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Declining Stock and Decent Financials: Is The Market Wrong About Cognizant Technology Solutions Corporation (NASDAQ:CTSH)?

Declining Stock and Decent Financials: Is The Market Wrong About Cognizant Technology Solutions Corporation (NASDAQ:CTSH)?

股票下跌和財務狀況良好:市場對高知特科技解決方案公司(納斯達克股票代碼:CTSH)的看法錯誤嗎?
Simply Wall St ·  05/24 02:40

Cognizant Technology Solutions (NASDAQ:CTSH) has had a rough three months with its share price down 13%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Cognizant Technology Solutions' ROE in this article.

Cognizant Technology Solutions(納斯達克股票代碼:CTSH)經歷了艱難的三個月,其股價下跌了13%。但是,該公司的基本面看起來相當不錯,長期財務狀況通常與未來的市場價格走勢一致。具體而言,我們決定在本文中研究Cognizant Technology Solutions的投資回報率。

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.

股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。

How Is ROE Calculated?

ROE 是如何計算的?

The formula for return on equity is:

股本回報率的公式是:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益

So, based on the above formula, the ROE for Cognizant Technology Solutions is:

因此,根據上述公式,Cognizant Technology Solutions的投資回報率爲:

16% = US$2.1b ÷ US$13b (Based on the trailing twelve months to March 2024).

16% = 21億美元 ÷ 130億美元(基於截至2024年3月的過去十二個月)。

The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.16 in profit.

“回報” 是指公司去年的收益。另一種思考方式是,每持有價值1美元的股權,該公司就能獲得0.16美元的利潤。

What Has ROE Got To Do With Earnings Growth?

投資回報率與收益增長有什麼關係?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

到目前爲止,我們已經了解到,投資回報率衡量的是公司創造利潤的效率。然後,我們能夠評估公司的收益增長潛力,具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。

A Side By Side comparison of Cognizant Technology Solutions' Earnings Growth And 16% ROE

Cognizant Technology Solutions的收益增長和16%的投資回報率的並排比較

To begin with, Cognizant Technology Solutions seems to have a respectable ROE. Especially when compared to the industry average of 11% the company's ROE looks pretty impressive. Yet, Cognizant Technology Solutions has posted measly growth of 4.7% over the past five years. That's a bit unexpected from a company which has such a high rate of return. A few likely reasons why this could happen is that the company could have a high payout ratio or the business has allocated capital poorly, for instance.

首先,Cognizant Technology Solutions的投資回報率似乎相當不錯。特別是與行業平均水平的11%相比,該公司的投資回報率看起來相當可觀。然而,在過去五年中,Cognizant Technology Solutions僅實現了4.7%的微弱增長。對於一家回報率如此之高的公司來說,這有點出乎意料。發生這種情況的幾個可能原因是,例如,公司的派息率可能很高,或者企業的資本配置不佳。

We then compared Cognizant Technology Solutions' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 12% in the same 5-year period, which is a bit concerning.

然後,我們將Cognizant Technology Solutions的淨收入增長與該行業進行了比較,發現該公司的增長數字低於同期12%的行業平均增長率,這有點令人擔憂。

past-earnings-growth
NasdaqGS:CTSH Past Earnings Growth May 23rd 2024
納斯達克GS:CTSH 過去的收益增長 2024 年 5 月 23 日

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for CTSH? You can find out in our latest intrinsic value infographic research report.

爲公司附加價值的基礎在很大程度上與其收益增長息息相關。對於投資者來說,重要的是要知道市場是否對公司的預期收益增長(或下降)進行了定價。然後,這可以幫助他們確定股票是面向光明還是暗淡的未來。市場對CTSH的未來前景進行了定價嗎?你可以在我們最新的內在價值信息圖研究報告中找到答案。

Is Cognizant Technology Solutions Efficiently Re-investing Its Profits?

Cognizant 技術解決方案能否有效地將其利潤再投資?

While Cognizant Technology Solutions has a decent three-year median payout ratio of 26% (or a retention ratio of 74%), it has seen very little growth in earnings. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.

儘管Cognizant Technology Solutions的三年派息率中位數不錯,爲26%(或74%的留存率),但其收益幾乎沒有增長。因此,可能還有其他一些原因可以解釋這方面的不足。例如,業務可能會下滑。

In addition, Cognizant Technology Solutions has been paying dividends over a period of seven years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 25%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 16%.

此外,Cognizant Technology Solutions在七年內一直在支付股息,這表明即使以業務增長爲代價,維持股息支付對管理層來說也更爲重要。我們最新的分析師數據顯示,公司未來三年的派息率預計約爲25%。因此,預計該公司未來的投資回報率也不會有太大變化,分析師預計投資回報率爲16%。

Conclusion

結論

On the whole, we do feel that Cognizant Technology Solutions has some positive attributes. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.

總的來說,我們確實認爲Cognizant技術解決方案具有一些積極的屬性。但是,儘管投資回報率和再投資率很高,但我們仍然對收益缺乏增長感到失望。我們認爲,可能有一些外部因素可能會對業務產生負面影響。話雖如此,從分析師目前的估計來看,我們發現該公司的收益有望增強。這些分析師的預期是基於對該行業的廣泛預期,還是基於公司的基本面?點擊此處進入我們分析師對公司的預測頁面。

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。

譯文內容由第三人軟體翻譯。


以上內容僅用作資訊或教育之目的,不構成與富途相關的任何投資建議。富途竭力但無法保證上述全部內容的真實性、準確性和原創性。
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