Consensus Cloud Solutions, Inc.
Consensus Cloud Solutions, Inc. Fundamental Analysis
Consensus Cloud Solutions, Inc. (CCSI) shows strong financial fundamentals with a PE ratio of 6.04, profit margin of 25.09%, and ROE of 52.86%. The company generates $0.3B in annual revenue with weak year-over-year growth of -0.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CCSI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCCSI demonstrates superior asset utilization.
Valuation Score
ExcellentCCSI trades at attractive valuation levels.
Growth Score
WeakCCSI faces weak or negative growth trends.
Financial Health Score
ModerateCCSI shows balanced financial health with some risks.
Profitability Score
ExcellentCCSI achieves industry-leading margins.
Key Financial Metrics
Is CCSI Expensive or Cheap?
P/E Ratio
CCSI trades at 6.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CCSI's PEG of 0.90 indicates potential undervaluation.
Price to Book
The market values Consensus Cloud Solutions, Inc. at 24.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.28 times EBITDA. This is generally considered low.
How Well Does CCSI Make Money?
Net Profit Margin
For every $100 in sales, Consensus Cloud Solutions, Inc. keeps $25.09 as profit after all expenses.
Operating Margin
Core operations generate 42.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $52.86 in profit for every $100 of shareholder equity.
ROA
Consensus Cloud Solutions, Inc. generates $12.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Consensus Cloud Solutions, Inc. generates strong operating cash flow of $140.30M, reflecting robust business health.
Free Cash Flow
Consensus Cloud Solutions, Inc. generates strong free cash flow of $110.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.00 in free cash annually.
FCF Yield
CCSI converts 21.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
24.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
25.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
52.86
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How CCSI Stacks Against Its Sector Peers
| Metric | CCSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.04 | 36.81 | Better (Cheaper) |
| ROE | 5285.71% | 974.00% | Excellent |
| Net Margin | 25.09% | 5914823191.00% | Weak |
| Debt/Equity | 25.84 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.80 | 4.93 | Neutral |
| ROA | 12.97% | -294975.00% (disorted) | Strong |
CCSI outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROE, but lagging in Net Margin.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Consensus Cloud Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.04%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-42.40%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-40.61%
Industry Style: Growth, Innovation, High Beta
Declining