CTSH
Cognizant
$57.38
▲ 0.9%Updated Aug 7, 11:30 AM ET
CTSH at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 58/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 44.8% over the last 12 months
Market Cap
$19.90B
P/E
12.25x
Forward P/E (est.)
12.64x
ROE
14.8%
Revenue Growth
6.6%
EPS Growth
-3.0%
Profit Margin
10.4%
FCF Yield
10.2%
Debt / Equity
0.04x
ROIC
17.0%
Interest Coverage
82.66x
Current Ratio
2.23x
Dividend Yield
2.6%
Implied Growth (rev. DCF)
-3.6%
Rating Score
58/100
Cognizant (CTSH) is a large-cap company in the IT Consulting & Other Services industry, part of the Information Technology sector of the S&P 500, with a market value around $19.90B.
In its latest reported year it generated about $21.11B in revenue and $2.23B in net profit.
Our model rates CTSH Favorable (58/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
14.9% average over the last 3 years
±1.4 pts around 15.4% across 10 years
grew in 7 of the last 9 year-over-year periods
positive in 10 of 10 years
17.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CTSH's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CTSH trades near $57.38, around its 50-day average ($49.97) and 200-day average ($66.25). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 28 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. CTSH's is $2.39 (~4.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month CTSH found buyers near $37.08 (support) and sellers near $55.56 (resistance); its 52-week range is $37.08–$87.03. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
3.3%
Revenue moved from $13.49B in 2016 to $21.11B in 2025, a 5.1% compound annual growth rate. The most recent year grew a steady 6.6% year over year. Slower, mature growth is common for established businesses.
Gross Margin
33.5%
Operating Margin
16.1%
Net Margin
10.6%
ROE
14.8%
Cognizant keeps about 10.4% of each sales dollar as net profit, with a 33.5% gross margin and 16.1% operating margin. Return on equity is 14.8% and return on invested capital about 17.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$750.00M
Net Debt
-$754.00M
Net cash position
Net Debt / EBITDA
-0.22x
Debt / Equity
0.04x
Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 82.7x, with a current ratio of 2.2x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $750.00M of total debt against $1.50B of cash.
Operating CF
$2.88B
Free Cash Flow
$2.60B
FCF Margin
12.3%
In the latest year Cognizant produced about $2.88B of operating cash flow and $2.60B of free cash flow after capital spending. That is a free-cash-flow yield of about 10.2% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
2.6%
Per share (latest FY)
$1.24
Total paid (latest FY)
$610.00M
History on record
9 years
dividend uses 24% of free cash flow
27% of net income paid out
total dividends increased 6 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
12.25x
P/S
1.15x
P/B
3x
EV / EBITDA
—
CTSH trades at 12.3x trailing earnings (about 12.6x on estimated forward earnings), 1.2x sales, and 3.0x book value. Reverse-engineering today's price implies the market expects roughly -3.6% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$108.56
Current price
$57.38
Starting FCF (latest 10-K)
$2.60B
Growth, years 1–5
6.6%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where CTSH sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How CTSH stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), CTSH ranks #50 of 230 by our overall rating. It trades at a discount versus the sector on earnings (12.3x P/E vs. 38.9x median) with a lower return on equity (14.8% vs. 17.5%) and slower revenue growth (6.6% vs. 17.7%).
P/E vs sector
12.3x
median 38.9x
ROE vs sector
14.8%
median 17.5%
Growth vs sector
6.6%
median 17.7%
Sector rank
#50
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $57.38 today · expected CAGR 3% – 14%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $22.59B | $24.17B | $25.86B | $27.67B | $29.61B |
| Net income | $2.48B | $2.66B | $2.84B | $3.04B | $3.26B |
| EPS | $7.16 | $7.67 | $8.20 | $8.78 | $9.39 |
| Share price (low) | $50.15 | $53.66 | $57.42 | $61.44 | $65.74 |
| Share price (high) | $85.97 | $91.99 | $98.43 | $105.32 | $112.69 |
| CAGR (low–high) | -13% / 50% | -3% / 27% | 0% / 20% | 2% / 16% | 3% / 14% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for CTSH:
- Healthy free-cash-flow yield (~10.2%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Pays a 2.6% dividend on top of any price gains.
- Our model's overall read is Favorable (58/100).
The case against CTSH:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Cognizant is a large-cap information technology business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 12.3x earnings, which our model scores Favorable (58/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 37 Wall Street analysts covering CTSH recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
CTSH's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
CTSH — frequently asked questions
Is CTSH a good stock to buy?
We don't give buy or sell advice. Our model rates Cognizant Favorable (58/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is CTSH's rating on The Stocks School?
Cognizant currently scores 58/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does CTSH's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Cognizant's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for CTSH calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this CTSH analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell CTSH. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.