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COMPUTER TASK GROUP INC (CTG) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:CTG - US2054771025 - Common Stock

10.5 USD
+0.01 (+0.1%)
Last: 12/12/2023, 8:00:01 PM
10.49 USD
-0.01 (-0.1%)
After Hours: 12/12/2023, 8:00:01 PM
Fundamental Rating

4

CTG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. While CTG has a great health rating, there are worries on its profitability. CTG does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year CTG was profitable.
  • In the past year CTG had a positive cash flow from operations.
CTG Yearly Net Income VS EBIT VS OCF VS FCFCTG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20M -20M

1.2 Ratios

  • CTG has a Return On Assets (0.28%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 0.47%, CTG is in line with its industry, outperforming 55.17% of the companies in the same industry.
  • With a Return On Invested Capital value of 2.59%, CTG perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
  • CTG had an Average Return On Invested Capital over the past 3 years of 6.33%. This is significantly below the industry average of 28.99%.
Industry RankSector Rank
ROA 0.28%
ROE 0.47%
ROIC 2.59%
ROA(3y)5.07%
ROA(5y)3.11%
ROE(3y)10.1%
ROE(5y)6.43%
ROIC(3y)6.33%
ROIC(5y)5.76%
CTG Yearly ROA, ROE, ROICCTG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20 -30 -40

1.3 Margins

  • CTG's Profit Margin of 0.17% is in line compared to the rest of the industry. CTG outperforms 52.87% of its industry peers.
  • In the last couple of years the Profit Margin of CTG has grown nicely.
  • The Operating Margin of CTG (1.59%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of CTG has grown nicely.
  • CTG has a Gross Margin of 27.19%. This is in the lower half of the industry: CTG underperforms 66.67% of its industry peers.
  • CTG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.59%
PM (TTM) 0.17%
GM 27.19%
OM growth 3Y20.73%
OM growth 5Y17.13%
PM growth 3Y24.97%
PM growth 5Y50.2%
GM growth 3Y9%
GM growth 5Y5.79%
CTG Yearly Profit, Operating, Gross MarginsCTG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20

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7

2. Health

2.1 Basic Checks

  • CTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for CTG has been increased compared to 1 year ago.
  • There is no outstanding debt for CTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CTG Yearly Shares OutstandingCTG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M
CTG Yearly Total Debt VS Total AssetsCTG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

2.2 Solvency

  • An Altman-Z score of 4.39 indicates that CTG is not in any danger for bankruptcy at the moment.
  • CTG's Altman-Z score of 4.39 is fine compared to the rest of the industry. CTG outperforms 72.41% of its industry peers.
  • CTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 4.39
ROIC/WACC0.25
WACC10.27%
CTG Yearly LT Debt VS Equity VS FCFCTG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20M 40M 60M 80M 100M

2.3 Liquidity

  • A Current Ratio of 1.93 indicates that CTG should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.93, CTG is doing good in the industry, outperforming 60.92% of the companies in the same industry.
  • CTG has a Quick Ratio of 1.93. This is a normal value and indicates that CTG is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.93, CTG is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.93
CTG Yearly Current Assets VS Current LiabilitesCTG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M

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3

3. Growth

3.1 Past

  • The earnings per share for CTG have decreased strongly by -31.34% in the last year.
  • CTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.55% yearly.
  • CTG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.02%.
  • CTG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.54% yearly.
EPS 1Y (TTM)-31.34%
EPS 3Y12.82%
EPS 5Y20.55%
EPS Q2Q%0%
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-6.22%
Revenue growth 5Y1.54%
Sales Q2Q%-4.93%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
  • Based on estimates for the next years, CTG will show a decrease in Revenue. The Revenue will decrease by -2.78% on average per year.
EPS Next Y-13.43%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.63%
Revenue Next 2Y-2.78%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CTG Yearly Revenue VS EstimatesCTG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
CTG Yearly EPS VS EstimatesCTG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

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3

4. Valuation

4.1 Price/Earnings Ratio

  • CTG is valuated rather expensively with a Price/Earnings ratio of 22.83.
  • Compared to the rest of the industry, the Price/Earnings ratio of CTG indicates a somewhat cheap valuation: CTG is cheaper than 60.92% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.47, CTG is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 14.64, the valuation of CTG can be described as correct.
  • Based on the Price/Forward Earnings ratio, CTG is valued cheaper than 80.46% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CTG is valued a bit cheaper.
Industry RankSector Rank
PE 22.83
Fwd PE 14.64
CTG Price Earnings VS Forward Price EarningsCTG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as CTG.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.04
CTG Per share dataCTG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • A more expensive valuation may be justified as CTG's earnings are expected to grow with 13.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y13.16%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

  • CTG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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COMPUTER TASK GROUP INC

NASDAQ:CTG (12/12/2023, 8:00:01 PM)

After market: 10.49 -0.01 (-0.1%)

10.5

+0.01 (+0.1%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-08
Earnings (Next)02-21
Inst Owners2.36%
Inst Owner Change0%
Ins Owners13.48%
Ins Owner Change0%
Market Cap168.94M
Revenue(TTM)302.00M
Net Income(TTM)500.00K
Analysts45
Price Target10.71 (2%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.53%
Min EPS beat(2)-8.06%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-2.33%
Min EPS beat(4)-20.79%
Max EPS beat(4)20.53%
EPS beat(8)4
Avg EPS beat(8)6.87%
EPS beat(12)8
Avg EPS beat(12)9.87%
EPS beat(16)12
Avg EPS beat(16)59.88%
Revenue beat(2)0
Avg Revenue beat(2)-4.57%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)-2.98%
Revenue beat(4)1
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-3.03%
Revenue beat(12)4
Avg Revenue beat(12)-1.56%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)0%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)99900.6%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.49%
Valuation
Industry RankSector Rank
PE 22.83
Fwd PE 14.64
P/S 0.56
P/FCF N/A
P/OCF 78.22
P/B 1.6
P/tB 2.89
EV/EBITDA 17.04
EPS(TTM)0.46
EY4.38%
EPS(NY)0.72
Fwd EY6.83%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.13
OCFY1.28%
SpS18.77
BVpS6.56
TBVpS3.64
PEG (NY)N/A
PEG (5Y)1.11
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.28%
ROE 0.47%
ROCE 3.71%
ROIC 2.59%
ROICexc 3.18%
ROICexgc 5.76%
OM 1.59%
PM (TTM) 0.17%
GM 27.19%
FCFM N/A
ROA(3y)5.07%
ROA(5y)3.11%
ROE(3y)10.1%
ROE(5y)6.43%
ROIC(3y)6.33%
ROIC(5y)5.76%
ROICexc(3y)8.53%
ROICexc(5y)7.37%
ROICexgc(3y)13.84%
ROICexgc(5y)11.38%
ROCE(3y)9.07%
ROCE(5y)8.25%
ROICexgc growth 3Y19.74%
ROICexgc growth 5Y29.03%
ROICexc growth 3Y8.08%
ROICexc growth 5Y13.75%
OM growth 3Y20.73%
OM growth 5Y17.13%
PM growth 3Y24.97%
PM growth 5Y50.2%
GM growth 3Y9%
GM growth 5Y5.79%
F-Score6
Asset Turnover1.7
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 86.76%
Cap/Sales 1.06%
Interest Coverage 250
Cash Conversion 25.41%
Profit Quality N/A
Current Ratio 1.93
Quick Ratio 1.93
Altman-Z 4.39
F-Score6
WACC10.27%
ROIC/WACC0.25
Cap/Depr(3y)65.84%
Cap/Depr(5y)72.14%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.6%
Profit Quality(3y)188.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.34%
EPS 3Y12.82%
EPS 5Y20.55%
EPS Q2Q%0%
EPS Next Y-13.43%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-6.22%
Revenue growth 5Y1.54%
Sales Q2Q%-4.93%
Revenue Next Year-7.63%
Revenue Next 2Y-2.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-64.18%
EBIT growth 3Y13.22%
EBIT growth 5Y18.94%
EBIT Next Year14.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-120.87%
FCF growth 3Y19.61%
FCF growth 5Y9.17%
OCF growth 1Y-71.24%
OCF growth 3Y11.71%
OCF growth 5Y5.2%

COMPUTER TASK GROUP INC / CTG FAQ

Can you provide the ChartMill fundamental rating for COMPUTER TASK GROUP INC?

ChartMill assigns a fundamental rating of 4 / 10 to CTG.


What is the valuation status of COMPUTER TASK GROUP INC (CTG) stock?

ChartMill assigns a valuation rating of 3 / 10 to COMPUTER TASK GROUP INC (CTG). This can be considered as Overvalued.


What is the profitability of CTG stock?

COMPUTER TASK GROUP INC (CTG) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for CTG stock?

The Price/Earnings (PE) ratio for COMPUTER TASK GROUP INC (CTG) is 22.83 and the Price/Book (PB) ratio is 1.6.


Can you provide the dividend sustainability for CTG stock?

The dividend rating of COMPUTER TASK GROUP INC (CTG) is 0 / 10 and the dividend payout ratio is 0%.