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COMPUTER PROGRAMS & SYSTEMS (CPSI) Stock Fundamental Analysis

NASDAQ:CPSI - Nasdaq - US2053061030 - Common Stock - Currency: USD

9.19  +0.33 (+3.72%)

After market: 9.19 0 (0%)

Fundamental Rating

4

Overall CPSI gets a fundamental rating of 4 out of 10. We evaluated CPSI against 37 industry peers in the Health Care Technology industry. While CPSI is still in line with the averages on profitability rating, there are concerns on its financial health. CPSI has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year CPSI was profitable.
CPSI had a positive operating cash flow in the past year.
Of the past 5 years CPSI 4 years were profitable.
Of the past 5 years CPSI 4 years had a positive operating cash flow.
CPSI Yearly Net Income VS EBIT VS OCF VS FCFCPSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 20M 40M

1.2 Ratios

CPSI has a Return On Assets of -0.18%. This is amongst the best in the industry. CPSI outperforms 85.00% of its industry peers.
CPSI has a better Return On Equity (-0.33%) than 85.00% of its industry peers.
CPSI has a Return On Invested Capital of 0.46%. This is amongst the best in the industry. CPSI outperforms 85.00% of its industry peers.
CPSI had an Average Return On Invested Capital over the past 3 years of 5.91%. This is in line with the industry average of 6.39%.
The 3 year average ROIC (5.91%) for CPSI is well above the current ROIC(0.46%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
CPSI Yearly ROA, ROE, ROICCPSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20

1.3 Margins

In the last couple of years the Profit Margin of CPSI has declined.
CPSI's Operating Margin of 0.61% is amongst the best of the industry. CPSI outperforms 82.50% of its industry peers.
In the last couple of years the Operating Margin of CPSI has declined.
CPSI has a Gross Margin of 47.08%. This is comparable to the rest of the industry: CPSI outperforms 42.50% of its industry peers.
In the last couple of years the Gross Margin of CPSI has declined.
Industry RankSector 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%
CPSI Yearly Profit, Operating, Gross MarginsCPSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

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2

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.
CPSI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CPSI Yearly Shares OutstandingCPSI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 5M 10M
CPSI Yearly Total Debt VS Total AssetsCPSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

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.
CPSI has a Altman-Z score (1.43) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.61 indicates that CPSI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, CPSI is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 1.43
ROIC/WACC0.05
WACC9.37%
CPSI Yearly LT Debt VS Equity VS FCFCPSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.44 indicates that CPSI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.44, CPSI perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that CPSI should not have too much problems paying its short term obligations.
CPSI's Quick ratio of 1.42 is in line compared to the rest of the industry. CPSI outperforms 47.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.42
CPSI Yearly Current Assets VS Current LiabilitesCPSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M

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3

3. Growth

3.1 Past

The earnings per share for CPSI have decreased strongly by -23.60% in the last year.
The Earnings Per Share has been growing slightly by 7.71% on average over the past years.
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 Q2Q%-21.05%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.95%
Revenue growth 5Y3.36%
Sales 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.
CPSI Yearly Revenue VS EstimatesCPSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
CPSI Yearly EPS VS EstimatesCPSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 4.50, which indicates a rather cheap valuation of CPSI.
Compared to the rest of the industry, the Price/Earnings ratio of CPSI indicates a rather cheap valuation: CPSI is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.68, CPSI is valued rather cheaply.
The Price/Forward Earnings ratio is 6.30, which indicates a rather cheap valuation of CPSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPSI indicates a rather cheap valuation: CPSI is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, CPSI is valued rather cheaply.
Industry RankSector Rank
PE 4.5
Fwd PE 6.3
CPSI Price Earnings VS Forward Price EarningsCPSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

90.00% of the companies in the same industry are more expensive than CPSI, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.06
CPSI Per share dataCPSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

The decent profitability rating of CPSI may justify a higher PE ratio.
CPSI's earnings are expected to decrease with -10.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%

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0

5. Dividend

5.1 Amount

No dividends for CPSI!.
Industry RankSector Rank
Dividend Yield N/A

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COMPUTER PROGRAMS & SYSTEMS

NASDAQ:CPSI (3/1/2024, 8:08:21 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)02-29 2024-02-29/amc
Earnings (Next)05-07 2024-05-07/amc
Inst Owners55.03%
Inst Owner Change-8.23%
Ins Owners6.84%
Ins Owner Change0%
Market Cap133.71M
Analysts76
Price Target16.83 (83.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.87%
Min EPS beat(2)-32.77%
Max EPS beat(2)5.04%
EPS beat(4)2
Avg EPS beat(4)-11.07%
Min EPS beat(4)-32.77%
Max EPS beat(4)5.04%
EPS beat(8)4
Avg EPS beat(8)-3.79%
EPS beat(12)6
Avg EPS beat(12)-1.38%
EPS beat(16)10
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)-3.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)-0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.91%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)-2.94%
PT rev (3m)-11.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
Industry RankSector Rank
PE 4.5
Fwd PE 6.3
P/S 0.4
P/FCF N/A
P/OCF 8.63
P/B 0.59
P/tB N/A
EV/EBITDA 10.06
EPS(TTM)2.04
EY22.2%
EPS(NY)1.46
Fwd EY15.87%
FCF(TTM)-0.51
FCFYN/A
OCF(TTM)1.06
OCFY11.58%
SpS23.15
BVpS15.67
TBVpS-6.87
PEG (NY)N/A
PEG (5Y)0.58
Profitability
Industry RankSector Rank
ROA -0.18%
ROE -0.33%
ROCE 0.55%
ROIC 0.46%
ROICexc 0.46%
ROICexgc 3.81%
OM 0.61%
PM (TTM) N/A
GM 47.08%
FCFM N/A
ROA(3y)4.18%
ROA(5y)4.71%
ROE(3y)7.24%
ROE(5y)8.61%
ROIC(3y)5.91%
ROIC(5y)6.38%
ROICexc(3y)6.11%
ROICexc(5y)6.56%
ROICexgc(3y)41.93%
ROICexgc(5y)39.76%
ROCE(3y)7.04%
ROCE(5y)7.6%
ROICexcg growth 3Y2.33%
ROICexcg growth 5Y-4.44%
ROICexc growth 3Y-9.29%
ROICexc growth 5Y-5.39%
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%
F-Score4
Asset Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Debt/EBITDA 5.09
Cap/Depr 91.14%
Cap/Sales 6.81%
Interest Coverage 0.24
Cash Conversion 56.89%
Profit Quality N/A
Current Ratio 1.44
Quick Ratio 1.42
Altman-Z 1.43
F-Score4
WACC9.37%
ROIC/WACC0.05
Cap/Depr(3y)64.65%
Cap/Depr(5y)43.22%
Cap/Sales(3y)4.04%
Cap/Sales(5y)2.62%
Profit Quality(3y)199.76%
Profit Quality(5y)189.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.6%
EPS 3Y0.52%
EPS 5Y7.71%
EPS Q2Q%-21.05%
EPS Next Y-26.07%
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.95%
Revenue growth 5Y3.36%
Sales Q2Q%-0.14%
Revenue Next Year3.96%
Revenue Next 2Y2.41%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y-92.03%
EBIT growth 3Y-0.82%
EBIT growth 5Y0.77%
EBIT Next Year-14.21%
EBIT Next 3Y0.16%
EBIT Next 5YN/A
FCF growth 1Y-117.67%
FCF growth 3Y-32.25%
FCF growth 5Y-10.7%
OCF growth 1Y-69.41%
OCF growth 3Y-9.44%
OCF growth 5Y6.49%