78.77 USD
+0.27 (+0.34%)
78.77 USD
0 (0%)
Taking everything into account, CSGS scores 6 out of 10 in our fundamental rating. CSGS was compared to 86 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 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.
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's Return On Assets of 5.66% is fine compared to the rest of the industry. CSGS outperforms 72.09% of its industry peers.
With an excellent Return On Equity value of 28.79%, CSGS belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.
CSGS's Return On Invested Capital of 12.51% is amongst the best of the industry. CSGS outperforms 81.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSGS is significantly below the industry average of 29.77%.
The 3 year average ROIC (11.79%) for CSGS is below the current ROIC(12.51%), indicating increased profibility in the last year.
| 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 Profit Margin of 6.85%. This is in the better half of the industry: CSGS outperforms 69.77% of its industry peers.
CSGS's Profit Margin has declined in the last couple of years.
The Operating Margin of CSGS (12.39%) is better than 75.58% 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 72.09% 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
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.
The debt/assets ratio for CSGS has been reduced compared to a year ago.
2.2 Solvency
CSGS has an Altman-Z score of 3.52. This indicates that CSGS is financially healthy and has little risk of bankruptcy at the moment.
CSGS has a better Altman-Z score (3.52) than 62.79% of 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 has a Debt to FCF ratio (3.32) which is in line with its industry peers.
CSGS has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
CSGS has a Debt to Equity ratio of 1.86. This is in the lower half of the industry: CSGS underperforms 73.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.49
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.50 indicates that CSGS should not have too much problems paying its short term obligations.
CSGS has a Current ratio (1.50) which is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that CSGS should not have too much problems paying 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.
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 Y2.28%
EPS Next 2Y4.99%
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
Based on the Price/Earnings ratio of 14.98, the valuation of CSGS can be described as correct.
76.74% of the companies in the same industry are more expensive than CSGS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. CSGS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.07 indicates a correct valuation of CSGS.
73.26% 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 36.59. CSGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 15.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSGS is valued a bit cheaper than 73.26% of the companies in the same industry.
CSGS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSGS is cheaper than 75.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 11.72 |
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)2.47
EPS Next 2Y4.99%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
CSGS has a Yearly Dividend Yield of 1.65%.
Compared to an average industry Dividend Yield of 2.06, CSGS pays a better dividend. On top of this CSGS pays more dividend than 88.37% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, CSGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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.
The dividend of CSGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.9%
EPS Next 2Y4.99%
EPS Next 3Y5.59%
78.77
+0.27 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change-1.54%
Ins Owners4.39%
Ins Owner Change1%
Market Cap2.25B
Revenue(TTM)1.22B
Net Income(TTM)83.35M
Analysts77.14
Price Target82.31 (4.49%)
Short Float %8.33%
Short Ratio5.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)5.32%
PT rev (3m)6.01%
EPS NQ rev (1m)3.56%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)2.32%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-1.81%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 15.07 | ||
| P/S | 1.85 | ||
| P/FCF | 13.85 | ||
| P/OCF | 12.53 | ||
| P/B | 7.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.72 |
EPS(TTM)5.26
EY6.68%
EPS(NY)5.23
Fwd EY6.63%
FCF(TTM)5.69
FCFY7.22%
OCF(TTM)6.28
OCFY7.98%
SpS42.67
BVpS10.15
TBVpS-5.56
PEG (NY)6.58
PEG (5Y)2.47
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 | 3.52 |
F-Score7
WACC8.4%
ROIC/WACC1.49
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 Y2.28%
EPS Next 2Y4.99%
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 Year35.28%
EBIT Next 3Y14.25%
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 2.28% 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%.