COMPUTER PROGRAMS & SYSTEMS (CPSI)
US2053061030 - Common Stock
CPSI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Health Care Technology industry. CPSI has a medium profitability rating, but doesn't score so well on its financial health evaluation. CPSI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CPSI had positive earnings in the past year.
In the past year CPSI had a positive cash flow from operations.
CPSI had positive earnings in 4 of the past 5 years.
CPSI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of CPSI (-0.18%) is better than 85.00% of its industry peers.
CPSI has a Return On Equity of -0.33%. This is amongst the best in the industry. CPSI outperforms 85.00% of its industry peers.
CPSI has a better Return On Invested Capital (0.46%) than 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPSI is in line with the industry average of 4.93%.
The last Return On Invested Capital (0.46%) for CPSI is well below the 3 year average (5.91%), which needs to be investigated, but indicates that CPSI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.33% | ||
| ROIC | 0.46% |
ROA(3y)4.18%
ROA(5y)4.71%
ROE(3y)7.24%
ROE(5y)8.61%
ROIC(3y)5.91%
ROIC(5y)6.38%
1.3 Margins
CPSI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 0.61%, CPSI belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
CPSI's Operating Margin has declined in the last couple of years.
The Gross Margin of CPSI (47.08%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CPSI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.61% | ||
| PM (TTM) | N/A | ||
| GM | 47.08% |
OM growth 3Y-6.39%
OM growth 5Y-2.51%
PM growth 3Y-12.68%
PM growth 5YN/A
GM growth 3Y-3.42%
GM growth 5Y-2.33%
2. Health
2.1 Basic Checks
CPSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for CPSI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CPSI has an Altman-Z score of 1.43. This is a bad value and indicates that CPSI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CPSI (1.43) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.61 indicates that CPSI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CPSI is doing worse than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.05
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CPSI should not have too much problems paying its short term obligations.
CPSI has a Current ratio (1.44) which is comparable to the rest of the industry.
A Quick Ratio of 1.42 indicates that CPSI should not have too much problems paying its short term obligations.
CPSI has a Quick ratio (1.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
CPSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.60%.
CPSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.71% yearly.
The Revenue has been growing slightly by 6.10% in the past year.
The Revenue has been growing slightly by 3.36% on average over the past years.
EPS 1Y (TTM)-23.6%
EPS 3Y0.52%
EPS 5Y7.71%
EPS growth Q2Q-21.05%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.95%
Revenue growth 5Y3.36%
Revenue growth Q2Q-0.14%
3.2 Future
CPSI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.06% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y-26.07%
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%
EPS Next 5YN/A
Revenue Next Year3.96%
Revenue Next 2Y2.41%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.50 indicates a rather cheap valuation of CPSI.
Based on the Price/Earnings ratio, CPSI is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CPSI to the average of the S&P500 Index (28.11), we can say CPSI is valued rather cheaply.
A Price/Forward Earnings ratio of 6.30 indicates a rather cheap valuation of CPSI.
100.00% of the companies in the same industry are more expensive than CPSI, based on the Price/Forward Earnings ratio.
CPSI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPSI is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
CPSI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CPSI's earnings are expected to decrease with -10.06% in the coming years.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%
5. Dividend
5.1 Amount
CPSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COMPUTER PROGRAMS & SYSTEMS
NASDAQ:CPSI (3/1/2024, 7:08:21 PM)
After market: 9.19 0 (0%)9.19
+0.33 (+3.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap133.71M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.61% | ||
| PM (TTM) | N/A | ||
| GM | 47.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.6%
EPS 3Y0.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y-26.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y