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Cognizant Technology Solutions Corp Class A CTSH

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Stock XNAS Rating as of
$43.18 +0.15 (0.35%)
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Company Report

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Cognizant Is a Beneficiary of Vendor Consolidation in IT Services

Luke Yang

Nearly 30 years after relocating its headquarters to the US, Cognizant remains true to its Indian origins by adopting a business model that leverages cheap offshore labor to arbitrage wage gaps across different regions. Such practices are commonly seen among Indian IT service providers, helping them effectively fulfill customers’ IT needs at lower costs. Thanks to India’s deep pool of tech talents, Cognizant was able to grow into one of the world’s leading IT service providers, with offerings in software development, system integration, and business process outsourcing.

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Price vs Fair Value

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CTSH is trading at a LOCK|>KV@>^@ premium.
Price
$43.17
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Cognizant’s AI readiness and operational rigor should help the company drive continuous, steady margin expansion.

Bears

Continued geopolitical uncertainty and economic volatility can influence enterprise IT spending and weigh on Cognizant’s performance.

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News

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Trading Information

Previous Close Price
$43.03
Day Range
$42.90–43.90
52-Week Range
$37.08–87.03
Bid/Ask
$42.37 / $44.00
Shares Outstanding
473.00M
Market Cap
$20.42B
Volume/Avg
7M / 10M

Key Statistics

Price/Earnings (Normalized)
7.92
Price/Sales
0.98
Dividend Yield (Trailing)
2.96%
Dividend Yield (Forward)
3.06%
Total Yield
10.86%

Company Profile

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.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Value
Total Number of Employees
357,600
Website
https://www.cognizant.com

Competitors

Valuation

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Metric
CTSH
TCS
INFY
Price/Earnings (Normalized)
 7.9214.9314.73
Price/Book Value
 1.367.394.72
Price/Sales
 0.982.872.49
Price/Cash Flow
 6.2514.8311.68
Price/Earnings
CTSH
TCS
INFY

Financial Strength

Metric
CTSH
TCS
INFY
Quick Ratio
 1.742.011.80
Current Ratio
 2.232.231.98
Interest Coverage
 106.5351.9289.40
Quick Ratio
CTSH
TCS
INFY

Profitability

Metric
CTSH
TCS
INFY
Return on Assets (Normalized)
 11.57%—20.18%
Return on Equity (Normalized)
 15.61%—32.54%
Return on Invested Capital (Normalized)
 14.24%—27.73%
Return on Assets
CTSH
TCS
INFY

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