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COMPUTER TASK GROUP INC (CTG) Stock Fundamental Analysis

NASDAQ:CTG - US2054771025 - Common Stock

10.5 USD
+0.01 (+0.1%)
Last: 12/12/2023, 8:00:01 PM
10.49 USD
-0.01 (-0.1%)
After Hours: 12/12/2023, 8:00:01 PM
Fundamental Rating

4

Overall CTG gets a fundamental rating of 4 out of 10. We evaluated CTG against 83 industry peers in the IT Services industry. CTG has an excellent financial health rating, but there are some minor concerns on its profitability. CTG is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year CTG was profitable.
In the past year CTG had a positive cash flow from operations.
CTG had positive earnings in 4 of the past 5 years.
CTG had a positive operating cash flow in 4 of the past 5 years.
CTG Yearly Net Income VS EBIT VS OCF VS FCFCTG 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 -20M

1.2 Ratios

Looking at the Return On Assets, with a value of 0.28%, CTG is in line with its industry, outperforming 52.87% of the companies in the same industry.
CTG's Return On Equity of 0.47% is in line compared to the rest of the industry. CTG outperforms 55.17% of its industry peers.
CTG has a Return On Invested Capital (2.59%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTG is significantly below the industry average of 22.73%.
Industry RankSector Rank
ROA 0.28%
ROE 0.47%
ROIC 2.59%
ROA(3y)5.07%
ROA(5y)3.11%
ROE(3y)10.1%
ROE(5y)6.43%
ROIC(3y)6.33%
ROIC(5y)5.76%
CTG Yearly ROA, ROE, ROICCTG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20 -30 -40

1.3 Margins

Looking at the Profit Margin, with a value of 0.17%, CTG is in line with its industry, outperforming 52.87% of the companies in the same industry.
CTG's Profit Margin has improved in the last couple of years.
CTG has a Operating Margin (1.59%) which is comparable to the rest of the industry.
CTG's Operating Margin has improved in the last couple of years.
The Gross Margin of CTG (27.19%) is worse than 66.67% of its industry peers.
In the last couple of years the Gross Margin of CTG has grown nicely.
Industry RankSector Rank
OM 1.59%
PM (TTM) 0.17%
GM 27.19%
OM growth 3Y20.73%
OM growth 5Y17.13%
PM growth 3Y24.97%
PM growth 5Y50.2%
GM growth 3Y9%
GM growth 5Y5.79%
CTG Yearly Profit, Operating, Gross MarginsCTG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTG is destroying value.
CTG has more shares outstanding than it did 1 year ago.
There is no outstanding debt for CTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CTG Yearly Shares OutstandingCTG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M
CTG Yearly Total Debt VS Total AssetsCTG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

2.2 Solvency

An Altman-Z score of 4.39 indicates that CTG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.39, CTG is doing good in the industry, outperforming 72.41% of the companies in the same industry.
CTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 4.39
ROIC/WACC0.25
WACC10.27%
CTG Yearly LT Debt VS Equity VS FCFCTG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 1.93 indicates that CTG should not have too much problems paying its short term obligations.
CTG's Current ratio of 1.93 is fine compared to the rest of the industry. CTG outperforms 60.92% of its industry peers.
A Quick Ratio of 1.93 indicates that CTG should not have too much problems paying its short term obligations.
CTG's Quick ratio of 1.93 is fine compared to the rest of the industry. CTG outperforms 60.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.93
CTG Yearly Current Assets VS Current LiabilitesCTG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M

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3

3. Growth

3.1 Past

The earnings per share for CTG have decreased strongly by -31.34% in the last year.
Measured over the past years, CTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.55% on average per year.
Looking at the last year, CTG shows a very negative growth in Revenue. The Revenue has decreased by -16.02% in the last year.
The Revenue has been growing slightly by 1.54% on average over the past years.
EPS 1Y (TTM)-31.34%
EPS 3Y12.82%
EPS 5Y20.55%
EPS Q2Q%0%
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-6.22%
Revenue growth 5Y1.54%
Sales Q2Q%-4.93%

3.2 Future

CTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.16% yearly.
CTG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.78% yearly.
EPS Next Y-13.43%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.63%
Revenue Next 2Y-2.78%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CTG Yearly Revenue VS EstimatesCTG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
CTG Yearly EPS VS EstimatesCTG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.83, CTG is valued on the expensive side.
Based on the Price/Earnings ratio, CTG is valued a bit cheaper than the industry average as 60.92% of the companies are valued more expensively.
CTG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.64, CTG is valued correctly.
Based on the Price/Forward Earnings ratio, CTG is valued cheaply inside the industry as 80.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, CTG is valued rather cheaply.
Industry RankSector Rank
PE 22.83
Fwd PE 14.64
CTG Price Earnings VS Forward Price EarningsCTG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

CTG's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.04
CTG Per share dataCTG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

A more expensive valuation may be justified as CTG's earnings are expected to grow with 13.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y13.16%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

CTG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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COMPUTER TASK GROUP INC

NASDAQ:CTG (12/12/2023, 8:00:01 PM)

After market: 10.49 -0.01 (-0.1%)

10.5

+0.01 (+0.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-08 2023-11-08/bmo
Earnings (Next)02-21 2024-02-21/amc
Inst Owners2.36%
Inst Owner Change0%
Ins Owners13.48%
Ins Owner Change0%
Market Cap168.94M
Analysts45
Price Target10.71 (2%)
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)0
Avg EPS beat(2)-4.53%
Min EPS beat(2)-8.06%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-2.33%
Min EPS beat(4)-20.79%
Max EPS beat(4)20.53%
EPS beat(8)4
Avg EPS beat(8)6.87%
EPS beat(12)8
Avg EPS beat(12)9.87%
EPS beat(16)12
Avg EPS beat(16)59.88%
Revenue beat(2)0
Avg Revenue beat(2)-4.57%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)-2.98%
Revenue beat(4)1
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-3.03%
Revenue beat(12)4
Avg Revenue beat(12)-1.56%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)0%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)99900.6%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.49%
Valuation
Industry RankSector Rank
PE 22.83
Fwd PE 14.64
P/S 0.56
P/FCF N/A
P/OCF 78.22
P/B 1.6
P/tB 2.89
EV/EBITDA 17.04
EPS(TTM)0.46
EY4.38%
EPS(NY)0.72
Fwd EY6.83%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.13
OCFY1.28%
SpS18.77
BVpS6.56
TBVpS3.64
PEG (NY)N/A
PEG (5Y)1.11
Profitability
Industry RankSector Rank
ROA 0.28%
ROE 0.47%
ROCE 3.71%
ROIC 2.59%
ROICexc 3.18%
ROICexgc 5.76%
OM 1.59%
PM (TTM) 0.17%
GM 27.19%
FCFM N/A
ROA(3y)5.07%
ROA(5y)3.11%
ROE(3y)10.1%
ROE(5y)6.43%
ROIC(3y)6.33%
ROIC(5y)5.76%
ROICexc(3y)8.53%
ROICexc(5y)7.37%
ROICexgc(3y)13.84%
ROICexgc(5y)11.38%
ROCE(3y)9.07%
ROCE(5y)8.25%
ROICexcg growth 3Y19.74%
ROICexcg growth 5Y29.03%
ROICexc growth 3Y8.08%
ROICexc growth 5Y13.75%
OM growth 3Y20.73%
OM growth 5Y17.13%
PM growth 3Y24.97%
PM growth 5Y50.2%
GM growth 3Y9%
GM growth 5Y5.79%
F-Score6
Asset Turnover1.7
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 86.76%
Cap/Sales 1.06%
Interest Coverage 250
Cash Conversion 25.41%
Profit Quality N/A
Current Ratio 1.93
Quick Ratio 1.93
Altman-Z 4.39
F-Score6
WACC10.27%
ROIC/WACC0.25
Cap/Depr(3y)65.84%
Cap/Depr(5y)72.14%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.6%
Profit Quality(3y)188.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.34%
EPS 3Y12.82%
EPS 5Y20.55%
EPS Q2Q%0%
EPS Next Y-13.43%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-6.22%
Revenue growth 5Y1.54%
Sales Q2Q%-4.93%
Revenue Next Year-7.63%
Revenue Next 2Y-2.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-64.18%
EBIT growth 3Y13.22%
EBIT growth 5Y18.94%
EBIT Next Year14.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-120.87%
FCF growth 3Y19.61%
FCF growth 5Y9.17%
OCF growth 1Y-71.24%
OCF growth 3Y11.71%
OCF growth 5Y5.2%