CSG SYSTEMS INTL INC (CSGS)
US1263491094 - Common Stock
We assign a fundamental rating of 5 out of 10 to CSGS. 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
CSGS had positive earnings in the past year.
CSGS had a positive operating cash flow in the past year.
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's Return On Assets of 4.59% is fine compared to the rest of the industry. CSGS outperforms 66.67% of its industry peers.
With an excellent Return On Equity value of 24.25%, CSGS belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
CSGS has a better Return On Invested Capital (11.47%) than 79.76% of its industry peers.
CSGS had an Average Return On Invested Capital over the past 3 years of 11.97%. This is in line with the industry average of 13.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 24.25% | ||
| ROIC | 11.47% |
ROA(3y)4.36%
ROA(5y)4.79%
ROE(3y)17.74%
ROE(5y)17.6%
ROIC(3y)11.97%
ROIC(5y)11.15%
1.3 Margins
CSGS's Profit Margin of 5.67% is fine compared to the rest of the industry. CSGS outperforms 65.48% of its industry peers.
In the last couple of years the Profit Margin of CSGS has declined.
Looking at the Operating Margin, with a value of 12.00%, CSGS is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
In the last couple of years the Operating Margin of CSGS has declined.
Looking at the Gross Margin, with a value of 47.40%, CSGS is in the better half of the industry, outperforming 70.24% 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% | ||
| PM (TTM) | 5.67% | ||
| GM | 47.4% |
OM growth 3Y2.31%
OM growth 5Y-1.57%
PM growth 3Y-1.49%
PM growth 5Y-5.59%
GM growth 3Y1.06%
GM growth 5Y-0.49%
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
CSGS has a worse debt/assets ratio than last year.
2.2 Solvency
CSGS has an Altman-Z score of 2.95. This is not the best score and indicates that CSGS is in the grey zone with still only limited risk for bankruptcy at the moment.
CSGS has a Altman-Z score of 2.95. This is comparable to the rest of the industry: CSGS outperforms 57.14% of its industry peers.
The Debt to FCF ratio of CSGS is 5.22, which is a neutral value as it means it would take CSGS, 5.22 years of fcf income to pay off all of its debts.
CSGS has a Debt to FCF ratio (5.22) which is in line with its industry peers.
A Debt/Equity ratio of 1.96 is on the high side and indicates that CSGS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.96, CSGS is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 5.22 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.15
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.54 indicates that CSGS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.54, CSGS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
CSGS has a Quick Ratio of 1.54. 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 Quick ratio, with a value of 1.54, CSGS is in line with its industry, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
CSGS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
Measured over the past 5 years, CSGS shows a small growth in Earnings Per Share. The EPS has been growing by 3.69% on average per year.
The Revenue has been growing slightly by 7.29% in the past year.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)2.22%
EPS 3Y5.66%
EPS 5Y3.69%
EPS growth Q2Q9.52%
Revenue 1Y (TTM)7.29%
Revenue growth 3Y5.69%
Revenue growth 5Y5.97%
Revenue growth Q2Q2.56%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% 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 5.00% on average per year.
EPS Next Y10.68%
EPS Next 2Y9.86%
EPS Next 3Y11.04%
EPS Next 5Y9.78%
Revenue Next Year6.95%
Revenue Next 2Y6.01%
Revenue Next 3Y7.32%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.33, which indicates a very decent valuation of CSGS.
CSGS's Price/Earnings ratio is rather cheap when compared to the industry. CSGS is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. CSGS is valued rather cheaply when compared to this.
CSGS is valuated reasonably with a Price/Forward Earnings ratio of 10.24.
Based on the Price/Forward Earnings ratio, CSGS is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, CSGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSGS is valued cheaply inside the industry as 84.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSGS is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.78 | ||
| EV/EBITDA | 7.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CSGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)3.07
EPS Next 2Y9.86%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
CSGS's Dividend Yield is rather good when compared to the industry average which is at 2.83. CSGS pays more dividend than 94.05% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, CSGS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
The dividend of CSGS has a limited annual growth rate of 5.85%.
CSGS has paid a dividend for at least 10 years, which is a reliable track record.
CSGS has decreased its dividend recently.
Dividend Growth(5Y)5.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CSGS pays out 51.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
CSGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.2%
EPS Next 2Y9.86%
EPS Next 3Y11.04%
CSG SYSTEMS INTL INC
NASDAQ:CSGS (5/3/2024, 7:00:01 PM)
After market: 41.7 0 (0%)41.7
-0.34 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 10.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.06
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 24.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12% | ||
| PM (TTM) | 5.67% | ||
| GM | 47.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.22%
EPS 3Y5.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.29%
Revenue growth 3Y5.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y