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:
|Gross Margins Growth||n/a||5.05%||5.68%|
|Operating Margins Growth||n/a||0.0%||316.67%|
|Earnings Per Share||-$9.29||-$0.61||-$0.18|
|Free Cash Flow (MM)||-$83||$22||$96|
|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.