CSG Systems International, Inc.
CSG Systems International, Inc. Fundamental Analysis
CSG Systems International, Inc. (CSGS) shows weak financial fundamentals with a PE ratio of 34.87, profit margin of 5.14%, and ROE of 21.99%. The company generates $1.3B in annual revenue with weak year-over-year growth of 2.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CSGS's fundamental strength across five key dimensions:
Efficiency Score
WeakCSGS struggles to generate sufficient returns from assets.
Valuation Score
ModerateCSGS shows balanced valuation metrics.
Growth Score
WeakCSGS faces weak or negative growth trends.
Financial Health Score
ModerateCSGS shows balanced financial health with some risks.
Profitability Score
ModerateCSGS maintains healthy but balanced margins.
Key Financial Metrics
Is CSGS Expensive or Cheap?
P/E Ratio
CSGS trades at 34.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CSGS's PEG of -1.54 indicates potential undervaluation.
Price to Book
The market values CSG Systems International, Inc. at 7.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.98 times EBITDA. This is generally considered low.
How Well Does CSGS Make Money?
Net Profit Margin
For every $100 in sales, CSG Systems International, Inc. keeps $5.14 as profit after all expenses.
Operating Margin
Core operations generate 14.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.99 in profit for every $100 of shareholder equity.
ROA
CSG Systems International, Inc. generates $4.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CSG Systems International, Inc. produces operating cash flow of $146.98M, showing steady but balanced cash generation.
Free Cash Flow
CSG Systems International, Inc. generates strong free cash flow of $134.78M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.73 in free cash annually.
FCF Yield
CSGS converts 5.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How CSGS Stacks Against Its Sector Peers
| Metric | CSGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.87 | 36.81 | Neutral |
| ROE | 21.99% | 974.00% | Weak |
| Net Margin | 5.14% | 5914823191.00% | Weak |
| Debt/Equity | 1.92 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.53 | 4.93 | Neutral |
| ROA | 4.30% | -294975.00% (disorted) | Weak |
CSGS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CSG Systems International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.74%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
10.01%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
4.19%
Industry Style: Growth, Innovation, High Beta
Growing