Conduent (CNDT) AI Stock Analysis

• Market Cap: $305.78M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -12.45%
• EPS Growth: -142.77%
• Country: US
• Employees: 53,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.09
• Shares Outstanding: 152,889,500
• 10 Day Avg. Volume: 1,051,768
• 30 Day Avg. Volume: 1,295,451
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -6.96
• Enterprise Value/Market Cap: 3.92
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: 31.57
• 1Y Price Target: $7.00
• Price Target Upside: 181.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.34
• Revenue Forecast (FY): $3.09B

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-19.68% Downside)

Conduent's overall stock score reflects significant financial challenges, including declining revenues and profitability pressures. Technical indicators suggest a bearish trend, and valuation metrics indicate overvaluation. While there are positive developments in the earnings call and corporate events, these are overshadowed by the company's financial and operational hurdles.

Positive Factors

Transportation Segment Growth

The growth in the Transportation segment highlights Conduent's ability to capitalize on international transit opportunities, indicating strong market demand and operational execution that can drive future revenue and margin expansion.

AI Initiatives and Software Licensing

By integrating AI into its offerings, Conduent is enhancing its competitive edge and diversifying its revenue streams, which can lead to sustainable growth and increased market differentiation.

New Business Growth

The increase in new business contract value reflects Conduent's successful client acquisition and retention strategies, which are crucial for long-term revenue stability and growth.

Negative Factors

Revenue Decline

The decline in revenue indicates ongoing challenges in maintaining sales momentum across key segments, which could hinder long-term growth and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow suggests liquidity issues and limits Conduent's ability to invest in growth initiatives or manage debt, potentially impacting financial stability.

Government Segment Revenue Decline

The decline in government segment revenue due to implementation delays highlights operational challenges that could affect future contract renewals and revenue consistency.

Conduent Business Overview & Revenue Model

Company Description

Conduent Incorporated (CNDT) is a leading provider of technology-enabled business services, focusing on delivering innovative solutions to various sectors, including government, healthcare, transportation, and customer care. The company specializes in digital platforms and services that streamline operations, enhance user experiences, and drive efficiencies. Core offerings include managed services, business process outsourcing, and software solutions that cater to the needs of clients across different industries.

How the Company Makes Money

Conduent generates revenue primarily through a combination of service contracts, transaction-based fees, and software licensing. Key revenue streams include business process services, where the company manages operations for clients, particularly in sectors like healthcare and government. Additionally, Conduent earns money from technology solutions that offer software for data management, analytics, and customer engagement. The company also participates in performance-based contracts, where revenues are linked to the success of the services provided. Significant partnerships with government agencies and large corporations further enhance their earnings by providing stable, long-term contracts and access to a broader client base.

Conduent Financial Statement Overview

Summary

Conduent faces significant financial challenges, with declining revenues and profitability pressures evident in the income statement. The balance sheet shows improved leverage but reduced returns for equity holders. Cash flow issues persist, with negative operating cash flow and free cash flow, indicating liquidity constraints. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

Income Statement

Conduent's income statement shows declining revenue with a negative revenue growth rate of -1.29% TTM. The gross profit margin has decreased from 18.65% in 2024 to 16.42% TTM, indicating pressure on profitability. The net profit margin has turned negative TTM, reflecting a challenging operating environment. EBIT and EBITDA margins have also declined, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.82 TTM, which is an improvement from previous years, indicating better leverage management. However, the return on equity has significantly decreased to 2.07% TTM, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows negative operating cash flow TTM, indicating liquidity challenges. Although free cash flow has improved by 20% TTM, it remains negative, which is concerning. The operating cash flow to net income ratio is negative, highlighting cash generation issues, while the free cash flow to net income ratio is positive, suggesting some efficiency in managing cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.36B	3.72B	3.86B	4.14B	4.16B
Gross Profit	544.00M	626.00M	834.00M	840.00M	1.00B	954.00M
EBITDA	38.00M	76.00M	240.00M	187.00M	382.00M	424.00M
Net Income	-149.00M	426.00M	-296.00M	-182.00M	-28.00M	-118.00M
Balance Sheet
Total Assets	2.50B	2.60B	3.16B	3.57B	4.04B	4.26B
Cash, Cash Equivalents and Short-Term Investments	264.00M	366.00M	498.00M	582.00M	415.00M	450.00M
Total Debt	882.00M	829.00M	1.49B	1.53B	1.67B	1.80B
Total Liabilities	1.64B	1.61B	2.53B	2.65B	2.90B	3.07B
Stockholders Equity	859.00M	981.00M	629.00M	917.00M	1.13B	1.19B
Cash Flow
Free Cash Flow	-119.00M	-106.00M	-4.00M	-9.00M	163.00M	22.00M
Operating Cash Flow	-71.00M	-50.00M	89.00M	144.00M	243.00M	161.00M
Investing Cash Flow	28.00M	795.00M	-93.00M	173.00M	-142.00M	-134.00M
Financing Cash Flow	-96.00M	-877.00M	-81.00M	-131.00M	-132.00M	-74.00M

Conduent Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.49
• 50DMA: Negative
• 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 Negative. The current price of 2.49 is above the 20-day moving average (MA) of 1.95, above the 50-day MA of 2.21, and below the 200-day MA of 2.51, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, 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	78 Outperform	$8.24B	15.40	22.32%	1.44%	7.40%	-14.45%
HCKT	65 Neutral	$542.07M	51.78	10.27%	2.37%	0.68%	-67.84%
TASK	62 Neutral	$1.10B	13.65	15.40%	―	19.88%	51.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNDT	47 Neutral	$305.78M	-2.02	-15.87%	―	-12.45%	-142.77%
UIS	45 Neutral	$208.93M	-0.62	―	―	-4.93%	18.65%
XRX	39 Underperform	$334.18M	-0.35	-93.23%	15.45%	3.67%	29.09%

Conduent Corporate Events

Conduent Reports Q3 Financial Results with Key Milestones

On November 7, 2025, Conduent announced its third-quarter financial results, highlighting a revenue of $767 million and a pre-tax loss of $38 million. The company achieved significant milestones, including debt refinancing, AI enhancements, and new business signings, despite challenges like government funding cycles and a federal shutdown. Conduent’s focus on operational efficiency led to improved Adjusted EBITDA margins, and it remains committed to cash generation and expanding opportunities within its client base.

Conduent Appoints Michael J. Fucci to Board

Conduent Incorporated announced the election of Michael J. Fucci, former Executive Chairman of Deloitte U.S. LLP, to its Board of Directors, effective October 27, 2025. Fucci brings over 40 years of leadership experience, having played a pivotal role in Deloitte’s growth and governance. His appointment is expected to provide strategic insight and support Conduent’s growth strategy, enhancing value for shareholders, clients, and associates.

Conduent Restructures, EVP Michael McDaniel Departs

Conduent Incorporated announced the termination of Michael McDaniel, Executive Vice President of Commercial Solutions, as part of a restructuring effort to eliminate a management layer. This decision, effective October 7, 2025, aligns with the company’s restructuring strategy, and Mr. McDaniel will receive severance benefits according to the company’s policy.