Cognizant Technology Solutions Corporation (CTSH) exhibits 45.0% gross margins and 19.6% return on invested capital within Technology (EDP Services), balanced against a 7.4x enterprise multiple and 4.8% implied options volatility.
Sustained 45.0% gross profitability converts into 16.1% operating margin and 19.6% ROIC, outpacing sector cost of capital.
ROIC: 19.6% // GM: 45.0%YoY revenue trajectory of +7.0% paired with 9.21% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +7.0% // FCF YLD: 9.21%Altman Z-Score of 5.80 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 5.80 // F-SCORE: 8/9Trading at 12.6x trailing P/E (11.7x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 12.6x // EV/EBITDA: 7.4xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $65.11 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in EDP Services require continuous execution to defend 10.6% net margins.
NET MARGIN: 10.6% // D/E: 0.04x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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