Cognizant Technologies (CTSH) – A quarter of robust partnerships but slow growth

Cognizant Technologies (CTSH) (Q2FY23)

Stock Performance: Cognizant stock price surged by 15.70% in the past 1- year. The stock has a 52-week high of $72.71 and its 52-week low is $51.33. The price showed an upward trend in the past 3-month period and gave 10.02% returns due to beating revenue and EPS estimates in Q2.

Q2FY23 Performance: Revenue of $4.9bn declined 0.4% Y/Y, or declined 0.1% in cc. Record trailing 12-month bookings of $26.4bn; Q2 bookings growth of 17% Y/Y. Operating cash flow of $765mn and free cash flow of $599mn Expect to return $700mn to shareholders through share repurchases and dividends in 2023.

Guidance: CTSH expects third-quarter FY23 revenues between $4.89bn and $4.94bn, a growth of 0.6% to 1.6%, or a decline of 0.5% to growth of 0.5% in cc.

Highlights

Cognizant and Gilead Sciences extended their partnership to support Gilead’s digital transformation and innovation initiatives. The agreement includes the renewal and expansion of Cognizant services, with a total expected value of $800mn over the next five years.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 39

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