Cognizant Technology Solutions Corporation cash flow to debt ratio of 183.05% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Cognizant Technology Solutions Corporation's free cash flow has increased 42.04% from $1.83B last year to $2.60B, signaling increasing performance

Cognizant Technology Solutions Corporation's debt to equity ratio is 0.14, which means that the company's assets are healthy financed, signaling financial stability.

Cognizant Technology Solutions Corporation's debt has increased relative to shareholder equity from 0.10 last year to 0.14 today, signaling weakened financials

Cognizant Technology Solutions Corporation has a net cash position, so leverage is healthy.

Cognizant Technology Solutions Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Cognizant Technology Solutions Corporation's profit margin has decreased (9.62%) in the last year from 11.35% to 10.26%, signaling decreasing performance

Cognizant Technology Solutions Corporation's short-term assets of $8.55B exceed its short-term liabilities of $3.66B

Cognizant Technology Solutions Corporation's return on assets of 10.66% is higher than the 5.00% threshold, indicating efficient asset utilization

Cognizant Technology Solutions Corporation's return on equity of 14.94%, is lower than 15.00%, indicating bad performance

Cognizant Technology Solutions Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Cognizant Technology Solutions Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Cognizant Technology Solutions Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Cognizant Technology Solutions Corporation has a free cash flow yield of 9.88%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Cognizant Technology Solutions Corporation's yearly earnings has decreased 0.45% since last year from $2.24B to $2.23B, signaling decreasing performance

Cognizant Technology Solutions Corporation's yearly revenue has increased 6.95% since last year from $19.74B to $21.11B, signaling increasing performance

ROIC 12.32% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Cognizant Technology Solutions Corporation's 3-year revenue CAGR of 2.80% is positive, indicating growing revenue over the past 3 years

Cognizant Technology Solutions Corporation had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Cognizant Technology Solutions Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Cognizant Technology Solutions Corporation is overvalued relative to its fair value price of 57.91 based on Discounted Cash Flow model

Cognizant Technology Solutions Corporation has an earnings yield of 8.17%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Cognizant Technology Solutions Corporation is undervalued relative to its fair value price of 61.20 based on EBITDA multiple model

Cognizant Technology Solutions Corporation has an EV/EBITDA ratio of 6.21x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Cognizant Technology Solutions Corporation is undervalued relative to its fair value price of 91.77 based on Earnings Fair Value model

Cognizant Technology Solutions Corporation has a PEG-ratio over 1 which is considered overvalued

Cognizant Technology Solutions Corporation has a price-to-book ratio of 1.88x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Cognizant Technology Solutions Corporation has a price-to-sales ratio of 1.26x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue