Conduent (CNDT) AI Stock Analysis

• Market Cap: $449.89M
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 1.3
• Beta (1Y): 1.06
• Revenue Growth: -9.83%
• EPS Growth: N/A
• Country: US
• Employees: 56,000
• Sector: Technology
• Sector Strength: 44
• Industry: Information Technology Services
• EPS (TTM): 2.15
• Shares Outstanding: 161,830,140
• 10 Day Avg. Volume: 1,016,804
• 30 Day Avg. Volume: 1,004,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.15
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 2.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.00
• Price Target Upside: 159.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Conduent's overall stock score reflects its significant financial challenges, including declining revenues and cash flow issues, despite some positive aspects such as improved leverage and a potentially undervalued P/E ratio. Technical indicators suggest bearish momentum, and while the earnings call highlighted some strategic improvements, the overall outlook remains cautious.

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 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 faces significant financial challenges with declining revenues, inconsistent profitability, and cash flow issues. While leverage ratios have improved, the negative free cash flow and declining revenue pose substantial risks.

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.

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.

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.

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
2.90B	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
753.00M	1.49B	1.47B	1.60B	1.72B
	Net Debt
387.00M	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
-50.00M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 2.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Negative. The current price of 2.7 is below the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.59, and below the 200-day MA of 3.73, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 22.62 is Positive, neither overbought nor oversold. The STOCH value of 7.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNDT.

Conduent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	80 Outperform	$8.78B	17.56	22.15%	1.22%	6.46%	-16.94%
EXLS	79 Outperform	$7.60B	38.96	21.80%	―	12.74%	9.92%
ACN	75 Outperform	$190.52B	25.11	27.26%	1.82%	4.10%	9.78%
LDOS	69 Neutral	$17.19B	14.54	29.12%	1.15%	7.93%	541.97%
Sector *	57 Neutral	$20.97B	10.32	-14.01%	2.49%	4.45%	-23.43%
DXC	47 Neutral	$3.09B	267.98	-2.46%	―	-5.65%	78.20%
CNDT	45 Neutral	$449.89M	1.29	48.63%	―	-9.83%	―

Conduent Corporate Events

Conduent Reports Strong Q4 and 2024 Financial Results

On February 12, 2025, Conduent announced its financial results for the fourth quarter and full year 2024. The company reported a revenue of $800 million for Q4 and $3.356 billion for the full year, with notable improvements in adjusted revenue and EBITDA over the last three quarters. Despite a slightly weaker top line due to timing issues, Conduent achieved a high-end EBITDA margin and reported significant gains from divestitures, including a 50% debt reduction compared to 2023. Key strategic moves included divesting several business units and leveraging proceeds to strengthen its financial position. The company also completed a $75 million share repurchase program, indicating confidence in its growth trajectory. Conduent’s industry recognition and leadership were bolstered by multiple accolades, reflecting its commitment to innovation and operational excellence.