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Upturn AI SWOT - About
CTSH 
Cognizant Technology Solutions Corp Class A (CTSH)
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Upturn Advisory Summary
04/01/2025: CTSH (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 2.67% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 37.95B USD | Price to earnings Ratio 17.01 | 1Y Target Price 89.07 |
Price to earnings Ratio 17.01 | 1Y Target Price 89.07 | ||
Volume (30-day avg) 4524244 | Beta 1.12 | 52 Weeks Range 63.07 - 90.51 | Updated Date 04/2/2025 |
52 Weeks Range 63.07 - 90.51 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 1.62% | Basic EPS (TTM) 4.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.35% | Operating Margin (TTM) 15.74% |
Management Effectiveness
Return on Assets (TTM) 9.84% | Return on Equity (TTM) 16.21% |
Valuation
Trailing PE 17.01 | Forward PE 15.24 | Enterprise Value 37050356045 | Price to Sales(TTM) 1.92 |
Enterprise Value 37050356045 | Price to Sales(TTM) 1.92 | ||
Enterprise Value to Revenue 1.88 | Enterprise Value to EBITDA 10.48 | Shares Outstanding 494616000 | Shares Floating 493215752 |
Shares Outstanding 494616000 | Shares Floating 493215752 | ||
Percent Insiders 0.17 | Percent Institutions 99.95 |
Analyst Ratings
Rating 3.3 | Target Price 84.18 | Buy 4 | Strong Buy 3 |
Buy 4 | Strong Buy 3 | ||
Hold 19 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Cognizant Technology Solutions Corp Class A
Company Overview
History and Background
Cognizant Technology Solutions Corp Class A was founded in 1994 as Dun & Bradstreet Satyam Software. It later became Cognizant in 1996 and has grown into a major IT services and consulting firm, expanding globally through acquisitions and organic growth.
Core Business Areas
- Digital Business & Technology: Provides digital strategy, experience design, application development, and emerging technologies implementation.
- Digital Operations: Offers business process services, infrastructure services, and cloud operations.
- Digital Engineering: Focuses on core modernization, application modernization, data modernization, enterprise applications and core processes, and supply chain management.
Leadership and Structure
Cognizant is led by CEO Ravi Kumar S. The organizational structure includes various business units and global delivery centers, with a focus on client-centricity and industry specialization.
Top Products and Market Share
Key Offerings
- Consulting: Provides management and IT consulting services. Competitors include Accenture, Deloitte, and McKinsey. Revenue isn't specifically broken out for consulting, but it's a significant portion of their overall services revenue.
- Application Services: Includes application development, maintenance, and modernization. Competitors include Infosys, TCS, and Wipro. Market share data varies regionally and by specific service within application services.
- Infrastructure Services: Manages IT infrastructure, including cloud services, cybersecurity, and network management. Competitors include IBM, Capgemini, and HCLTech. Market share data varies regionally and by specific service.
Market Dynamics
Industry Overview
The IT services industry is experiencing growth driven by digital transformation, cloud adoption, and increased demand for cybersecurity solutions. Competition is intense, with both large global players and niche specialists vying for market share.
Positioning
Cognizant is positioned as a leading provider of IT services and consulting, focusing on digital transformation and industry-specific solutions. Its competitive advantages include its global delivery model, strong client relationships, and expertise in emerging technologies.
Total Addressable Market (TAM)
The global IT services market is estimated to be worth hundreds of billions of dollars. Cognizant is positioned to capture a significant portion of this TAM through its diverse service offerings and global presence. The TAM is continuously growing due to technology advancement and digital transformation initiatives.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Global delivery model
- Diverse service offerings
- Strong client relationships
- Expertise in digital technologies
Weaknesses
- Reliance on a few large clients
- High employee attrition rates
- Competition from lower-cost providers
- Need to invest in emerging technologies
Opportunities
- Growing demand for digital transformation services
- Expansion into new geographic markets
- Acquisition of specialized technology firms
- Increasing adoption of cloud computing
- Adoption of AI and automation
Threats
- Intense competition
- Economic downturns
- Rapid technological changes
- Cybersecurity threats
- Geopolitical risks
Competitors and Market Share
Key Competitors
- Accenture (ACN)
- Infosys (INFY)
- Tata Consultancy Services (TCS)
- Wipro (WIT)
- IBM (IBM)
Competitive Landscape
Cognizant competes with a mix of large global IT services firms and smaller, specialized players. Its strengths include its global delivery model and industry-specific expertise. Challenges include competition from lower-cost providers and the need to invest in emerging technologies.
Major Acquisitions
Belize Consulting Services
- Year: 2022
- Acquisition Price (USD millions): 0
- Strategic Rationale: Expanded digital engineering capabilities, added deep expertise in cloud data modernization.
Growth Trajectory and Initiatives
Historical Growth: Cognizant has experienced strong growth over the past two decades, fueled by the outsourcing boom and expansion into new markets. The growth rate has slowed in recent years due to increased competition and changing market dynamics.
Future Projections: Analysts project modest revenue growth for Cognizant in the coming years, driven by digital transformation and cloud adoption. Profitability is expected to improve as the company streamlines operations and invests in higher-margin services.
Recent Initiatives: Recent initiatives include acquisitions of specialized technology firms, investments in AI and automation, and expansion into new geographic markets.
Summary
Cognizant is a major IT services provider undergoing transformation to be more digitally focused. It has a strong global presence but faces increasing competition. Investing in new technologies like AI and cloud services is essential for its future growth, and recent initiatives, including strategic acquisitions, show positive efforts to diversify capabilities. It needs to innovate faster to compete with larger, more agile firms.
Similar Companies
ACN
Accenture plc
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EPAM
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EPAM
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IBM
International Business Machines
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INFY
Infosys Ltd ADR
INFY
Infosys Ltd ADR
WIT
Wipro Limited ADR
WIT
Wipro Limited ADR
Sources and Disclaimers
Data Sources:
- Company Filings (10K, 10Q)
- Analyst Reports
- Industry Research Reports
Disclaimers:
This analysis is based on publicly available information and analyst estimates. It is not financial advice, and investors should conduct their own research before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cognizant Technology Solutions Corp Class A
Exchange NASDAQ | Headquaters Teaneck, NJ, United States | ||
IPO Launch date 1998-06-19 | CEO & Director Mr. Ravi Kumar Singisetti | ||
Sector Technology | Industry Information Technology Services | Full time employees 336800 | Website https://www.cognizant.com |
Full time employees 336800 | Website https://www.cognizant.com | ||
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, digital engineering, quality engineering and assurance, application maintenance, infrastructure, security, cloud, internet of things, enterprise platform services, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
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