76.69 USD
0 (0%)
76.6 USD
-0.09 (-0.12%)
Overall CSGS gets a fundamental rating of 6 out of 10. We evaluated CSGS against 88 industry peers in the IT Services industry. CSGS has an excellent profitability rating, but there are some minor concerns on its financial health. CSGS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CSGS had positive earnings in the past year.
In the past year CSGS had a positive cash flow from operations.
Each year in the past 5 years CSGS has been profitable.
In the past 5 years CSGS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, CSGS is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
CSGS has a better Return On Equity (28.79%) than 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.51%, CSGS belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSGS is significantly below the industry average of 29.60%.
The last Return On Invested Capital (12.51%) for CSGS is above the 3 year average (11.79%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of CSGS has declined.
The Operating Margin of CSGS (12.39%) is better than 76.14% of its industry peers.
CSGS's Operating Margin has declined in the last couple of years.
The Gross Margin of CSGS (49.35%) is better than 71.59% of its industry peers.
In the last couple of years the Gross Margin of CSGS has remained more or less at the same level.
| 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.
CSGS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CSGS has an improved debt to assets ratio.
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.
CSGS's Altman-Z score of 3.50 is fine compared to the rest of the industry. CSGS outperforms 60.23% of its industry peers.
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 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.
CSGS's Debt to Equity ratio of 1.86 is on the low side compared to the rest of the industry. CSGS is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.44
WACC8.68%
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.
With a Current ratio value of 1.50, CSGS perfoms like the industry average, outperforming 44.32% of the companies in the same industry.
CSGS has a Quick 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 Quick ratio of 1.50 is in line compared 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.
The Revenue has been growing slightly by 3.30% in the past year.
Measured over the past years, CSGS shows a small growth in Revenue. The Revenue has been growing by 3.73% on average per year.
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
CSGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
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.
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
A Price/Earnings ratio of 14.58 indicates a correct valuation of CSGS.
CSGS's Price/Earnings ratio is a bit cheaper when compared to the industry. CSGS is cheaper than 76.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. CSGS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.66 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 76.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CSGS to the average of the S&P500 Index (23.13), we can say CSGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSGS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSGS is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.48 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CSGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.58
PEG (5Y)2.4
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.
Compared to an average industry Dividend Yield of 0.43, CSGS pays a better dividend. On top of this CSGS pays more dividend than 89.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, 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 been paying a dividend for at least 10 years, so it has 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
32.90% of the earnings are spent on dividend by CSGS. This is a low number and 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%
76.69
0 (0%)
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 Cap2.19B
Revenue(TTM)1.22B
Net Income(TTM)83.35M
Analysts51.67
Price Target82.31 (7.33%)
Short Float %12.41%
Short Ratio6.62
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-DateN/A
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 | 14.58 | ||
| Fwd PE | 14.66 | ||
| P/S | 1.8 | ||
| P/FCF | 13.48 | ||
| P/OCF | 12.2 | ||
| P/B | 7.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.48 |
EPS(TTM)5.26
EY6.86%
EPS(NY)5.23
Fwd EY6.82%
FCF(TTM)5.69
FCFY7.42%
OCF(TTM)6.28
OCFY8.2%
SpS42.67
BVpS10.15
TBVpS-5.56
PEG (NY)6.58
PEG (5Y)2.4
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
WACC8.68%
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.
What is the valuation status of CSG SYSTEMS INTL INC (CSGS) stock?
ChartMill assigns a valuation rating of 5 / 10 to CSG SYSTEMS INTL INC (CSGS). This can be considered as Fairly Valued.
What is the profitability of CSGS stock?
CSG SYSTEMS INTL INC (CSGS) has a profitability rating of 7 / 10.
Can you provide the financial health for CSGS stock?
The financial health rating of CSG SYSTEMS INTL INC (CSGS) is 6 / 10.
Can you provide the expected EPS growth for CSGS stock?
The Earnings per Share (EPS) of CSG SYSTEMS INTL INC (CSGS) is expected to grow by 2.22% in the next year.