77.01 USD
-0.01 (-0.01%)
77.01 USD
0 (0%)
CSGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 industry peers in the IT Services industry. CSGS has an excellent profitability rating, but there are some minor concerns on its financial health. CSGS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSGS was profitable.
In the past year CSGS had a positive cash flow from operations.
CSGS had positive earnings in each of the past 5 years.
Each year in the past 5 years CSGS had a positive operating cash flow.
1.2 Ratios
CSGS has a better Return On Assets (5.66%) than 72.73% of its industry peers.
Looking at the Return On Equity, with a value of 28.79%, CSGS belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
CSGS has a better Return On Invested Capital (12.51%) than 82.95% of its industry peers.
CSGS had an Average Return On Invested Capital over the past 3 years of 11.79%. This is significantly below the industry average of 29.59%.
The 3 year average ROIC (11.79%) for CSGS is below the current ROIC(12.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 28.79% | ||
| ROIC | 12.51% |
ROA(3y)4.55%
ROA(5y)4.65%
ROE(3y)22.46%
ROE(5y)19.57%
ROIC(3y)11.79%
ROIC(5y)11.7%
1.3 Margins
CSGS's Profit Margin of 6.85% is fine compared to the rest of the industry. CSGS outperforms 67.05% of its industry peers.
CSGS's Profit Margin has declined in the last couple of years.
CSGS has a Operating Margin of 12.39%. This is in the better half of the industry: CSGS outperforms 76.14% of its industry peers.
In the last couple of years the Operating Margin of CSGS has declined.
The Gross Margin of CSGS (49.35%) is better than 70.45% of its industry peers.
CSGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.39% | ||
| PM (TTM) | 6.85% | ||
| GM | 49.35% |
OM growth 3Y-0.69%
OM growth 5Y-1.65%
PM growth 3Y1.64%
PM growth 5Y-2.67%
GM growth 3Y0.4%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
CSGS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CSGS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CSGS has been reduced compared to 5 years ago.
CSGS has a better debt/assets ratio than last year.
2.2 Solvency
CSGS has an Altman-Z score of 3.50. This indicates that CSGS is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.50, CSGS perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
The Debt to FCF ratio of CSGS is 3.32, which is a good value as it means it would take CSGS, 3.32 years of fcf income to pay off all of its debts.
CSGS's Debt to FCF ratio of 3.32 is fine compared to the rest of the industry. CSGS outperforms 61.36% of its industry peers.
CSGS has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.86, CSGS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.49
WACC8.38%
2.3 Liquidity
CSGS has a Current Ratio of 1.50. This is a normal value and indicates that CSGS is financially healthy and should not expect problems in meeting its short term obligations.
CSGS's Current ratio of 1.50 is in line compared to the rest of the industry. CSGS outperforms 44.32% of its industry peers.
A Quick Ratio of 1.50 indicates that CSGS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, CSGS is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
CSGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.17%, which is quite impressive.
Measured over the past 5 years, CSGS shows a small growth in Earnings Per Share. The EPS has been growing by 6.07% on average per year.
CSGS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.30%.
CSGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.73% yearly.
EPS 1Y (TTM)31.17%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%23.58%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.87%
3.2 Future
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y2.22%
EPS Next 2Y5.05%
EPS Next 3Y5.59%
EPS Next 5Y8.79%
Revenue Next Year1.99%
Revenue Next 2Y3.34%
Revenue Next 3Y2.42%
Revenue Next 5Y1.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 14.64 indicates a correct valuation of CSGS.
Based on the Price/Earnings ratio, CSGS is valued a bit cheaper than 76.14% of the companies in the same industry.
CSGS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
The Price/Forward Earnings ratio is 14.72, which indicates a correct valuation of CSGS.
CSGS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CSGS is cheaper than 77.27% of the companies in the same industry.
CSGS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSGS indicates a somewhat cheap valuation: CSGS is cheaper than 76.14% of the companies listed in the same industry.
CSGS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSGS is cheaper than 79.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSGS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CSGS may justify a higher PE ratio.
PEG (NY)6.61
PEG (5Y)2.41
EPS Next 2Y5.05%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 1.66%.
CSGS's Dividend Yield is rather good when compared to the industry average which is at 0.44. CSGS pays more dividend than 88.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CSGS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
The dividend of CSGS has a limited annual growth rate of 0.69%.
CSGS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CSGS decreased in the last 3 years.
Dividend Growth(5Y)0.69%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CSGS pays out 32.90% of its income as dividend. This is a sustainable payout ratio.
The dividend of CSGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.9%
EPS Next 2Y5.05%
EPS Next 3Y5.59%
77.01
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners105.78%
Inst Owner Change-1.52%
Ins Owners4.42%
Ins Owner Change-0.07%
Market Cap2.20B
Revenue(TTM)1.22B
Net Income(TTM)83.35M
Analysts51.67
Price Target82.31 (6.88%)
Short Float %11.98%
Short Ratio6.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.91
Dividend Growth(5Y)0.69%
DP32.9%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.26%
Min EPS beat(2)8.57%
Max EPS beat(2)11.96%
EPS beat(4)4
Avg EPS beat(4)16.07%
Min EPS beat(4)8.57%
Max EPS beat(4)34%
EPS beat(8)7
Avg EPS beat(8)10.36%
EPS beat(12)10
Avg EPS beat(12)8.36%
EPS beat(16)13
Avg EPS beat(16)7.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)-0.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)4
Avg Revenue beat(12)-1.02%
Revenue beat(16)8
Avg Revenue beat(16)0.71%
PT rev (1m)4.42%
PT rev (3m)5.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 14.72 | ||
| P/S | 1.8 | ||
| P/FCF | 13.54 | ||
| P/OCF | 12.25 | ||
| P/B | 7.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.53 |
EPS(TTM)5.26
EY6.83%
EPS(NY)5.23
Fwd EY6.79%
FCF(TTM)5.69
FCFY7.38%
OCF(TTM)6.28
OCFY8.16%
SpS42.67
BVpS10.15
TBVpS-5.56
PEG (NY)6.61
PEG (5Y)2.41
Graham Number34.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 28.79% | ||
| ROCE | 16.78% | ||
| ROIC | 12.51% | ||
| ROICexc | 15.19% | ||
| ROICexgc | 38.47% | ||
| OM | 12.39% | ||
| PM (TTM) | 6.85% | ||
| GM | 49.35% | ||
| FCFM | 13.33% |
ROA(3y)4.55%
ROA(5y)4.65%
ROE(3y)22.46%
ROE(5y)19.57%
ROIC(3y)11.79%
ROIC(5y)11.7%
ROICexc(3y)14.61%
ROICexc(5y)15.49%
ROICexgc(3y)37.56%
ROICexgc(5y)578.79%
ROCE(3y)15.82%
ROCE(5y)15.7%
ROICexgc growth 3Y-76.11%
ROICexgc growth 5Y1.77%
ROICexc growth 3Y-10.8%
ROICexc growth 5Y0.81%
OM growth 3Y-0.69%
OM growth 5Y-1.65%
PM growth 3Y1.64%
PM growth 5Y-2.67%
GM growth 3Y0.4%
GM growth 5Y0.57%
F-Score7
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 23.44% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 5.85 | ||
| Cash Conversion | 80.18% | ||
| Profit Quality | 194.6% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.5 |
F-Score7
WACC8.38%
ROIC/WACC1.49
Cap/Depr(3y)39.41%
Cap/Depr(5y)39.76%
Cap/Sales(3y)2.55%
Cap/Sales(5y)2.63%
Profit Quality(3y)115.88%
Profit Quality(5y)149.88%
High Growth Momentum
Growth
EPS 1Y (TTM)31.17%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%23.58%
EPS Next Y2.22%
EPS Next 2Y5.05%
EPS Next 3Y5.59%
EPS Next 5Y8.79%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.87%
Revenue Next Year1.99%
Revenue Next 2Y3.34%
Revenue Next 3Y2.42%
Revenue Next 5Y1.76%
EBIT growth 1Y12.77%
EBIT growth 3Y3.87%
EBIT growth 5Y2.02%
EBIT Next Year35.38%
EBIT Next 3Y12.14%
EBIT Next 5Y10.8%
FCF growth 1Y107.68%
FCF growth 3Y-0.09%
FCF growth 5Y-0.09%
OCF growth 1Y68.46%
OCF growth 3Y-1.08%
OCF growth 5Y-2.12%
CSG SYSTEMS INTL INC / CSGS FAQ
Can you provide the ChartMill fundamental rating for CSG SYSTEMS INTL INC?
ChartMill assigns a fundamental rating of 6 / 10 to CSGS.
Can you provide the valuation status for CSG SYSTEMS INTL INC?
ChartMill assigns a valuation rating of 5 / 10 to CSG SYSTEMS INTL INC (CSGS). This can be considered as Fairly Valued.
How profitable is CSG SYSTEMS INTL INC (CSGS) stock?
CSG SYSTEMS INTL INC (CSGS) has a profitability rating of 7 / 10.
What is the earnings growth outlook for CSG SYSTEMS INTL INC?
The Earnings per Share (EPS) of CSG SYSTEMS INTL INC (CSGS) is expected to grow by 2.22% in the next year.
Is the dividend of CSG SYSTEMS INTL INC sustainable?
The dividend rating of CSG SYSTEMS INTL INC (CSGS) is 6 / 10 and the dividend payout ratio is 32.9%.