Computer Sciences CorporationCSC

Morningstar Rating

Stock Research and Analysis

by Swami Shanmugasundaram

Computer Sciences Corporation is one of the largest providers of technology-enabled business solutions and services. Its major service offerings include business and technology consulting, information technology outsourcing, system integration, and Read more

Bulls Say

CSC derives more than 80% of its revenue from existing clients, and it continuously focuses on enhancing its client relationships, giving it substantial recurring revenue opportunities.

As a leading provider of IT services to the government, CSC is a major beneficiary of the federal government's trend toward outsourcing work to third-party service providers.

CSC's pipeline remains strong, as the company ended fiscal 2009 with new business bookings valued at about $16.2 billion. Read more

Bears Say

CSC generates about 40% of its revenue through its international operations, exposing the firm to considerable foreign exchange rate risk, even with hedging.

CSC's reputation is on the line with its U.K. National Health Service project. The NHS project is highly complex, with many political risks, and CSC needs to execute this project without any major hiccups to keep its name intact in the health-care area.

CSG has relied on acquisitions in the past to expand its service offerings. There's a chance it may pay too much for future acquisitions. Read more

Strategy

CSC recently unveiled a multiyear strategic growth initiative, Project Accelerate. The plan encompasses five areas of focus and involves pushing into the middle market for IT outsourcing, emphasizing Read more

Management

We believe that stewardship at CSC is fair. CEO and chairman Michael Laphen has been with the company since 1977. Before becoming CEO in May 2007, Laphen held several executive positions, including president and chief operating officer. We prefer to Read more

Profile

Founded in 1959 and with headquarters in Falls Church, Va., CSC is one of the oldest and largest IT service providers in the world. Its wide service portfolio covers consulting, Read more

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