Cognizant: Future Topline Growth At Question

Caffital Research
1.62K Followers

Summary

  • Cognizant Technology Solutions has achieved good long-term revenue CAGR of 24.9%, but recent years have seen a significant slowdown.
  • The company has had frequent acquisitions to bolster the topline growth, with future organic growth being at question.
  • I believe the stock is currently priced for fair assumptions of Cognizant's future financials, as my DCF model estimates a fairly valued stock.
Business colleagues working together on a laptop.

courtneyk

Cognizant Technology Solutions Company (NASDAQ:CTSH) provides consulting solutions. The company has achieved a good long-term track record of growth both organically and through acquisitions, but as the growth has slowed down significantly in the past few years, I don’t believe the company

This article was written by

1.62K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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