NasdaqGS:CPSI

Stock Analysis Report

Computer Programs and Systems

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

Trading at 22.1% below its fair value

Earnings are forecast to grow 11.56% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Allscripts Healthcare Solutions

NasdaqGS:MDRX

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

-6.3%

CPSI

-1.9%

US Healthcare Services

-1.3%

US Market


1 Year Return

-2.7%

CPSI

23.9%

US Healthcare Services

22.0%

US Market

Return vs Industry: CPSI underperformed the US Healthcare Services industry which returned 28.6% over the past year.

Return vs Market: CPSI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CPSIIndustryMarket
7 Day-6.3%-1.9%-1.3%
30 Day-4.2%3.2%1.8%
90 Day16.2%9.8%9.3%
1 Year-1.2%-2.7%24.2%23.9%24.6%22.0%
3 Year22.6%15.7%86.8%86.0%49.2%39.6%
5 Year-37.6%-46.8%64.8%63.3%77.9%58.3%

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?

24.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPSI ($26.79) is trading below our estimate of fair value ($34.4)

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 (22.7x) compared to the Healthcare Services industry average (63x).

PE vs Market: CPSI is poor value based on its PE Ratio (22.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CPSI is poor value based on its PEG Ratio (2x)


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 (3.7x).


Next Steps

Future Growth

How is Computer Programs and Systems forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPSI's forecast earnings growth (11.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CPSI's earnings (11.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CPSI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPSI's revenue (4.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CPSI's revenue (4.7% 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 (9.8%).


Next Steps

Past Performance

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

-33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPSI has high quality earnings.

Growing Profit Margin: CPSI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CPSI's earnings have declined by -33.8% per year over the past 5 years.

Accelerating Growth: CPSI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CPSI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare Services industry (0.6%).


Return on Equity

High ROE: CPSI's Return on Equity (9.8%) 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 ($65.7M) exceed its short term liabilities ($43.0M).

Long Term Liabilities: CPSI's short term assets ($65.7M) do not cover its long term liabilities ($125.9M).


Debt to Equity History and Analysis

Debt Level: CPSI's debt to equity ratio (70.3%) 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 (28.6%).

Interest Coverage: CPSI's interest payments on its debt are well covered by EBIT (3.6x 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 0.5x debt).


Next Steps

Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage0.7%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: CPSI's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CPSI's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (33.8%), 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 well covered by earnings (15.4% payout ratio).


Next Steps

Management

What is the CEO of Computer Programs and Systems's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

John Douglas (52yo)

13.7yrs

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 ($USD1.75M) is about average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

4.2yrs

Average Tenure

49yo

Average Age

Experienced Management: CPSI's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

57yo

Average Age

Experienced Board: CPSI's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$119,20004 Sep 19
Troy Rosser
EntityIndividual
Role
Head of Sales
Senior Vice President of Sales
Shares5,620
Max PriceUS$21.21
SellUS$189,33817 Jun 19
Victor Schneider
EntityIndividual
Role
Head of Corporate Development
Executive Vice President
Shares7,126
Max PriceUS$26.57
SellUS$208,94021 May 19
Christopher Fowler
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares7,750
Max PriceUS$26.96
SellUS$44,98520 May 19
Christopher Fowler
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,500
Max PriceUS$29.99
SellUS$95,71516 May 19
David Dye
EntityIndividual
Role
Member of the Board of Directors
Chief Growth Officer & Director
Shares3,478
Max PriceUS$27.52
SellUS$98,22713 May 19
Robert Hinckle
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Client Services
Shares3,541
Max PriceUS$27.74
SellUS$286,60010 May 19
Matt Chambless
EntityIndividual
Role
Chief Financial Officer
CFO, Secretary & Treasurer
Shares10,000
Max PriceUS$28.66

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Douglas (52yo)

    President

    • Tenure: 13.7yrs
    • Compensation: US$1.75m
  • Scott Schneider (60yo)

    Executive Vice President

    • Tenure: 7.8yrs
    • Compensation: US$921.51k
  • Rob Hinckle (49yo)

    Senior Vice President of Client Services

    • Tenure: 7yrs
    • Compensation: US$897.89k
  • Troy Rosser (54yo)

    Senior Vice President of Sales

    • Tenure: 8yrs
    • Compensation: US$1.47m
  • Tracey Schroeder

    Chief Marketing Officer

    • Chris Fowler (43yo)

      Chief Operating Officer

      • Tenure: 4.2yrs
      • Compensation: US$1.56m
    • Julie Weber-Kramer

      Senior Vice President of Client Experience

      • Tenure: 1.7yrs
    • J. Littrell (44yo)

      Senior Vice President of Information Technology Services

      • Tenure: 4yrs
    • Matt Chambless (38yo)

      CFO, Secretary & Treasurer

      • Tenure: 4.2yrs
      • Compensation: US$1.20m
    • Robert Cruz

      Chief Technology Officer

      • Tenure: 4yrs

    Board Members

    • Glenn Tobin (57yo)

      Independent Chairman

      • Tenure: 0.7yrs
      • Compensation: US$163.99k
    • Charles Huffman (65yo)

      Lead Independent Director

      • Tenure: 2.2yrs
      • Compensation: US$183.99k
    • Denise Warren (57yo)

      Independent Director

      • Tenure: 2.2yrs
      • Compensation: US$164.99k
    • Arthur Outlaw (64yo)

      Independent Director

      • Tenure: 5.9yrs
      • Compensation: US$168.99k
    • Chris Hjelm (57yo)

      Independent Director

      • Tenure: 0.08yrs
    • John Douglas (52yo)

      President

      • Tenure: 13.7yrs
      • Compensation: US$1.75m
    • David Dye (49yo)

      Chief Growth Officer & Director

      • Tenure: 17.8yrs
      • Compensation: US$1.45m
    • William Mulherin (53yo)

      Independent Director

      • Tenure: 17.9yrs
      • Compensation: US$159.99k
    • Regina Benjamin (62yo)

      Independent Director

      • Tenure: 2.2yrs
      • Compensation: US$163.99k
    • Jeffrey Strong (41yo)

      Independent Director

      • Tenure: 0.9yrs

    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$372.575m
    • 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

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CPSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2002
    PS1DB (Deutsche Boerse AG)YesCommon StockDEEURMay 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

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 23:34
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.