Cognizant Technology Solutions Corporation CTSH
Technology · Information Technology Services · United States · S&P 500
Based on the available data, Cognizant Technology Solutions Corporation gets an algorithmic score of 60/100. It trades at 56.84 $, with a bearish technical trend (RSI 41.4) and 41.1% annual volatility.
Updated: 2026-09-30
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Strengths
- Low-debt balance sheet.
- Attractive free-cash-flow yield (9.7%).
- Low valuation (P/E 9.0).
- Low beta (0.70): defensive profile.
Weaknesses
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Fundamentals
| P/E | 12.33 |
| Forward P/E | 8.99 |
| PEG | 0.85 |
| P/B | 1.78 |
| EV/EBITDA | 6.60 |
| P/S | 1.24 |
| ROE % | 14.92 |
| ROA % | 10.73 |
| Gross margin % | 33.44 |
| Operating margin % | 17.48 |
| Net margin % | 10.26 |
| Revenue growth % (y/y) | 4.50 |
| Earnings growth % (y/y) | 3.80 |
| Revenue CAGR % | 2.80 |
| Earnings CAGR % | -0.88 |
| Debt/Equity % | 14.48 |
| Current ratio | 2.18 |
| FCF yield % | 9.65 |
| Dividend yield % | 2.32 |
| Payout % | 27.47 |
Returns
| 1 month | -11.2 % |
| 3 months | +47.6 % |
| 6 months | -5.7 % |
| YTD | -28.8 % |
| 1 year | -13.2 % |
| 3 years | -13.8 % |
| 5 years | -16.9 % |
Risk
| 1-year volatility | 41.1 % |
| Beta | 0.70 |
| 5-year max drawdown | -56.1 % |
| Sharpe 1A | -0.24 |
Macroeconomic context
Highly sensitive to interest rates (valued on future cash flows): rate cuts and falling bond yields help it. It depends on the corporate investment cycle (AI/cloud capex), the semiconductor supply chain (Taiwan/China) and the dollar (foreign revenue). As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.
How the score is calculated
The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.