10.5 USD
+0.01 (+0.1%)
10.49 USD
-0.01 (-0.1%)
We assign a fundamental rating of 4 out of 10 to CTG. CTG was compared to 88 industry peers in the IT Services industry. CTG has a great financial health rating, but its profitability evaluates not so good. CTG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year CTG was profitable.
- CTG had a positive operating cash flow in the past year.
1.2 Ratios
- CTG has a Return On Assets (0.28%) which is in line with its industry peers.
- CTG has a Return On Equity of 0.47%. This is comparable to the rest of the industry: CTG outperforms 55.17% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.59%, CTG is in line with its industry, outperforming 51.72% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CTG is significantly below the industry average of 29.06%.
| Industry Rank | Sector 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%
1.3 Margins
- CTG has a Profit Margin (0.17%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of CTG has grown nicely.
- With a Operating Margin value of 1.59%, CTG perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of CTG has grown nicely.
- CTG's Gross Margin of 27.19% is on the low side compared to the rest of the industry. CTG is outperformed by 66.67% of its industry peers.
- CTG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTG is destroying value.
- The number of shares outstanding for CTG has been increased compared to 1 year ago.
- CTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 4.39 indicates that CTG is not in any danger for bankruptcy at the moment.
- CTG has a Altman-Z score of 4.39. This is in the better half of the industry: CTG outperforms 72.41% of its industry peers.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.39 |
ROIC/WACC0.25
WACC10.27%
2.3 Liquidity
- CTG has a Current Ratio of 1.93. This is a normal value and indicates that CTG is financially healthy and should not expect problems in meeting its short term obligations.
- CTG has a better Current ratio (1.93) than 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.
- The Quick ratio of CTG (1.93) is better than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
- CTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.34%.
- 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
- The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
- The Revenue is expected to decrease by -2.78% on average over the next years.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
- 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 60.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. CTG is around the same levels.
- CTG is valuated correctly with a Price/Forward Earnings ratio of 14.64.
- 80.46% of the companies in the same industry are more expensive than CTG, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CTG to the average of the S&P500 Index (25.72), we can say CTG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.04 |
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
5. Dividend
5.1 Amount
- No dividends for CTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COMPUTER TASK GROUP INC / CTG FAQ
Can you provide the ChartMill fundamental rating for COMPUTER TASK GROUP INC?
ChartMill assigns a fundamental rating of 4 / 10 to CTG.
What is the valuation status of COMPUTER TASK GROUP INC (CTG) stock?
ChartMill assigns a valuation rating of 3 / 10 to COMPUTER TASK GROUP INC (CTG). This can be considered as Overvalued.
What is the profitability of CTG stock?
COMPUTER TASK GROUP INC (CTG) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for CTG stock?
The Price/Earnings (PE) ratio for COMPUTER TASK GROUP INC (CTG) is 22.83 and the Price/Book (PB) ratio is 1.6.
Can you provide the dividend sustainability for CTG stock?
The dividend rating of COMPUTER TASK GROUP INC (CTG) is 0 / 10 and the dividend payout ratio is 0%.