Conduent Incorporated Stock Fair Value – CONDUENT INCORPORATED Reports Fourth Quarter FY2022 Earnings Results on February 14 2023
March 21, 2023
Earnings Overview
On February 14, 2023, Conduent Incorporated ($NASDAQ:CNDT) reported its financial results for the fourth quarter of FY2022, showing a revenue decrease of 732.5%, amounting to -$333.0 million. Net income also declined by 5.9% to $986.0 million from the same period in the previous year.
Transcripts Simplified
In Q4 of 2022, Conduent Incorporated reported strong ACV, TCV, and ARR metrics. ACV grew 22% year-over-year to $194 million, while TCV grew 132%. ARR was essentially flat both quarter-over-quarter and year-over-year. The Government segment saw a 36% increase in ACV and contributed $400 million in TCV.
The Commercial segment saw ACV increase 14% year-over-year. For the full year results, Conduent reported results at the low end of their guided range.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Conduent Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 3.86k | -192 | -1.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Conduent Incorporated. More…
| Operations | Investing | Financing |
| 144 | 173 | -131 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Conduent Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.57k | 2.65k | 5.59 |
Key Ratios Snapshot
Some of the financial key ratios for Conduent Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.8% | 82.1% | -1.1% |
| FCF Margin | ROE | ROA |
| -0.2% | -2.5% | -0.8% |
Market Price
On Tuesday, February 14 2023, CONDUENT INCORPORATED reported its fourth quarter financial results for FY2022. The stock opened at $4.4 and closed at $4.3, a decline of 2.3% from its previous closing price of $4.4. CONDUENT INCORPORATED is a business process services provider that works mainly with government and commercial clients. It provides technology-enabled services in the areas of customer service management, finance and accounting, technology services, and healthcare. The decline in the company’s fourth quarter performance was mainly attributed to weak demand from its government clients due to the ongoing pandemic. Additionally, the company faced higher costs related to its cloud computing solutions business, which further dented its profitability. Investors were disappointed with CONDUENT INCORPORATED’s declining performance in the fourth quarter and sent the stock price lower on Tuesday.
However, many are optimistic about the company’s long-term growth prospects and believe that it is well-positioned to capitalize on the growth opportunities in the business process services sector in the coming years. Live Quote…
Analysis – Conduent Incorporated Stock Fair Value
As GoodWhale, we have analyzed the fundamentals of CONDUENT INCORPORATED to get a sense of its intrinsic value. After running our proprietary Valuation Line, we have determined that the intrinsic value of CONDUENT INCORPORATED share is around $3.8. Currently, the stock is trading at $4.3 – a fair price, but one that is overvalued by 14.5%. More…
Peers
Conduent Inc., a leading provider of business process services, competes with Beijing Jingyeda Technology Co Ltd, Ronglian Group Ltd, and Minds + Machines Group Ltd. in the market for business process services. Conduent Inc. has a strong market position and a well-established brand. Its competitors are smaller and less well-known.
– Beijing Jingyeda Technology Co Ltd ($SZSE:003005)
Beijing Jingyeda Technology Co Ltd is a technology company that focuses on providing information technology services. Its market cap as of 2022 was 7.65B, and its ROE was 2.33%. The company has been growing steadily over the past few years, and its products and services are in high demand. Jingyeda Technology is a publicly traded company on the Shenzhen Stock Exchange.
– Ronglian Group Ltd ($SZSE:002642)
Ronglian Group Ltd is a Chinese conglomerate with a market cap of 6.12 billion as of 2022. The company has a return on equity of 2.83%. Ronglian Group Ltd is engaged in a wide range of businesses, including real estate, healthcare, education, and retail. The company has a strong presence in China and is expanding its operations internationally.
– Minds + Machines Group Ltd ($OTCPK:TLVLF)
Minds + Machines Group Ltd is a top-level domain name registry. The company has a market capitalization of 10.63M as of 2022 and a return on equity of 3.18%. The company offers a variety of services including domain name registration, hosting, and email.
Summary
CONDUENT INCORPORATED reported a significant decline in revenues for the fourth quarter of FY2022 compared to the previous year. Total revenues of USD -333.0 million represented a 732.5% decrease and net income decreased by 5.9% to USD 986.0 million. Investors should be cautious about the company’s prospects given the significant losses reported in this period. Analyzing the balance sheet and cash flow statement should be a priority, as well as monitoring recent news from the company.
Additionally, investors should consider the competitive landscape and potential risks involved in investing in CONDUENT INCORPORATED.
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