COMPUTER TASK GROUP INC (CTG)
US2054771025 - Common Stock
Taking everything into account, CTG scores 4 out of 10 in our fundamental rating. CTG was compared to 86 industry peers in the IT Services industry. While CTG has a great health rating, its profitability is only average at the moment. CTG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CTG had positive earnings in the past year.
CTG had a positive operating cash flow in the past year.
Of the past 5 years CTG 4 years were profitable.
CTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CTG has a Return On Assets (0.28%) which is comparable to the rest of the industry.
With a Return On Equity value of 0.47%, CTG perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
CTG's Return On Invested Capital of 2.59% is in line compared to the rest of the industry. CTG outperforms 51.72% of its industry peers.
CTG had an Average Return On Invested Capital over the past 3 years of 6.33%. This is significantly below the industry average of 13.12%.
| 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
The Profit Margin of CTG (0.17%) is comparable to the rest of the 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.
With a Gross Margin value of 27.19%, CTG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTG is destroying value.
CTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTG has more shares outstanding
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
CTG has an Altman-Z score of 4.39. This indicates that CTG is financially healthy and has little risk of 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 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's Current ratio of 1.93 is fine compared to the rest of the industry. CTG outperforms 60.92% of its industry peers.
CTG has a Quick 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 Quick ratio (1.93) 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%.
CTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.55% yearly.
CTG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.02%.
CTG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.54% yearly.
EPS 1Y (TTM)-31.34%
EPS 3Y12.82%
EPS 5Y20.55%
EPS growth Q2Q0%
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-6.22%
Revenue growth 5Y1.54%
Revenue growth Q2Q-4.93%
3.2 Future
Based on estimates for the next years, CTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.16% on average per year.
Based on estimates for the next years, CTG will show a decrease in Revenue. The Revenue will decrease by -2.78% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.83 indicates a rather expensive valuation of CTG.
Based on the Price/Earnings ratio, CTG is valued a bit cheaper than 60.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of CTG to the average of the S&P500 Index (28.11), we can say CTG is valued inline with the index average.
A Price/Forward Earnings ratio of 14.64 indicates a correct valuation of CTG.
CTG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CTG is cheaper than 80.46% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CTG to the average of the S&P500 Index (20.39), 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
CTG's earnings are expected to grow with 13.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y13.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COMPUTER TASK GROUP INC
NASDAQ:CTG (12/12/2023, 7:00:01 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap168.94M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 14.64 | ||
| 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)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.28% | ||
| ROE | 0.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.59% | ||
| PM (TTM) | 0.17% | ||
| GM | 27.19% | ||
| 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 Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 | ||
| 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)-31.34%
EPS 3Y12.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-6.22%
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
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OCF growth 3Y
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