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Conduent Inc (CNDT)
NASDAQ:CNDT
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Conduent
(NASDAQ:CNDT)
58Neutral
Conduent (CNDT) vs. S&P 500 (SPY)
Market Cap
$351.17M
Dividend YieldN/A
Average Volume (3M)1.40M
Price to Earnings (P/E)1.6
Beta (1Y)0.69
Revenue Growth-14.38%
EPS GrowthN/A
CountryUS
Employees53,000
SectorTechnology
Sector Strength82
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.13
Shares Outstanding161,830,140
10 Day Avg. Volume1,337,091
30 Day Avg. Volume1,399,483
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.43
Price to Sales (P/S)0.00
P/FCF Ratio-3.25
Enterprise Value/Market Cap2.36
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit1.96
Enterprise Value/Ebitda1.15
Forecast
1Y Price Target
$7.00Price Target Upside213.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Conduent Business Overview & Revenue Model
Company DescriptionConduent 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 MoneyConduent makes money primarily through providing business process outsourcing services and solutions to various industries and government entities. The company's revenue model is based on long-term contracts with clients, which often include fixed fees or transaction-based pricing structures. Key revenue streams include digital payment solutions, healthcare claims processing, customer service operations, and transportation systems management. Conduent also benefits from strategic partnerships with technology and service providers, enhancing its offerings and expanding its market reach. The company's focus on digital transformation and automation further drives its profitability by improving operational efficiencies and delivering value-added services to clients.
Conduent Financial Statement Overview
Summary
Conduent's financial performance indicates significant challenges. Declining revenues highlight sales struggles, while inconsistent profitability and negative cash flow raise sustainability concerns. Improved leverage ratios offer some relief, but overall financial stability is hindered by cash generation issues.Income Statement
Conduent's TTM gross profit margin stands at 33.7%, a healthy level, but the net profit margin is concerning at 12.7% due to past negative net incomes. Revenue has been on a declining trend, dropping from $4.16 billion in 2020 to $3.35 billion TTM, indicating challenges in maintaining sales growth. EBIT and EBITDA margins show some improvement, but overall profitability remains under pressure.40
Negative
Balance Sheet
The debt-to-equity ratio improved to 0.90 in TTM, indicating better leverage management compared to previous years. However, the ROE is positive at 50.8% TTM, but this reflects volatility rather than sustainable profitability. The equity ratio is at 32.3%, suggesting moderate financial stability, but the past high liabilities remain a concern.55
Neutral
Cash Flow
The free cash flow is negative at -$112 million TTM, highlighting cash generation issues. The operating cash flow to net income ratio is negative due to negative operating cash flow, raising alarm on cash efficiency. The free cash flow trajectory has been erratic, and financing cash flows are heavily negative, pointing to liquidity challenges.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.36B | 3.72B | 3.86B | 4.14B | 4.16B | Gross Profit |
| 626.00M | 570.00M | 840.00M | 1.00B | 954.00M | EBIT |
| -39.00M | 105.00M | 164.00M | 96.00M | 25.00M | EBITDA |
| 783.00M | 43.00M | 187.00M | 382.00M | 380.00M | Net Income Common Stockholders |
| 426.00M | -296.00M | -182.00M | -28.00M | -118.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 366.00M | 498.00M | 582.00M | 415.00M | 450.00M | Total Assets |
| 2.60B | 3.16B | 3.57B | 4.04B | 4.26B | Total Debt |
| 829.00M | 1.49B | 1.47B | 1.60B | 1.72B | Net Debt |
| 463.00M | 995.00M | 890.00M | 1.18B | 1.27B | Total Liabilities |
| 1.76B | 2.39B | 2.65B | 2.90B | 3.07B | Stockholders Equity |
| 839.00M | 771.00M | 917.00M | 1.13B | 1.19B |
| Cash Flow | Free Cash Flow | |||
| -106.00M | -4.00M | -9.00M | 96.00M | 22.00M | Operating Cash Flow |
| -50.00M | 89.00M | 144.00M | 243.00M | 161.00M | Investing Cash Flow |
| 795.00M | -93.00M | 173.00M | -142.00M | -134.00M | Financing Cash Flow |
| -877.00M | -81.00M | -131.00M | -132.00M | -74.00M |
Conduent Technical Analysis
Neutral
2.23
Price Trends
2.49
Negative
3.23
Negative
3.52
Negative
Market Momentum
-0.07
Negative
47.72
Neutral
69.44
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 2.23 is above the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.49, and below the 200-day MA of 3.52, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNDT.
Conduent Risk Analysis
Conduent disclosed 33 risk factors in its most recent earnings report. Conduent reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conduent Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $709.08M | 30.04 | 23.13% | 1.75% | 3.96% | -31.63% | |
60 Neutral | $11.64B | 10.63 | -6.94% | 2.93% | 7.63% | -11.15% | |
58 Neutral | $351.17M | 1.63 | 30.92% | ― | -14.38% | ― | |
58 Neutral | $392.29M | ― | 192.24% | ― | -1.72% | 82.15% | |
56 Neutral | $245.38M | ― | -73.85% | 1.17% | -9.86% | -2426.25% | |
51 Neutral | $192.53M | ― | -38.32% | ― | -21.83% | -67.07% | |
42 Neutral | $699.39M | ― | -67.27% | 15.74% | -7.49% | -575.59% |
* Technology Sector Average
Performance Comparison
CNDT
Conduent
2.25
-1.57
-41.10%
TTEC
TTEC Holdings
5.14
-2.14
-29.40%
HCKT
The Hackett Group
25.85
4.67
22.05%
UIS
Unisys
5.37
0.40
8.05%
XRX
Xerox
5.54
-7.11
-56.21%
TLS
Telos
2.71
-0.96
-26.16%
Conduent Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 8.78%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. There were strong business wins and strategic progress, particularly in portfolio rationalization and AI-driven initiatives. However, these were tempered by significant revenue declines in key segments and costs associated with a cybersecurity event.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
Conduent reported adjusted revenue of $751 million and adjusted EBITDA of $37 million with an EBITDA margin of 4.9% for Q1 2025. New business signings improved year-on-year, and the company expects a strong Q2 in sales.
Significant New Business Growth
New business ACV increased by 14% year-over-year to $109 million, and new business TCV surged 96% year-over-year to $280 million, driven by an eight-year deal in the international transit business.
Progress in Portfolio Rationalization
Completed three divestitures in 2024, generating nearly $800 million of net proceeds, and reduced debt by $639 million. Targeting additional $350 million in proceeds from further asset divestitures in 2025.
AI and Technology Investments
Strong progress in leveraging AI for fraud prevention and operational efficiency, with partnerships such as the one with Microsoft leading to significant fraud detection improvements.
Negative Updates
Revenue Decline in Government Segment
Government segment adjusted revenue declined by 16% year-over-year to $216 million, primarily due to the termination of a large government healthcare contract.
Commercial Segment Challenges
Commercial segment adjusted revenue decreased by 4.1% year-over-year, with adjusted EBITDA down 11% due to lower revenue and higher technology costs.
Cybersecurity Event Financial Impact
Incurred $3 million and accrued $22 million of nonrecurring expenses in Q1 2025 related to a cybersecurity event, despite no material operational impact.
Company Guidance
During the Conduent Q1 2025 earnings call, the company reported an adjusted revenue of $751 million and an adjusted EBITDA of $37 million, with an EBITDA margin of 4.9%. New business signings saw a significant year-on-year improvement, with the first quarter new business Annual Contract Value (ACV) up 14% at $109 million and Total Contract Value (TCV) up 96% at $280 million. The net Annual Recurring Revenue (ARR) activity was positive at $116 million, and the qualified ACV pipeline grew to $3.2 billion, up 16% year-over-year. The company also highlighted progress in its portfolio rationalization plan, expecting to generate an additional $350 million in proceeds, surpassing a $1 billion target. Despite an 8.5% decline in adjusted revenue year-over-year, the company remains optimistic about achieving its 2025 exit rate metrics, driven by strategic divestitures, cost efficiency programs, and growth opportunities in AI-driven solutions, particularly in fraud prevention and government services.Conduent Corporate Events
Business Operations and StrategyFinancial Disclosures
Conduent Reports Q1 2025 Financial Results and Growth
Neutral
May 7, 2025
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.
Spark’s Take on CNDT Stock
According to Spark, TipRanks’ AI Analyst, CNDT is a Neutral.
Conduent’s overall stock score reflects significant financial challenges, including declining revenues and cash flow issues, coupled with bearish technical indicators. However, strategic efforts in debt reduction and operational improvements provide some optimism. The low valuation may present an opportunity if operational stability is achieved.
To see Spark’s full report on CNDT stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.