Conduent (CNDT) AI Stock Analysis

• Market Cap: $438.56M
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.65
• Revenue Growth: -14.38%
• EPS Growth: N/A
• Country: US
• Employees: 53,000
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): -0.13
• Shares Outstanding: 161,830,140
• 10 Day Avg. Volume: 1,415,828
• 30 Day Avg. Volume: 1,491,601
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -97.15
• Enterprise Value/Market Cap: 4.02
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $7.00
• Price Target Upside: 161.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $3.00 ▲(11.94%Upside)

Conduent's overall score reflects significant financial challenges despite some positive strategic initiatives and valuation metrics. The stock is potentially undervalued, but operational and revenue challenges, as well as an overbought technical position, weigh down the score. The share buyback program adds a positive outlook for shareholder value.

Conduent Business Overview & Revenue Model

Company Description

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries; and end-user customer experience management, transaction processing services, healthcare and human resource, and learning services. The Government Services segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services; medical management and fiscal agent care management services; and government healthcare, payment solutions, child support, and federal services. The Transportation segment offers systems and support comprising mission-critical mobility and payment solutions to government clients. This segment also provides electronic tolling, urban congestion management, and mileage-based user solutions; transit solutions; citation and permit administration, parking enforcement, and curbside demand management solutions; and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated was founded in 2016 and is headquartered in Florham Park, New Jersey.

How the Company Makes Money

Conduent makes money primarily through contracts and service agreements with businesses and government agencies across its operating sectors. Its revenue model is based on fees for services rendered, which can be transactional, subscription-based, or project-oriented. Key revenue streams include healthcare and benefit services, transportation solutions like tolling and transit system management, and government and public sector services such as child support payment processing. Conduent's earnings are significantly influenced by long-term contracts and strategic partnerships that facilitate the delivery of its technology-driven solutions to large-scale enterprises and governmental bodies.

Conduent Financial Statement Overview

Summary

Conduent faces significant financial challenges, including declining revenue, operational inefficiencies, and negative cash flows. Leverage has improved, but substantial debt remains. The company must enhance revenue, streamline operations, and improve cash flow.

Income Statement

Conduent has faced declining revenue over the past years, with a notable drop from $4.163 billion in 2020 to $3.186 billion TTM. The gross profit margin has decreased significantly, indicating cost pressures. TTM net profit margin stands at 8.66%, recovering from previous losses. However, negative EBIT reflects operational challenges. The company needs to address declining revenue and improve operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved over time, from 1.44 in 2020 to 1.05 in TTM, suggesting better leverage management. However, total debt remains significant, and equity has decreased. The equity ratio of 31.60% TTM shows moderate financial stability. Conduent must manage its liabilities carefully to improve financial health.

Cash Flow

Conduent's cash flow situation is challenging, with negative operating and free cash flows in TTM. The free cash flow growth rate is concerning, and the company relies on financing activities to support cash requirements. Improving cash generation from operations is crucial to avoid liquidity risks.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.19B	3.36B	3.72B	3.86B	4.14B	4.16B
	Gross Profit
431.00M	626.00M	570.00M	840.00M	1.00B	954.00M
	EBIT
-82.00M	-39.00M	105.00M	164.00M	96.00M	25.00M
	EBITDA
236.00M	783.00M	43.00M	187.00M	382.00M	380.00M
	Net Income Common Stockholders
276.00M	426.00M	-296.00M	-182.00M	-28.00M	-118.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
277.00M	366.00M	498.00M	582.00M	415.00M	450.00M
	Total Assets
2.53B	2.60B	3.16B	3.57B	4.04B	4.26B
	Total Debt
836.00M	829.00M	1.49B	1.47B	1.60B	1.72B
	Net Debt
559.00M	463.00M	995.00M	890.00M	1.18B	1.27B
	Total Liabilities
1.73B	1.76B	2.39B	2.65B	2.90B	3.07B
	Stockholders Equity
800.00M	839.00M	771.00M	917.00M	1.13B	1.19B
Cash Flow		Free Cash Flow
-124.00M	-106.00M	-4.00M	-9.00M	96.00M	22.00M
	Operating Cash Flow
-71.00M	-50.00M	89.00M	144.00M	243.00M	161.00M
	Investing Cash Flow
635.00M	795.00M	-93.00M	173.00M	-142.00M	-134.00M
	Financing Cash Flow
-688.00M	-877.00M	-81.00M	-131.00M	-132.00M	-74.00M

Conduent Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Neutral. The current price of 2.68 is above the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.29, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 39.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNDT.

Conduent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCKT	64 Neutral	$654.88M	27.74	23.13%	2.03%	3.96%	-31.63%
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
CNDT	57 Neutral	$438.56M	1.96	30.92%	―	-14.38%	―
TTEC	54 Neutral	$250.65M	―	-73.85%	1.15%	-9.86%	-2426.25%
UIS	54 Neutral	$304.17M	―	192.24%	―	-1.72%	82.15%
XRX	50 Neutral	$679.26M	―	-67.27%	9.26%	-7.49%	-575.59%
TLS	48 Neutral	$193.26M	―	-38.32%	―	-21.83%	-67.07%

Conduent Corporate Events

Conduent Announces $50 Million Share Buyback Program

On May 20, 2025, Conduent‘s Board authorized a three-year share repurchase program for up to $50 million of its common stock. The repurchases will be conducted through various methods and funded from the company’s cash reserves, potentially impacting its financial strategy and shareholder value.

The most recent analyst rating on (CNDT) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.

Conduent Holds Annual Shareholders Meeting, Key Decisions Made

On May 20, 2025, Conduent Incorporated held its Annual Meeting of Shareholders where several key decisions were made. Shareholders elected all nominated directors, ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the 2024 compensation for the company’s Named Executive Officers on an advisory basis.

The most recent analyst rating on (CNDT) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.

Conduent Reports Q1 2025 Financial Results and Growth

On May 7, 2025, Conduent announced its first quarter financial results for 2025, reporting a revenue of $751 million and a pre-tax loss of $56 million. Despite the revenue decline compared to the previous year, the company exceeded expectations in adjusted EBITDA margins and saw improvements in new business signings and net ARR activity, indicating potential future growth. Conduent’s liquidity remains strong, and it continues to focus on portfolio rationalization and operational excellence, achieving several milestones in technology solutions and securing significant contracts.