# Cognizant Technology Solutions (CTSH) — Stock CV

Cognizant Technology Solutions is a $26.6B technology company. Revenue grew 5.6% over the last year, it keeps 10¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 12.0× earnings — near the lowest of its own history.

> Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries.

## Identity

- **Ticker**: CTSH
- **Sector**: Technology
- **Industry**: Services-Computer Programming Services
- **Headquarters**: TEANECK, NJ
- **Employees**: 356 700
- **Website**: https://www.cognizant.com
- **Market cap**: $26.6B
- **Last price**: $59.00
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $21.6B
- **Net income**: $2.22B
- **Free cash flow**: $2.60B
- **Net cash**: $1.34B
- **P/E**: 12.0
- **Revenue growth (YoY)**: 5.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 52 |
| Profitability | 72 |
| Health | 100 |
| Quality | 92 |
| Moat | 81 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +5.6% YoY
- [x] Profitable — $2.22B TTM
- [x] Profit growing — +1.1% YoY
- [x] Generates cash — $2.60B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $26.6B market cap
- [x] Not printing shares — -9.6% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 4.6 — safe
- [x] Pays a dividend — yield 2.32%
- [x] Valuation not extreme — P/E 12.0

## Experience (career milestones)

- **2024** — Cognizant's largest employee bases were in Chennai and Hyderabad, each with more than 50,000 employees,…
- **FY2022** — Best year on record: $2.29B net income
- **2022** — Cognizant sold its acquisition Oy Samlink to Kyndryl and Mustache to DJE Holdings
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $13.5B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2014** — Cognizant acquired healthcare IT services provider TriZetto Corp for $2.7 billion
- **2003** — IMS Health sold its entire 56% stake in Cognizant, which instituted a poison pill provision to prevent…
- **1998** — IMS Health partially spun off the company, conducting an initial public offering of the Cognizant stock
- **1997** — Three months later, in 1997, DBSS renamed itself Cognizant Technology Solutions
- **1997** — Dun & Bradstreet bought Satyam's 24% stake in DBSS for $3.4 million
- **1996** — Dun & Bradstreet spun off several of its subsidiaries, including Erisco, IMS International, Nielsen Media…
- **1994** — Cognizant was established in 1994 in Chennai, India, as Dun & Bradstreet Satyam Software (DBSS), a 76:24 joint…

## Strengths

- Net cash position after subtracting debt from cash
- Could repay net debt from ~0.4 years of free cash flow
- Interest covered 100.8× by operating earnings
- High returns on invested capital (ROIC 16.3%)
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $18.5B | $2.14B | $2.22B |
| FY2022 | $19.4B | $2.29B | $2.24B |
| FY2023 | $19.4B | $2.13B | $2.01B |
| FY2024 | $19.7B | $2.24B | $1.83B |
| FY2025 | $21.1B | $2.23B | $2.60B |

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Source: https://stockcv.com/CTSH — derived from company filings; may be delayed or incomplete. Information, not investment advice.