79.51 USD
+0.05 (+0.06%)
79.51 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CSGS had positive earnings in the past year.
CSGS had a positive operating cash flow in the past year.
In the past 5 years CSGS has always been profitable.
Each year in the past 5 years CSGS had a positive operating cash flow.
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.
With an excellent Return On Equity value of 28.79%, CSGS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.51%, CSGS belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CSGS is significantly below the industry average of 28.99%.
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 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.
With a decent Operating Margin value of 12.39%, CSGS is doing good in the industry, outperforming 76.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CSGS has declined.
CSGS has a better Gross Margin (49.35%) 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
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
An Altman-Z score of 3.54 indicates that CSGS is not in any danger for bankruptcy at the moment.
CSGS has a Altman-Z score (3.54) which is in line with 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's Debt to FCF ratio of 3.32 is fine compared to the rest of the industry. CSGS outperforms 60.23% 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 | 3.54 |
ROIC/WACC1.45
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.50 indicates that CSGS should not have too much problems paying its short term obligations.
CSGS's Current ratio of 1.50 is in line compared to the rest of the industry. CSGS outperforms 42.05% of its industry peers.
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 has a Quick ratio (1.50) which is comparable to the rest of the 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.
The Earnings Per Share has been growing slightly by 6.07% on average over the past years.
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
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.
Based on estimates for the next years, CSGS will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
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
CSGS is valuated correctly with a Price/Earnings ratio of 15.12.
Compared to the rest of the industry, the Price/Earnings ratio of CSGS indicates a somewhat cheap valuation: CSGS is cheaper than 76.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, CSGS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.20, the valuation of CSGS can be described as correct.
75.00% of the companies in the same industry are more expensive than CSGS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.92. CSGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSGS is valued a bit cheaper than 76.14% of the companies in the same industry.
CSGS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSGS is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.98 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CSGS may justify a higher PE ratio.
PEG (NY)6.82
PEG (5Y)2.49
EPS Next 2Y5.05%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.42, CSGS pays a better dividend. On top of this CSGS pays more dividend than 88.64% of the companies listed in the same industry.
CSGS's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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.
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
32.90% of the earnings are spent on dividend by CSGS. This is a low number and sustainable payout ratio.
CSGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.9%
EPS Next 2Y5.05%
EPS Next 3Y5.59%
79.51
+0.05 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.28%
Inst Owner Change-0.26%
Ins Owners3.92%
Ins Owner Change-0.84%
Market Cap2.27B
Revenue(TTM)1.22B
Net Income(TTM)83.35M
Analysts51.67
Price Target82.31 (3.52%)
Short Float %12.41%
Short Ratio6.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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%
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 | 15.12 | ||
| Fwd PE | 15.2 | ||
| P/S | 1.86 | ||
| P/FCF | 13.98 | ||
| P/OCF | 12.65 | ||
| P/B | 7.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.84 |
EPS(TTM)5.26
EY6.62%
EPS(NY)5.23
Fwd EY6.58%
FCF(TTM)5.69
FCFY7.15%
OCF(TTM)6.28
OCFY7.9%
SpS42.67
BVpS10.15
TBVpS-5.56
PEG (NY)6.82
PEG (5Y)2.49
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 | 3.54 |
F-Score7
WACC8.65%
ROIC/WACC1.45
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 5 / 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.