Company name | Cognizant Technology Solutions Corp. |
Stock ticker | CTSH |
Live stock price | [stckqut]CTSH[/stckqut] |
P/E compared to competitors | Good |
Employee productivity | Poor |
Sales growth | Good |
EPS growth | Good |
P/E growth | Poor |
EBIT growth | Good |
Confident Investor Rating | Fair |
Target stock price (TWCA growth scenario) | $93.8 |
Target stock price (averages with growth) | $107.94 |
Target stock price (averages with no growth) | $89.76 |
Target stock price (manual assumptions) | $70.81 |
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
For this company, some basic understanding of how they make money reveals that it should be graded slightly higher than its metrics imply. Cognizant provides a great deal of offshore labor to North American companies. Due to this, when one compares CTSH revenue and income per employee it is lower than many others in their industry as well as the S&P 500. This is because those industry values are tainted with North American companies that require a higher level to maintain a profit. CTSH should only be compared to Indian companies and not North American companies that dominate the S&P 500. Therefore, the employee productivity measurement could actually be considered to be Fair or Good, which would put CTSH in the Good company list and not the Fair company list. For this reason, I am leaving CTSH on my Watch List.