161 N. CLARK STREET CHICAGO IL 60601
Nambiar Rajesh officer: President, Digital Business 300 FRANK W. BURR BLVD STE. 36, 6TH FL. TEANECK NJ 07666
Wijnberg Sandra S director 100 E. PRATT STREET BA-1320 BALTIMORE MD 21202
Abdalla Zein director 700 ANDERSON HILL ROAD LEGAL DEPARTMENT, 1/2 PURCHASE NY 10577
Velli Joseph M director
Mackay Leo S. Jr. director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Dineen John M. director MERRIMACK PHARMACEUTICALS, INC. ONE KENDALL SQUARE, SUITE B7201 CAMBRIDGE MA 02139
Kim John Sunshin officer: EVP & General Counsel 300 FRANK W. BURR BLVD., STE. 36, 6FL. TEANECK NJ 07666
Deskus Archana director 2929 ALLEN PARKWAY SUITE 2100 HOUSTON TX 77019
Bali Vinita director C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606
Patsalos-fox Michael director 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Morgenstern Ursula officer: President, Global Markets 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Breakiron-evans Maureen director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Stafford Andrew J officer: EVP, Head of Global Delivery C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Hyttenrauch Gregory Lawrence officer: President, Digital Sys & Tech 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666

Cognizant Technology Solutions Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)