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%)
We assign a fundamental rating of 4 out of 10 to CPSI. CPSI was compared to 35 industry peers in the Health Care Technology industry. While CPSI is still in line with the averages on profitability rating, there are concerns on its financial health. CPSI is valued correctly, 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.
CPSI had positive earnings in 4 of the past 5 years.
Of the past 5 years CPSI 4 years had a positive operating cash flow.
1.2 Ratios
CPSI has a better Return On Assets (-0.18%) than 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.
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.
CPSI had an Average Return On Invested Capital over the past 3 years of 5.91%. This 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
In the last couple of years the Profit Margin of CPSI has declined.
With an excellent Operating Margin value of 0.61%, CPSI belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
CPSI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.08%, CPSI is in line with its industry, outperforming 42.50% of the companies in the same industry.
In the last couple of years the Gross Margin of CPSI has declined.
| 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.
CPSI 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
Based on the Altman-Z score of 1.43, we must say that CPSI is in the distress zone and 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.
CPSI has a Debt/Equity ratio of 0.61. This is a neutral value indicating 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 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.
With a Current ratio value of 1.44, CPSI perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that CPSI should not have too much problems paying 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
The earnings per share for CPSI have decreased strongly by -23.60% in the last year.
Measured over the past 5 years, CPSI shows a small growth in Earnings Per Share. The EPS has been growing by 7.71% on average per year.
CPSI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.10%.
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
The Earnings Per Share is expected to decrease by -10.06% on average over the next years. This is quite bad
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.
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
A Price/Earnings ratio of 4.50 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.
CPSI is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
CPSI is valuated cheaply with a Price/Forward Earnings ratio of 6.30.
100.00% of the companies in the same industry are more expensive than CPSI, based on the Price/Forward Earnings ratio.
CPSI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPSI is valued 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
CPSI has a very decent profitability rating, which 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
CPSI does not give a dividend.
| 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-0.09%
Ins Owners6.84%
Ins Owner Change0%
Market Cap133.71M
Revenue(TTM)336.78M
Net Income(TTM)-760000
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
Graham NumberN/A
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%
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 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%
COMPUTER PROGRAMS & SYSTEMS / CPSI FAQ
What is the fundamental rating for CPSI stock?
ChartMill assigns a fundamental rating of 4 / 10 to CPSI.
Can you provide the valuation status for COMPUTER PROGRAMS & SYSTEMS?
ChartMill assigns a valuation rating of 6 / 10 to COMPUTER PROGRAMS & SYSTEMS (CPSI). This can be considered as Fairly Valued.
Can you provide the profitability details for COMPUTER PROGRAMS & SYSTEMS?
COMPUTER PROGRAMS & SYSTEMS (CPSI) has a profitability rating of 6 / 10.
Can you provide the financial health for CPSI stock?
The financial health rating of COMPUTER PROGRAMS & SYSTEMS (CPSI) is 2 / 10.
What is the earnings growth outlook for COMPUTER PROGRAMS & SYSTEMS?
The Earnings per Share (EPS) of COMPUTER PROGRAMS & SYSTEMS (CPSI) is expected to decline by -26.07% in the next year.