COMPUTER PROGRAMS & SYSTEMS (CPSI) Stock Fundamental Analysis
USA - NASDAQ:CPSI - US2053061030 - Common Stock
9.19 USD
+0.33 (+3.72%)
9.19 USD
0 (0%)
Taking everything into account, CPSI scores 4 out of 10 in our fundamental rating. CPSI was compared to 35 industry peers in the Health Care Technology industry. There are concerns on the financial health of CPSI while its profitability can be described as average. CPSI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CPSI was profitable.
CPSI had a positive operating cash flow in the past year.
Of the past 5 years CPSI 4 years were profitable.
Of the past 5 years CPSI 4 years had a positive operating cash flow.
1.2 Ratios
CPSI's Return On Assets of -0.18% is amongst the best of the industry. CPSI outperforms 85.00% of its industry peers.
CPSI's Return On Equity of -0.33% is amongst the best of the industry. CPSI outperforms 85.00% of its industry peers.
The Return On Invested Capital of CPSI (0.46%) is better than 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPSI is in line with the industry average of 6.80%.
The 3 year average ROIC (5.91%) for CPSI is well above the current ROIC(0.46%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.33% | ||
| ROIC | 0.46% |
ROA(3y)4.18%
ROA(5y)4.71%
ROE(3y)7.24%
ROE(5y)8.61%
ROIC(3y)5.91%
ROIC(5y)6.38%
1.3 Margins
CPSI's Profit Margin has declined in the last couple of years.
The Operating Margin of CPSI (0.61%) is better than 82.50% of its industry peers.
In the last couple of years the Operating Margin of CPSI has declined.
The Gross Margin of CPSI (47.08%) is comparable to the rest of the industry.
CPSI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.61% | ||
| PM (TTM) | N/A | ||
| GM | 47.08% |
OM growth 3Y-6.39%
OM growth 5Y-2.51%
PM growth 3Y-12.68%
PM growth 5YN/A
GM growth 3Y-3.42%
GM growth 5Y-2.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPSI is destroying value.
There is no outstanding debt for CPSI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CPSI has an Altman-Z score of 1.43. This is a bad value and indicates that CPSI is not financially healthy and even has some risk of bankruptcy.
CPSI has a Altman-Z score (1.43) which is comparable to the rest of the industry.
CPSI has a Debt/Equity ratio of 0.61. This is a neutral value indicating CPSI is somewhat dependend on debt financing.
CPSI's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. CPSI is outperformed by 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.05
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CPSI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.44, CPSI is in line with its industry, outperforming 47.50% of the companies in the same industry.
CPSI has a Quick Ratio of 1.42. This is a normal value and indicates that CPSI is financially healthy and should not expect problems in meeting its short term obligations.
CPSI's Quick ratio of 1.42 is in line compared to the rest of the industry. CPSI outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
CPSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.60%.
CPSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.71% yearly.
The Revenue has been growing slightly by 6.10% in the past year.
Measured over the past years, CPSI shows a small growth in Revenue. The Revenue has been growing by 3.36% on average per year.
EPS 1Y (TTM)-23.6%
EPS 3Y0.52%
EPS 5Y7.71%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.95%
Revenue growth 5Y3.36%
Sales Q2Q%-0.14%
3.2 Future
CPSI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.06% yearly.
Based on estimates for the next years, CPSI will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y-26.07%
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%
EPS Next 5YN/A
Revenue Next Year3.96%
Revenue Next 2Y2.41%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.50, which indicates a rather cheap valuation of CPSI.
Based on the Price/Earnings ratio, CPSI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.20. CPSI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.30, the valuation of CPSI can be described as very cheap.
Based on the Price/Forward Earnings ratio, CPSI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CPSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
CPSI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPSI is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
The decent profitability rating of CPSI may justify a higher PE ratio.
CPSI's earnings are expected to decrease with -10.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%
5. Dividend
5.1 Amount
No dividends for CPSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.19
+0.33 (+3.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners55.03%
Inst Owner Change-3.71%
Ins Owners6.84%
Ins Owner Change0%
Market Cap133.71M
Analysts76
Price Target16.83 (83.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)-13.87%
Min EPS beat(2)-32.77%
Max EPS beat(2)5.04%
EPS beat(4)2
Avg EPS beat(4)-11.07%
Min EPS beat(4)-32.77%
Max EPS beat(4)5.04%
EPS beat(8)4
Avg EPS beat(8)-3.79%
EPS beat(12)6
Avg EPS beat(12)-1.38%
EPS beat(16)10
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)-3.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)-0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.91%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)-2.94%
PT rev (3m)-11.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 8.63 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.06 |
EPS(TTM)2.04
EY22.2%
EPS(NY)1.46
Fwd EY15.87%
FCF(TTM)-0.51
FCFYN/A
OCF(TTM)1.06
OCFY11.58%
SpS23.15
BVpS15.67
TBVpS-6.87
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.33% | ||
| ROCE | 0.55% | ||
| ROIC | 0.46% | ||
| ROICexc | 0.46% | ||
| ROICexgc | 3.81% | ||
| OM | 0.61% | ||
| PM (TTM) | N/A | ||
| GM | 47.08% | ||
| FCFM | N/A |
ROA(3y)4.18%
ROA(5y)4.71%
ROE(3y)7.24%
ROE(5y)8.61%
ROIC(3y)5.91%
ROIC(5y)6.38%
ROICexc(3y)6.11%
ROICexc(5y)6.56%
ROICexgc(3y)41.93%
ROICexgc(5y)39.76%
ROCE(3y)7.04%
ROCE(5y)7.6%
ROICexcg growth 3Y2.33%
ROICexcg growth 5Y-4.44%
ROICexc growth 3Y-9.29%
ROICexc growth 5Y-5.39%
OM growth 3Y-6.39%
OM growth 5Y-2.51%
PM growth 3Y-12.68%
PM growth 5YN/A
GM growth 3Y-3.42%
GM growth 5Y-2.33%
F-Score4
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 91.14% | ||
| Cap/Sales | 6.81% | ||
| Interest Coverage | 0.24 | ||
| Cash Conversion | 56.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.43 |
F-Score4
WACC9.37%
ROIC/WACC0.05
Cap/Depr(3y)64.65%
Cap/Depr(5y)43.22%
Cap/Sales(3y)4.04%
Cap/Sales(5y)2.62%
Profit Quality(3y)199.76%
Profit Quality(5y)189.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.6%
EPS 3Y0.52%
EPS 5Y7.71%
EPS Q2Q%-21.05%
EPS Next Y-26.07%
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.95%
Revenue growth 5Y3.36%
Sales Q2Q%-0.14%
Revenue Next Year3.96%
Revenue Next 2Y2.41%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y-92.03%
EBIT growth 3Y-0.82%
EBIT growth 5Y0.77%
EBIT Next Year-14.21%
EBIT Next 3Y0.16%
EBIT Next 5YN/A
FCF growth 1Y-117.67%
FCF growth 3Y-32.25%
FCF growth 5Y-10.7%
OCF growth 1Y-69.41%
OCF growth 3Y-9.44%
OCF growth 5Y6.49%