COMPUTER TASK GROUP INC (CTG) Stock Fundamental Analysis
USA - NASDAQ:CTG - US2054771025 - Common Stock
10.5 USD
+0.01 (+0.1%)
10.49 USD
-0.01 (-0.1%)
Overall CTG gets a fundamental rating of 4 out of 10. We evaluated CTG against 86 industry peers in the IT Services industry. While CTG has a great health rating, its profitability is only average at the moment. CTG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
CTG had positive earnings in the past year.
In the past year CTG had a positive cash flow from operations.
Of the past 5 years CTG 4 years were profitable.
Of the past 5 years CTG 4 years had a positive operating cash flow.
1.2 Ratios
CTG has a Return On Assets of 0.28%. This is comparable to the rest of the industry: CTG outperforms 52.87% of 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 21.82%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of CTG (0.17%) is comparable to the rest of the industry.
CTG's Profit Margin has improved in the last couple of years.
CTG's Operating Margin of 1.59% is in line compared to the rest of the industry. CTG outperforms 44.83% of its industry peers.
In the last couple of years the Operating Margin of CTG has grown nicely.
With a Gross Margin value of 27.19%, CTG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, CTG has more shares outstanding
CTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.39 indicates that CTG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.39, CTG is doing good in the industry, outperforming 72.41% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.39 |
ROIC/WACC0.25
WACC10.27%
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.
A Quick Ratio of 1.93 indicates that CTG should not have too much problems paying its short term obligations.
The Quick ratio of CTG (1.93) is better than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for CTG have decreased strongly by -31.34% in the last year.
Measured over the past years, CTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.55% on average per year.
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
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.
The Revenue is expected to decrease by -2.78% on average over the next years.
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.
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
The Price/Earnings ratio is 22.83, which indicates a rather expensive current valuation of CTG.
60.92% of the companies in the same industry are more expensive than CTG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CTG to the average of the S&P500 Index (27.41), we can say CTG is valued inline with the index average.
A Price/Forward Earnings ratio of 14.64 indicates a correct valuation of CTG.
Based on the Price/Forward Earnings ratio, CTG is valued cheaply inside the industry as 80.46% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.88. CTG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
CTG's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.04 |
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
5. Dividend
5.1 Amount
No dividends for CTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.5
+0.01 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners2.36%
Inst Owner Change0%
Ins Owners13.48%
Ins Owner Change0%
Market Cap168.94M
Analysts45
Price Target10.71 (2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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%
ROICexcg growth 3Y19.74%
ROICexcg 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 Rank | Sector 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%