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Conduent Inc (CNDT)
NASDAQ:CNDT
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Conduent (CNDT) AI Stock Analysis

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CNDT

Conduent

(NASDAQ:CNDT)

Rating:54Neutral
Price Target:
$3.00
▲(7.53% Upside)
Conduent's overall stock score reflects significant financial performance challenges, including declining revenues and cash flow issues. While technical indicators show moderate strength, high valuation metrics and mixed earnings call outcomes limit the stock's attractiveness. Strategic initiatives and refinancing efforts provide some optimism for future growth.

Conduent (CNDT) vs. SPDR S&P 500 ETF (SPY)

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 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
Conduent's earnings call presented a balanced view with notable improvements in adjusted EBITDA margin and strong ACV and TCV growth, but these were offset by declines in adjusted revenue and challenges in the Commercial and Government segments. The company's strategic focus on AI initiatives and efficiency improvements shows promise for future performance, though current challenges in revenue growth and segment-specific issues remain.
Q2-2025 Updates
Positive Updates
Increase in Adjusted EBITDA Margin
Adjusted EBITDA margin increased by 180 basis points year-over-year to 4.9%, exceeding expectations despite a typical low point in the year.
Strong ACV and TCV Growth
New business ACV was up 6% year-over-year and 38% sequentially. TCV increased by 21% year-over-year to $331 million.
Transportation Segment Revenue Growth
The Transportation segment's revenue increased by 7.1% year-over-year, driven by significant events in a large transit contract.
AI Initiatives and Efficiency Improvements
Conduent continues to roll out AI initiatives leading to efficiency and quality improvements, particularly in fraud reduction and telecom expenses.
Positive Adjusted Revenue Outlook
Despite a slight decrease in full-year revenue expectations, Conduent anticipates year-over-year revenue growth in the second half of 2025.
Negative Updates
Decline in Adjusted Revenue
Adjusted revenue for Q2 2025 was $754 million, down 2.6% year-over-year, primarily due to declines in the Commercial and Government segments.
Volume Degradation in Commercial Segment
The Commercial segment experienced a 5.9% revenue decline year-over-year, driven by volume degradation in its largest commercial client.
Challenges in Government Segment Revenue
Government segment revenue decreased by 2.9%, attributed to the impacts associated with completing or extending several implementations.
Adjusted Revenue Guidance Lowered
Full-year adjusted revenue guidance was adjusted downward to between $3.1 billion and $3.2 billion, indicating a shortfall in expected revenue growth.
Company Guidance
During Conduent's second quarter 2025 earnings call, the company reported revenue of $754 million, slightly up sequentially, with an adjusted EBITDA of $37 million and an adjusted EBITDA margin of 4.9%, exceeding expectations. Conduent signed $150 million in new business annual contract value (ACV), a 6% increase year-over-year and 38% sequentially, with a strong pipeline valued at $3.3 billion, up 5% from the previous year. The company achieved a 21% increase in new business total contract value (TCV) to $331 million. The Commercial segment reported a 5.9% decline in adjusted revenue to $365 million, while Government and Transportation segments saw respective revenue changes of -2.9% and +7.1%. Conduent's adjusted EBITDA for the Government segment grew 22% year-over-year to $60 million, with a margin increase of 520 basis points to 25.2%. The Transportation segment's adjusted EBITDA margin increased by 320 basis points to 5.3%. The company maintained a net leverage ratio of 2.7x and initiated a new three-year share buyback program for $50 million, repurchasing 2.7 million shares in Q2. Adjusted revenue guidance for 2025 was set between $3.1 billion and $3.2 billion, with adjusted EBITDA margin guidance increased to 5%-5.5%.

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
62
Positive
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
58
Neutral
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
51
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.11B3.36B3.72B3.86B4.14B4.16B
Gross Profit511.00M626.00M570.00M840.00M1.00B954.00M
EBITDA223.00M783.00M43.00M187.00M382.00M380.00M
Net Income20.00M426.00M-296.00M-182.00M-28.00M-118.00M
Balance Sheet
Total Assets2.49B2.60B3.16B3.57B4.04B4.26B
Cash, Cash Equivalents and Short-Term Investments275.00M366.00M498.00M582.00M415.00M450.00M
Total Debt755.00M829.00M1.49B1.47B1.60B1.72B
Total Liabilities1.57B1.61B2.39B2.65B2.90B3.07B
Stockholders Equity919.00M981.00M771.00M917.00M1.13B1.19B
Cash Flow
Free Cash Flow-50.00M-106.00M-4.00M-9.00M96.00M22.00M
Operating Cash Flow-45.00M-50.00M89.00M144.00M243.00M161.00M
Investing Cash Flow257.00M795.00M-93.00M173.00M-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 Price2.79
Price Trends
50DMA
2.66
Positive
100DMA
2.48
Positive
200DMA
3.08
Negative
Market Momentum
MACD
0.06
Negative
RSI
57.27
Neutral
STOCH
62.37
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 2.79 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.66, and below the 200-day MA of 3.08, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 62.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
61
Neutral
$571.12M34.0215.27%2.22%4.18%-51.62%
58
Neutral
$477.66M-41.49%-13.76%-75.18%
55
Neutral
$272.34M192.24%-1.53%78.84%
54
Neutral
$440.75M90.582.21%-14.36%-73.74%
48
Neutral
$481.93M-72.72%16.58%-4.99%-1016.81%
44
Neutral
$185.13M-9.11%1.75%-8.21%91.83%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNDT
Conduent
2.79
-0.82
-22.71%
TTEC
TTEC Holdings
3.82
-0.63
-14.16%
HCKT
The Hackett Group
20.94
-3.87
-15.60%
UIS
Unisys
3.88
-1.28
-24.81%
XRX
Xerox
3.88
-5.55
-58.85%
TLS
Telos
6.57
3.39
106.60%

Conduent Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Conduent Completes Strategic Refinancing to Support Growth
Positive
Aug 27, 2025

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.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Conduent Reports Q2 2025 Financial Results, Exceeds Expectations
Positive
Aug 6, 2025

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.

Executive/Board Changes
Conduent Appoints Harsha V. Agadi as New Chairman
Neutral
Jun 26, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 28, 2025