Advertisement
- United States
- /
- Software
- /
- NasdaqGS:CCSI
Is There Now An Opportunity In Consensus Cloud Solutions, Inc. (NASDAQ:CCSI)?
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$34.96 at one point, and dropping to the lows of US$22.50. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Consensus Cloud Solutions' current trading price of US$22.50 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Consensus Cloud Solutions’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Consensus Cloud Solutions
Is Consensus Cloud Solutions Still Cheap?
Great news for investors – Consensus Cloud Solutions is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 6.43x is currently well-below the industry average of 42.02x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Consensus Cloud Solutions’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will Consensus Cloud Solutions generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 26% over the next couple of years, the future seems bright for Consensus Cloud Solutions. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since CCSI is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping an eye on CCSI for a while, now might be the time to make a leap. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CCSI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed assessment.
So while earnings quality is important, it's equally important to consider the risks facing Consensus Cloud Solutions at this point in time. In terms of investment risks, we've identified 2 warning signs with Consensus Cloud Solutions, and understanding them should be part of your investment process.
If you are no longer interested in Consensus Cloud Solutions, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
New: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies
Or build your own from over 50 metrics.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:CCSI
Consensus Cloud Solutions
Provides information delivery services with a software-as-a-service platform worldwide.
Undervalued with imperfect balance sheet.
Similar Companies
Market Insights
Advertisement
Weekly Picks
JO
Jolt_Communications on Myseum ·
The Future of Social Sharing Is Private and People Are Ready
Fair Value:US$7.9577.1% undervalued
19 followersusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
TO
Tokyo on ASML Holding ·
EU#3 - From Philips Management Buyout to Europe’s Biggest Company
Fair Value:€1.31k7.1% undervalued
27 followersusers have followed this narrative
2 commentsusers have commented on this narrative
11 likesusers have liked this narrative
YI
yiannisz on Booking Holdings ·
Booking Holdings: Why Ground-Level Travel Trends Still Favor the Platform Giants
Fair Value:US$5.47k8.5% undervalued
6 followersusers have followed this narrative
0 commentsusers have commented on this narrative
4 likesusers have liked this narrative
CO
composite32 on Shell ·
A fully integrated LNG business seems to be ignored by the market.
Fair Value:UK£36.122.6% undervalued
35 followersusers have followed this narrative
0 commentsusers have commented on this narrative
9 likesusers have liked this narrative
Recently Updated Narratives
BL
BlackGoat on Palantir Technologies ·
Palantir: Redefining Enterprise Software for the AI Era
Fair Value:US$107.0237.0% overvalued
194 followersusers have followed this narrative
6 commentsusers have commented on this narrative
1 likeusers have liked this narrative
AN
andre_santos on Microsoft ·
Microsoft - A Fundamental and Historical Valuation
Fair Value:US$437.171.6% undervalued
17 followersusers have followed this narrative
4 commentsusers have commented on this narrative
0 likesusers have liked this narrative
UN
unknown on Merck ·
The Oncology Anchor: Why Merck’s 46% Discount Defies the Keytruda Cliff
Fair Value:US$201.5645.3% undervalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
Popular Narratives
OO
OOO97 on Neo Performance Materials ·
Undervalued Key Player in Magnets/Rare Earth
Fair Value:CA$25.3324.4% undervalued
71 followersusers have followed this narrative
0 commentsusers have commented on this narrative
19 likesusers have liked this narrative
AN
AnalystConsensusTarget on NVIDIA ·
NVDA: Expanding AI Demand Will Drive Major Data Center Investments Through 2026
Fair Value:US$253.0224.5% undervalued
1047 followersusers have followed this narrative
6 commentsusers have commented on this narrative
31 likesusers have liked this narrative
AN
AnalystConsensusTarget on Amazon.com ·
AMZN: Acceleration In Cloud And AI Will Drive Margin Expansion Ahead
Fair Value:US$295.6119.1% undervalued
1342 followersusers have followed this narrative
5 commentsusers have commented on this narrative
11 likesusers have liked this narrative
Trending Discussion
JA
jayhcee on Motorcar Parts of America ·
MPAA often has inventory and core-related timing issues. While this quarter’s problems may ease, similar issues have recurred historically and can persist for several quarters. It's not a one-off, it's a structural part of their business. Core returns are simply estimates: How many customers will actually return the original part; how quickly they'll do so; how many are useable; what they're worth, etc. MPAA predicts X sales in a quarter and Y core returns and its reserves, inventory values, etc. are based on that. If they expect a 90% core return rate and only 80% come back it doesn't change cash but they have to write down inventory and increase cost of goods sold which impacts EPS. They've also cited inventory buildup at key customers multiple times in the past. The assumption the latest backlog will all shift into future quarters this year with no impact on pricing, etc. seems more like wishful thinking. Retailer X was slated to buy $10m in parts this quarter but finds they have a lot more inventory on hand than they anticipated so they pushed the order. Realistically there are likely to be SKU cuts, reduction in safety stock on others, etc. Assuming that all $10m will come in this year plus the regular replenishment seems pretty unrealistic. MPAA also has a shaky track record when it comes to new lines and the supposed impact on business. If you look at the EV testing solutions hype back around 2020 that was supposed to diversify them beyond traditional reman and be a higher margin business that would grow with EV adoption. But it has never turned into a material contributor. The debt reduction and stock buy backs are meaningful but IMHO this narrative takes a very optimistic view of things.
0
|0
US
User on Discovery Silver ·
The problem with your reasoning is, that 37 Moz are AgEq. If you read the FS, you'll find out that annual silver production is more around 14-15 Moz. But at the time of the FS, that 37 Moz AgEq was a number that came of a formula (which is specified in the FS), being a mix of four metals: Ag, Au, Pb and Zc. But now, beginning of 2026, the spotprices of silver and gold have risen so much in comparison to Pb and Zc prices, that you need to recalculate the AgEq number of 37 Moz according to the recent prices. This will result in the fact that silver and gold hold more value in that mix of four metals, and thus dragg the 37 Moz AgEQ number down to somewhere around 18 Moz AgEq. The more valuable silver and gold become, the lower the AgEq number will get, but it'll never get under the yearly average production of silver, which should be somewhere between 14-15 Moz Ag in the first four years. So in short, with this in mind, your fair value is rather around CA$ 50, even with silver at 300 usd an ounce. But a more prudent stockprice forecast is around CA$ 20 and hopefully going toward CA$ 30. So DSV is a top stock, because it's producing actual gold every quarter. But don't put your hopes too high.
0
|0