Growth Analysis of Cognizant Technology Solutions Corporation (NASDAQ:CTSH)


Quarterly Sales and EPS Roundup:

Cognizant Technology Solutions Corporation (CTSH) reported sales (ttm) of 14.13 Billion, whereas, 25 number of analysts estimated the mean sale of 3766.74 million. The analysts estimated sales for the higher end at 3827 million and lower end at 3729.46 million while the year ago reported sale was 3829.66 million.

25 number of analysts have estimated the sales of the company for the quarter, analysts estimated mean sale target of 3811.86 million while high and low sale targets are estimated at 3885 million and 3756.27 million respectively.

Cognizant Technology Solutions Corporation (CTSH) reported earning per shares for the quarter ending Aug 03 BMO, whereas, 27 number of analysts estimated the mean EPS at 0.95. The analysts estimated EPS for the higher end at 0.99 and lower end at 0.93 while the year ago reported earnings per share was 0.94.

The company has mean EPS estimate of 0.98 reported by 27 number of analyst for the quarter ending Current Qtr.(Sep2017). The analysts estimated mean EPS at 0.98 while the high and low EPS estimate stand at 1.02 and 0.95 respectively. In contrast to the year ago quarter EPS was at 0.96. EPS long term mean growth rate estimated by 4 analysts is at 13.98%, whereas, the high and low Long term growth rate estimated at 15 and 12.

Valuation Ratios of Cognizant Technology Solutions Corporation (CTSH) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Cognizant Technology Solutions Corporation (CTSH). These ratios are important while doing valuation of the company or the shares of the company.

Cognizant Technology Solutions Corporation (CTSH) currently has P/E (Price to Earnings) ratio of 22.74 while the company’s industry has 21.04 P/E and the sector P/E is 2002.76. Similarly, the company’s last 5 years high P/E ratio is 25.05 and low P/E is 21.5, whereas, the industry’s and sector’s  high P/E for the past year is 30.7 and 25.1 respectively and low P/E ratio for the last 5 years is 13.06 for the industry and 10.28 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, CTSH has Beta of 1.13 while its industry and Sector’s beta remains at 0.48 and 1.29 respectively.

Price to Sale ratio of CTSH stands at 2.97 while Price to Book Ratio stands at 4. Its Price to Cash Flow ratio shows the value of 18.31, whereas, the industry and sector ratio of Price to Cash Flow ticked at 14.9 and 14.75 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Cognizant Technology Solutions Corporation (CTSH) stands at 17.12 while the industry’s and the sector’s growth for next 5 years ticked at 9.71 and 5.25 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at 12.33 and 0.8.

Cognizant Technology Solutions Corporation (CTSH) Trading Statistics:

The company declined -1.41% and closed its last trading session at $71.01. The market capitalization of the company is at $41.24 Billion. The stock touched 52-week High of $71.57 on 08/04/17 and 52-week Low of $45.44 on 09/30/16. The stock currently has Weekly Volatility of 1.82% and Monthly Volatility of 1.33%. The Beta for the company stands at 1.13 and its Average True Range (ATR) shows a value of 1.04.