Cognizant Technology Solutions Corporation
Cognizant 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; Health Sciences; Products and Resources; and Communications,…
What to know about CTSH
Cognizant Technology Solutions Corporation is a large Technology company with a mixed financial profile. It scores well on valuation and health, but size is worth keeping an eye on.
Should you consider CTSH?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Cognizant Technology Solutions Corporation is a large-cap Technology company with a mixed overall financial profile — it sits in the upper half of Technology stocks (29 of 82).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation looks attractive — the stock is priced reasonably relative to its earnings and sales compared to most peers. You're not overpaying for the business.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.03%), but income-focused investors will likely find better yields elsewhere in the market.
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Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
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This is a mixed picture — real strengths in some areas, but areas that need watching too. Do your homework on the sector before deciding.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how CTSH compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 9.48 | Top 25% |
| Forward P/E | 7.09 | Top 25% |
| PEG Ratio | 0.84 | Top 25% |
| Price to Sales | 0.97 | Top 25% |
| Price to Book | 1.37 | Top 25% |
| EV/EBITDA | 6.11 | Top 25% |
| Earnings Yield | 10.55% | Top 25% |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 33.51% | Average |
| Operating Margin | 15.57% | Average |
| Net Profit Margin | 10.41% | Average |
| Return on Equity | 14.88% | Average |
| Return on Invested Capital | 10.44% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 5.80% | Average |
| Revenue Growth (3Y CAGR) | 2.80% | Average |
| EPS Growth (YoY) | 3.60% | Average |
| Free Cash Flow Growth | 42.04% | Top 25% |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 2.23 | Top 25% |
| Debt to Equity | 7.25 | Below avg |
| Interest Coverage | 95.03 | Top 25% |
| Altman Z-Score | 5.03 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 2.59% | Above avg |
| Payout Ratio | 27.33% | Above avg |
| Dividend Growth (5Y) | -7.22% | Above avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 11.95% | Top 25% |
| OCF to Sales | 12.88% | Below avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.81 | Above avg |
| Volatility (30-Day) | 54.92% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 12.74% | Below avg |
| Avg. Analyst Rating | 2.13 | Average |
| Target Upside % | 63.49% | Top 25% |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 20.67B | Below avg |
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