77 USD
+0.05 (+0.06%)
77 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CSGS. CSGS was compared to 88 industry peers in the IT Services industry. CSGS scores excellent on profitability, 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.
In the past 5 years CSGS always reported a positive cash flow from operatings.
1.2 Ratios
CSGS has a Return On Assets of 5.66%. This is in the better half of the industry: CSGS outperforms 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 Return On Invested Capital of 12.51%. This is amongst the best in the industry. CSGS outperforms 82.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSGS is significantly below the industry average of 29.60%.
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 has a better Profit Margin (6.85%) than 67.05% of its industry peers.
CSGS's Profit Margin has declined in the last couple of years.
CSGS has a better Operating Margin (12.39%) than 76.14% of its industry peers.
CSGS's Operating Margin has declined in the last couple of years.
CSGS has a Gross Margin of 49.35%. This is in the better half of the industry: CSGS outperforms 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSGS is still creating some value.
CSGS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CSGS has less shares outstanding
Compared to 1 year ago, CSGS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.50 indicates that CSGS is not in any danger for bankruptcy at the moment.
CSGS has a Altman-Z score of 3.50. This is comparable to the rest of the industry: CSGS outperforms 59.09% of its industry peers.
CSGS has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as CSGS would need 3.32 years to pay back of all of its debts.
CSGS has a better Debt to FCF ratio (3.32) than 61.36% of its industry peers.
A Debt/Equity ratio of 1.86 is on the high side and indicates that CSGS has dependencies on debt financing.
The Debt to Equity ratio of CSGS (1.86) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.44
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.50 indicates that CSGS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, CSGS perfoms like the industry average, outperforming 44.32% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that CSGS should not have too much problems paying its short term obligations.
CSGS has a Quick ratio of 1.50. This is comparable to the rest of the industry: CSGS outperforms 45.45% of its industry peers.
| 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.
CSGS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.07% yearly.
CSGS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.30%.
The Revenue has been growing slightly by 3.73% on average over the past years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CSGS is valuated correctly with a Price/Earnings ratio of 14.64.
Based on the Price/Earnings ratio, CSGS is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, CSGS is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.72, which indicates a correct valuation of CSGS.
Based on the Price/Forward Earnings ratio, CSGS is valued a bit cheaper than 77.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CSGS to the average of the S&P500 Index (23.46), we can say CSGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than CSGS, based on the Enterprise Value to EBITDA ratio.
78.41% of the companies in the same industry are more expensive than CSGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 11.52 |
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%. Purely for dividend investing, there may be better candidates out there.
CSGS's Dividend Yield is rather good when compared to the industry average which is at 0.43. CSGS pays more dividend than 89.77% of the companies in the same industry.
CSGS's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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.
CSGS has decreased its dividend 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
+0.05 (+0.06%)
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-0.84%
Market Cap2.20B
Revenue(TTM)1.22B
Net Income(TTM)83.35M
Analysts51.67
Price Target82.31 (6.9%)
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)0%
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 | 11.52 |
EPS(TTM)5.26
EY6.83%
EPS(NY)5.23
Fwd EY6.79%
FCF(TTM)5.69
FCFY7.39%
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
WACC8.66%
ROIC/WACC1.44
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%.