Cognizant Technology Solutions CTSH

Name: CTSH Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 16, 2026

Price at analysis: $60.31

Crucible Score

69.4

Quality × Value Composite

KQI — Quality

67.3

B-

Fundamental Quality Index

KVI — Value

71.9

Valuation Attractiveness Index

Crucible Verdict — CTSH

Cognizant Technology Solutions earns a solid B rating driven by strong financial quality and diversification, though growth prospects and competitive positioning lag behind management's long tenure under CEO Neemuchwala. CTSH trades at a meaningful discount to fair value despite a 95% earnings beat rate, suggesting the market remains skeptical of the company's ability to accelerate growth in an increasingly competitive IT services landscape.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

74.2

Growth Profile

58.5

Moat Durability⚠

59.2

Management Effectiveness⚠

74.4

Diversification & Resilience

75.8

Market Position

58.0

Weakest dimension: Market Position (58.0)

◆ KVI Value Dimensions

DCF Margin of Safety

67.9

FCF Yield & Cash Returns

85.6

Relative Valuation

95.0

Growth-Adjusted Value

22.3

Historical Valuation

84.7

Macro Context

95.0

◆ DCF Valuation Scenarios

Bear Case

$48.72

Base Case

$68.45

Bull Case

$93.18

Price at Analysis

$60.31

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$48.72	3.0%	14.0%	9.8%
🟢 Base	$68.45	5.0%	16.0%	9.3%
🟢 Bull	$93.18	7.0%	18.0%	8.8%

Key Assumptions: Revenue growth anchored to historical CAGR of ~3.3% over the trailing 5 years, with base case assuming modest acceleration to 5% from potential AI-related services demand. Operating margins range from 14% (bear, reflecting wage inflation and pricing pressure in IT services) to 18% (bull, reflecting automation-driven efficiency and favorable mix shift). WACC derived from CAPM with 5.5% ERP and 0.98 beta, yielding ~9.3% base; capex intensity remains low at ~1.6% of revenue consistent with asset-light IT services model.

◆ Financial Snapshot

Profitability

Gross Margin33.1%

Operating Margin16.1%

Net Margin10.6%

ROIC12.5%

ROE15.9%

Balance Sheet

Balance SheetCR: 2.34

Cash ConversionFCF/EPS: 1.16x

Capital IntensityCapex/Rev: 1.4%

Altman Z-Score5.97 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR3.3% CAGR

Earnings CAGR1.1% CAGR

Growth ConsistencyCV: 0.79

Segment Breadth4/4 growing (100%)

Quarterly TrendMargin↓, WC↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOAbidali Z. Neemuchwala · 11 years

Insider ActivitySelling

Capital AllocationROIC 12.5% vs WACC 1.9%

Earnings Beat Rate95% (20/22)

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ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 16, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.