CNDT (Update)

Conduent Inc

Healthcare, Event Driven/Special Sit


Presented:05/25/2017
Price:$16.43
Cap:$3.34B
Current Price:$3.92
Cap:$0.64B

Presented

Date05/25/2017
Price$16.43
Market Cap$3.34B
Ent Value$5.42B
P/E RatioN/A
Book Value$16.20
Div Yield0%
Shares O/S203.40M
Ave Daily Vol2,281,976
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 is an update to: Conduent Inc (CNDT) - Long, which was presented on 5/18/2017 ($16.70).

Publicly traded companies mentioned herein: Accenture PLC (ACN), Conduent Inc (CNDT), HealthEquity Inc (HQY), Infosys Ltd (INFY), Xerox Corp (XRX)

Highlights

Conduent (CNDT) was spun-off by Xerox on January 1, 2017, and the presenter is long at $16. He explained how the business process outsourcing (BPO) company (formerly known as ACS) underperformed when under the Xerox banner (cash flow from operations declined from $877mm to ~$350mm from 2009 to today, on the same $6 billion of top line revenue), but said that he likes CEO Ashok Vemuri and thinks he is motivated to drive shareholder value. CNDT shares could rise based on management’s $700mm cost cutting program alone, but hidden within the Human Resources segment of the Commercial Industries segment is a fast-growing and profitable business called BenefitWallet. And, based on public comps and the presenter’s estimates of BenefitWallet’s contribution, it could be worth anywhere from one-third to two-thirds of CNDT’s present market cap ($3.3 billion).

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