Cognizant Technology Solutions Corp (CTSH, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial position. With a current share price of $67.78 and a daily gain of 2.99%, despite a three-month decline of -9.42%, the company shows promising signs of resilience and potential for future growth. A detailed analysis, supported by the GF Score, positions Cognizant Technology Solutions Corp as a contender for substantial growth moving forward.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key dimensions: financial strength, profitability, growth, GF Value, and momentum. These dimensions are proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. Cognizant Technology Solutions Corp boasts a GF Score of 92 out of 100, indicating a strong potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 9/10
- Growth rank: 8/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding Cognizant Technology Solutions Corp Business
Cognizant Technology Solutions Corp, with a market cap of $33.7 billion and annual sales of $19.3 billion, is a leading global IT services provider. The company specializes in consulting and outsourcing services across various industries including financial services, media, communications, healthcare, and consumer products. Headquartered in Teaneck, New Jersey, Cognizant employs nearly 300,000 people worldwide, with a significant presence in India. The company's operating margin stands at 15.2%, reflecting its efficient operational structure.
Financial Strength Breakdown
Cognizant Technology Solutions Corp's financial robustness is evident through its impressive Interest Coverage ratio of 68.23, significantly above the benchmark set by investment guru Benjamin Graham. The company's Altman Z-Score of 6.85 further underscores its ability to avoid financial distress, while a Debt-to-Revenue ratio of 0.07 highlights its prudent debt management.
Profitability and Growth Metrics
The Profitability Rank of Cognizant Technology Solutions Corp reflects its superior capability to generate earnings relative to its peers. The company's consistent operational performance is further evidenced by a Predictability Rank of 3.5 stars. Growth metrics are equally impressive, with a 3-Year Revenue Growth Rate of 7.6% and notable EBITDA growth, underscoring its commitment to scaling operations and enhancing shareholder value.
Conclusion
Considering Cognizant Technology Solutions Corp's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
