Conduent Operating Margin vs. Profit Margin

CNDT Stock  USD 4.21  0.11  2.55%   
Based on Conduent's profitability indicators, Conduent may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Conduent's ability to earn profits and add value for shareholders.

Conduent Operating Profit Margin

0.0296

At this time, Conduent's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 84.80 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.08 in 2024. At this time, Conduent's Non Operating Income Net Other is comparatively stable compared to the past year. Net Income Per E B T is likely to gain to 0.94 in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (456.8 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.150.1531
Fairly Down
Pretty Stable
For Conduent profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Conduent to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Conduent utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Conduent's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Conduent over time as well as its relative position and ranking within its peers.
  

Conduent's Revenue Breakdown by Earning Segment

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For more information on how to buy Conduent Stock please use our How to Invest in Conduent guide.
Is Data Processing & Outsourced Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Conduent. If investors know Conduent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Conduent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.5
Earnings Share
2.23
Revenue Per Share
17.984
Quarterly Revenue Growth
(0.13)
Return On Assets
(0.0002)
The market value of Conduent is measured differently than its book value, which is the value of Conduent that is recorded on the company's balance sheet. Investors also form their own opinion of Conduent's value that differs from its market value or its book value, called intrinsic value, which is Conduent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Conduent's market value can be influenced by many factors that don't directly affect Conduent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Conduent's value and its price as these two are different measures arrived at by different means. Investors typically determine if Conduent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Conduent's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Conduent Profit Margin vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Conduent's current stock value. Our valuation model uses many indicators to compare Conduent value to that of its competitors to determine the firm's financial worth.
Conduent is rated below average in operating margin category among its peers. It is number one stock in profit margin category among its peers . At this time, Conduent's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Conduent by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Conduent Profit Margin vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Conduent

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.01) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Conduent

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.13 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Conduent Profit Margin Comparison

Conduent is currently under evaluation in profit margin category among its peers.

Conduent Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Conduent, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Conduent will eventually generate negative long term returns. The profitability progress is the general direction of Conduent's change in net profit over the period of time. It can combine multiple indicators of Conduent, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-435 M-456.8 M
Operating Income105 M85.9 M
Income Before Tax-332 M-348.6 M
Total Other Income Expense Net-437 M-458.9 M
Net Loss-296 M-310.8 M
Income Tax Expense-36 M-37.8 M
Net Loss-635 M-666.8 M
Net Loss-163.8 M-172 M
Interest Income18 M17.1 M
Net Interest Income-107 M-112.3 M
Non Operating Income Net Other181.7 M190.8 M
Change To Netincome446.2 M367.2 M
Net Loss(1.37)(1.43)
Income Quality(0.30)(0.32)
Net Income Per E B T 0.89  0.94 

Conduent Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Conduent. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Conduent position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Conduent's important profitability drivers and their relationship over time.

Use Conduent in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Conduent position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Conduent will appreciate offsetting losses from the drop in the long position's value.

Conduent Pair Trading

Conduent Pair Trading Analysis

The ability to find closely correlated positions to Conduent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Conduent when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Conduent - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Conduent to buy it.
The correlation of Conduent is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Conduent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Conduent moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Conduent can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Conduent position

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Giant Impact
Giant Impact Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Giant Impact Theme or any other thematic opportunities.
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Additional Tools for Conduent Stock Analysis

When running Conduent's price analysis, check to measure Conduent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Conduent is operating at the current time. Most of Conduent's value examination focuses on studying past and present price action to predict the probability of Conduent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Conduent's price. Additionally, you may evaluate how the addition of Conduent to your portfolios can decrease your overall portfolio volatility.