This one I have glanced at before but I don't have any shares. Let's take a closer look.
Cognizant, according to CNN.Money, "...is a provider of custom information technology (IT) design, development, integration and management services."
CTSH is having a GREAT day today on the back of a positive earnings announcement. Currently it is trading at $30.22 up $3.19 or 11.80% on the day.
Revenues for the quarter ending June 30, 2003, were $87.4 million up 17% from $74.5 million in 2002. Net income for the second quarter increased to $13.5 million or $.20/diluted share compared to $8.6 million or $.14/diluted share in 2002. (NYTimes on the Web)
Morningstar.com shows sequential annual growth in revenue from $24.7 million in 1997, $58.6 million in 1998, $88.9 million in 1999, $137.0 million in 2000, $177.8 million in 2001, and $229 million in 2002. Extrapolating the current quarter would give us over a $280 million annual revenue in 2003.
Free Cash Flow while inconsistent remains positive ranging from $20 million in 2000, $17 million in 2001, $21 million in 2002 and $16 million in the trailing twelve months.
The Balance sheet, as reported on Morningstar.com, is very nice: $126.6 million in cash...more than enought to cover current liabilities of $37.5 million and long-term liabilities of $24.5 million combined. In addition, Morningstar reports $55.9 million of other current assets.
This is a bit larger company than our last entry with $1.66 Billion market cap and 61.6 million shares outstanding with 61.4 million that float. The p/e while steep at 46.60 is better than the prior entry as well. More shares are out short: 5.45 million as of 6/9/03....representing 3.40 trading days to cover the repurchasing activity required.
I like this company a lot as well....only the p/e again is a bit steep. I do not own shares but would be happy to add to my holdings with some of these if the opportunity should avail itself.
Regards to all of my friends!
Bob