Computer Programs and Systems
Market Cap
US$409.9m
Last Updated
2020/02/24 01:52 UTC
Data Sources
Company Financials +
Executive Summary
Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St.
Rewards
Risk Analysis
Snowflake Analysis
Good value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Computer Programs and Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CPSI has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
CPSI
1.0%
US Healthcare Services
-1.1%
US Market
1 Year Return
-11.3%
CPSI
25.6%
US Healthcare Services
17.8%
US Market
Return vs Industry: CPSI underperformed the US Healthcare Services industry which returned 25.6% over the past year.
Return vs Market: CPSI underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| CPSI | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | 1.0% | -1.1% |
| 30 Day | 13.1% | 5.2% | 1.5% |
| 90 Day | 8.3% | 5.5% | 6.6% |
| 1 Year | -9.6%-11.3% | 25.9%25.6% | 20.2%17.8% |
| 3 Year | 15.6%9.8% | 91.4%90.7% | 47.5%38.1% |
| 5 Year | -34.9%-43.9% | 54.8%53.6% | 71.2%52.4% |
Price Volatility Vs. Market
How volatile is Computer Programs and Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Just 3 Days Before Computer Programs and Systems, Inc. (NASDAQ:CPSI) Will Be Trading Ex-Dividend1 week ago | Simply Wall St
Computer Programs and Systems, Inc. Just Recorded A 37% EPS Beat: Here's What Analysts Are Forecasting Next2 weeks ago | Simply Wall St
Our Take On Computer Programs and Systems, Inc.'s (NASDAQ:CPSI) CEO SalaryValuation
Is Computer Programs and Systems undervalued compared to its fair value and its price relative to the market?
22.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CPSI ($29.64) is trading below our estimate of fair value ($38.17)
Significantly Below Fair Value: CPSI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CPSI is good value based on its PE Ratio (20x) compared to the Healthcare Services industry average (56.7x).
PE vs Market: CPSI is poor value based on its PE Ratio (20x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: CPSI is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: CPSI is good value based on its PB Ratio (2.2x) compared to the US Healthcare Services industry average (4.3x).
Next Steps
Future Growth
How is Computer Programs and Systems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
4.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPSI's forecast earnings growth (4.7% per year) is above the savings rate (1.7%).
Earnings vs Market: CPSI's earnings (4.7% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: CPSI's earnings are forecast to grow, but not significantly.
Revenue vs Market: CPSI's revenue (4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CPSI's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CPSI's Return on Equity is forecast to be low in 3 years time (11.6%).
Next Steps
Past Performance
How has Computer Programs and Systems performed over the past 5 years?
-22.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPSI has a large one-off gain of $5.0M impacting its December 31 2019 financial results.
Growing Profit Margin: CPSI's current net profit margins (7.5%) are higher than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: CPSI's earnings have declined by -22.5% per year over the past 5 years.
Accelerating Growth: CPSI's earnings growth over the past year (20.1%) exceeds its 5-year average (-22.5% per year).
Earnings vs Industry: CPSI earnings growth over the past year (20.1%) underperformed the Healthcare Services industry 20.1%.
Return on Equity
High ROE: CPSI's Return on Equity (11.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Computer Programs and Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CPSI's short term assets ($66.8M) exceed its short term liabilities ($41.9M).
Long Term Liabilities: CPSI's short term assets ($66.8M) do not cover its long term liabilities ($113.3M).
Debt to Equity History and Analysis
Debt Level: CPSI's debt to equity ratio (57.7%) is considered high.
Reducing Debt: Insufficient data to determine if CPSI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CPSI's debt is well covered by operating cash flow (41%).
Interest Coverage: CPSI's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Inventory Level: CPSI has a low level of unsold assets or inventory.
Debt Coverage by Assets: CPSI's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is Computer Programs and Systems's current dividend yield, its reliability and sustainability?
1.35%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CPSI's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: CPSI's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: CPSI's dividend payments have been volatile in the past 10 years.
Growing Dividend: CPSI's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.9%), CPSI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CPSI's dividends in 3 years are forecast to be thoroughly covered by earnings (13% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
John Douglas (52yo)
13.8yrs
Tenure
US$1,753,336
Compensation
Mr. John Boyd Douglas Jr., has served as Computer Programs & Systems Inc.’s (“Computer Programs”) President and Chief Executive Officer since May 2006. He was first elected as a director of Computer Progra ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD1.75M) is about average for companies of similar size in the US market ($USD1.67M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.8yrs | US$1.75m | 1.69% $6.9m | |
| CFO, Secretary & Treasurer | 4.3yrs | US$1.20m | 0.31% $1.3m | |
| Chief Operating Officer | 4.3yrs | US$1.56m | 0.43% $1.8m | |
| Senior Vice President of Sales | 8.1yrs | US$1.47m | 0.30% $1.2m | |
| Chief Technology Officer | 4.1yrs | no data | no data | |
| Executive Vice President | 7.8yrs | US$921.51k | 0.42% $1.7m | |
| Chief Marketing Officer | 0yrs | no data | no data | |
| Senior Vice President of Client Services | 7.1yrs | US$897.89k | 0.29% $1.2m | |
| Senior Vice President of Information Technology Services | 4.1yrs | no data | no data | |
| Senior Vice President of Client Experience | 1.8yrs | no data | no data |
4.3yrs
Average Tenure
49yo
Average Age
Experienced Management: CPSI's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.8yrs | US$1.75m | 1.69% $6.9m | |
| Independent Chairman | 0.8yrs | US$163.99k | 0.081% $333.0k | |
| Lead Independent Director | 2.3yrs | US$183.99k | 0.13% $540.5k | |
| Independent Director | 2.3yrs | US$164.99k | 0.056% $229.3k | |
| Independent Director | 6yrs | US$168.99k | 0.13% $526.2k | |
| Independent Director | 0.2yrs | no data | 0.0046% $19.0k | |
| Chief Growth Officer & Director | 17.9yrs | US$1.45m | 0.93% $3.8m | |
| Independent Director | 18yrs | US$159.99k | 0.13% $548.1k | |
| Independent Director | 2.3yrs | US$163.99k | 0.056% $229.3k | |
| Independent Director | 1yrs | no data | 0.023% $96.0k |
2.3yrs
Average Tenure
57yo
Average Age
Experienced Board: CPSI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Computer Programs and Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Computer Programs and Systems, Inc.
- Ticker: CPSI
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Health Care Technology
- Sector: Healthcare
- Market Cap: US$409.915m
- Shares outstanding: 13.83m
- Website: https://www.cpsi.com
Number of Employees
Location
- Computer Programs and Systems, Inc.
- 6600 Wall Street
- Mobile
- Alabama
- 36695
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CPSI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 2002 |
| PS1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 2002 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 01:52 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.