CSG SYSTEMS INTL INC (CSGS) Stock Fundamental Analysis
USA - NASDAQ:CSGS - US1263491094 - Common Stock
64.92 USD
-0.18 (-0.28%)
66 USD
+1.08 (+1.66%)
Taking everything into account, CSGS scores 6 out of 10 in our fundamental rating. CSGS was compared to 86 industry peers in the IT Services industry. Both the profitability and the financial health of CSGS get a neutral evaluation. Nothing too spectacular is happening here. CSGS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CSGS was profitable.
In the past year CSGS had a positive cash flow from operations.
In the past 5 years CSGS has always been profitable.
Each year in the past 5 years CSGS had a positive operating cash flow.
1.2 Ratios
CSGS has a better Return On Assets (5.77%) than 69.77% of its industry peers.
CSGS's Return On Equity of 28.19% is amongst the best of the industry. CSGS outperforms 91.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.31%, CSGS is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSGS is significantly below the industry average of 21.42%.
The 3 year average ROIC (11.79%) for CSGS is below the current ROIC(12.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 28.19% | ||
| ROIC | 12.31% |
ROA(3y)4.55%
ROA(5y)4.65%
ROE(3y)22.46%
ROE(5y)19.57%
ROIC(3y)11.79%
ROIC(5y)11.7%
1.3 Margins
The Profit Margin of CSGS (6.78%) is better than 70.93% of its industry peers.
CSGS's Profit Margin has declined in the last couple of years.
The Operating Margin of CSGS (12.38%) is better than 73.26% of its industry peers.
In the last couple of years the Operating Margin of CSGS has declined.
CSGS has a Gross Margin of 49.66%. This is in the better half of the industry: CSGS outperforms 68.60% of its industry peers.
In the last couple of years the Gross Margin of CSGS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.38% | ||
| PM (TTM) | 6.78% | ||
| GM | 49.66% |
OM growth 3Y-0.69%
OM growth 5Y-1.65%
PM growth 3Y1.64%
PM growth 5Y-2.67%
GM growth 3Y0.4%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
CSGS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CSGS has been reduced compared to 1 year ago.
CSGS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CSGS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that CSGS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, CSGS is in line with its industry, outperforming 59.30% of the companies in the same industry.
CSGS has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as CSGS would need 3.58 years to pay back of all of its debts.
The Debt to FCF ratio of CSGS (3.58) is better than 60.47% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that CSGS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.85, CSGS is not doing good in the industry: 75.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.5
WACC8.21%
2.3 Liquidity
CSGS has a Current Ratio of 1.56. This is a normal value and indicates that CSGS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.56, CSGS perfoms like the industry average, outperforming 45.35% of the companies in the same industry.
CSGS has a Quick Ratio of 1.56. This is a normal value and indicates that CSGS is financially healthy and should not expect problems in meeting its short term obligations.
CSGS has a Quick ratio of 1.56. This is comparable to the rest of the industry: CSGS outperforms 45.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
CSGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.46%, which is quite impressive.
Measured over the past 5 years, CSGS shows a small growth in Earnings Per Share. The EPS has been growing by 6.07% on average per year.
CSGS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.31%.
Measured over the past years, CSGS shows a small growth in Revenue. The Revenue has been growing by 3.73% on average per year.
EPS 1Y (TTM)29.46%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%13.73%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.35%
3.2 Future
Based on estimates for the next years, CSGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y0.04%
EPS Next 2Y3.9%
EPS Next 3Y5.78%
EPS Next 5Y8.79%
Revenue Next Year3.89%
Revenue Next 2Y3.54%
Revenue Next 3Y3.57%
Revenue Next 5Y1.76%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.96, which indicates a correct valuation of CSGS.
Based on the Price/Earnings ratio, CSGS is valued cheaper than 81.40% of the companies in the same industry.
CSGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 12.69, which indicates a correct valuation of CSGS.
76.74% of the companies in the same industry are more expensive than CSGS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CSGS to the average of the S&P500 Index (23.04), we can say CSGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSGS indicates a somewhat cheap valuation: CSGS is cheaper than 73.26% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSGS indicates a rather cheap valuation: CSGS is cheaper than 84.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CSGS may justify a higher PE ratio.
PEG (NY)356.07
PEG (5Y)2.13
EPS Next 2Y3.9%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 1.98%.
Compared to an average industry Dividend Yield of 2.49, CSGS pays a better dividend. On top of this CSGS pays more dividend than 89.53% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CSGS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of CSGS has a limited annual growth rate of 0.69%.
CSGS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CSGS decreased in the last 3 years.
Dividend Growth(5Y)0.69%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
32.98% of the earnings are spent on dividend by CSGS. This is a low number and sustainable payout ratio.
The dividend of CSGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.98%
EPS Next 2Y3.9%
EPS Next 3Y5.78%
64.92
-0.18 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change0.25%
Ins Owners4.39%
Ins Owner Change1.07%
Market Cap1.87B
Analysts86.67
Price Target78.16 (20.39%)
Short Float %7.32%
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend0.91
Dividend Growth(5Y)0.69%
DP32.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.17%
Min EPS beat(2)8.57%
Max EPS beat(2)9.77%
EPS beat(4)3
Avg EPS beat(4)12.58%
Min EPS beat(4)-2.01%
Max EPS beat(4)34%
EPS beat(8)7
Avg EPS beat(8)10.39%
EPS beat(12)10
Avg EPS beat(12)8.73%
EPS beat(16)13
Avg EPS beat(16)6.95%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.96%
Revenue beat(16)9
Avg Revenue beat(16)1.2%
PT rev (1m)0%
PT rev (3m)2.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.69 | ||
| P/S | 1.55 | ||
| P/FCF | 12.43 | ||
| P/OCF | 10.94 | ||
| P/B | 6.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.19 |
EPS(TTM)5.01
EY7.72%
EPS(NY)5.12
Fwd EY7.88%
FCF(TTM)5.22
FCFY8.04%
OCF(TTM)5.94
OCFY9.14%
SpS42
BVpS10.11
TBVpS-5.46
PEG (NY)356.07
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 28.19% | ||
| ROCE | 16.52% | ||
| ROIC | 12.31% | ||
| ROICexc | 14.68% | ||
| ROICexgc | 35.76% | ||
| OM | 12.38% | ||
| PM (TTM) | 6.78% | ||
| GM | 49.66% | ||
| FCFM | 12.43% |
ROA(3y)4.55%
ROA(5y)4.65%
ROE(3y)22.46%
ROE(5y)19.57%
ROIC(3y)11.79%
ROIC(5y)11.7%
ROICexc(3y)14.61%
ROICexc(5y)15.49%
ROICexgc(3y)37.56%
ROICexgc(5y)578.79%
ROCE(3y)15.82%
ROCE(5y)15.7%
ROICexcg growth 3Y-76.11%
ROICexcg growth 5Y1.77%
ROICexc growth 3Y-10.8%
ROICexc growth 5Y0.81%
OM growth 3Y-0.69%
OM growth 5Y-1.65%
PM growth 3Y1.64%
PM growth 5Y-2.67%
GM growth 3Y0.4%
GM growth 5Y0.57%
F-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 28.36% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 5.71 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | 183.35% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.45 |
F-Score7
WACC8.21%
ROIC/WACC1.5
Cap/Depr(3y)39.41%
Cap/Depr(5y)39.76%
Cap/Sales(3y)2.55%
Cap/Sales(5y)2.63%
Profit Quality(3y)115.88%
Profit Quality(5y)149.88%
High Growth Momentum
Growth
EPS 1Y (TTM)29.46%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%13.73%
EPS Next Y0.04%
EPS Next 2Y3.9%
EPS Next 3Y5.78%
EPS Next 5Y8.79%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.35%
Revenue Next Year3.89%
Revenue Next 2Y3.54%
Revenue Next 3Y3.57%
Revenue Next 5Y1.76%
EBIT growth 1Y12.54%
EBIT growth 3Y3.87%
EBIT growth 5Y2.02%
EBIT Next Year35.28%
EBIT Next 3Y14.25%
EBIT Next 5Y10.8%
FCF growth 1Y111.93%
FCF growth 3Y-0.09%
FCF growth 5Y-0.09%
OCF growth 1Y63.09%
OCF growth 3Y-1.08%
OCF growth 5Y-2.12%