Don't Miss These Facts About Conduent

Now trading at a price of $4.82, Conduent has moved -1.2% so far today. In contrast, the S&P 500 index moved -0.9%. Read below for a basic value analysis of Conduent.

Conduent shares moved 5.4% over the last 52 weeks, with a high of $5.89 and a low of $3.29. During this time, the stock outperformed the S&P 500 index by 12.5%. As of January 2022, the company's 50-day average price is $4.0. Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. The small-cap Technology company has 62,000 full time employees and is based in Florham Park, NJ. Conduent has not offered any dividends in the last year.

Exceptional EPS Growth with Reasonable Leverage Levels:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $4,467 $4,163 $4,140
Revenue Growth n/a -6.81% -0.55%
Gross Margins 21.8% 22.9% 24.2%
Gross Margins Growth n/a 5.05% 5.68%
Operating Margins 0.6% 0.6% 2.5%
Operating Margins Growth n/a 0.0% 316.67%
Earnings Per Share -$9.29 -$0.61 -$0.18
EPS Growth n/a 93.43% 70.49%
Free Cash Flow (MM) -$83 $22 $96
FCF Growth n/a 126.51% 336.36%
Capital Expenditures (MM) -$215 -$139 -$147
Net Debt / EBITDA 2.24 2.36 2.39

The Market Is Undervaluing Conduent:

Compared to the Technology sector's average of 26.5, Conduent has a trailing twelve month P/E ratio of 10.3 and, according to its EPS guidance of 0.28, an expected P/E ratio of 17.2. Conduent's PEG ratio is 0.07 based on its 139.67% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Conduent's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.79, which still suggests that company's shares are possibly undervalued.

Furthermore, Conduent is likely undervalued in terms of its equity because its P/B ratio is 0.9 compared to its sector average of 5.57.

Conduent Is the Subject of Mixed Market Indicators:

The only analyst following Conduent has set a target price of $3.75 per share, which is 28.53% above its current price. This analyst rates the stock as hold.

The company has a very low short interest since 1.6% of the company's shares are tied to short positions. Institutions own 80.1% of Conduent's shares, while the insider ownership rate stands at 1.62%. The biggest shareholder is Icahn, Carl, C. with a 18% stake in the company worth approximately $183,879,806.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.