Conduent (CNDT) AI Stock Analysis

• Market Cap: $431.27M
• Dividend Yield: N/A
• Average Volume (3M): 967.45K
• Price to Earnings (P/E): 90.3
• Beta (1Y): 0.76
• Revenue Growth: -14.36%
• EPS Growth: -73.74%
• Country: US
• Employees: 53,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.13
• Shares Outstanding: 157,974,030
• 10 Day Avg. Volume: 1,105,105
• 30 Day Avg. Volume: 967,450
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $7.00
• Price Target Upside: 146.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: $3.00 ▲(5.63% Upside)

Conduent's overall stock score reflects significant financial performance challenges, with declining revenues and low profitability. While technical indicators show some positive momentum, the high P/E ratio suggests overvaluation. The earnings call highlighted strategic initiatives and growth in contract values, but these are tempered by revenue declines in key segments.

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 generates revenue primarily through its business process outsourcing (BPO) services, which include handling customer interactions, processing transactions, and managing back-office functions for clients. The company has key revenue streams from sectors such as healthcare, where it provides services like claims processing and member management, as well as from transportation services including tolling and fleet management solutions. Additionally, Conduent earns revenue from technology solutions that support data analytics and digital platforms. Significant partnerships with government agencies and large corporations further enhance its earnings potential, as these collaborations often lead to long-term contracts and recurring revenue. The company's focus on digital transformation and automation also positions it to capitalize on trends in outsourcing and technology adoption.

Conduent Financial Statement Overview

Summary

Conduent faces financial challenges with declining revenue and negative cash flows. Despite improved leverage, substantial debt and operational inefficiencies persist. Strategic initiatives are needed to enhance revenue and 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	3.11B	3.36B	3.72B	3.86B	4.14B	4.16B
Gross Profit	511.00M	626.00M	570.00M	840.00M	1.00B	954.00M
EBITDA	223.00M	783.00M	43.00M	187.00M	382.00M	380.00M
Net Income	20.00M	426.00M	-296.00M	-182.00M	-28.00M	-118.00M
Balance Sheet
Total Assets	2.49B	2.60B	3.16B	3.57B	4.04B	4.26B
Cash, Cash Equivalents and Short-Term Investments	275.00M	366.00M	498.00M	582.00M	415.00M	450.00M
Total Debt	755.00M	829.00M	1.49B	1.47B	1.60B	1.72B
Total Liabilities	1.57B	1.61B	2.39B	2.65B	2.90B	3.07B
Stockholders Equity	919.00M	981.00M	771.00M	917.00M	1.13B	1.19B
Cash Flow
Free Cash Flow	-50.00M	-106.00M	-4.00M	-9.00M	96.00M	22.00M
Operating Cash Flow	-45.00M	-50.00M	89.00M	144.00M	243.00M	161.00M
Investing Cash Flow	257.00M	795.00M	-93.00M	173.00M	-142.00M	-134.00M
Financing Cash Flow	-226.00M	-877.00M	-81.00M	-131.00M	-132.00M	-74.00M

Conduent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Positive. The current price of 2.84 is above the 20-day moving average (MA) of 2.82, above the 50-day MA of 2.70, and below the 200-day MA of 3.00, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 35.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNDT.

Conduent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	76 Outperform	7.36B	13.87	20.81%	1.57%	7.37%	-14.64%
TASK	65 Neutral	1.60B	26.40	11.52%	―	19.04%	24.49%
HCKT	61 Neutral	530.68M	32.18	14.15%	2.44%	4.18%	-51.62%
UIS	55 Neutral	283.75M	-3.36	68.24%	―	-1.53%	78.84%
CNDT	54 Neutral	$431.27M	90.26	2.21%	―	-14.36%	-73.74%
XRX	48 Neutral	471.86M	-0.33	-106.44%	17.33%	-4.99%	-1016.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Conduent Corporate Events

Conduent Completes Strategic Refinancing to Support Growth

On August 27, 2025, Conduent announced the successful completion of a refinancing of its existing term loan and revolving credit agreements. This refinancing includes the full prepayment of the Term A Loans, a reduction in the revolving credit facility, and the introduction of a new performance letter of credit facility. The refinancing is seen as a strategic move to strengthen Conduent’s financial foundation and support future growth, as stated by CFO Giles Goodburn. The transaction is expected to provide the right mix of debt instruments to support the company’s operations and capital allocation strategy.

Conduent Reports Q2 2025 Financial Results, Exceeds Expectations

On August 6, 2025, Conduent announced its second quarter financial results, reporting a revenue of $754 million and an adjusted EBITDA margin of 4.9%. Despite a pre-tax loss of $38 million, the company exceeded expectations for adjusted EBITDA and margin, with new business signings showing improvement. Conduent’s strategic investments in technology and client relationships have accelerated performance in its Transportation segment, and government decisions may unlock further opportunities in its Government segment. The company also welcomed Harsha Agadi as the new Chairman of the Board, marking a strategic pivot towards growth and portfolio opportunities.

Conduent Appoints Harsha V. Agadi as New Chairman

On June 25, 2025, Conduent Incorporated’s Board of Directors appointed Harsha V. Agadi to succeed Scott Letier as Chairman of the Board, effective August 6, 2025. Scott Letier will become the chair of the company’s audit committee, reflecting the board’s practice of periodic refreshment.