CSG SYSTEMS INTL INC (CSGS) Stock Fundamental Analysis
NASDAQ:CSGS - Nasdaq - US1263491094 - Common Stock - Currency: USD
Taking everything into account, CSGS scores 6 out of 10 in our fundamental rating. CSGS was compared to 82 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.
CSGS had a positive operating cash flow in the past year.
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 better Return On Assets (5.79%) than 70.51% of its industry peers.
CSGS has a Return On Equity of 30.74%. This is amongst the best in the industry. CSGS outperforms 91.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.18%, CSGS belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CSGS is in line with the industry average of 10.27%.
The last Return On Invested Capital (12.18%) for CSGS is above the 3 year average (11.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 30.74% | ||
| ROIC | 12.18% |
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 Profit Margin of 7.25%. This is in the better half of the industry: CSGS outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of CSGS has declined.
CSGS's Operating Margin of 12.08% is fine compared to the rest of the industry. CSGS outperforms 75.64% of its industry peers.
In the last couple of years the Operating Margin of CSGS has declined.
CSGS has a Gross Margin of 48.68%. This is in the better half of the industry: CSGS outperforms 70.51% 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 | 12.08% | ||
| PM (TTM) | 7.25% | ||
| GM | 48.68% |
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.
The number of shares outstanding for CSGS has been reduced compared to 5 years ago.
Compared to 1 year ago, CSGS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.23 indicates that CSGS is not in any danger for bankruptcy at the moment.
CSGS has a Altman-Z score of 3.23. This is comparable to the rest of the industry: CSGS outperforms 53.85% of its industry peers.
The Debt to FCF ratio of CSGS is 4.75, which is a neutral value as it means it would take CSGS, 4.75 years of fcf income to pay off all of its debts.
CSGS has a Debt to FCF ratio (4.75) which is in line with its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that CSGS has dependencies on debt financing.
CSGS's Debt to Equity ratio of 1.88 is on the low side compared to the rest of the industry. CSGS is outperformed by 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.16
WACC10.47%
2.3 Liquidity
CSGS has a Current Ratio of 1.46. 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 1.46, CSGS perfoms like the industry average, outperforming 47.44% of the companies in the same industry.
CSGS has a Quick Ratio of 1.46. 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 (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.80% over the past year.
The Earnings Per Share has been growing slightly by 6.07% on average over the past years.
Looking at the last year, CSGS shows a small growth in Revenue. The Revenue has grown by 2.40% in the last 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)28.8%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%79.35%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%15.84%
3.2 Future
Based on estimates for the next years, CSGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.78% on average per year.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y0.11%
EPS Next 2Y3.02%
EPS Next 3Y5.22%
EPS Next 5Y9.78%
Revenue Next Year3.23%
Revenue Next 2Y3.3%
Revenue Next 3Y4.18%
Revenue Next 5Y2.2%
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
With a Price/Earnings ratio of 13.47, CSGS is valued correctly.
Based on the Price/Earnings ratio, CSGS is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.36, CSGS is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.45, CSGS is valued correctly.
Based on the Price/Forward Earnings ratio, CSGS is valued cheaper than 82.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, CSGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
79.49% of the companies in the same industry are more expensive than CSGS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CSGS is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.26 | ||
| EV/EBITDA | 10.44 |
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)117.19
PEG (5Y)2.22
EPS Next 2Y3.02%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 1.99%. 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 2.94. CSGS pays more dividend than 91.03% of the companies in the same industry.
CSGS's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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 recently.
Dividend Growth(5Y)0.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.64% 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.
DP30.64%
EPS Next 2Y3.02%
EPS Next 3Y5.22%
NASDAQ:CSGS (2/27/2025, 3:21:13 PM)
63.845
-1.7 (-2.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.23%
Inst Owner Change1.99%
Ins Owners4.17%
Ins Owner Change1.31%
Market Cap1.84B
Analysts86.25
Price Target75.35 (18.02%)
Short Float %5.81%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.91
Dividend Growth(5Y)0.69%
DP30.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16%
Min EPS beat(2)-2.01%
Max EPS beat(2)34%
EPS beat(4)3
Avg EPS beat(4)12%
Min EPS beat(4)-2.01%
Max EPS beat(4)34%
EPS beat(8)7
Avg EPS beat(8)10.19%
EPS beat(12)9
Avg EPS beat(12)7.55%
EPS beat(16)12
Avg EPS beat(16)5.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-0.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-6.82%
Max Revenue beat(4)3.97%
Revenue beat(8)2
Avg Revenue beat(8)-2.23%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)10
Avg Revenue beat(16)2.06%
PT rev (1m)11%
PT rev (3m)15.83%
EPS NQ rev (1m)-3.02%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.54 | ||
| P/FCF | 16.26 | ||
| P/OCF | 13.57 | ||
| P/B | 6.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.44 |
EPS(TTM)4.74
EY7.42%
EPS(NY)4.75
Fwd EY7.43%
FCF(TTM)3.93
FCFY6.15%
OCF(TTM)4.7
OCFY7.37%
SpS41.5
BVpS9.79
TBVpS-5.32
PEG (NY)117.19
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 30.74% | ||
| ROCE | 16.34% | ||
| ROIC | 12.18% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 37.5% | ||
| OM | 12.08% | ||
| PM (TTM) | 7.25% | ||
| GM | 48.68% | ||
| FCFM | 9.46% |
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%
ROICexcg growth 3Y-76.11%
ROICexcg 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 4.75 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 30.92% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 5.33 | ||
| Cash Conversion | 62.5% | ||
| Profit Quality | 130.45% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.23 |
F-Score7
WACC10.47%
ROIC/WACC1.16
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)28.8%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%79.35%
EPS Next Y0.11%
EPS Next 2Y3.02%
EPS Next 3Y5.22%
EPS Next 5Y9.78%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%15.84%
Revenue Next Year3.23%
Revenue Next 2Y3.3%
Revenue Next 3Y4.18%
Revenue Next 5Y2.2%
EBIT growth 1Y3.13%
EBIT growth 3Y3.87%
EBIT growth 5Y2.02%
EBIT Next Year31.74%
EBIT Next 3Y15.09%
EBIT Next 5Y12.64%
FCF growth 1Y9.02%
FCF growth 3Y-0.09%
FCF growth 5Y-0.09%
OCF growth 1Y2.9%
OCF growth 3Y-1.08%
OCF growth 5Y-2.12%