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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

We assign a fundamental rating of 4 out of 10 to CPSI. CPSI was compared to 36 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 it does not seem to be growing.


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

With an excellent Return On Assets value of -0.18%, CPSI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
With an excellent Return On Equity value of -0.33%, CPSI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Return On Invested Capital of CPSI (0.46%) is better than 85.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPSI is in line with the industry average of 6.51%.
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 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.
With an excellent Operating Margin value of 0.61%, CPSI belongs to the best 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.
CPSI's Gross Margin has declined in the last couple of years.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPSI 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.
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 of 1.43. This is comparable to the rest of the industry: CPSI outperforms 60.00% of its industry peers.
CPSI has a Debt/Equity ratio of 0.61. This is a neutral value indicating CPSI is somewhat dependend on debt financing.
The Debt to Equity ratio of CPSI (0.61) is worse than 67.50% of its industry peers.
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

CPSI has a Current Ratio of 1.44. This is a normal value and indicates that CPSI is financially healthy and should not expect problems in meeting 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.
CPSI has a Quick Ratio of 1.42. This is a normal value and indicates that CPSI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CPSI (1.42) is comparable to the rest of the industry.
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

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.
Looking at the last year, CPSI shows a small growth in Revenue. The Revenue has grown by 6.10% in the last 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.
Based on estimates for the next years, CPSI will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
CPSI's Price/Earnings ratio is rather cheap when compared to the industry. CPSI is cheaper than 100.00% of the companies in the same industry.
CPSI is valuated cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.30 indicates a rather cheap valuation of CPSI.
Based on the Price/Forward Earnings ratio, CPSI is valued cheaper than 100.00% of the companies in the same industry.
CPSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
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-0.78%
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%