CSG SYSTEMS INTL INC (CSGS) Stock Fundamental Analysis
NASDAQ:CSGS - US1263491094 - Common Stock
64.16 USD
+0.49 (+0.77%)
64.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CSGS. CSGS was compared to 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.
CSGS had positive earnings in each of the past 5 years.
CSGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CSGS's Return On Assets of 5.77% is fine compared to the rest of the industry. CSGS outperforms 69.41% of its industry peers.
CSGS has a Return On Equity of 28.19%. This is amongst the best in the industry. CSGS outperforms 90.59% of its industry peers.
CSGS has a better Return On Invested Capital (12.31%) than 78.82% of its industry peers.
CSGS had an Average Return On Invested Capital over the past 3 years of 11.79%. This is significantly below the industry average of 21.77%.
The last Return On Invested Capital (12.31%) for CSGS is above the 3 year average (11.79%), which is a sign of increasing profitability.
| 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
CSGS's Profit Margin of 6.78% is fine compared to the rest of the industry. CSGS outperforms 69.41% of its industry peers.
In the last couple of years the Profit Margin of CSGS has declined.
CSGS has a Operating Margin of 12.38%. This is in the better half of the industry: CSGS outperforms 72.94% of its industry peers.
In the last couple of years the Operating Margin of CSGS has declined.
Looking at the Gross Margin, with a value of 49.66%, CSGS is in the better half of the industry, outperforming 68.24% of the companies in the same industry.
CSGS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSGS is still creating some value.
Compared to 1 year ago, CSGS has less shares outstanding
The number of shares outstanding for CSGS has been reduced compared to 5 years ago.
Compared to 1 year ago, CSGS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.43 indicates that CSGS is not in any danger for bankruptcy at the moment.
CSGS's Altman-Z score of 3.43 is in line compared to the rest of the industry. CSGS outperforms 58.82% of its industry peers.
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.
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.
CSGS has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
CSGS has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: CSGS underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.43
WACC8.6%
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.
CSGS's Current ratio of 1.56 is in line compared to the rest of the industry. CSGS outperforms 43.53% of its industry peers.
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.
The Quick ratio of CSGS (1.56) is comparable to the rest of the industry.
| 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 29.46% 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 3.31% in the last year.
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
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
Based on estimates for the next years, CSGS will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y0.04%
EPS Next 2Y3.9%
EPS Next 3Y5.78%
EPS Next 5Y8.79%
Revenue Next Year2.57%
Revenue Next 2Y2.9%
Revenue Next 3Y2.69%
Revenue Next 5Y1.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 12.81 indicates a correct valuation of CSGS.
Based on the Price/Earnings ratio, CSGS is valued cheaper than 82.35% 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 27.13.
With a Price/Forward Earnings ratio of 12.54, CSGS is valued correctly.
Based on the Price/Forward Earnings ratio, CSGS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
CSGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.54 |
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 78.82% 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 89.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.28 | ||
| EV/EBITDA | 10.09 |
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.
The decent profitability rating of CSGS may justify a higher PE ratio.
PEG (NY)351.9
PEG (5Y)2.11
EPS Next 2Y3.9%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, CSGS has a reasonable but not impressive dividend return.
CSGS's Dividend Yield is rather good when compared to the industry average which is at 2.38. CSGS pays more dividend than 89.41% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CSGS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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
CSGS pays out 32.98% of its income as dividend. This is a 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%
64.16
+0.49 (+0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners102.58%
Inst Owner Change3.64%
Ins Owners4.36%
Ins Owner Change10.44%
Market Cap1.85B
Analysts86.25
Price Target78.16 (21.82%)
Short Float %7.73%
Short Ratio8.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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)2.78%
PT rev (3m)4.25%
EPS NQ rev (1m)-6.4%
EPS NQ rev (3m)-6%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.54 | ||
| P/S | 1.53 | ||
| P/FCF | 12.28 | ||
| P/OCF | 10.81 | ||
| P/B | 6.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)5.01
EY7.81%
EPS(NY)5.12
Fwd EY7.97%
FCF(TTM)5.22
FCFY8.14%
OCF(TTM)5.94
OCFY9.25%
SpS42
BVpS10.11
TBVpS-5.46
PEG (NY)351.9
PEG (5Y)2.11
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 | 3.43 |
F-Score7
WACC8.6%
ROIC/WACC1.43
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 Year2.57%
Revenue Next 2Y2.9%
Revenue Next 3Y2.69%
Revenue Next 5Y1.76%
EBIT growth 1Y12.54%
EBIT growth 3Y3.87%
EBIT growth 5Y2.02%
EBIT Next Year33.33%
EBIT Next 3Y14.17%
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%