77.11 USD
+0.02 (+0.03%)
77.11 USD
0 (0%)
CSGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While CSGS belongs to the best of the industry regarding profitability, 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
In the past year CSGS was profitable.
CSGS had a positive operating cash flow in the past year.
Each year in the past 5 years CSGS has been profitable.
CSGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CSGS has a better Return On Assets (5.66%) than 71.76% of its industry peers.
CSGS has a Return On Equity of 28.79%. This is amongst the best in the industry. CSGS outperforms 90.59% of its industry peers.
The Return On Invested Capital of CSGS (12.51%) is better than 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSGS is significantly below the industry average of 29.59%.
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
With a decent Profit Margin value of 6.85%, CSGS is doing good in the industry, outperforming 65.88% of the companies in the same industry.
CSGS's Profit Margin has declined in the last couple of years.
CSGS has a better Operating Margin (12.39%) than 75.29% of its industry peers.
In the last couple of years the Operating Margin of CSGS has declined.
CSGS has a better Gross Margin (49.35%) than 70.59% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSGS is creating some value.
Compared to 1 year ago, CSGS has less shares outstanding
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.
With a Altman-Z score value of 3.50, CSGS perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
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 in line compared to the rest of the industry. CSGS outperforms 60.00% 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 has a Debt to Equity ratio of 1.86. This is in the lower half of the industry: CSGS underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.48
WACC8.47%
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 42.35% 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
The Earnings Per Share has grown by an impressive 31.17% over the past year.
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.
The Revenue has been growing slightly by 3.30% in the past year.
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.
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
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.
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
Based on the Price/Earnings ratio of 14.66, the valuation of CSGS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CSGS indicates a somewhat cheap valuation: CSGS is cheaper than 75.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. CSGS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.74, the valuation of CSGS can be described as correct.
Based on the Price/Forward Earnings ratio, CSGS is valued a bit cheaper than the industry average as 75.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.79. CSGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 14.74 |
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 74.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CSGS is valued a bit cheaper than 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 11.54 |
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)6.62
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.
Compared to an average industry Dividend Yield of 0.45, CSGS pays a better dividend. On top of this CSGS pays more dividend than 89.41% of the companies listed 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 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
CSGS pays out 32.90% of its income as dividend. This is a 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%
77.11
+0.02 (+0.03%)
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 (6.74%)
Short Float %9.94%
Short Ratio6.34
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 | 14.66 | ||
| Fwd PE | 14.74 | ||
| P/S | 1.81 | ||
| P/FCF | 13.56 | ||
| P/OCF | 12.27 | ||
| P/B | 7.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.54 |
EPS(TTM)5.26
EY6.82%
EPS(NY)5.23
Fwd EY6.78%
FCF(TTM)5.69
FCFY7.38%
OCF(TTM)6.28
OCFY8.15%
SpS42.67
BVpS10.15
TBVpS-5.56
PEG (NY)6.62
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
WACC8.47%
ROIC/WACC1.48
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 5 / 10 and the dividend payout ratio is 32.9%.