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Management s Discussion and Analysis of Financial Condition and Results of Operations . Business Overview Cognizant is one of the world s leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients.
$52.32
+$1.02 (+1.99%)
Price from 13 days ago
16.06% operating margin is respectable but not wide. ROIC at 13.28%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 7.0%, steady but not accelerating.
Even for strong businesses, today's 11x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
11.3x earnings, 10.1x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$21.41B
▲ +7.0% YoY
Net Income (TTM)
$2.23B
▼ -0.4% YoY
Op. Margin
15.79%
▲ +1.4pp YoY
ROIC
13.11%
▼ -1.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.47B
▲ +42.0% YoY
Op. Cash Flow (TTM)
$2.76B
▲ +35.7% YoY
Net Debt
-$425M
Net Cash Position
Cash & Equiv.
$1.52B
5Y CAGR: +4.9%
5Y CAGR: -2.2%
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