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

  • 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.
  • CPSI had a positive operating cash flow in 4 of the past 5 years.
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

  • CPSI has a better Return On Assets (-0.18%) than 85.00% of its industry peers.
  • CPSI has a Return On Equity of -0.33%. This is amongst the best in the industry. CPSI outperforms 85.00% of its industry peers.
  • CPSI has a better Return On Invested Capital (0.46%) 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 7.46%.
  • The last Return On Invested Capital (0.46%) for CPSI is well below the 3 year average (5.91%), which needs to be investigated, but indicates that CPSI had better years and this may not be a problem.
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

  • CPSI's Profit Margin has declined in the last couple of years.
  • CPSI has a Operating Margin of 0.61%. This is amongst the best in the industry. CPSI outperforms 82.50% of its industry peers.
  • CPSI's Operating Margin has declined in the last couple of years.
  • The Gross Margin of CPSI (47.08%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of CPSI has declined.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. CPSI Health Analysis

2.1 Basic Checks

  • CPSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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

  • 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 has a Altman-Z score of 1.43. This is comparable 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.
  • CPSI has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: CPSI underperforms 67.50% of its industry peers.
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

  • CPSI has a Current Ratio of 1.44. This is a normal value and indicates that CPSI is financially healthy and should not expect problems in meeting 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.
  • 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 has a Quick ratio (1.42) which is in line with its industry peers.
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.
  • CPSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.71% yearly.
  • 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

  • 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.
  • CPSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
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.
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

More info and screens

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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.
  • CPSI is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 6.30, the valuation of CPSI can be described as very cheap.
  • CPSI's Price/Forward 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/Forward Earnings ratio is at 21.97. CPSI is valued rather cheaply when compared to this.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPSI indicates a rather cheap valuation: CPSI is cheaper than 90.00% of the companies listed in the same industry.
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

  • CPSI does not give a dividend.
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.