TSX:PMTS

Stock Analysis Report

CPI Card Group

Executive Summary

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards.

Risk Analysis

Earnings have declined by -8.08% per year over past 5 years

Does not have a meaningful market cap (CA$9M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has CPI Card Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PMTS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.3%

PMTS

1.4%

CA Tech

0.6%

CA Market


1 Year Return

-77.6%

PMTS

81.9%

CA Tech

5.8%

CA Market

Return vs Industry: PMTS underperformed the Canadian Tech industry which returned 81.9% over the past year.

Return vs Market: PMTS underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

PMTSIndustryMarket
7 Day8.3%1.4%0.6%
30 Day-9.6%1.5%0.5%
90 Day-22.4%19.9%3.6%
1 Year-77.6%-77.6%84.6%81.9%9.1%5.8%
3 Year-96.5%-96.6%132.4%116.2%15.4%5.0%
5 Yearn/a149.3%124.7%33.6%14.0%

Price Volatility Vs. Market

How volatile is CPI Card Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CPI Card Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether CPI Card Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as CPI Card Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of PMTS’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through CPI Card Group regulatory filings.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

How is CPI Card Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PMTS's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if PMTS's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PMTS's revenue (3.4% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: PMTS's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PMTS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CPI Card Group performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMTS is currently unprofitable.

Growing Profit Margin: PMTS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PMTS is unprofitable, and losses have increased over the past 5 years at a rate of -8.1% per year.

Accelerating Growth: Unable to compare PMTS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PMTS is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (0.4%).


Return on Equity

High ROE: PMTS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CPI Card Group's financial position?


Financial Position Analysis

Short Term Liabilities: PMTS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PMTS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PMTS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PMTS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: PMTS has a high level of physical assets or inventory.

Debt Coverage by Assets: PMTS has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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.

Stable Cash Runway: Whilst unprofitable PMTS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PMTS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -40.6% per year.


Next Steps

Dividend

What is CPI Card Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PMTS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PMTS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PMTS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PMTS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PMTS is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PMTS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Scott Scheirman (56yo)

2.3yrs

Tenure

US$2,362,175

Compensation

Mr. Scott T. Scheirman has been President and Chief Executive Officer of CPI Card Group since October 5, 2017. Mr. Scheirman serves as Strategic Business Advisor and the Chief Executive Officer of JKL Vent ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD2.36M) is above average for companies of similar size in the Canadian market ($USD155.16K).

Compensation vs Earnings: Scott's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Scheirman
President2.3yrsUS$2.36m0.056% $6.7k
Lane Dubin
Senior VP and GM of Prepaid & Instant Issuance2.1yrsUS$992.75k0.017% $2.1k
John Lowe
Chief Financial Officer1.6yrsno datano data
Kevin O'Brien
Chief Accounting Officer1.8yrsno datano data
Sarah Williams
Chief Technology Officer0.08yrsno data0.0076% $913.3
Jennifer Almquist
Head of Investor Relations0yrsno datano data
Sarah Kilgore
Chief Legal & Compliance Officer and Corporate Secretary2.2yrsno datano data
Loretta Frasier
Chief Human Resources Officer0.3yrsno datano data
Guy DiMaggio
Senior VP and GM of Secure Card & Personalization1.6yrsno datano data

1.7yrs

Average Tenure

49.5yo

Average Age

Experienced Management: PMTS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Scott Scheirman
President2.3yrsUS$2.36m0.056% $6.7k
Robert Pearce
Independent Director13.1yrsUS$127.50k0.94% $112.9k
Douglas Pearce
Independent Director4.1yrsUS$120.00k0.25% $30.3k
Bradley Seaman
Independent Chairman of the Board0yrsno datano data
Nicholas Peters
Independent Director13.1yrsno datano data
Marc Sheinbaum
Independent Director0.3yrsno datano data
Valerie Keating
Independent Director1.8yrsUS$96.25k0.17% $20.2k

3.7yrs

Average Tenure

59yo

Average Age

Experienced Board: PMTS's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CPI Card Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CPI Card Group Inc.
  • Ticker: PMTS
  • Exchange: TSX
  • Founded: 2007
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$9.092m
  • Listing Market Cap: US$12.048m
  • Shares outstanding: 11.22m
  • Website: https://www.cpicardgroup.com

Number of Employees


Location

  • CPI Card Group Inc.
  • 10026 West San Juan Way
  • Littleton
  • Colorado
  • 80127
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMTSOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2015
PMTSTSX (The Toronto Stock Exchange)YesCommon StockCACADOct 2015
CPB1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2015

Biography

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through U.S. Debit and Credit, U.S. Prepaid Debit, and Other segments. The U.S. Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing banks in the United States. Its products include EMV and non-EMV credit cards, debit cards, and prepaid debit cards issued on the networks of the payment card brands, as well as private label credit cards. This segment also provides various integrated card services, including card personalization and fulfillment, and instant issuance services. The U.S. Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging, and fulfillment services to prepaid debit card providers in the United States. It also produces financial payment cards issued on the networks of the payment card brands. The Other segment produces financial payment cards and retail gift cards, as well as offers card personalization and fulfillment services in Canada. The company serves national and regional banks, independent community banks, credit unions, prepaid debit card program managers, group service providers, and card transaction processors through field-based sales representatives in the United States, Canada, the United Kingdom, and internationally. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was founded in 2007 and is headquartered in Littleton, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:29
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.