Computer Programs and Systems, Inc.
Computer Programs and Systems, Inc. Fundamental Analysis
Computer Programs and Systems, Inc. (CPSI) shows weak financial fundamentals with a PE ratio of 30.58, profit margin of 1.26%, and ROE of 2.49%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.4/100 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 CPSI's fundamental strength across five key dimensions:
Efficiency Score
WeakCPSI struggles to generate sufficient returns from assets.
Valuation Score
ModerateCPSI shows balanced valuation metrics.
Growth Score
WeakCPSI faces weak or negative growth trends.
Financial Health Score
ExcellentCPSI maintains a strong and stable balance sheet.
Profitability Score
ModerateCPSI maintains healthy but balanced margins.
Key Financial Metrics
Is CPSI Expensive or Cheap?
P/E Ratio
CPSI trades at 30.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CPSI's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Computer Programs and Systems, Inc. at 0.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.38 times EBITDA. This is generally considered low.
How Well Does CPSI Make Money?
Net Profit Margin
For every $100 in sales, Computer Programs and Systems, Inc. keeps $1.26 as profit after all expenses.
Operating Margin
Core operations generate 6.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.49 in profit for every $100 of shareholder equity.
ROA
Computer Programs and Systems, Inc. generates $1.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Computer Programs and Systems, Inc. produces operating cash flow of $85.66M, showing steady but balanced cash generation.
Free Cash Flow
Computer Programs and Systems, Inc. generates strong free cash flow of $86.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.93 in free cash annually.
FCF Yield
CPSI converts 64.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CPSI Stacks Against Its Sector Peers
| Metric | CPSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.58 | 28.45 | Neutral |
| ROE | 2.49% | 763.00% | Weak |
| Net Margin | 1.26% | -45265.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 1.81 | 2795.60 | Neutral |
| ROA | 1.08% | -16588.00% (disorted) | Weak |
CPSI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Computer Programs and Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation