Re: Cognizant Tech Sol (CTSH)
Started a tracking position in CTSH to complement my Genpact Ltd (G). As discussed in earlier post, these two names appear to be ok value buys to get exposure to AI through their consulting services.
Cognizant Technology Solutions Corporation is a leading professional services company. It offers digital services and solutions, consulting, application development, systems integration, application testing, application maintenance, infrastructure services and business process services. The company is focusing its investments on four key areas of digital: IoT, AI, experience-driven software engineering and cloud. The company primarily serves four domains: Financial Services, Healthcare, Products & Resources and Communications, Media & Technology. 14.17x PE and pays a 1.5% dividend. P/FCF of 14.79 reflecting FCF of $4.67/share relevent to a Consulting compapny.
Other Value Metrics:
- P/E Ratio: (currently 14.46)
- Price-to-Book Value (P/BV) Ratio: (currently 2.54)
- Current Ratio: (currently 2.41)
- Debt/Equity: (currently 0.04 - very low)
- Dividend Yield: (currently 1.58% - 1.72%)
Will be monitoring for new AI consulting contracts.
FWIW, Genpact Ltd (G) continues to land new consulting contracts. I still have my Genpact Ltd (G) position from 2024 w/ an avg cost of $31/share. I did peel off a few shares in 2025 between $45 - $50. Position only a 0.5% portfolio size and +36.57% (close to a 16 month hold so far) |
