CSG SYSTEMS INTL INC (CSGS) Stock Fundamental Analysis
USA - NASDAQ:CSGS - US1263491094 - Common Stock
78.68 USD
+9.93 (+14.44%)
78.68 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. Both the profitability and the financial health of CSGS get a neutral evaluation. Nothing too spectacular is happening here. 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.
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's Return On Assets of 5.77% is fine compared to the rest of the industry. CSGS outperforms 70.59% of its industry peers.
CSGS's Return On Equity of 28.19% is amongst the best of the industry. CSGS outperforms 91.76% of its industry peers.
With a decent Return On Invested Capital value of 12.31%, CSGS is doing good in the industry, outperforming 78.82% 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 27.89%.
The last Return On Invested Capital (12.31%) for CSGS is above the 3 year average (11.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 28.19% | ||
| ROIC | 12.31% |
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 (6.78%) than 71.76% of its industry peers.
In the last couple of years the Profit Margin of CSGS has declined.
With a decent Operating Margin value of 12.38%, CSGS is doing good in the industry, outperforming 74.12% of the companies in the same industry.
CSGS's Operating Margin has declined in the last couple of years.
CSGS has a better Gross Margin (49.66%) than 68.24% of its industry peers.
CSGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.38% | ||
| PM (TTM) | 6.78% | ||
| GM | 49.66% |
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.
The number of shares outstanding for CSGS has been reduced compared to 1 year ago.
The number of shares outstanding for CSGS has been reduced compared to 5 years ago.
The debt/assets ratio for CSGS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.51 indicates that CSGS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CSGS (3.51) is comparable to the rest of the industry.
CSGS has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as CSGS would need 3.58 years to pay back of all of its debts.
CSGS's Debt to FCF ratio of 3.58 is fine compared to the rest of the industry. CSGS outperforms 61.18% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that CSGS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.85, CSGS is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.41
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.56 indicates that CSGS should not have too much problems paying its short term obligations.
CSGS has a Current ratio of 1.56. This is comparable to the rest of the industry: CSGS outperforms 44.71% of its industry peers.
CSGS has a Quick Ratio of 1.56. 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 Quick ratio value of 1.56, CSGS perfoms like the industry average, outperforming 44.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.46% over the past year.
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 3.31%.
The Revenue has been growing slightly by 3.73% on average over the past years.
EPS 1Y (TTM)29.46%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%13.73%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.35%
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 8.79% on average per year.
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 Y-0.04%
EPS Next 2Y3.97%
EPS Next 3Y5.95%
EPS Next 5Y8.79%
Revenue Next Year3.81%
Revenue Next 2Y3.5%
Revenue Next 3Y2.69%
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
With a Price/Earnings ratio of 15.70, CSGS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CSGS indicates a rather cheap valuation: CSGS is cheaper than 81.18% of the companies listed in the same industry.
CSGS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
CSGS is valuated correctly with a Price/Forward Earnings ratio of 15.35.
Based on the Price/Forward Earnings ratio, CSGS is valued a bit cheaper than 75.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, CSGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 15.35 |
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 72.94% of the companies listed in the same industry.
CSGS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSGS is cheaper than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.06 | ||
| EV/EBITDA | 10.68 |
4.3 Compensation for Growth
CSGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.59
EPS Next 2Y3.97%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, CSGS has a reasonable but not impressive dividend return.
CSGS's Dividend Yield is rather good when compared to the industry average which is at 2.50. CSGS pays more dividend than 89.41% of the companies in the same industry.
CSGS's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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.
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
32.98% 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.
DP32.98%
EPS Next 2Y3.97%
EPS Next 3Y5.95%
78.68
+9.93 (+14.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change-1.73%
Ins Owners4.39%
Ins Owner Change0.99%
Market Cap2.26B
Revenue(TTM)1.21B
Net Income(TTM)81.95M
Analysts86.67
Price Target78.16 (-0.66%)
Short Float %7.66%
Short Ratio10.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.91
Dividend Growth(5Y)0.69%
DP32.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.17%
Min EPS beat(2)8.57%
Max EPS beat(2)9.77%
EPS beat(4)3
Avg EPS beat(4)12.58%
Min EPS beat(4)-2.01%
Max EPS beat(4)34%
EPS beat(8)7
Avg EPS beat(8)10.39%
EPS beat(12)10
Avg EPS beat(12)8.73%
EPS beat(16)13
Avg EPS beat(16)6.95%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.96%
Revenue beat(16)9
Avg Revenue beat(16)1.2%
PT rev (1m)0%
PT rev (3m)2.78%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 15.35 | ||
| P/S | 1.87 | ||
| P/FCF | 15.06 | ||
| P/OCF | 13.26 | ||
| P/B | 7.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.68 |
EPS(TTM)5.01
EY6.37%
EPS(NY)5.12
Fwd EY6.51%
FCF(TTM)5.22
FCFY6.64%
OCF(TTM)5.94
OCFY7.54%
SpS42
BVpS10.11
TBVpS-5.46
PEG (NY)N/A
PEG (5Y)2.59
Graham Number33.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 28.19% | ||
| ROCE | 16.52% | ||
| ROIC | 12.31% | ||
| ROICexc | 14.68% | ||
| ROICexgc | 35.76% | ||
| OM | 12.38% | ||
| PM (TTM) | 6.78% | ||
| GM | 49.66% | ||
| FCFM | 12.43% |
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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 28.36% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 5.71 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | 183.35% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.51 |
F-Score7
WACC8.74%
ROIC/WACC1.41
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)29.46%
EPS 3Y12.27%
EPS 5Y6.07%
EPS Q2Q%13.73%
EPS Next Y-0.04%
EPS Next 2Y3.97%
EPS Next 3Y5.95%
EPS Next 5Y8.79%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.59%
Revenue growth 5Y3.73%
Sales Q2Q%2.35%
Revenue Next Year3.81%
Revenue Next 2Y3.5%
Revenue Next 3Y2.69%
Revenue Next 5Y1.76%
EBIT growth 1Y12.54%
EBIT growth 3Y3.87%
EBIT growth 5Y2.02%
EBIT Next Year35.28%
EBIT Next 3Y14.25%
EBIT Next 5Y10.8%
FCF growth 1Y111.93%
FCF growth 3Y-0.09%
FCF growth 5Y-0.09%
OCF growth 1Y63.09%
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 6 / 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 6 / 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 decline by -0.04% 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 32.98%.