Cognizant Technology SolutionsMEX:CTSH 74 Return-on-Tangible-Asset is 22.55% as of Mar. 2026, which is 21% above its 10-year median of 18.69. GuruFocus rates MEX:CTSH with a GF Score™ of 74/100 and a GF Value™ of MXN1,472.77 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,886 Software companies, Cognizant Technology Solutions ranks better than 90.89% on this metric.
The historical rank and industry rank for Cognizant Technology Solutions's Return-on-Tangible-Asset or its related term are showing as below:
MEX:CTSH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 12.64 Med: 18.69 Max: 20.83
Current: 19.22
During the past 13 years, Cognizant Technology Solutions's highest Return-on-Tangible-Asset was 20.83%. The lowest was 12.64%. And the median was 18.69%.
MEX:CTSH's Return-on-Tangible-Asset is ranked better than 90.89% of 2886
companies
in the Software industry
Industry Median: 2.035
vs MEX:CTSH: 19.22
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Cognizant Technology Solutions Return-on-Tangible-Asset Related Terms
Cognizant Technology Solutions Return-on-Tangible-Asset Historical Data
* 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 FIS, CDW, BR: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 22.55% mean?
Cognizant Technology Solutions (MEX:CTSH) has a Return-on-Tangible-Asset of 22.55% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cognizant Technology Solutions and its competitors. This is 21% above median its historical median of 18.69. Over the past decade, Cognizant Technology Solutions' Return-on-Tangible-Asset has ranged from 12.64 to 20.83. According to the industry distribution chart, Cognizant Technology Solutions ranks #263 out of 2886 companies in the Software industry, placing it in the top 9.1%.
Is Cognizant Technology Solutions' Return-on-Tangible-Asset too high?
Cognizant Technology Solutions' current Return-on-Tangible-Asset of 22.55% is 21% above median its 10-year median of 18.69. Over the past 10 years, this metric has ranged from a low of 12.64 to a high of 20.83. The Software industry median Return-on-Tangible-Asset is 2.04. Cognizant Technology Solutions' value of 22.55% is 1008.1% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #263 out of 2886 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cognizant Technology Solutions has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' Return-on-Tangible-Asset compare to FIS and CDW?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #263 out of 2886 companies for Return-on-Tangible-Asset. This places Cognizant Technology Solutions in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. Cognizant Technology Solutions' value of 22.55% is 1008.1% above this benchmark. Historically, Cognizant Technology Solutions' own Return-on-Tangible-Asset has ranged from 12.64 to 20.83 over the past decade. While the company's 10-year median is 18.69 vs. the industry median of 2.04, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,886 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current Return-on-Tangible-Asset of 22.55% is 1008.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current Return-on-Tangible-Asset is 22.55%, which is 21% above median its own 10-year median of 18.69. 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 MXN1,472.77, compared to a current price of MXN760.00 — trading 48.4% below its estimated fair value. The current Return-on-Tangible-Asset is 22.55%, which is 21% above median its 10-year median of 18.69 and 1008.1% above the Software industry median of 2.04. Cognizant Technology Solutions' overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current Return-on-Tangible-Asset is 22.55% 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 MXN760.00 is trading 48.4% below its estimated GF Value™ of MXN1,472.77.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
Return-on-Tangible-Asset: 22.55% (21% above median its 10-year median of 18.69)
GF Value™: MXN1,472.77 vs. price of MXN760.00 (48.4% below fair value)
Industry Position: 1008.1% above the Software median (#263 of 2886)
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.
74GF Score
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