Stock Analysis
Cognizant Technology SolutionsCTSH
P/E 13.40×· 5Y range 7.89–26.19×· bottom 17% of history
Sector: Technology · Industry: Services-Computer Programming Services
AnalystsHold37 analystsP/E 13.4× sits at the 17th percentile of its 5.086926762491444-year history.
Cash covers 50% of debt · Q2 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Financial Health95
- Quality92
Risks
- Growth43
High-quality business at an attractive price.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 4.9 — safe-zone balance sheet
- ✓ROE 15.4% — efficient capital deployment
- ✓Interest coverage 61.2× — debt well covered
- ✓P/E 13.4× at bottom 17% of 5-year history
What's happening with CTSH
Profile
Strong valuation, financial health, earnings quality, moat and profitability; growth lags behind.
How is each axis scored?
- Valuation100/100 · Strong
- P/E vs own history (17th pct)25/25
- FCF yield (8.8%)25/25
- P/S (1.4x)25/25
- EV/EBIT (8.9x)25/25
- Growth43/100 · Weak
- Revenue CAGR (3.3%)6/25
- Net income CAGR (1.1%)6/25
- EPS CAGR 5Y (3.0%)6/25
- Fwd implied growth (40.5%)25/25
- Profitability80/100 · Strong
- ROIC (17.5%)20/25
- ROE (15.4%)20/25
- Net margin (10.3%)20/25
- Operating margin (15.9%)20/25
- Financial Health95/100 · Strong
- Altman Z (4.95)25/25
- Current ratio (2.18)25/25
- Interest coverage (61.2x)25/25
- Net cash / debt (D/A 5%)20/25
- Quality92/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.43)20/25
- FCF conversion (117%)25/25
- Margin stability (σ 2.1%)25/25
- Moat81/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (34.6%)13/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 8.4%)18/25
About Cognizant Technology Solutions
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Show more
Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries. With most of its workforce located in India, Cognizant leverages a global delivery model that helps clients outsource their IT needs to offshore labor.
Headquarters: TEANECK, NJ · Employees: 356,700 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
100A+P/E (TTM)13.4xA
Grade A: CheapPrice / TTM EPS (own statements) — vs own 5Y history: 7.9x–26.2x · 17th pct
P/FCF11.4xA
Grade A: CheapPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield8.8%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 3.7%–14.8% · 89th pct
P/S (TTM)1.37xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 0.8x–2.7x · 11th pct
EV/EBIT8.9xA
Grade A: CheapEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 5.2x–18.4x · 13th pct
EV/Sales1.4xA
Grade A: CheapEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E9.5xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.05xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.24B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.09%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio27.8%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
80AROIC17.5%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE15.4%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA10.8%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin10.3%A
Grade A: HighNet Income / Revenue
Operating Margin15.9%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin33.4%C
Grade C: AverageGross Profit / Revenue
FCF Margin12.0%C
Grade C: AverageFCF / Revenue
True FCF Margin11.1%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
43D+Revenue CAGR3.3%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR1.1%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)3.0%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth40.5%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-14.8%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income8.6%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.9%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
95A+Altman Z-Score4.95A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.18xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.18xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage61.2xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment0.4yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT0.3xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.14xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.50xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
92A+Piotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.43A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion117.0%A
Grade A: StrongFCF / Net Income
Margin Stability2.1%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.5%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.05xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Kerdman Alina Filed | Kerdman Alina | Option exercise | -207 | |
Kerdman Alina Filed | Kerdman Alina | Tax withholding | -69 | |
Kerdman Alina Filed | Kerdman Alina | Option exercise | +207 | |
Kerdman Alina Filed | Kerdman Alina | SellOpen market sale | -139 | |
Kerdman Alina Filed | Kerdman Alina | Option exercise | -200 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Kerdman Alina Filed | Kerdman Alina | Tax withholding | -66 | |
Kerdman Alina Filed | Kerdman Alina | Option exercise | +200 | |
Varrier Rajesh Filed | Varrier Rajesh | Option exercise | -249 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
81AROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)34.6%C
Grade C: ModerateMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor8.4%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$4.93
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.33
Cash & short-term investments per share (Finnhub)
Book Value / Share$32.00
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$2.09B
Total debt obligations (short + long term)
Cash & Equiv.$1.05B
Cash and short-term investments
Net Debt$1.04B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$14.46B
Shareholders' equity (book value)
Asset / Liability3.27xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$29.68B
Current Market Capitalization
Beta0.88B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Cognizant Technology Solutions (CTSH)
Cognizant Technology Solutions meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 4.95 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.43 suggests a low likelihood of earnings manipulation.
- Takes ~0.4 years to repay net debt from free cash flow.
- At a valuation score of 100/100, CTSH trades near the cheapest end of its own historical range (P/E 13.4).
- The stock currently yields 2.1% in dividends.
See how CTSH ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all CTSH moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | After-hours | 65.77 | +5.28% | 2.01 |
| Oct 1 | Pre-market | 62.20 | +8.29% | 3.31 |
| Oct 1 | Regular | 61.64 | +7.31% | 2.96 |
Frequently Asked Questions about CTSH
What is the current Cognizant Technology Solutions (CTSH) stock price?
CTSH is trading at $66.03 at the last market close, up 0.38% on the session. PreMarketPrice tracks CTSH pre-market, intraday and after-hours prices.
Is CTSH stock a buy right now?
PreMarketPrice's quantitative model rates Cognizant Technology Solutions's financial health at 95/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is CTSH stock overvalued?
Cognizant Technology Solutions trades at a trailing P/E of 13.4 and our valuation score rates it 100/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Cognizant Technology Solutions report earnings?
No confirmed earnings date is currently scheduled for CTSH. The Earnings section lists recent reports and updates as dates are announced.
What sector does Cognizant Technology Solutions operate in?
Cognizant Technology Solutions operates in the Technology sector, within the Services-Computer Programming Services industry. The Related Stocks section lists sector peers for comparison.
What does Cognizant Technology Solutions do?
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services.
About Cognizant Technology Solutions (CTSH) Stock
Cognizant Technology Solutions (CTSH) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Programming Services industry. As of the latest update, Cognizant Technology Solutions is trading at $66.03, up 0.38% on the day with a market capitalization of $29.7 billion. The financial health score for CTSH is 95/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for CTSH stock.
CTSH Stock Analysis & Key Metrics
On PreMarketPrice, you can track Cognizant Technology Solutions (CTSH) across multiple dimensions:
- Pre-market price & movement: Real-time CTSH stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for CTSH with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Cognizant Technology Solutions across multiple reporting periods.
- Financial health score: A composite score of 95/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for CTSH.
- Sector peers: Compare CTSH against 6 other technology stocks on key financial metrics.
Is CTSH a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Cognizant Technology Solutions (CTSH) as an investment. The financial health score of 95/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Cognizant Technology Solutions (CTSH) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.