CNDT

Conduent Inc

Healthcare, Event Driven/Special Sit


Presented:05/18/2017
Price:$16.70
Cap:$3.40B
Current Price:$3.92
Cap:$0.64B

Presented

Date05/18/2017
Price$16.70
Market Cap$3.40B
Ent Value$5.42B
P/E RatioN/A
Book Value$16.20
Div Yield0%
Shares O/S203.40M
Ave Daily Vol2,531,286
Short Int2.07%

Current

Price$3.92
Market Cap$0.64B
Conduent, Inc. is a business process services company, which provides transaction processing, automation and analytics to both government and commercial customers. It offers various services, such as digital payments, digital processing, finance & accounting, healthcare solutions, human resource services, learning services, legal & compliance solutions, procurement services, customer care and workers compensation. The company was founded on January 3, 2017 and is headquartered in Florham Park, NJ.

Please note, this idea was updated on 05/25/2017 and can be read here: Long - Conduent, Inc. (CNDT).

Publicly traded companies mentioned herein: Bank of New York Mellon Corp (BK), Conduent Inc (CNDT), HealthEquity Inc (HQY), UnitedHealth Group Inc (UNH), Webster Financial Corp (WBS), Xerox (XRX)

Highlights

The presenter is long shares of Conduent (CNDT) at $16.50 and believes the stock to be materially undervalued. Conduent was spun-out of Xerox in January 2017, and not only is the stock cheap on an EV/ EBITDA multiple basis (at 7x 2018 Street EBITDA estimates), but BenefitWallet appears to be a hidden gem within the company’s $2.7 billion Commercial Industries segment. If the presenter’s evaluation of CNDT’s “transformation initiatives” program and setup with regard to BenefitWallet – one of the leading Health Savings Account (HSA) providers in the market – prove to be accurate, then 2018 EBITDA could come in at $850mm or better (versus the Street’s forecast of $735mm), and the market will give CNDT credit for the value of BenefitWallet (worth ~$8/ share).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.