Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Cognizant (CTSH): Set to win its Fair Value in AI Workloads Across its Segments – What’s the Impact, Outlook & its 5 Key Competitive & Strategic Levers?
Cognizant’s Q3 2024 results highlight a resilient performance with revenue reaching $5.04 billion, up 2.7% YoY, aided by recent acquisitions and improving organic growth, though headwinds remain. Adjusted EPS of $1.25 and a 15.3% adjusted operating margin reflect disciplined cost management and operational efficiency, while recent large-deal momentum underscores Cognizant’s strategic positioning. Health Sciences led growth, rising 7.6% YoY, driven by demand in life sciences and payer-provider solutions. Financial Services showed early recovery signs, up 0.5%, although challenges persist in Communications, Media, and Technology (CMT), which declined 4% due to constrained discretionary spending. Cognizant’s $1 billion investment in AI is advancing productivity across 1,000+ generative AI projects, with platforms like Neuro IT Ops yielding significant cost savings, particularly within the TriZetto suite. Partnerships with AWS and NVIDIA, alongside the Belcan acquisition, enhance Cognizant’s digital and engineering service capabilities, especially in aerospace. Cognizant’s raised guidance reflects confidence in its demand pipeline but also acknowledges near-term profitability challenges as it navigates AI-driven transformation. As Cognizant scales AI integration, will it successfully balance innovation with the risks of revenue cannibalization in traditional services?
