CPI Card Group Inc. Fundamental Analysis (NASDAQ: PMTS)
CPI Card Group Inc. Fundamental Analysis (NASDAQ: PMTS)
CPI Card Group Inc. (NASDAQ: PMTS) shows moderate financial fundamentals with a PE ratio of 25.84, profit margin of 2.34%, and ROE of -80.34%. The company generates $0.6B in annual revenue with strong year-over-year growth of 13.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 214.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PMTS's fundamental strength across five key dimensions:
Efficiency Score
WeakPMTS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePMTS shows balanced valuation metrics.
Growth Score
ModeratePMTS shows steady but slowing expansion.
Financial Health Score
ExcellentPMTS maintains a strong and stable balance sheet.
Profitability Score
WeakPMTS struggles to sustain strong margins.
Key Financial Metrics
Is PMTS Expensive or Cheap?
P/E Ratio
PMTS trades at 25.84 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PMTS's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values CPI Card Group Inc. at -31.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.31 times EBITDA. This is generally considered low.
How Well Does PMTS Make Money?
Net Profit Margin
For every $100 in sales, CPI Card Group Inc. keeps $2.34 as profit after all expenses.
Operating Margin
Core operations generate 9.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-80.34 in profit for every $100 of shareholder equity.
ROA
CPI Card Group Inc. generates $3.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CPI Card Group Inc. produces operating cash flow of $91.74M, showing steady but balanced cash generation.
Free Cash Flow
CPI Card Group Inc. generates strong free cash flow of $76.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.67 in free cash annually.
FCF Yield
PMTS converts 21.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
-31.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-23.98
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.80
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PMTS Stacks Against Its Sector Peers
| Metric | PMTS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.84 | 21.17 | Worse (Expensive) |
| ROE | -80.34% | 668.00% | Weak |
| Net Margin | 2.34% | 876.00% | Weak |
| Debt/Equity | -23.98 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.09 | 905.28 | Strong Liquidity |
| ROA | 3.52% | 4787782.00% | Weak |
PMTS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CPI Card Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.59%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-8.12%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
167.95%
Industry Style: Value, Dividend, Cyclical
High Growth