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Computer Programs and Systems

Market Cap

US$436.6m

Last Updated

2021/05/11 23:28 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. More Details

Rewards

Trading at 52.3% below our estimate of its fair value

Earnings are forecast to grow 24.21% per year

Risk Analysis

No risks detected for CPSI from our risk checks.


Snowflake Analysis

Good value with adequate 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CPSI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.4%

CPSI

-9.6%

US Healthcare Services

-1.2%

US Market


1 Year Return

42.6%

CPSI

20.3%

US Healthcare Services

48.3%

US Market

Return vs Industry: CPSI exceeded the US Healthcare Services industry which returned 29.5% over the past year.

Return vs Market: CPSI underperformed the US Market which returned 49.9% over the past year.


Shareholder returns

CPSIIndustryMarket
7 Day-1.4%-9.6%-1.2%
30 Day1.0%-8.4%0.2%
90 Day-7.7%-28.1%1.6%
1 Year43.7%42.6%20.5%20.3%50.8%48.3%
3 Year-0.3%-4.0%119.5%117.9%62.0%51.9%
5 Year-22.3%-29.0%226.1%222.1%126.9%101.7%

Long-Term 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

Valuation

Is Computer Programs and Systems undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPSI ($30.26) is trading below our estimate of fair value ($63.41)

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 (30.7x) compared to the US Healthcare Services industry average (103.1x).

PE vs Market: CPSI is poor value based on its PE Ratio (30.7x) compared to the US market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: CPSI is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CPSI is good value based on its PB Ratio (2.1x) compared to the US Healthcare Services industry average (6.5x).


Future Growth

How is Computer Programs and Systems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPSI's forecast earnings growth (24.2% per year) is above the savings rate (2%).

Earnings vs Market: CPSI's earnings (24.2% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: CPSI's revenue (5.8% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: CPSI's revenue (5.8% 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 CPSI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Computer Programs and Systems performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPSI has high quality earnings.

Growing Profit Margin: CPSI's current net profit margins (5.2%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: CPSI's earnings have grown significantly by 21.8% per year over the past 5 years.

Accelerating Growth: CPSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPSI had negative earnings growth (-29.9%) over the past year, making it difficult to compare to the Healthcare Services industry average (18.1%).


Return on Equity

High ROE: CPSI's Return on Equity (7.1%) is considered low.


Financial Health

How is Computer Programs and Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CPSI's short term assets ($67.1M) exceed its short term liabilities ($37.4M).

Long Term Liabilities: CPSI's short term assets ($67.1M) do not cover its long term liabilities ($88.8M).


Debt to Equity History and Analysis

Debt Level: CPSI's debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: CPSI's debt to equity ratio has increased from 4.1% to 38.4% over the past 5 years.

Debt Coverage: CPSI's debt is well covered by operating cash flow (64%).

Interest Coverage: CPSI's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

What is Computer Programs and Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: CPSI is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

John Douglas (53 yo)

15yrs

Tenure

US$1,274,209

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 ($USD1.27M) is about average for companies of similar size in the US market ($USD1.72M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CPSI's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: CPSI's board of directors are considered experienced (3.5 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.


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$436.608m
  • Shares outstanding: 14.43m
  • Website: https://www.cpsi.com

Number of Employees


Location

  • Computer Programs and Systems, Inc.
  • 6600 Wall Street
  • Mobile
  • Alabama
  • 36695
  • United States

Listings


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 mana...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 23:28
End of Day Share Price2021/05/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.