Tata Consultancy Services reported in-line second-quarter results. Total revenue grew 3% year over year in constant currency, led by strong performance from financial services and technology customers. Operating margin fell to 24% due to a 50-basis-point headwind from the MHP acquisition.
TCS’ institutionalized industry knowledge can give it a head start when clients look for partners to modernize their workflows using artificial intelligence.
Continued geopolitical uncertainty and economic volatility can oscillate enterprise customers’ confidence in IT investments and sour TCS’ growth prospects.
|
Metric
|
TCS
|
ACN
|
CTSH
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.48 | 15.42 | 10.74 |
Price/Book Value | 6.56 | 4.05 | 1.85 |
Price/Sales | 2.75 | 1.74 | 1.31 |
Price/Cash Flow | 14.30 | 9.95 | 8.26 |
|
Metric
|
TCS
|
ACN
|
CTSH
|
|---|---|---|---|
Quick Ratio | 2.22 | 1.21 | 1.68 |
Current Ratio | 2.48 | 1.34 | 2.18 |
Interest Coverage | 52.37 | 39.69 | 95.86 |
|
Metric
|
TCS
|
ACN
|
CTSH
|
|---|---|---|---|
Return on Assets (Normalized) | 29.74% | — | 12.86% |
Return on Equity (Normalized) | 48.83% | — | 17.60% |
Return on Invested Capital (Normalized) | 44.30% | — | 15.94% |
|
1-Day Chart
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Name
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Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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Economic Moat
|
Market Cap
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United States