COMPUTER PROGRAMS & SYSTEMS (CPSI) Fundamental Analysis & Valuation

NASDAQ:CPSI • US2053061030

Current stock price

9.19 USD
+0.33 (+3.72%)
At close:
9.19 USD
0 (0%)
After Hours:

This CPSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CPSI Profitability Analysis

1.1 Basic Checks

  • CPSI had positive earnings in the past year.
  • 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.
CPSI Yearly Net Income VS EBIT VS OCF VS FCFCPSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20M 40M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -0.18%, CPSI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • With an excellent Return On Equity value of -0.33%, CPSI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • CPSI has a Return On Invested Capital of 0.46%. This is amongst the best in the industry. CPSI outperforms 85.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CPSI is in line with the industry average of 7.46%.
  • 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 RankSector 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%
CPSI Yearly ROA, ROE, ROICCPSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

1.3 Margins

  • In the last couple of years the Profit Margin of CPSI has declined.
  • Looking at the Operating Margin, with a value of 0.61%, CPSI belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CPSI has declined.
  • CPSI has a Gross Margin (47.08%) which is comparable to the rest of the industry.
  • CPSI's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CPSI Yearly Profit, Operating, Gross MarginsCPSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

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2

2. CPSI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPSI is destroying value.
  • CPSI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CPSI Yearly Shares OutstandingCPSI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 5M 10M
CPSI Yearly Total Debt VS Total AssetsCPSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

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's Altman-Z score of 1.43 is in line compared to the rest of the industry. CPSI outperforms 60.00% of its industry peers.
  • A Debt/Equity ratio of 0.61 indicates that CPSI is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.61, CPSI is doing worse than 67.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 1.43
ROIC/WACC0.05
WACC9.37%
CPSI Yearly LT Debt VS Equity VS FCFCPSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

2.3 Liquidity

  • A Current Ratio of 1.44 indicates that CPSI should not have too much problems paying its short term obligations.
  • CPSI's Current ratio of 1.44 is in line compared to the rest of the industry. CPSI outperforms 47.50% of its industry peers.
  • A Quick Ratio of 1.42 indicates that CPSI should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.42, CPSI is in line with its industry, outperforming 47.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.42
CPSI Yearly Current Assets VS Current LiabilitesCPSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. CPSI Growth Analysis

3.1 Past

  • The earnings per share for CPSI have decreased strongly by -23.60% in the last year.
  • The Earnings Per Share has been growing slightly by 7.71% on average over the past years.
  • The Revenue has been growing slightly by 6.10% in the past year.
  • The Revenue has been growing slightly by 3.36% on average over the past years.
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

  • Based on estimates for the next years, CPSI will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.06% on average per year.
  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
CPSI Yearly Revenue VS EstimatesCPSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
CPSI Yearly EPS VS EstimatesCPSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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6

4. CPSI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 4.50, which indicates a rather cheap valuation of CPSI.
  • CPSI's Price/Earnings ratio is rather cheap when compared to the industry. CPSI is cheaper than 100.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.71. 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.09, CPSI is valued rather cheaply.
Industry RankSector Rank
PE 4.5
Fwd PE 6.3
CPSI Price Earnings VS Forward Price EarningsCPSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CPSI is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.06
CPSI Per share dataCPSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

  • The decent profitability rating of CPSI may justify a higher PE ratio.
  • A cheap valuation may be justified as CPSI's earnings are expected to decrease with -10.06% in the coming years.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-24.81%
EPS Next 3Y-10.06%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CPSI Dividend Analysis

5.1 Amount

  • No dividends for CPSI!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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CPSI Fundamentals: All Metrics, Ratios and Statistics

COMPUTER PROGRAMS & SYSTEMS

NASDAQ:CPSI (3/1/2024, 8:08:21 PM)

After market: 9.19 0 (0%)

9.19

+0.33 (+3.72%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-29
Earnings (Next)05-07
Inst Owners55.03%
Inst Owner Change-6.5%
Ins Owners6.84%
Ins Owner Change0%
Market Cap133.71M
Revenue(TTM)336.78M
Net Income(TTM)-760.00K
Analysts76
Price Target16.83 (83.13%)
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)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 RankSector 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
Graham Number0 (-100%)
Profitability
Industry RankSector 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%
ROICexgc growth 3Y2.33%
ROICexgc 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 RankSector 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%

COMPUTER PROGRAMS & SYSTEMS / CPSI Fundamental Analysis FAQ

What is the fundamental rating for CPSI stock?

ChartMill assigns a fundamental rating of 4 / 10 to CPSI.


What is the valuation status for CPSI stock?

ChartMill assigns a valuation rating of 6 / 10 to COMPUTER PROGRAMS & SYSTEMS (CPSI). This can be considered as Fairly Valued.


What is the profitability of CPSI stock?

COMPUTER PROGRAMS & SYSTEMS (CPSI) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for CPSI stock?

The Price/Earnings (PE) ratio for COMPUTER PROGRAMS & SYSTEMS (CPSI) is 4.5 and the Price/Book (PB) ratio is 0.59.


What is the financial health of COMPUTER PROGRAMS & SYSTEMS (CPSI) stock?

The financial health rating of COMPUTER PROGRAMS & SYSTEMS (CPSI) is 2 / 10.