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Conduent: Still Maintaining The Long Thesis, Although Some Concerns Over Renewal Momentum

The Alpha Sieve profile picture
The Alpha Sieve
3.4K Followers

Summary

  • All of CNDT’s segments are currently witnessing sequential improvement, and in Q2 there are multiple tailwinds supporting revenue expansion.
  • There has been a drastic slowdown in the pace of renewal contracts which could either be due to pricing factors or service quality.
  • CNDT's CFO transition has been managed well and the company is looking to bolster its sales leadership to promote its under-tapped offerings in the commercial health segment.
  • Consensus has upgraded their EBITDA estimates and we’ve seen an expansion in the forward EV/EBITDA multiple, but a higher net debt and a higher weighted average share count has brought down the target price.

Outsourcing Abstract
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Context of the article

Conduent Incorporated (NASDAQ:CNDT) is one of the small-cap turnaround stories that I've been deconstructing and writing about over the last 7 months; in my most recent article at

This article was written by

The Alpha Sieve profile picture
3.4K Followers
Investment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.

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