WATCH Cognizant Technology Solutions Corporation (CTSH)
Technology · Information Technology Services · NMS · United States
60
Final Score
-28.3%
Margin of Safety
75
Quality Score
$63.37
Current Price
$28.5B
Market Cap
Key Metrics
Pe Ratio
13.60
Forward Pe
10.03
Pb Ratio
1.98
Ev Ebitda
7.47
Roe
14.9%
Gross Margin
33.4%
Operating Margin
17.5%
Net Margin
10.3%
Dividend Yield
204.0%
Debt To Equity
14.48
Current Ratio
2.18
Beta
0.81
📈 Trend Charts
Revenue Trend
EPS Trend
Net Income Trend
Free Cash Flow Trend
Intrinsic Value Estimates
Low
$39.51
Base
$49.38
High
$59.26
Pipeline Stage Details
Stage A — Hard Filters ✅
Pe Ratio
13.60
Eps Positive Years
4.00
Eps Lookback
4.00
Fcf Positive Years
4.00
Fcf Lookback
4.00
Debt To Equity
0.14
Current Ratio
2.18
Dilution Cagr
-0.02
Stage B — Quality Score: 75/100
Stage C — Cyclicality: LOW
Normalized EPS
$4.42
Stage F — Final Score Breakdown
| Component | Weighted Score |
|---|---|
| Valuation | 3.0 |
| Earnings Quality | 18.8 |
| Balance Sheet | 18.0 |
| Stability | 12.0 |
| Moat Proxies | 8.3 |
Top Drivers
- High quality business (score 75/100): above-average returns on capital and reliable earnings generation.
- Reasonable P/E of 13.6x — below long-run market average (~15-17x), suggesting the stock is not overpriced.
- Solid ROIC of 14.9% — above the 12% threshold, indicating the business creates genuine economic value for shareholders.
- Fortress balance sheet: D/E of 0.14x (conservative) and current ratio of 2.18x — ample liquidity and low financial risk. Graham emphasis on capital preservation.
- Strong free cash flow generation — the company converts earnings into real cash effectively, supporting dividends, buybacks, and debt reduction.
Top Risks
- No significant risks identified in this analysis.
Financial History
| Year | Revenue | Gross Profit | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2022 | $19.4B | $7.0B | $3.0B | $2.3B | $4.41 |
| 2023 | $19.4B | $6.7B | $2.9B | $2.1B | $4.21 |
| 2024 | $19.7B | $6.8B | $3.0B | $2.2B | $4.51 |
| 2025 | $21.1B | $7.1B | $3.3B | $2.2B | $4.56 |
Cash Flow History
| Year | Operating CF | CapEx | Free Cash Flow |
|---|---|---|---|
| 2021 | N/A | N/A | N/A |
| 2022 | $2.6B | $-332.0M | $2.2B |
| 2023 | $2.3B | $-317.0M | $2.0B |
| 2024 | $2.1B | $-297.0M | $1.8B |
| 2025 | $2.9B | $-288.0M | $2.6B |