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Conduent

Nasdaq:CNDT
Snowflake Description

Fair value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNDT
Nasdaq
$411M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. The last earnings update was 36 days ago. More info.


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  • Conduent has significant price volatility in the past 3 months.
CNDT Share Price and Events
7 Day Returns
-4.9%
NasdaqGS:CNDT
-6.6%
US IT
-4.1%
US Market
1 Year Returns
-86.3%
NasdaqGS:CNDT
-8.2%
US IT
-14.9%
US Market
CNDT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Conduent (CNDT) -4.9% -41.3% -67.5% -86.3% -88.2% -
US IT -6.6% -20.2% -20.9% -8.2% 46.6% 62.7%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • CNDT underperformed the IT industry which returned -8.2% over the past year.
  • CNDT underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
CNDT
Industry
5yr Volatility vs Market

Value

 Is Conduent undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Conduent to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Conduent.

NasdaqGS:CNDT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CNDT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.897 (1 + (1- 21%) (446.16%))
3.048
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (2 * 5.44%)
12.62%

Discounted Cash Flow Calculation for NasdaqGS:CNDT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Conduent is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:CNDT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.62%)
2020 79.00 Analyst x1 70.15
2021 213.00 Analyst x1 167.94
2022 283.86 Est @ 33.27% 198.72
2023 351.44 Est @ 23.81% 218.47
2024 411.84 Est @ 17.19% 227.33
2025 463.54 Est @ 12.55% 227.19
2026 506.69 Est @ 9.31% 220.51
2027 542.36 Est @ 7.04% 209.59
2028 571.91 Est @ 5.45% 196.24
2029 596.71 Est @ 4.34% 181.81
Present value of next 10 years cash flows $1,917.00
NasdaqGS:CNDT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $596.71 × (1 + 1.74%) ÷ (12.62% – 1.74%)
$5,579.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,579.90 ÷ (1 + 12.62%)10
$1,700.09
NasdaqGS:CNDT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,917.00 + $1,700.09
$3,617.09
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,617.09 / 211.89
$17.07
NasdaqGS:CNDT Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.07
Current discount Discount to share price of $1.94
= -1 x ($1.94 - $17.07) / $17.07
88.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Conduent is available for.
Intrinsic value
>50%
Share price is $1.94 vs Future cash flow value of $17.07
Current Discount Checks
For Conduent to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Conduent's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Conduent's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Conduent's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Conduent's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CNDT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-9.29
NasdaqGS:CNDT Share Price ** NasdaqGS (2020-04-02) in USD $1.94
United States of America IT Industry PE Ratio Median Figure of 72 Publicly-Listed IT Companies 24.31x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Conduent.

NasdaqGS:CNDT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CNDT Share Price ÷ EPS (both in USD)

= 1.94 ÷ -9.29

-0.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Conduent is loss making, we can't compare its value to the US IT industry average.
  • Conduent is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Conduent's expected growth come at a high price?
Raw Data
NasdaqGS:CNDT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
123%per year
United States of America IT Industry PEG Ratio Median Figure of 61 Publicly-Listed IT Companies 1.7x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Conduent, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Conduent's assets?
Raw Data
NasdaqGS:CNDT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $6.15
NasdaqGS:CNDT Share Price * NasdaqGS (2020-04-02) in USD $1.94
United States of America IT Industry PB Ratio Median Figure of 117 Publicly-Listed IT Companies 2.66x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqGS:CNDT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CNDT Share Price ÷ Book Value per Share (both in USD)

= 1.94 ÷ 6.15

0.32x

* Primary Listing of Conduent.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Conduent is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Conduent's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Conduent has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Conduent expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
123%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Conduent expected to grow at an attractive rate?
  • Unable to compare Conduent's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Conduent's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Conduent's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CNDT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CNDT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 123%
NasdaqGS:CNDT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -4.9%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 17.1%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CNDT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CNDT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,961 -40 1
2021-12-31 3,968 281 -70 3
2020-12-31 4,093 149 -82 4
2020-04-03
NasdaqGS:CNDT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,467 132 -1,944
2019-09-30 4,650 37 -1,503
2019-06-30 4,856 -11 -1,724
2019-03-31 5,131 272 -684
2018-12-31 5,393 283 -426
2018-09-30 5,604 266 -78
2018-06-30 5,780 400 142
2018-03-31 5,889 369 127
2017-12-31 6,022 300 167
2017-09-30 6,043 210 -989
2017-06-30 6,159 246 -969
2017-03-31 6,276 118 -972

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Conduent is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Conduent's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CNDT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Conduent Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CNDT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 -0.19 -0.19 -0.19 1.00
2021-12-31 -0.33 -0.27 -0.39 2.00
2020-12-31 -0.39 -0.35 -0.42 2.00
2020-04-03
NasdaqGS:CNDT Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -9.29
2019-09-30 -7.22
2019-06-30 -8.31
2019-03-31 -3.31
2018-12-31 -2.07
2018-09-30 -0.38
2018-06-30 0.69
2018-03-31 0.62
2017-12-31 0.82
2017-09-30 -4.86
2017-06-30 -4.77
2017-03-31 -4.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Conduent is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Conduent's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Conduent has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Conduent performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Conduent's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Conduent does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Conduent's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Conduent's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
Conduent's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Conduent Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CNDT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,467.00 -1,944.00 479.00 8.00
2019-09-30 4,650.00 -1,503.00 493.00 10.00
2019-06-30 4,856.00 -1,724.00 520.00 11.00
2019-03-31 5,131.00 -684.00 544.00 12.00
2018-12-31 5,393.00 -426.00 560.00 11.00
2018-09-30 5,604.00 -78.00 572.00 8.00
2018-06-30 5,780.00 142.00 577.00 10.00
2018-03-31 5,889.00 127.00 585.00 10.00
2017-12-31 6,022.00 167.00 611.00 12.00
2017-09-30 6,043.00 -989.00 635.00 17.00
2017-06-30 6,159.00 -968.80 655.00 20.00
2017-03-31 6,276.00 -972.40 672.00 25.00
2016-12-31 6,408.00 -983.00 679.00 31.00
2016-09-30 6,624.00 -23.00 694.00 38.00
2016-06-30 6,599.00 -260.00 700.00 43.00
2016-03-31 6,669.00 -353.00 703.00 50.00
2015-12-31 6,662.00 -336.00 699.00 52.00
2014-12-31 6,938.00 34.00 659.00 46.00
2013-12-31 6,879.00 135.00 661.00 40.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Conduent has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Conduent has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Conduent improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Conduent's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Conduent has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Conduent's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Conduent's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Conduent is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Conduent's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Conduent's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Conduent Company Filings, last reported 3 months ago.

NasdaqGS:CNDT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,442.00 1,497.00 496.00
2019-09-30 2,010.00 1,501.00 228.00
2019-06-30 2,043.00 1,521.00 276.00
2019-03-31 3,069.00 1,526.00 520.00
2018-12-31 3,364.00 1,541.00 756.00
2018-09-30 3,501.00 1,577.00 586.00
2018-06-30 3,641.00 2,044.00 993.00
2018-03-31 3,652.00 2,053.00 553.00
2017-12-31 3,671.00 2,028.00 658.00
2017-09-30 3,454.00 2,062.00 468.00
2017-06-30 3,459.00 2,130.00 309.00
2017-03-31 3,441.00 2,121.00 255.00
2016-12-31 3,430.00 1,941.00 390.00
2016-09-30 5,490.00 1,106.00 148.00
2016-06-30 5,506.00 1,105.00 160.00
2016-03-31 5,383.00 1,140.00 143.00
2015-12-31 5,162.00 1,132.00 140.00
2014-12-31 5,411.00 2,551.00 159.00
2013-12-31
  • Conduent's level of debt (103.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (47.1% vs 103.8% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Conduent has sufficient cash runway for more than 3 years based on current free cash flow.
  • Unable to confirm if Conduent has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Conduent's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Conduent has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Conduent's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Conduent dividends. Estimated to be 0% next year.
If you bought $2,000 of Conduent shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Conduent's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Conduent's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CNDT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 35 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CNDT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Conduent has not reported any payouts.
  • Unable to verify if Conduent's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Conduent's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Conduent has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Conduent's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Conduent's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Conduent afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Conduent has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Conduent's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Cliff Skelton
AGE 63
TENURE AS CEO 0.7 years
CEO Bio

Mr. Clifford A. Skelton, also known as Cliff, has been Chief Executive Officer Conduent Incorporated since February 25, 2020 and served its Interim Chief Executive Officer since August 6, 2019 until February 25, 2020, serves as a Director since August 6, 2019 and President since June 17, 2019 and served as its Chief Operating Officer since June 17, 2019 until August 6, 2019. He has served as Group President of the Enterprise Technology Group at Fiserv, Inc. since January 9, 2017. Mr. Skelton served as the Chief Information Officer and Executive Vice President of Fiserv, Inc. from April 16, 2012 to November 7, 2016 and served as its Group President of Enterprise Technology from 2012 to November 7, 2016. Mr. Skelton is responsible for global information technology infrastructure and operations, enterprise architecture, technology governance and programs aimed at increasing the efficiency and effectiveness of Fiserv's technology platforms. He has more than 30 years of leadership experience in the military and private industry. Prior to joining Fiserv in April 2012, Mr. Skelton served as Global Chief Technology and Operations Officer at Ally Financial Corporation since January 2008. Mr. Skeltonhas served as Chief Information Officer of GMAC LLC since January 2008. Mr. Skelton has global responsibility for delivering information technology services and support. He was also responsible for restructuring and integration activities as well as activities associated with performance enhancement and efficiency improvement. Mr. Skelton joined GMAC in September 2007. Prior to joining GMAC, Mr. Skelton spent nine years as a senior executive with Bank of America Corporation, most recently serving as the chief operating officer of the Card Services Division. Prior to that role, Mr. Skelton was the chief integration officer for Bank of America and led the merger-integration for the Fleet Bank Boston, MBNA Corporation and US Trust Corporation acquisitions. Mr. Skelton also served in senior executive roles in the merchant services, small business banking and government credit card businesses. He completed a distinguished career in the U.S. Navy, where he served as a naval aviator. Mr. Skelton holds a bachelor's degree in international relations from the University of Southern California and a master's degree from Harvard University's John F. Kennedy School of Government.

CEO Compensation
  • Insufficient data for Cliff to compare compensation growth.
  • Insufficient data for Cliff to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Conduent management team in years:

0.6
Average Tenure
49
Average Age
  • The average tenure for the Conduent management team is less than 2 years, this suggests a new team.
Management Team

Brian Webb-Walsh

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
43
TENURE
4.3 yrs

Cliff Skelton

TITLE
CEO, President & Director
AGE
63
TENURE
0.7 yrs

Mark Prout

TITLE
Global Head of Technology & Operations
TENURE
0.6 yrs

Mario Pompeo

TITLE
VP & Chief Accounting Officer
AGE
49
TENURE
0.8 yrs

Alan Katz

TITLE
Vice President of Investor Relations

Michael Krawitz

TITLE
Executive VP
AGE
49
TENURE
0.4 yrs

Burhan Jaffer

TITLE
Global Head of Corporate Development
TENURE
2.3 yrs

Tracy Yelencsics

TITLE
Global Head of Marketing
TENURE
0.6 yrs

Chris Kujawa

TITLE
Global Head of Human Resources
TENURE
0.3 yrs

Michael Burns

TITLE
Global Head of End User Experience
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the Conduent board of directors in years:

1.1
Average Tenure
61.5
Average Age
  • The average tenure for the Conduent board of directors is less than 3 years, this suggests a new board.
Board of Directors

Courtney Mather

TITLE
Chairman
COMPENSATION
$282K
AGE
42
TENURE
0.8 yrs

Cliff Skelton

TITLE
CEO, President & Director
AGE
63
TENURE
0.7 yrs

Gina Wilson

TITLE
Independent Director
COMPENSATION
$305K
AGE
64
TENURE
3.3 yrs

A. Letier

TITLE
Independent Director
COMPENSATION
$23K
AGE
57
TENURE
1.3 yrs

Michael Nutter

TITLE
Independent Director
COMPENSATION
$295K
AGE
61
TENURE
3.3 yrs

Jesse Lynn

TITLE
Independent Director
AGE
48
TENURE
1 yrs

Margarita Paláu-Hernández

TITLE
Director
AGE
62
TENURE
0.7 yrs

Kathy Higgins Victor

TITLE
Director
AGE
62
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Conduent individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Mar 20 Buy A. Letier Individual 09. Mar 20 09. Mar 20 70,000 $2.61 $182,448
16. Aug 19 Buy Icahn Capital LP Company 14. Aug 19 14. Aug 19 1,941,101 $6.57 $12,753,034
13. Aug 19 Buy Icahn Capital LP Company 12. Aug 19 13. Aug 19 4,572,521 $6.59 $29,640,693
23. May 19 Buy Icahn Capital LP Company 21. May 19 22. May 19 211,159 $9.00 $1,900,431
20. May 19 Buy Icahn Capital LP Company 16. May 19 20. May 19 2,522,598 $8.89 $22,308,779
13. May 19 Buy Icahn Capital LP Company 10. May 19 13. May 19 3,915,417 $8.37 $32,683,424
13. May 19 Buy A. Letier Individual 10. May 19 10. May 19 2,500 $8.20 $20,500
X
Management checks
We assess Conduent's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Conduent has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

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. 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. The Transportation segment offers systems and support comprising of mission-critical mobility and payment solutions to government clients. The company also provides end-user customer experience, transaction processing, commercial healthcare, human resource, and learning services; government healthcare, payment solutions, child support and labor workforce, and federal services; and tolling, transit, photo and parking, and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated is headquartered in Florham Park, New Jersey.

Details
Name: Conduent Incorporated
CNDT
Exchange: NasdaqGS
Founded:
$411,059,938
211,886,566
Website: http://www.conduent.com
Address: Conduent Incorporated
100 Campus Drive,
Suite 200,
Florham Park,
New Jersey, 07932,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CNDT Common Stock Nasdaq Global Select US USD 13. Dec 2016
DB 4C0 Common Stock Deutsche Boerse AG DE EUR 13. Dec 2016
BRSE 4C0 Common Stock Berne Stock Exchange CH CHF 13. Dec 2016
Number of employees
Current staff
Staff numbers
67,000
Conduent employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 03:26
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/20
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.