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Computer Programs and Systems

Nasdaq:CPSI
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CPSI
Nasdaq
$378M
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St. The last earnings update was 71 days ago. More info.


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CPSI Share Price and Events
7 Day Returns
-0.8%
NasdaqGS:CPSI
-2%
US Healthcare Services
-0.3%
US Market
1 Year Returns
-19%
NasdaqGS:CPSI
27.2%
US Healthcare Services
3.4%
US Market
CPSI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Computer Programs and Systems (CPSI) -0.8% 5.5% -6.2% -19% -32.3% -57.5%
US Healthcare Services -2% 3.6% 19.8% 27.2% 64.9% 63.8%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • CPSI underperformed the Healthcare Services industry which returned 27.2% over the past year.
  • CPSI underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
CPSI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Computer Programs and Systems 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 Computer Programs and Systems 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 Computer Programs and Systems.

NasdaqGS:CPSI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGS:CPSI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 21%) (34.36%))
1.251
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.251 * 5.96%)
10.19%

Discounted Cash Flow Calculation for NasdaqGS:CPSI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Computer Programs and Systems 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.

NasdaqGS:CPSI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.19%)
2020 41.15 Analyst x2 37.35
2021 39.20 Analyst x1 32.29
2022 41.10 Analyst x1 30.72
2023 41.30 Analyst x1 28.02
2024 41.78 Est @ 1.16% 25.72
2025 42.46 Est @ 1.63% 23.73
2026 43.29 Est @ 1.96% 21.95
2027 44.24 Est @ 2.19% 20.36
2028 45.28 Est @ 2.35% 18.91
2029 46.40 Est @ 2.47% 17.59
Present value of next 10 years cash flows $256.64
NasdaqGS:CPSI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $46.40 × (1 + 2.73%) ÷ (10.19% – 2.73%)
$639.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $639.30 ÷ (1 + 10.19%)10
$242.35
NasdaqGS:CPSI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $256.64 + $242.35
$499.00
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $499.00 / 13.75
$36.29
NasdaqGS:CPSI Discount to Share Price
Calculation Result
Value per share (USD) From above. $36.29
Current discount Discount to share price of $27.50
= -1 x ($27.50 - $36.29) / $36.29
24.2%

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

Current Discount
Amount off the current price Computer Programs and Systems is available for.
Intrinsic value
24%
Share price is $27.5 vs Future cash flow value of $36.29
Current Discount Checks
For Computer Programs and Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Computer Programs and Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Computer Programs and Systems's share price is below the future cash flow value, but not 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 Computer Programs and Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Computer Programs and Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CPSI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.21
NasdaqGS:CPSI Share Price ** NasdaqGS (2019-07-18) in USD $27.5
United States of America Healthcare Services Industry PE Ratio Median Figure of 13 Publicly-Listed Healthcare Services Companies 56.94x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

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

** Primary Listing of Computer Programs and Systems.

NasdaqGS:CPSI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CPSI Share Price ÷ EPS (both in USD)

= 27.5 ÷ 1.21

22.67x

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

  • Computer Programs and Systems is good value based on earnings compared to the US Healthcare Services industry average.
  • Computer Programs and Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Computer Programs and Systems's expected growth come at a high price?
Raw Data
NasdaqGS:CPSI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
19.6%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 12 Publicly-Listed Healthcare Services Companies 2.51x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:CPSI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.67x ÷ 19.6%

1.15x

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

  • Computer Programs and Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Computer Programs and Systems's assets?
Raw Data
NasdaqGS:CPSI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $11.94
NasdaqGS:CPSI Share Price * NasdaqGS (2019-07-18) in USD $27.5
United States of America Healthcare Services Industry PB Ratio Median Figure of 37 Publicly-Listed Healthcare Services Companies 5.04x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NasdaqGS:CPSI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CPSI Share Price ÷ Book Value per Share (both in USD)

= 27.5 ÷ 11.94

2.3x

* Primary Listing of Computer Programs and Systems.

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

  • Computer Programs and Systems is good value based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess Computer Programs and Systems'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 Healthcare Services 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 Healthcare Services industry average (and greater than 0)? (1 check)
  5. Computer Programs and Systems 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 Computer Programs and Systems expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

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
19.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Computer Programs and Systems expected to grow at an attractive rate?
  • Computer Programs and Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Computer Programs and Systems's earnings growth is expected to exceed the United States of America market average.
  • Computer Programs and Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CPSI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CPSI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 19.6%
NasdaqGS:CPSI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.9%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 24.5%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
NasdaqGS:CPSI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CPSI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 361 1
2022-12-31 344 1
2021-12-31 315 2
2020-12-31 289 48 23 8
2019-12-31 281 42 19 8
NasdaqGS:CPSI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 279 29 17
2018-12-31 280 24 17
2018-09-30 286 20 -11
2018-06-30 284 16 -15
2018-03-31 284 17 -13
2017-12-31 277 24 -17
2017-09-30 263 23 6
2017-06-30 261 26 5
2017-03-31 262 11 6
2016-12-31 267 2 4
2016-09-30 247 2 5
2016-06-30 227 5 7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Computer Programs and Systems's earnings are expected to grow by 19.6% yearly, however this is not considered high growth (20% yearly).
  • Computer Programs and Systems's revenue is expected to grow by 5.9% 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
NasdaqGS:CPSI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Computer Programs and Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CPSI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 1.72 2.05 1.45 6.00
2019-12-31 1.42 1.71 1.22 6.00
NasdaqGS:CPSI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.21
2018-12-31 1.26
2018-09-30 -0.84
2018-06-30 -1.09
2018-03-31 -1.00
2017-12-31 -1.27
2017-09-30 0.45
2017-06-30 0.40
2017-03-31 0.43
2016-12-31 0.29
2016-09-30 0.41
2016-06-30 0.59

*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.
  • Unable to establish if Computer Programs and Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Computer Programs and Systems'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Computer Programs and Systems has a total score of 2/6, 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 Computer Programs and Systems 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 Computer Programs and Systems's growth in the last year to its industry (Healthcare Services).
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.
  • Computer Programs and Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Computer Programs and Systems has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Computer Programs and Systems has become profitable in the last year making it difficult to compare the US Healthcare Services industry average.
Earnings and Revenue History
Computer Programs and Systems'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 Computer Programs and Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CPSI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 278.67 16.51 77.23 36.84
2018-12-31 280.41 17.04 77.99 36.37
2018-09-30 286.15 -11.42 82.27 40.39
2018-06-30 283.96 -14.74 81.41 39.34
2018-03-31 283.73 -13.50 81.23 34.42
2017-12-31 276.93 -17.10 79.94 33.74
2017-09-30 263.42 6.00 75.06 33.60
2017-06-30 260.97 5.34 74.58 33.74
2017-03-31 261.70 5.78 72.50 33.51
2016-12-31 267.27 3.90 71.88 29.10
2016-09-30 246.95 5.26 63.48 27.29
2016-06-30 226.91 7.16 60.97 22.45
2016-03-31 205.58 10.95 55.28 17.84
2015-12-31 182.17 17.97 52.14 14.23
2015-09-30 184.21 21.28 50.45 10.71
2015-06-30 192.92 27.01 46.62 7.15
2015-03-31 198.89 30.19 44.97 3.58
2014-12-31 204.74 32.42 49.74 14.62
2014-09-30 209.75 35.69 44.17
2014-06-30 203.20 33.70 42.71
2014-03-31 203.41 33.11 43.93
2013-12-31 200.86 32.44 43.49
2013-09-30 197.50 31.67 42.84
2013-06-30 195.90 31.37 43.24
2013-03-31 188.37 31.27 41.13
2012-12-31 183.31 29.70 39.38
2012-09-30 177.61 27.39 38.62

*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.
  • Computer Programs and Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Computer Programs and Systems used its assets more efficiently than the US Healthcare Services industry average last year based on Return on Assets.
  • Computer Programs and Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Computer Programs and Systems'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 Healthcare Services 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.
Computer Programs and Systems has a total score of 1/6, 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 Computer Programs and Systems'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 Computer Programs and Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Computer Programs and Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Computer Programs and Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Computer Programs and Systems'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 0.6x 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 Computer Programs and Systems Company Filings, last reported 3 months ago.

NasdaqGS:CPSI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 164.24 124.05 4.41
2018-12-31 159.78 130.82 5.73
2018-09-30 151.19 137.53 5.18
2018-06-30 144.24 138.98 1.49
2018-03-31 142.57 142.06 1.73
2017-12-31 136.09 142.43 0.52
2017-09-30 156.85 144.50 0.95
2017-06-30 156.64 143.40 1.74
2017-03-31 156.11 146.35 1.89
2016-12-31 157.97 152.81 2.22
2016-09-30 156.25 154.73 3.66
2016-06-30 158.30 155.34 3.82
2016-03-31 163.29 145.95 12.84
2015-12-31 75.37 0.00 35.78
2015-09-30 77.82 0.00 38.47
2015-06-30 80.37 0.00 37.04
2015-03-31 80.64 0.00 40.77
2014-12-31 80.78 0.00 34.49
2014-09-30 79.31 0.00 28.69
2014-06-30 75.01 0.00 24.01
2014-03-31 71.22 0.00 29.25
2013-12-31 69.08 0.00 22.43
2013-09-30 63.99 0.00 13.61
2013-06-30 62.00 0.00 12.27
2013-03-31 58.87 0.00 17.50
2012-12-31 57.20 0.00 19.59
2012-09-30 63.85 0.00 23.50
  • Computer Programs and Systems's level of debt (75.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 75.5% today).
  • Debt is well covered by operating cash flow (23.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Computer Programs and Systems'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. Computer Programs and Systems 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 Computer Programs and Systems'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
1.45%
Current annual income from Computer Programs and Systems dividends. Estimated to be 1.45% next year.
If you bought $2,000 of Computer Programs and Systems shares you are expected to receive $29 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?
  • Computer Programs and Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Computer Programs and Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
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
NasdaqGS:CPSI 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 8 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

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

NasdaqGS:CPSI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.40 1.00
2020-12-31 0.40 1.00
2019-12-31 0.40 1.00
NasdaqGS:CPSI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-18 0.400 1.428
2019-02-15 0.400 1.259
2017-11-02 0.400 1.391
2017-03-15 1.860 6.173
2017-02-09 1.860 7.051
2016-08-09 1.360 5.506
2016-08-04 1.360 4.479
2016-05-16 2.560 6.336
2016-05-04 2.560 5.676
2016-03-14 2.560 4.904
2016-01-28 2.560 4.645
2015-11-06 2.560 5.484
2015-10-29 2.560 6.333
2015-08-07 2.560 5.728
2015-07-30 2.560 5.434
2015-05-08 2.560 4.740
2015-04-30 2.560 4.684
2015-03-13 2.560 4.826
2015-01-29 2.560 4.884
2014-10-30 2.280 3.777
2014-07-31 2.280 3.730
2014-05-01 2.280 3.570
2014-01-30 2.280 3.502
2013-10-31 2.040 3.359
2013-07-25 2.040 3.552
2013-04-25 2.040 4.020
2012-11-15 2.040 3.939
2012-10-25 1.840 3.692
2012-07-26 1.840 3.566
2012-04-26 1.840 3.355
2012-01-26 1.840 3.144
2011-10-27 1.440 2.914
2011-07-28 1.440 2.117
2011-04-20 1.440 2.365
2011-01-27 1.440 2.513
2010-10-28 1.440 3.055
2010-08-09 1.440 3.369
2010-07-29 1.440 3.267
2010-01-28 1.440 3.573
2009-10-22 1.440 3.132
2009-07-23 1.440 3.609
2009-04-23 1.440 4.067
2009-01-29 1.440 5.008
2008-10-23 1.440 5.458
2008-07-24 1.440 5.367

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Computer Programs and Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess Computer Programs and Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Computer Programs and Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Computer Programs and Systems has a total score of 3/6, 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 Computer Programs and Systems'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
John Douglas
COMPENSATION $1,753,336
AGE 52
TENURE AS CEO 13.2 years
CEO Bio

Mr. John Boyd Douglas Jr., has served as Computer Programs & Systems Inc.’s (“Computer Programs”) President and Chief Executive Officer since May 2006. He was first elected as a director of Computer Programs in March 2002. Mr. Douglas began his career with Computer Programs in August 1988 as a Financial Software Support Representative. From May 1990 until December 1994, Mr. Douglas served as Manager of Electronic Billing, and from December 1994 until July 1999, he held the position of Director of Programming Services. From July 1999 until May 2006, Mr. Douglas served as Computer Programs Executive Vice President and Chief Operating Officer.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Computer Programs and Systems management team in years:

3.7
Average Tenure
49
Average Age
  • The tenure for the Computer Programs and Systems management team is about average.
Management Team

John Douglas

TITLE
President
COMPENSATION
$2M
AGE
52
TENURE
13.2 yrs

Matt Chambless

TITLE
CFO, Secretary & Treasurer
COMPENSATION
$1M
AGE
38
TENURE
3.7 yrs

Chris Fowler

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
43
TENURE
3.7 yrs

Troy Rosser

TITLE
Senior Vice President of Sales
COMPENSATION
$1M
AGE
54
TENURE
7.5 yrs

Robert Cruz

TITLE
Chief Technology Officer
TENURE
3.5 yrs

Scott Schneider

TITLE
Executive Vice President
COMPENSATION
$922K
AGE
60
TENURE
7.3 yrs

Tracey Schroeder

TITLE
Chief Marketing Officer

Rob Hinckle

TITLE
Senior Vice President of Client Services
COMPENSATION
$898K
AGE
49
TENURE
6.5 yrs

J. Littrell

TITLE
Senior Vice President of Information Technology Services
AGE
44
TENURE
3.5 yrs

Julie Weber-Kramer

TITLE
Senior Vice President of Client Experience
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Computer Programs and Systems board of directors in years:

1.7
Average Tenure
57
Average Age
  • The average tenure for the Computer Programs and Systems board of directors is less than 3 years, this suggests a new board.
Board of Directors

Glenn Tobin

TITLE
Independent Chairman
COMPENSATION
$164K
AGE
57
TENURE
0.2 yrs

John Douglas

TITLE
President
COMPENSATION
$2M
AGE
52
TENURE
17.3 yrs

Charles Huffman

TITLE
Lead Independent Director
COMPENSATION
$184K
AGE
65
TENURE
1.7 yrs

Regina Benjamin

TITLE
Director
COMPENSATION
$164K
AGE
62
TENURE
1.7 yrs

David Dye

TITLE
Director
COMPENSATION
$1M
AGE
49
TENURE
17.3 yrs

William Mulherin

TITLE
Director
COMPENSATION
$160K
AGE
53
TENURE
17.4 yrs

Arthur Outlaw

TITLE
Director
COMPENSATION
$169K
AGE
64
TENURE
5.4 yrs

Denise Warren

TITLE
Director
COMPENSATION
$165K
AGE
57
TENURE
1.7 yrs

Jeffrey Strong

TITLE
Director
AGE
41
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • Computer Programs and Systems individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jun 19 Sell Victor Schneider Individual 13. Jun 19 13. Jun 19 -7,126 $26.57 $-189,338
21. May 19 Sell Christopher Fowler Individual 20. May 19 20. May 19 -7,750 $26.96 $-208,940
20. May 19 Sell Christopher Fowler Individual 17. May 19 17. May 19 -1,500 $29.99 $-44,985
16. May 19 Sell David Dye Individual 14. May 19 14. May 19 -3,478 $27.52 $-95,715
13. May 19 Sell Robert Hinckle Individual 10. May 19 10. May 19 -3,541 $27.74 $-98,227
10. May 19 Sell Matt Chambless Individual 08. May 19 08. May 19 -10,000 $28.66 $-286,600
17. Jan 19 Sell Gilead Capital LP Company 07. Dec 18 10. Jan 19 -204,380 $27.13 $-5,450,782
17. Nov 18 Sell Francisco Partners Management LLC Company 13. Nov 18 14. Nov 18 -44,102 $25.81 $-1,127,970
X
Management checks
We assess Computer Programs and Systems'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. Computer Programs and Systems 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

Is Computer Programs and Systems, Inc.'s (NASDAQ:CPSI) CEO Paid Enough Relative To Peers?

John Douglas became the CEO of Computer Programs and Systems, Inc. … Check out our latest analysis for Computer Programs and Systems How Does John Douglas's Compensation Compare With Similar Sized Companies? … With a three year total loss of 29%, Computer Programs and Systems, Inc.

Simply Wall St -

Is Computer Programs and Systems, Inc. (NASDAQ:CPSI) A Smart Choice For Dividend Investors?

(NASDAQ:CPSI) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 1.5% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Computer Programs and Systems could have potential. There are a few simple ways to reduce the risks of buying Computer Programs and Systems for its dividend, and we'll go through these below. Click the interactive chart for our full dividend analysis NasdaqGS:CPSI Historical Dividend Yield, June 21st 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Computer Programs and Systems paid out 33% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Computer Programs and Systems's cash payout ratio last year was 21%. Cash flows are typically lumpy, but this looks like an appropriately conservative payout. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Computer Programs and Systems's Balance Sheet Risky? As Computer Programs and Systems has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … We struggle to make a case for buying Computer Programs and Systems for its dividend, given that payments have shrunk over the past ten years. … Conclusion To summarise, shareholders should always check that Computer Programs and Systems's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Did Changing Sentiment Drive Computer Programs and Systems's (NASDAQ:CPSI) Share Price Down A Worrying 57%?

So we wouldn't blame long term Computer Programs and Systems, Inc. … During five years of share price growth, Computer Programs and Systems moved from a loss to profitability. … We note that for Computer Programs and Systems the TSR over the last 5 years was -49%, which is better than the share price return mentioned above.

Simply Wall St -

A Look At The Fair Value Of Computer Programs and Systems, Inc. (NASDAQ:CPSI)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $36.20 $41.15 $39.20 $41.10 $41.30 $41.78 $42.46 $43.29 $44.24 $45.28 Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ 1.16% Est @ 1.63% Est @ 1.96% Est @ 2.19% Est @ 2.35% Present Value ($, Millions) Discounted @ 11.08% $32.59 $33.35 $28.60 $27.00 $24.42 $22.24 $20.35 $18.68 $17.18 $15.83 Present Value of 10-year Cash Flow (PVCF)= $240.25m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

Computer Programs and Systems, Inc. (NASDAQ:CPSI): Time For A Financial Health Check

CPSI’s Debt (And Cash Flows) Over the past year, CPSI has reduced its debt from US$142m to US$130m , which also accounts for long term debt. … On top of this, CPSI has generated US$29m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 22%, signalling that CPSI’s debt is appropriately covered by operating cash. … Next Steps: CPSI’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

How Good Is Computer Programs and Systems, Inc. (NASDAQ:CPSI), When It Comes To ROE?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Computer Programs and Systems, Inc. … Our data shows Computer Programs and Systems has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Does Computer Programs and Systems, Inc.’s (NASDAQ:CPSI) 8.6% ROCE Say About The Business?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Computer Programs and Systems, Inc.'s (NASDAQ:CPSI) CEO Overpaid Relative To Its Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does John Douglas's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$416m, and pays its CEO total annual compensation worth US$1.8m.

Simply Wall St -

If You Had Bought Computer Programs and Systems Stock Five Years Ago, You'd Be Sitting On A 52% Loss, Today

(NASDAQ:CPSI) shareholders should be happy to see the share price up 24% in the last month. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.

Simply Wall St -

Zooming in on NASDAQ:CPSI's 1.5% Dividend Yield

Historically, Computer Programs and Systems, Inc. … Does Computer Programs and Systems tick all the boxes of a great dividend stock? … See our latest analysis for Computer Programs and Systems

Simply Wall St -

Company Info

Description

Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St. Maarten. Its software systems include patient management software that enables a hospital to identify a patient at various points in the healthcare delivery system, as well as to collect and maintain patient information throughout the process of patient care; and financial accounting software, which offers business office applications to track and coordinate information needed for managerial decision-making. The company also provides clinical software that automates record keeping and reporting for various clinical functions; patient care applications; and enterprise applications that support its products for use in various areas of the hospital. In addition, it offers Centriq, an intuitive user interface to centralize data from various care areas that provide the end user with a tool to view past and present patient information; and Classic, a platform for community hospitals and post-acute care facilities. Further, the company provides software solutions that promote data-driven clinical and financial outcomes for customers in the post-acute care industry; software application support, hardware maintenance, and education and related services; post-acute care support and maintenance services; revenue cycle management products and services, consulting and business management services, and managed information technology services; and system implementation and training services. It serves community hospitals and physician clinics, skilled nursing and assisted living facilities, and small specialty hospitals. Computer Programs and Systems, Inc. was founded in 1979 and is headquartered in Mobile, Alabama.

Details
Name: Computer Programs and Systems, Inc.
CPSI
Exchange: NasdaqGS
Founded: 1979
$378,166,002
13,751,491
Website: http://www.cpsi.com
Address: Computer Programs and Systems, Inc.
6600 Wall Street,
Mobile,
Alabama, 36695,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CPSI Common Stock Nasdaq Global Select US USD 21. May 2002
DB PS1 Common Stock Deutsche Boerse AG DE EUR 21. May 2002
Number of employees
Current staff
Staff numbers
2,000
Computer Programs and Systems employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:37
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.