Cognizant Technology Solutions Receives High Court Relief in Tax Dispute
January 6, 2024
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Cognizant Technology Solutions ($NASDAQ:CTSH), one of the world’s leading professional services companies, has recently received a favorable ruling from the High Court in a tax dispute. Cognizant, which provides information technology, consulting, and business process outsourcing services, was able to get relief from a dispute that had been ongoing for years. The ruling by the High Court came as a welcome relief to Cognizant Technology Solutions. The company’s stock trades on the NASDAQ exchange under the ticker symbol “CTSH”. With expertise in areas such as artificial intelligence and blockchain, Cognizant has become a leader in the technology industry.
The resolution of its tax dispute with the High Court is a major step forward for the company. Cognizant will now be able to move into the future with greater clarity and without the burden of this particular dispute. This ruling is certainly a win for Cognizant Technology Solutions and its shareholders.
Market Price
CTS stock opened at $75.3 and closed at $74.4, down by 1.5% from prior closing price of 75.5. CTS had argued that the CIT had no jurisdiction to levy taxes on its overseas operations. The court agreed with CTS and reversed the assessment order.
This ruling is expected to provide clarity to CTS on how to structure its overseas operations in the future. It also provides a boost of confidence in the company’s long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CTSH. More…
| Total Revenues | Net Income | Net Margin |
| 19.43k | 2.09k | 11.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CTSH. More…
| Operations | Investing | Financing |
| 2.29k | -577 | -1.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CTSH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.08k | 5.2k | 25.69 |
Key Ratios Snapshot
Some of the financial key ratios for CTSH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.1% | 3.6% | 14.4% |
| FCF Margin | ROE | ROA |
| 10.1% | 13.5% | 9.6% |
Analysis
GoodWhale’s analysis of COGNIZANT TECHNOLOGY SOLUTIONS shows that the company is in high health when it comes to cashflows and debt. Its Star Chart score is a 10/10, indicating that it is capable both of paying off its debt and of funding future operations. Further analysis reveals that the company is strong in dividend and profitability, medium in asset and weak in growth. When taking all these factors into consideration, we classify COGNIZANT TECHNOLOGY SOLUTIONS as a “cow” – a type of company that has the track record of paying out consistent and sustainable dividends. Investors who are looking for strong dividend yield and are interested in a reliable and consistent income stream may find this company appealing. More…
Peers
Cognizant Technology Solutions Corp is a leading provider of information technology, consulting, and business process outsourcing services. It has a strong presence in India, the United States, and Europe. The company operates in four segments: Banking and Financial Services, Healthcare, Manufacturing, and Retail, Consumer Goods, and Logistics. Cognizant’s competitors include Accenture PLC, Genpact Ltd, Shunliban Information Service Co Ltd, and others.
– Accenture PLC ($NYSE:ACN)
Accenture PLC is a professional services company that provides consulting, technology, and outsourcing services. It has a market cap of 166.38B as of 2022 and a Return on Equity of 26.56%. The company operates in more than 200 countries and employs more than 373,000 people.
– Genpact Ltd ($NYSE:G)
Genpact is a global professional services firm that offers a range of services in the areas of consulting, digital transformation, technology, and operations. The company has a market cap of $8.29 billion and a return on equity of 17.54%. Genpact has a strong focus on digital transformation and offers a range of services that helps businesses to digitally transform their operations. The company has a strong client base and a strong track record in delivering results.
– Shunliban Information Service Co Ltd ($SZSE:000606)
Shunliban Information Service Co Ltd is a Chinese company that provides information services. It has a market cap of 1.34 billion as of 2022 and a return on equity of 130.37%. The company offers services such as data analysis, information management, and online marketing. It also provides software development and consultation services.
Summary
Cognizant Technology Solutions recently received a favorable ruling from the High Court in a tax case. This is a positive development for investors in the company, as it reduces the risk of any unexpected tax liabilities or other financial losses. The company has made strategic progress in recent years, including expanding its portfolio of digital services and markets, reducing its costs and increasing its focus on customer satisfaction.
In addition, Cognizant has played a key role in the development of new technologies and processes to support the growth of its businesses and those of its customers. Cognizant has made substantial investments to drive its growth and is well-positioned to capture significant opportunities across different industries. The company’s strong balance sheet and robust cash flow should support its financial performance and enable it to continue to pursue strategic acquisitions and investments. Overall, Cognizant is well-positioned to deliver attractive returns to investors.
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