CSG SYSTEMS INTL INC (CSGS) Stock Fundamental Analysis
USA - NASDAQ:CSGS - US1263491094 - Common Stock
78.3 USD
+0.15 (+0.19%)
78.3 USD
0 (0%)
CSGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. CSGS has an average financial health and profitability rating. CSGS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSGS was profitable.
CSGS had a positive operating cash flow in the past year.
Each year in the past 5 years CSGS has been profitable.
CSGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.77%, CSGS is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
CSGS has a better Return On Equity (28.19%) than 91.76% of its industry peers.
With a decent Return On Invested Capital value of 12.31%, CSGS is doing good in the industry, outperforming 78.82% of the companies in the same industry.
CSGS had an Average Return On Invested Capital over the past 3 years of 11.79%. This is significantly below the industry average of 27.96%.
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
Looking at the Profit Margin, with a value of 6.78%, CSGS is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
In the last couple of years the Profit Margin of CSGS has declined.
With a decent Operating Margin value of 12.38%, CSGS is doing good in the industry, outperforming 75.29% of the companies in the same industry.
CSGS's Operating Margin has declined in the last couple of years.
CSGS has a Gross Margin of 49.66%. This is in the better half of the industry: CSGS outperforms 69.41% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSGS is creating some value.
The number of shares outstanding for CSGS has been reduced compared to 1 year ago.
Compared to 5 years ago, CSGS has less shares outstanding
Compared to 1 year ago, CSGS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.65 indicates that CSGS is not in any danger for bankruptcy at the moment.
CSGS has a better Altman-Z score (3.65) than 63.53% of its industry peers.
The Debt to FCF ratio of CSGS is 3.58, which is a good value as it means it would take CSGS, 3.58 years of fcf income to pay off all of its debts.
CSGS's Debt to FCF ratio of 3.58 is fine compared to the rest of the industry. CSGS outperforms 61.18% 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: 76.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.45
WACC8.48%
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.
Looking at the Current ratio, with a value of 1.56, CSGS is in line with its industry, outperforming 44.71% 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 (1.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.17% over the past year.
The Earnings Per Share has been growing slightly by 6.07% on average over the past years.
Looking at the last year, CSGS shows a small growth in Revenue. The Revenue has grown by 2.39% in the last year.
The Revenue has been growing slightly by 3.73% on average over the past years.
EPS 1Y (TTM)31.17%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%23.58%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.87%
3.2 Future
CSGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
CSGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y2.28%
EPS Next 2Y4.99%
EPS Next 3Y5.59%
EPS Next 5Y8.79%
Revenue Next Year1.99%
Revenue Next 2Y3.34%
Revenue Next 3Y2.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.89, the valuation of CSGS can be described as correct.
Based on the Price/Earnings ratio, CSGS is valued a bit cheaper than the industry average as 75.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.83. CSGS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.98, CSGS is valued correctly.
Based on the Price/Forward Earnings ratio, CSGS is valued a bit cheaper than 74.12% of the companies in the same industry.
CSGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
CSGS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSGS is cheaper than 70.59% of the companies in the same industry.
CSGS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSGS is cheaper than 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSGS does not grow enough to justify the current Price/Earnings ratio.
CSGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.54
PEG (5Y)2.45
EPS Next 2Y4.99%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.58, CSGS pays a better dividend. On top of this CSGS pays more dividend than 85.88% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, CSGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of CSGS has a limited annual growth rate of 0.69%.
CSGS has paid a dividend for at least 10 years, which is 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.
CSGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.98%
EPS Next 2Y4.99%
EPS Next 3Y5.59%
78.3
+0.15 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change-2.42%
Ins Owners4.39%
Ins Owner Change0.99%
Market Cap2.25B
Revenue(TTM)1.20B
Net Income(TTM)81.95M
Analysts77.14
Price Target78.83 (0.68%)
Short Float %7.66%
Short Ratio10.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)0.86%
PT rev (3m)1.52%
EPS NQ rev (1m)2.88%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)2.24%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)-1.83%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 14.98 | ||
| P/S | 1.86 | ||
| P/FCF | 14.99 | ||
| P/OCF | 13.19 | ||
| P/B | 7.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)5.26
EY6.72%
EPS(NY)5.23
Fwd EY6.67%
FCF(TTM)5.22
FCFY6.67%
OCF(TTM)5.94
OCFY7.58%
SpS42
BVpS10.11
TBVpS-5.46
PEG (NY)6.54
PEG (5Y)2.45
Graham Number34.58
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%
ROICexgc growth 3Y-76.11%
ROICexgc 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 | 3.65 |
F-Score7
WACC8.48%
ROIC/WACC1.45
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)31.17%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%23.58%
EPS Next Y2.28%
EPS Next 2Y4.99%
EPS Next 3Y5.59%
EPS Next 5Y8.79%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.87%
Revenue Next Year1.99%
Revenue Next 2Y3.34%
Revenue Next 3Y2.42%
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%
CSG SYSTEMS INTL INC / CSGS FAQ
Can you provide the ChartMill fundamental rating for CSG SYSTEMS INTL INC?
ChartMill assigns a fundamental rating of 6 / 10 to CSGS.
Can you provide the valuation status for CSG SYSTEMS INTL INC?
ChartMill assigns a valuation rating of 5 / 10 to CSG SYSTEMS INTL INC (CSGS). This can be considered as Fairly Valued.
How profitable is CSG SYSTEMS INTL INC (CSGS) stock?
CSG SYSTEMS INTL INC (CSGS) has a profitability rating of 6 / 10.
What is the earnings growth outlook for CSG SYSTEMS INTL INC?
The Earnings per Share (EPS) of CSG SYSTEMS INTL INC (CSGS) is expected to grow by 2.28% in the next year.
Is the dividend of CSG SYSTEMS INTL INC sustainable?
The dividend rating of CSG SYSTEMS INTL INC (CSGS) is 5 / 10 and the dividend payout ratio is 32.98%.