CSG Systems International, Inc.

NasdaqGS:CSGS Stock Report

Market Cap: US$1.4b

CSG Systems International Valuation

Is CSGS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CSGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSGS ($51.45) is trading below our estimate of fair value ($126.41)

Significantly Below Fair Value: CSGS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSGS?

Key metric: As CSGS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CSGS. This is calculated by dividing CSGS's market cap by their current earnings.
What is CSGS's PE Ratio?
PE Ratio22x
EarningsUS$65.05m
Market CapUS$1.42b

Price to Earnings Ratio vs Peers

How does CSGS's PE Ratio compare to its peers?

The above table shows the PE ratio for CSGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.1x
TASK TaskUs
27x23.5%US$1.4b
WNS WNS (Holdings)
16.5x16.7%US$2.0b
TIXT TELUS International (Cda)
31.7x-36.9%US$958.4m
CNXC Concentrix
13.2x50.9%US$2.6b
CSGS CSG Systems International
22x16.3%US$1.4b

Price-To-Earnings vs Peers: CSGS is expensive based on its Price-To-Earnings Ratio (22x) compared to the peer average (20.6x).

Price to Earnings Ratio vs Industry

How does CSGS's PE Ratio compare vs other companies in the US Professional Services Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.6x-104.3%US$674.73m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
VCIG VCI Global
1.8xn/aUS$16.34m
LICN Lichen China
0.8xn/aUS$6.89m
CSGS 22.0xIndustry Avg. 24.0xNo. of Companies10PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CSGS is good value based on its Price-To-Earnings Ratio (22x) compared to the US Professional Services industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is CSGS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: CSGS is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CSGS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$51.45
US$66.56
+29.4%
14.6%US$79.00US$51.00n/a9
Dec ’25US$54.81
US$66.56
+21.4%
14.6%US$79.00US$51.00n/a9
Nov ’25US$46.59
US$63.78
+36.9%
19.7%US$81.00US$43.00n/a9
Oct ’25US$48.34
US$63.78
+31.9%
19.7%US$81.00US$43.00n/a9
Sep ’25US$48.52
US$63.78
+31.4%
19.7%US$81.00US$43.00n/a9
Aug ’25US$45.60
US$65.56
+43.8%
16.1%US$81.00US$43.00n/a9
Jul ’25US$40.49
US$65.56
+61.9%
16.1%US$81.00US$43.00n/a9
Jun ’25US$43.15
US$66.11
+53.2%
14.3%US$81.00US$48.00n/a9
May ’25US$45.82
US$66.44
+45.0%
13.5%US$81.00US$50.00n/a9
Apr ’25US$51.15
US$66.44
+29.9%
13.5%US$81.00US$50.00n/a9
Mar ’25US$54.52
US$66.63
+22.2%
14.3%US$81.00US$50.00n/a8
Feb ’25US$50.74
US$67.38
+32.8%
14.2%US$84.00US$53.00n/a8
Jan ’25US$53.21
US$67.38
+26.6%
14.2%US$84.00US$53.00n/a8
Dec ’24US$52.76
US$66.88
+26.8%
15.5%US$84.00US$49.00US$54.818
Nov ’24US$46.60
US$71.50
+53.4%
10.6%US$84.00US$60.00US$46.596
Oct ’24US$51.12
US$71.50
+39.9%
10.6%US$84.00US$60.00US$48.346
Sep ’24US$54.74
US$71.00
+29.7%
11.1%US$84.00US$60.00US$48.526
Aug ’24US$51.55
US$70.00
+35.8%
12.0%US$82.00US$56.00US$45.606
Jul ’24US$52.74
US$70.00
+32.7%
12.0%US$82.00US$56.00US$40.496
Jun ’24US$49.02
US$67.60
+37.9%
10.5%US$75.00US$56.00US$43.155
May ’24US$52.63
US$69.00
+31.1%
8.5%US$75.00US$60.00US$45.825
Apr ’24US$53.70
US$70.00
+30.4%
8.7%US$75.00US$60.00US$51.154
Mar ’24US$57.19
US$73.33
+28.2%
3.2%US$75.00US$70.00US$54.523
Feb ’24US$60.94
US$72.67
+19.2%
2.8%US$75.00US$70.00US$50.743
Jan ’24US$57.20
US$72.67
+27.0%
2.8%US$75.00US$70.00US$53.213
Dec ’23US$61.93
US$73.33
+18.4%
1.7%US$75.00US$72.00US$52.763

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 22:46
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

CSG Systems International, Inc. is covered by 23 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Matthew HarriganBenchmark Company
Zachary SilverB. Riley Securities, Inc.
Brett KnoblauchCantor Fitzgerald & Co.