Cognizant Technology Solutions Corporation (CTSH) 10-Year Financial Performance & Capital Metrics

CTSH • • Industrial / General

TechnologyIT ServicesIT Consulting & Professional ServicesGlobal IT Consulting Giants

AboutCognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to information, media and entertainment, and communications and technology companies. The company was founded in 1994 and is headquartered in Teaneck, New Jersey.Show more

Revenue $19.74B +2.0%
EBITDA $3.43B +5.9%
Net Income $2.24B +5.4%
EPS (Diluted) 4.51 +7.1%
Gross Margin 34.34% -0.6%
EBITDA Margin 17.4% +3.8%
Operating Margin 14.65% +5.5%
Net Margin 11.35% +3.3%
ROE 16.21% -2.6%
ROIC 16.94% -1.0%
Debt/Equity 0.10 +4.9%
Interest Coverage 53.56 -18.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Good 3Y average ROE of 17.2%
✓Healthy 5Y average net margin of 10.8%

✗Weaknesses

✗Weak Piotroski F-Score: 3/9

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.76%

5Y3.29%

3Y2.17%

TTM7.44%

Profit (Net Income) CAGR

10Y4.52%

5Y3.99%

3Y1.58%

TTM-5.51%

EPS CAGR

10Y6.74%

5Y6.51%

3Y3.65%

TTM-4.65%

ROCE

10Y Avg19.7%

5Y Avg18.67%

3Y Avg19.02%

Latest18.34%

Peer Comparison

Global IT Consulting Giants

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
IBMInternational Business Machines Corporation	278.5B	297.95	46.34	1.44%	12.09%	28.25%	4.22%	2.13
INFYInfosys Limited	76.14B	18.82	24.76	3.85%	16.58%	27.92%	5.37%	0.09
ACNAccenture plc	177.1B	287.77	23.68	7.36%	10.76%	23.84%	6.14%	0.25
CTSHCognizant Technology Solutions Corporation	40.94B	84.82	18.81	1.98%	10.2%	14.28%	4.46%	0.10
SAICScience Applications International Corporation	4.99B	110.65	15.43	0.47%	5.05%	24.54%	9.17%	1.52
GIBCGI Inc.	17.8B	92.64	12.60	8.43%	10.42%	16.13%	11.89%	0.43
DXCDXC Technology Company	2.58B	14.84	7.07	-5.82%	2.93%	11.18%	31.81%	1.30
WITWipro Limited	31.11B	2.97	0.24	-0.75%	15.06%	15.66%	100%	0.23

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	12.42B	13.49B	14.81B	16.13B	16.78B	16.65B	18.51B	19.43B	19.35B	19.74B
Revenue Growth %	0.21%	0.09%	0.1%	0.09%	0.04%	-0.01%	0.11%	0.05%	-0%	0.02%
Cost of Goods Sold+	7.44B	8.11B	9.15B	9.84B	10.63B	10.67B	11.6B	12.45B	12.66B	12.96B
COGS % of Revenue	0.6%	0.6%	0.62%	0.61%	0.63%	0.64%	0.63%	0.64%	0.65%	0.66%
Gross Profit+	4.98B	5.38B	5.66B	6.29B	6.15B	5.98B	6.9B	6.98B	6.69B	6.78B
Gross Margin %	0.4%	0.4%	0.38%	0.39%	0.37%	0.36%	0.37%	0.36%	0.35%	0.34%
Gross Profit Growth %	0.21%	0.08%	0.05%	0.11%	-0.02%	-0.03%	0.15%	0.01%	-0.04%	0.01%
Operating Expenses+	2.83B	3.09B	3.18B	3.49B	3.7B	3.87B	4.08B	4.01B	4B	3.89B
OpEx % of Revenue	0.23%	0.23%	0.21%	0.22%	0.22%	0.23%	0.22%	0.21%	0.21%	0.2%
Selling, General & Admin	2.51B	2.73B	2.7B	3.01B	2.97B	3.1B	3.5B	3.44B	3.25B	3.22B
SG&A % of Revenue	0.2%	0.2%	0.18%	0.19%	0.18%	0.19%	0.19%	0.18%	0.17%	0.16%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	325M	359M	480M	479M	724M	767M	574M	569M	748M	663M
Operating Income+	2.14B	2.29B	2.48B	2.8B	2.45B	2.11B	2.83B	2.97B	2.69B	2.89B
Operating Margin %	0.17%	0.17%	0.17%	0.17%	0.15%	0.13%	0.15%	0.15%	0.14%	0.15%
Operating Income Growth %	0.14%	0.07%	0.08%	0.13%	-0.12%	-0.14%	0.34%	0.05%	-0.09%	0.08%
EBITDA+	2.47B	2.67B	2.92B	3.3B	2.98B	2.67B	3.4B	3.54B	3.24B	3.43B
EBITDA Margin %	0.2%	0.2%	0.2%	0.2%	0.18%	0.16%	0.18%	0.18%	0.17%	0.17%
EBITDA Growth %	0.18%	0.08%	0.1%	0.13%	-0.1%	-0.1%	0.27%	0.04%	-0.08%	0.06%
D&A (Non-Cash Add-back)	330M	379M	443M	498M	526M	559M	574M	569M	555M	542M
EBIT	2.18B	2.38B	2.68B	2.82B	2.57B	2.12B	2.84B	3.04B	2.83B	2.99B
Net Interest Income+	66M	96M	110M	150M	150M	95M	21M	40M	85M	65M
Interest Income	84M	115M	133M	177M	176M	119M	30M	59M	126M	119M
Interest Expense	18M	19M	23M	27M	26M	24M	9M	19M	41M	54M
Other Income/Expense	22M	69M	176M	-2M	32M	-18M	4M	52M	105M	61M
Pretax Income+	2.16B	2.36B	2.66B	2.8B	2.48B	2.1B	2.83B	3.02B	2.79B	2.95B
Pretax Margin %	0.17%	0.17%	0.18%	0.17%	0.15%	0.13%	0.15%	0.16%	0.14%	0.15%
Income Tax+	540M	805M	1.15B	698M	643M	704M	693M	730M	668M	713M
Effective Tax Rate %	0.75%	0.66%	0.57%	0.75%	0.74%	0.66%	0.76%	0.76%	0.76%	0.76%
Net Income+	1.62B	1.55B	1.5B	2.1B	1.84B	1.39B	2.14B	2.29B	2.13B	2.24B
Net Margin %	0.13%	0.12%	0.1%	0.13%	0.11%	0.08%	0.12%	0.12%	0.11%	0.11%
Net Income Growth %	0.13%	-0.04%	-0.03%	0.4%	-0.12%	-0.24%	0.54%	0.07%	-0.07%	0.05%
Net Income (Continuing)	1.62B	1.55B	1.5B	2.1B	1.84B	1.39B	2.14B	2.29B	2.13B	2.24B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.65	2.55	2.53	3.60	3.29	2.57	4.05	4.41	4.21	4.51
EPS Growth %	0.13%	-0.04%	-0.01%	0.42%	-0.09%	-0.22%	0.58%	0.09%	-0.05%	0.07%
EPS (Basic)	2.67	2.56	2.54	3.61	3.30	2.58	4.06	4.42	4.21	4.52
Diluted Shares Outstanding	613.3M	610M	595M	584M	560M	541M	528M	519M	505M	497M
Basic Shares Outstanding	609.1M	607M	593M	582M	559M	540M	527M	518M	505M	496M
Dividend Payout Ratio	-	-	0.18%	0.22%	0.25%	0.34%	0.24%	0.25%	0.28%	0.27%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	7.91B	8.6B	9.11B	8.68B	7.61B	6.85B	7.34B	7.27B	7.51B	7.5B
Cash & Short-Term Investments	4.95B	5.17B	5.06B	4.51B	3.42B	2.72B	2.72B	2.5B	2.63B	2.24B
Cash Only	2.13B	2.03B	1.93B	1.16B	2.65B	2.68B	1.79B	2.19B	2.62B	2.23B
Short-Term Investments	2.82B	3.13B	3.13B	3.35B	779M	44M	927M	310M	14M	12M
Accounts Receivable	2.62B	2.9B	3.22B	3.19B	3.26B	3.09B	3.56B	3.8B	3.85B	4.06B
Days Sales Outstanding	77.08	78.62	79.41	72.21	70.81	67.66	70.15	71.32	72.59	75.07
Inventory	0	0	0	0	0	0	0	0	0	0
Days Inventory Outstanding	-	-	-	-	-	-	-	-	-	-
Other Current Assets	338M	526M	833M	909M	931M	1.04B	1.07B	969M	1.02B	1.2B
Total Non-Current Assets+	5.16B	5.66B	6.11B	7.24B	8.59B	10.07B	10.51B	10.59B	10.98B	12.46B
Property, Plant & Equipment	1.27B	1.31B	1.32B	1.39B	2.23B	2.26B	2.1B	1.98B	1.66B	1.55B
Fixed Asset Turnover	9.77x	10.29x	11.19x	11.57x	7.51x	7.36x	8.80x	9.83x	11.67x	12.77x
Goodwill	2.4B	2.55B	2.7B	3.48B	3.98B	5.03B	5.62B	5.71B	6.08B	6.95B
Intangible Assets	864.3M	951M	981M	1.15B	1.04B	1.05B	1.22B	1.17B	1.15B	1.6B
Long-Term Investments	0	62M	235M	80M	17M	440M	463M	427M	80M	90M
Other Non-Current Assets	268.6M	359M	448M	689M	736M	846M	701M	662M	1.01B	1.03B
Total Assets+	13.07B	14.26B	15.22B	15.91B	16.2B	16.92B	17.85B	17.85B	18.48B	19.97B
Asset Turnover	0.95x	0.95x	0.97x	1.01x	1.04x	0.98x	1.04x	1.09x	1.05x	0.99x
Asset Growth %	0.11%	0.09%	0.07%	0.05%	0.02%	0.04%	0.05%	0%	0.04%	0.08%
Total Current Liabilities+	2.71B	2.42B	2.84B	2.78B	2.98B	3.54B	3.53B	3.35B	3.33B	3.58B
Accounts Payable	165M	175M	210M	215M	239M	389M	361M	360M	337M	340M
Days Payables Outstanding	8.09	7.88	8.38	7.98	8.2	13.31	11.36	10.56	9.71	9.58
Short-Term Debt	406M	81M	175M	9M	38M	38M	38M	8M	33M	33M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	535M	712M	751M	822M	800M	878M	857M	744M	2.01B	2.5B
Current Ratio	2.91x	3.56x	3.21x	3.12x	2.55x	1.94x	2.08x	2.17x	2.25x	2.09x
Quick Ratio	2.91x	3.56x	3.21x	3.12x	2.55x	1.94x	2.08x	2.17x	2.25x	2.09x
Cash Conversion Cycle	-	-	-	-	-	-	-	-	-	-
Total Non-Current Liabilities+	1.07B	1.12B	1.71B	1.71B	2.2B	2.55B	2.33B	2.2B	1.92B	1.97B
Long-Term Debt	877M	797M	698M	736M	700M	663M	626M	638M	606M	875M
Capital Lease Obligations	0	0	0	0	745M	846M	783M	714M	523M	435M
Deferred Tax Liabilities	3.3M	6M	146M	183M	35M	206M	218M	180M	226M	154M
Other Non-Current Liabilities	192M	162M	765M	731M	696M	796M	665M	645M	526M	479M
Total Liabilities	3.79B	3.53B	4.55B	4.49B	5.18B	6.09B	5.86B	5.54B	5.26B	5.56B
Total Debt+	1.29B	878M	873M	745M	1.69B	1.76B	1.64B	1.53B	1.31B	1.5B
Net Debt	-837.7M	-1.16B	-1.05B	-416M	-960M	-922M	-150M	-657M	-1.31B	-728M
Debt / Equity	0.14x	0.08x	0.08x	0.07x	0.15x	0.16x	0.14x	0.12x	0.10x	0.10x
Debt / EBITDA	0.52x	0.33x	0.30x	0.23x	0.57x	0.66x	0.48x	0.43x	0.41x	0.44x
Net Debt / EBITDA	-0.34x	-0.43x	-0.36x	-0.13x	-0.32x	-0.34x	-0.04x	-0.19x	-0.40x	-0.21x
Interest Coverage	119.00x	120.47x	107.87x	103.74x	94.35x	88.08x	314.00x	156.21x	65.59x	53.56x
Total Equity+	9.28B	10.73B	10.67B	11.42B	11.02B	10.84B	11.99B	12.31B	13.23B	14.41B
Equity Growth %	0.2%	0.16%	-0.01%	0.07%	-0.04%	-0.02%	0.11%	0.03%	0.07%	0.09%
Book Value per Share	15.13	17.59	17.93	19.56	19.68	20.03	22.71	23.72	26.19	28.99
Total Shareholders' Equity	9.28B	10.73B	10.67B	11.42B	11.02B	10.84B	11.99B	12.31B	13.23B	14.41B
Common Stock	6.1M	6M	6M	6M	5M	5M	5M	5M	5M	5M
Retained Earnings	8.93B	10.48B	10.54B	11.48B	11.02B	10.69B	11.92B	12.59B	13.3B	14.69B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-106.2M	-114M	70M	-114M	-38M	110M	37M	-299M	-94M	-296M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	2.15B	1.62B	2.41B	2.59B	2.5B	3.3B	2.5B	2.57B	2.33B	2.12B
Operating CF Margin %	0.17%	0.12%	0.16%	0.16%	0.15%	0.2%	0.13%	0.13%	0.12%	0.11%
Operating CF Growth %	0.46%	-0.25%	0.48%	0.08%	-0.04%	0.32%	-0.24%	0.03%	-0.09%	-0.09%
Net Income	1.62B	1.55B	1.5B	2.1B	1.84B	1.39B	2.14B	2.29B	2.13B	2.24B
Depreciation & Amortization	330M	379M	443M	498M	526M	559M	574M	569M	519M	529M
Stock-Based Compensation	0	0	0	0	0	0	0	0	0	0
Deferred Taxes	-126M	-91M	124M	8M	-306M	184M	27M	-273M	-339M	-355M
Other Non-Cash Items	217M	251M	150M	392M	336M	351M	245M	306M	213M	220M
Working Capital Changes	108M	-471M	186M	-407M	101M	813M	-488M	-324M	-189M	-510M
Change in Receivables	-322M	-330M	-249M	-365M	37M	264M	-407M	-238M	-43M	-49M
Change in Inventory	0	0	0	0	0	0	0	0	0	0
Change in Payables	19M	6M	16M	-4M	8M	109M	-35M	-11M	-23M	-23M
Cash from Investing+	-1.37B	-963M	-582M	-1.63B	1.59B	-1.24B	-2.16B	-106M	-331M	-1.65B
Capital Expenditures	-272.8M	-300M	-284M	-377M	-392M	-398M	-279M	-332M	-317M	-297M
CapEx % of Revenue	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-300K	-334M	0	0	0	0	0	0	0	0
Cash from Financing+	-648.1M	-719M	-1.99B	-1.69B	-2.57B	-2.01B	-1.2B	-1.94B	-1.61B	-915M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	-265M	-468M	-453M	-480M	-509M	-564M	-591M	-600M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	34M	24M	0	0	0	0	0	0	0	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	1.88B	1.32B	2.12B	2.21B	2.11B	2.9B	2.22B	2.24B	2.01B	1.83B
FCF Margin %	0.15%	0.1%	0.14%	0.14%	0.13%	0.17%	0.12%	0.12%	0.1%	0.09%
FCF Growth %	0.49%	-0.3%	0.61%	0.04%	-0.05%	0.38%	-0.24%	0.01%	-0.1%	-0.09%
FCF per Share	3.07	2.17	3.57	3.79	3.76	5.36	4.20	4.31	3.99	3.68
FCF Conversion (FCF/Net Income)	1.33x	1.04x	1.60x	1.23x	1.36x	2.37x	1.17x	1.12x	1.10x	0.95x
Interest Paid	14M	16M	21M	21M	25M	25M	7M	15M	40M	53M
Taxes Paid	579M	845M	587M	597M	870M	745M	625M	813M	1.25B	1.12B

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	19.08%	15.53%	14.06%	19.02%	16.41%	12.74%	18.72%	18.85%	16.65%	16.21%
Return on Invested Capital (ROIC)	20.33%	19.06%	19.39%	20.37%	17.46%	15.87%	19.49%	18.95%	17.11%	16.94%
Gross Margin	40.08%	39.88%	38.2%	38.99%	36.64%	35.92%	37.3%	35.93%	34.56%	34.34%
Net Margin	13.08%	11.51%	10.16%	13.03%	10.98%	8.36%	11.55%	11.79%	10.99%	11.35%
Debt / Equity	0.14x	0.08x	0.08x	0.07x	0.15x	0.16x	0.14x	0.12x	0.10x	0.10x
Interest Coverage	119.00x	120.47x	107.87x	103.74x	94.35x	88.08x	314.00x	156.21x	65.59x	53.56x
FCF Conversion	1.33x	1.04x	1.60x	1.23x	1.36x	2.37x	1.17x	1.12x	1.10x	0.95x
Revenue Growth	20.98%	8.63%	9.81%	8.88%	4.08%	-0.78%	11.14%	4.98%	-0.39%	1.98%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Healthcare	3.67B	3.87B	4.26B	4.67B	4.7B	4.85B	5.34B	5.63B	5.67B	5.93B
Healthcare Growth	-	5.55%	10.13%	9.50%	0.58%	3.34%	10.00%	5.51%	0.76%	4.55%
Financial Services	5B	5.37B	5.64B	5.84B	5.87B	5.62B	6.05B	6.07B	5.81B	5.75B
Financial Services Growth	-	7.26%	5.03%	3.71%	0.41%	-4.23%	7.65%	0.35%	-4.33%	-0.96%
Products and Resources	-	-	3.04B	3.42B	3.77B	3.7B	4.28B	4.57B	4.63B	4.78B
Products and Resources Growth	-	-	-	12.34%	10.40%	-1.96%	15.69%	6.78%	1.36%	3.33%
Communication, Media and Technology	-	-	1.87B	2.2B	2.45B	2.48B	2.84B	3.16B	3.24B	3.27B
Communication, Media and Technology Growth	-	-	-	17.42%	11.47%	1.39%	14.50%	11.12%	2.63%	0.83%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
North America	9.76B	10.55B	11.45B	12.29B	-	12.58B	13.64B	14.44B	14.26B	14.7B
North America Growth	-	8.06%	8.57%	7.36%	-	-	8.39%	5.86%	-1.19%	3.05%
Europe	2.01B	3.11B	3.65B	4.4B	-	4.64B	5.48B	5.4B	5.7B	5.69B
Europe Growth	-	55.06%	17.08%	20.68%	-	-	18.08%	-1.46%	5.61%	-0.21%
Other Regions	648.4M	796M	962M	995M	-	1.08B	1.31B	1.39B	1.3B	1.28B
Other Regions Growth	-	22.76%	20.85%	3.43%	-	-	20.96%	5.95%	-6.63%	-1.31%
UNITED KINGDOM	1.19B	1.18B	1.15B	1.27B	-	-	-	-	-	-
UNITED KINGDOM Growth	-	-1.05%	-2.21%	10.78%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Cognizant Technology Solutions Corporation (CTSH) has a price-to-earnings (P/E) ratio of 18.8x. This is roughly in line with market averages.

Growth & Financials

Cognizant Technology Solutions Corporation (CTSH) reported $20.86B in revenue for fiscal year 2024. This represents a 241% increase from $6.12B in 2011.

Cognizant Technology Solutions Corporation (CTSH) grew revenue by 2.0% over the past year. Growth has been modest.

Yes, Cognizant Technology Solutions Corporation (CTSH) is profitable, generating $2.13B in net income for fiscal year 2024 (11.3% net margin).

Dividend & Returns

Yes, Cognizant Technology Solutions Corporation (CTSH) pays a dividend with a yield of 1.42%. This makes it attractive for income-focused investors.

Cognizant Technology Solutions Corporation (CTSH) has a return on equity (ROE) of 16.2%. This is reasonable for most industries.

Cognizant Technology Solutions Corporation (CTSH) generated $2.65B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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