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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

Overall CTG gets a fundamental rating of 4 out of 10. We evaluated CTG against 88 industry peers in the IT Services industry. No worries on liquidiy or solvency for CTG as it has an excellent financial health rating, but there are worries on the 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

  • CTG had positive earnings in the past year.
  • CTG had a positive operating cash flow in the past year.
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.
  • CTG has a Return On Invested Capital (2.59%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CTG 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 has a Profit Margin (0.17%) which is in line with its industry peers.
  • CTG's Profit Margin has improved in the last couple of years.
  • CTG has a Operating Margin (1.59%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of CTG has grown nicely.
  • Looking at the Gross Margin, with a value of 27.19%, CTG is doing worse than 66.67% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTG is destroying value.
  • The number of shares outstanding for CTG has been increased compared to 1 year ago.
  • CTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

  • CTG has an Altman-Z score of 4.39. This indicates that CTG is financially healthy and has little risk of 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.
  • 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.
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

  • CTG has a Current 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.
  • CTG's Current ratio of 1.93 is fine compared to the rest of the industry. CTG outperforms 60.92% of its industry peers.
  • 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.
  • CTG has a Quick ratio of 1.93. This is in the better half of the industry: CTG outperforms 60.92% of its industry peers.
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

  • CTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.34%.
  • The Earnings Per Share has been growing by 20.55% on average over the past years. This is a very strong growth
  • Looking at the last year, CTG shows a very negative growth in Revenue. The Revenue has decreased by -16.02% in the last year.
  • Measured over the past years, CTG shows a small growth in Revenue. The Revenue has been growing by 1.54% on average per year.
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

  • CTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.16% yearly.
  • 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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
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

  • Based on the Price/Earnings ratio of 22.83, the valuation of CTG can be described as rather expensive.
  • CTG's Price/Earnings ratio is a bit cheaper when compared to the industry. CTG is cheaper than 60.92% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CTG to the average of the S&P500 Index (27.33), we can say CTG is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 14.64, the valuation of CTG can be described as correct.
  • CTG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CTG is cheaper than 80.46% of the companies in the same industry.
  • CTG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.12.
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

  • CTG's Enterprise Value to EBITDA ratio is in line with the industry average.
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

  • CTG's earnings are expected to grow with 13.16% in the coming years. This may justify a more expensive valuation.
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%.