Conduent Incorporated — Earnings Quality Grade F
CNDT · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 60 days, change +6 days YoY
AR growth 1.4% vs revenue growth -9.4%
Revenue -9.4%, CFFO -46.0%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 44.6% is >2x revenue growth -9.4%
SG&A/Gross Profit = 74.6%, exceeds 70%
Gross margin 18.1%, change -0.5pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.2B)
Accruals ratio = -4.0%. Low accruals
Cash $0.2B covers only 28% of debt $0.8B
Balance Sheet Health
Goodwill+Intangibles $0.8B = 115% of equity. Over 50%
Debt/EBITDA = 10.3x (>4x). Interest coverage = -1.2x (<2x). Financial stress
Other assets grew 21.7% vs revenue -9.4%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -2.22). Unlikely manipulator
Portfolio monitoring
Monitor CNDT continuously
The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25