CSG Systems International (CSGS): Assessing Valuation Following New MoneyGram Haas F1 Team Partnership and Brand Push

CSG Systems International (CSGS) has entered into a new partnership with the MoneyGram Haas F1 Team, coinciding with its debut at the Formula 1 United States Grand Prix in Austin. This move highlights CSG’s focus on innovation and increased brand visibility.

See our latest analysis for CSG Systems International.

CSG Systems International’s fresh alliance with the MoneyGram Haas F1 Team comes on the back of strong momentum. The company’s share price is up nearly 29% for the year to date and has delivered a robust 35% total shareholder return over the past twelve months. The excitement around this high-profile partnership, combined with steady upward movement in recent weeks, suggests that enthusiasm is building for CSG’s continued growth in both visibility and value.

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With shares rallying nearly 29% year to date and trading about 19% below the average analyst price target, investors now face a key question: Is CSG still undervalued, or is future growth already priced in?

Most Popular Narrative: 15.8% Undervalued

CSG Systems International’s last close of $65.10 sits noticeably below the fair value featured in the most popular narrative, fueling a case for more upside. This valuation comes as expectations for future earnings, margins, and capital allocation sharpen the focus on where the stock could head next.

Ongoing strategic migration to asset-light, SaaS and cloud-based platforms is driving improvements in operating leverage, higher gross and operating margins, and robust free cash flow. This is demonstrated by operating margin expanding 250 basis points year on year and guidance being raised for margins and free cash flow growth in both 2025 and 2026.

Read the complete narrative.

Want to see what’s transforming this fair value call? The narrative pins its price on a radical profit shift and a profit multiple often reserved for industry outliers. Hungry for the precise financial targets and bold assumptions backing this upside? Take a peek into the high-stakes projections driving this fair value math.

Result: Fair Value of $77.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing customer concentration and persistent industry headwinds could challenge the bullish outlook and limit CSG’s ability to deliver on growth targets.

Find out about the key risks to this CSG Systems International narrative.

Build Your Own CSG Systems International Narrative

If this perspective doesn’t quite fit your outlook or you prefer hands-on analysis, you can dive in and shape your own view in under three minutes. Do it your way.

A great starting point for your CSG Systems International research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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