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CSG

ASX:CSV
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CSV
ASX
A$78M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

CSG Limited, together with its subsidiaries, provides print and business technology solutions in Australia and New Zealand. The last earnings update was 150 days ago. More info.


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  • CSG has significant price volatility in the past 3 months.
CSV Share Price and Events
7 Day Returns
0%
ASX:CSV
-0.6%
AU IT
0%
AU Market
1 Year Returns
-23.9%
ASX:CSV
10.1%
AU IT
4.8%
AU Market
CSV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CSG (CSV) 0% 6.1% -7.9% -23.9% -88.8% -83.7%
AU IT -0.6% 2.6% -0.2% 10.1% 47.6% 44.2%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • CSV underperformed the IT industry which returned 10.1% over the past year.
  • CSV underperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
CSV
Industry
5yr Volatility vs Market

Value

 Is CSG undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CSG to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CSG.

ASX:CSV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:CSV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 30%) (321.12%))
2.475
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (2 * 5.96%)
14.23%

Discounted Cash Flow Calculation for ASX:CSV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CSG is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:CSV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 14.23%)
2020 35.16 Est @ 84.26% 30.78
2021 56.15 Est @ 59.68% 43.03
2022 79.99 Est @ 42.47% 53.66
2023 104.33 Est @ 30.42% 61.27
2024 127.27 Est @ 21.99% 65.43
2025 147.74 Est @ 16.09% 66.49
2026 165.40 Est @ 11.95% 65.17
2027 180.39 Est @ 9.06% 62.22
2028 193.08 Est @ 7.04% 58.30
2029 203.93 Est @ 5.62% 53.90
Present value of next 10 years cash flows A$560.24
ASX:CSV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$203.93 × (1 + 2.31%) ÷ (14.23% – 2.31%)
A$1,750.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,750.36 ÷ (1 + 14.23%)10
A$462.65
ASX:CSV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$560.24 + A$462.65
A$1,022.89
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,022.89 / 445.68
A$2.3
ASX:CSV Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.30
Current discount Discount to share price of A$0.18
= -1 x (A$0.18 - A$2.30) / A$2.30
92.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CSG is available for.
Intrinsic value
>50%
Share price is A$0.18 vs Future cash flow value of A$2.3
Current Discount Checks
For CSG to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CSG's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CSG's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CSG's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CSG's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CSV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.43
ASX:CSV Share Price ** ASX (2019-07-19) in AUD A$0.18
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 20.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CSG.

ASX:CSV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:CSV Share Price ÷ EPS (both in AUD)

= 0.18 ÷ -0.43

-0.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CSG is loss making, we can't compare its value to the AU IT industry average.
  • CSG is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does CSG's expected growth come at a high price?
Raw Data
ASX:CSV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for CSG, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CSG's assets?
Raw Data
ASX:CSV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.20
ASX:CSV Share Price * ASX (2019-07-19) in AUD A$0.18
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.99x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:CSV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:CSV Share Price ÷ Book Value per Share (both in AUD)

= 0.18 ÷ 0.20

0.87x

* Primary Listing of CSG.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CSG is good value based on assets compared to the AU IT industry average.
X
Value checks
We assess CSG's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. CSG has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is CSG expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is CSG expected to grow at an attractive rate?
  • Unable to compare CSG's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare CSG's earnings growth to the Australia market average as no estimate data is available.
  • CSG's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CSV Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CSV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 5%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 26.1%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:CSV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CSV Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 245 1
2020-06-30 232 1
2019-06-30 219 1
ASX:CSV Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 218 24 -146
2018-09-30 222 16 -148
2018-06-30 225 7 -150
2018-03-31 233 3 -103
2017-12-31 241 -2 -55
2017-09-30 242 -2 -50
2017-06-30 244 -3 -44
2017-03-31 247 -4 -13
2016-12-31 250 -5 18
2016-09-30 248 -19 18
2016-06-30 247 -32 17
2016-03-31 239 -29 15

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if CSG is high growth as no earnings estimate data is available.
  • CSG's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:CSV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from CSG Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CSV Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30
2020-06-30
2019-06-30
ASX:CSV Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.43
2018-09-30 -0.44
2018-06-30 -0.46
2018-03-31 -0.31
2017-12-31 -0.17
2017-09-30 -0.15
2017-06-30 -0.14
2017-03-31 -0.04
2016-12-31 0.06
2016-09-30 0.06
2016-06-30 0.06
2016-03-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CSG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CSG's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CSG has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has CSG performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CSG's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CSG does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare CSG's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare CSG's 1-year growth to the AU IT industry average as it is not currently profitable.
Earnings and Revenue History
CSG's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CSG Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CSV Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 217.93 -146.22 37.40
2018-09-30 221.59 -148.25 37.74
2018-06-30 225.24 -150.28 38.09
2018-03-31 232.92 -102.76 37.97
2017-12-31 240.59 -55.23 39.59
2017-09-30 242.35 -49.82 39.05
2017-06-30 244.10 -44.41 38.52
2017-03-31 247.18 -13.00 38.06
2016-12-31 250.26 18.42 37.60
2016-09-30 248.39 17.94 36.72
2016-06-30 246.52 17.45 35.85
2016-03-31 239.34 15.41 34.79
2015-12-31 232.15 13.37 33.73
2015-09-30 227.79 13.47 32.37
2015-06-30 223.43 13.57 31.00
2015-03-31 216.87 13.40 29.80
2014-12-31 210.31 13.22 28.59
2014-09-30 203.80 12.17 28.58
2014-06-30 197.29 11.13 28.56
2014-03-31 191.68 9.49 26.87
2013-12-31 186.06 7.85 25.17
2013-09-30 182.83 7.99 25.61
2013-06-30 179.60 8.12 26.06
2012-12-31 179.75 -17.81 29.07
2012-09-30 190.58 -20.26 30.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if CSG has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if CSG has efficiently used its assets last year compared to the AU IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if CSG improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess CSG's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CSG has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is CSG's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CSG's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CSG is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CSG's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CSG's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CSG Company Filings, last reported 6 months ago.

ASX:CSV Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 104.19 44.37 33.73
2018-09-30 104.19 44.37 33.73
2018-06-30 82.41 49.60 14.19
2018-03-31 82.41 49.60 14.19
2017-12-31 223.56 43.23 21.64
2017-09-30 223.56 43.23 21.64
2017-06-30 228.32 44.48 20.34
2017-03-31 228.32 44.48 20.34
2016-12-31 280.11 32.21 19.05
2016-09-30 280.11 32.21 19.05
2016-06-30 288.75 12.25 14.46
2016-03-31 288.75 12.25 14.46
2015-12-31 289.38 2.83 24.58
2015-09-30 289.38 2.83 24.58
2015-06-30 253.75 12.57 24.75
2015-03-31 253.75 12.57 24.75
2014-12-31 260.61 7.08 20.56
2014-09-30 260.61 7.08 20.56
2014-06-30 265.01 1.79 27.27
2014-03-31 265.01 1.79 27.27
2013-12-31 257.77 0.15 20.24
2013-09-30 257.77 0.15 20.24
2013-06-30 258.38 2.58 40.02
2012-12-31 279.00 0.00 86.26
2012-09-30 279.00 0.00 86.26
  • CSG's level of debt (240.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (45.4% vs 240.4% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making CSG has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making CSG has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -103.8% per year.
X
Financial health checks
We assess CSG's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CSG has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is CSG's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from CSG dividends. Estimated to be 0% next year.
If you bought A$2,000 of CSG shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate CSG's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate CSG's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:CSV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:CSV Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.00 1.00
2020-06-30 0.00 1.00
2019-06-30 0.00 1.00
ASX:CSV Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-02-20 0.000 0.000
2017-08-17 0.000 0.000
2017-02-20 0.000 0.000
2016-08-15 0.090 9.356
2016-02-15 0.090 6.314
2015-08-18 0.100 6.029
2015-02-16 0.080 5.315
2014-08-22 0.050 4.229
2013-08-20 0.000 0.000
2013-02-20 0.000 0.000
2012-08-23 0.000 0.000
2011-08-23 0.055 7.335
2011-02-15 0.055 5.233
2010-08-17 0.060 3.768
2010-02-16 0.050 2.565
2009-08-18 0.050 3.207
2009-02-16 0.040 5.696
2008-08-22 0.040 6.560

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as CSG has not reported any payouts.
  • Unable to verify if CSG's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of CSG's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CSG has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of CSG's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess CSG's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CSG afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CSG has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of CSG's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Bayliss
COMPENSATION A$17,019
TENURE AS CEO 0.3 years
CEO Bio

Mr. Mark Richard Bayliss has been Acting CEO & Managing Director of CSG Limited since March 14, 2019. He served as Executive Chairman of CSG Ltd. since June 27, 2018 until March 14, 2019. Mr. Bayliss is the Consultant at Dragontail Systems Ltd. Since June 2018 and served as its Executive Chairman from March 7, 2018 to June 2018. Mr. Bayliss was the Chief Executive Officer and Managing Director of Grays eCommerce Group Limited until March 2018 and was its Executive Director since November 7, 2014 until March 2018. Mr. Bayliss has over 25 years’ experience in international and publicly listed organizations, with leveraged buyouts, and with all aspects of financial, strategic, and operational management. He was a Partner at Anchorage Capital Partners. Mr. Bayliss was Investor and Senior Executive in two private equity funded management buyouts in the retail and advertising and marketing sectors, where he was instrumental in significantly increasing the value of the investments. Mr. Bayliss served as the Chief Financial Officer at Fairfax Media Limited. He served as the Group Chief Executive of Quick Service Restaurant Group Pty Limited from May 2012 to July 26, 2013 and Quick Service Restaurants Holdings Pty Limited, where he developed a business-wide growth strategy. His QSR experience also includes active involvement in the day to day growth and development of Burger King NZ where he was Executive Chairman for two years under the ownership of Anchorage Capital Partners. Mr. Bayliss served as the Chairman of Antares Restaurant Group Limited. He served as a Director of Quick Service Restaurant Group Pty Limited from May 2012 to July 26, 2013. He holds an A.C.A. and a B.Sc. in Economics from The London School of Economics and Political Science.

CEO Compensation
  • Insufficient data for Mark to compare compensation growth.
  • Mark's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the CSG management team in years:

0.8
Average Tenure
  • The average tenure for the CSG management team is less than 2 years, this suggests a new team.
Management Team

Mark Bayliss

TITLE
Acting CEO & Managing Director
COMPENSATION
A$17K
TENURE
0.3 yrs

Ashley Conn

TITLE
Chief Financial Officer
TENURE
0.7 yrs

Kerrie-Anne Hutchins

TITLE
General Counsel & Company Secretary
TENURE
0.9 yrs

Vanessa Harford

TITLE
General Manager of Marketing

Mark Thomas

TITLE
Chief People Executive

Declan Ramsay

TITLE
Chief Operations & Service Executive of Business Solution Australia
COMPENSATION
A$449K

Sheetal Mudumba

TITLE
Head of Strategic Finance

Gordon Tan

TITLE
Chief Technology Solutions Executive of Australia

Matthew Manton

TITLE
Chief Print & Display Solutions Executive of Australia

Warwick Beban

TITLE
Executive GM of Business Solutions - New Zealand & Country Manager of New Zealand
COMPENSATION
A$326K
TENURE
12.5 yrs
Board of Directors Tenure

Average tenure of the CSG board of directors in years:

1.1
Average Tenure
  • The average tenure for the CSG board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bernie Campbell

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$72K
TENURE
0.3 yrs

Mark Bayliss

TITLE
Acting CEO & Managing Director
COMPENSATION
A$17K
TENURE
1.1 yrs

Robin Low

TITLE
Independent Non-Executive Director
COMPENSATION
A$90K
AGE
58
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
27. Feb 19 Buy Robin Low Individual 27. Feb 19 27. Feb 19 117,647 A$0.17 A$20,165
15. Oct 18 Buy Bernie Campbell Individual 10. Oct 18 10. Oct 18 250,000 A$0.19 A$47,632
30. Aug 18 Buy Caledonia (Private) Investments Pty Limited Company 28. Aug 18 28. Aug 18 27,996,214 A$0.18 A$5,179,284
30. Aug 18 Buy TDM Growth Partners Company 27. Aug 18 27. Aug 18 6,510,431 A$0.19 A$1,204,434
29. Aug 18 Buy Robin Low Individual 27. Aug 18 27. Aug 18 95,238 A$0.21 A$20,097
X
Management checks
We assess CSG's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CSG has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Imagine Owning CSG (ASX:CSV) And Trying To Stomach The 92% Share Price Drop

So spare a thought for the long term shareholders of CSG Limited (ASX:CSV); the share price is down a whopping 92% in the last three years. … The share price fall of 57% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. … Dividends have been really beneficial for CSG shareholders, and that cash payout explains why its total shareholder loss of 91%, over the last 3 years, isn't as bad as the share price return.

Simply Wall St -

What Kind Of Shareholder Appears On The CSG Limited's (ASX:CSV) Shareholder Register?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … CSG is not a large company by global standards. … institutions own shares in the company.

Simply Wall St -

How Should Investors React To CSG Limited's (ASX:CSV) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … Next, we'll consider growth that the business demonstrates. … How Does Julie-Ann Kerin's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Kind Of Shareholder Appears On The CSG Limited's (ASX:CSV) Shareholder Register?

A look at the shareholders of CSG Limited (ASX:CSV) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … institutions own shares in the company.

Simply Wall St -

Should You Have CSG Limited's (ASX:CSV) In Your Portfolio?

Anyone researching CSG Limited (ASX:CSV) might want to consider the historical volatility of the share price. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Who Are The Top Investors In CSG Limited (ASX:CSV)?

Today, I will be analyzing CSG Limited’s (ASX:CSV) recent ownership structure, an important but not-so-popular subject among individual investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … ASX:CSV Ownership Summary August 13th 18

Simply Wall St -

What Should Investors Know About CSG Limited's (ASX:CSV) Return On Capital?

Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand CSG’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Should You Buy CSG Limited (ASX:CSV) At AU$00.31?

saw significant share price volatility over the past couple of months on the ASX, rising to the highs of A$0.40 and falling to the lows of A$0.30. … A question to answer is whether CSG's current trading price of A$0.31 reflective of the actual value of the? … Let’s take a look at CSG’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is CSG Limited's (ASX:CSV) CEO Incentives Align With Yours?

Therefore I will use earnings as a proxy of Kerin's performance in the past year. … In the situation of negative earnings, the company may be going through a period of reinvestment and growth, or it can be a sign of some headwind. … Typically I would use earnings and market cap to account for variations in performance, however, CSV's negative earnings lower the effectiveness of this method.

Simply Wall St -

What Is CSG Limited's (ASX:CSV) Share Price Doing?

Another thing to keep in mind is that CSG’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CSV.

Simply Wall St -

Company Info

Description

CSG Limited, together with its subsidiaries, provides print and business technology solutions in Australia and New Zealand. It operates in Business Solutions, Finance Solutions, and Other segments. The company offers managed print solutions, including multifunction devices, desktop devices, and managed print products; and digital display solutions, such as interactive display screens, indoor digital screens and signage, retail display and video conferencing products, window facing digital screens, large screen business monitors, reception screens, and business monitors, as well as digital menus, and restaurant displays and signage. It also provides cloud telephony communication solution comprising total office, cloud communications and VoIP phone system, virtual contact center, virtual office, boardroom as a subscription, and WAN solutions. In addition, the company offers managed IT and cloud solutions that include desktop as a service, digital transformation, desktop as a subscription, infrastructure as a subscription, software as a subscription, and cloud migration products and services. Further, it provides boardroom conferencing services, which comprise CRM project, IT consulting, and SharePoint services; and interactive whiteboards, kiosk e-boards and tablets, and reception screens. The company serves enterprise, education, and government customers. CSG Limited was founded in 1988 and is based in Melbourne, Australia.

Details
Name: CSG Limited
CSV
Exchange: ASX
Founded: 1988
A$77,994,114
445,680,657
Website: http://www.csg.com.au
Address: CSG Limited
357 Collins Street,
Level 1,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CSV Ordinary Shares Australian Securities Exchange AU AUD 19. Apr 2007
DB B8Q Ordinary Shares Deutsche Boerse AG DE EUR 19. Apr 2007
CHIA CSV Ordinary Shares Chi-X Australia AU AUD 19. Apr 2007
Number of employees
Current staff
Staff numbers
700
CSG employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/21
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.