| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
CSGS Stock Overview
CSG Systems International, Inc. provides revenue management, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
CSG Systems International Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$56.29 |
| 52 Week High | US$59.48 |
| 52 Week Low | US$42.58 |
| Beta | 0.84 |
| 1 Month Change | -0.25% |
| 3 Month Change | 11.62% |
| 1 Year Change | 24.54% |
| 3 Year Change | 61.43% |
| 5 Year Change | 13.99% |
| Change since IPO | 389.48% |
Recent News & Updates
Returns On Capital At CSG Systems International (NASDAQ:CSGS) Have Stalled
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Are Investors Undervaluing CSG Systems International, Inc. (NASDAQ:CSGS) By 32%?
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Shareholder Returns
| CSGS | US IT | US Market | |
|---|---|---|---|
| 7D | -2.1% | -5.6% | -4.6% |
| 1Y | 24.5% | -6.4% | 7.7% |
Return vs Industry: CSGS exceeded the US IT industry which returned -4.3% over the past year.
Return vs Market: CSGS exceeded the US Market which returned 10.2% over the past year.
Price Volatility
| CSGS volatility | |
|---|---|
| CSGS Average Weekly Movement | 2.8% |
| IT Industry Average Movement | 8.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: CSGS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CSGS's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1994 | 4,807 | Brian Shepherd | https://www.csgi.com |
CSG Systems International, Inc. provides revenue management, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private cloud-based platform; related customer communications management solutions, including field force automation, analytics, electronic bill presentment, ACH, etc. for processing voice, SMS/text, print, and e-mail messages; and cloud-based integrated suite of solutions for range of industries. The company also provides managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging.
CSG Systems International Fundamentals Summary
| CSGS fundamental statistics | |
|---|---|
| Market Cap | US$1.77b |
| Earnings (TTM) | US$68.35m |
| Revenue (TTM) | US$1.03b |
25.9x
P/E Ratio1.7x
P/S RatioIs CSGS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CSGS income statement (TTM) | |
|---|---|
| Revenue | US$1.03b |
| Cost of Revenue | US$536.35m |
| Gross Profit | US$495.60m |
| Expenses | US$427.25m |
| Earnings | US$68.35m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 01, 2022
| Earnings per share (EPS) | 2.17 |
| Gross Margin | 48.03% |
| Net Profit Margin | 6.62% |
| Debt/Equity Ratio | 84.6% |
How did CSGS perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield46%
Payout RatioValuation
Is CSG Systems International undervalued compared to its fair value and its price relative to the market?
47.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CSGS ($56.29) is trading below our estimate of fair value ($106.82)
Significantly Below Fair Value: CSGS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CSGS is good value based on its PE Ratio (25.9x) compared to the US IT industry average (32.5x).
PE vs Market: CSGS is poor value based on its PE Ratio (25.9x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: CSGS is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: CSGS is good value based on its PB Ratio (4x) compared to the US IT industry average (4.3x).
Future Growth
How is CSG Systems International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSGS's forecast earnings growth (13.6% per year) is above the savings rate (2%).
Earnings vs Market: CSGS's earnings (13.6% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: CSGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CSGS's revenue (3.3% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: CSGS's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CSGS's Return on Equity is forecast to be low in 3 years time (18%).
Past Performance
How has CSG Systems International performed over the past 5 years?
2.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSGS has high quality earnings.
Growing Profit Margin: CSGS's current net profit margins (6.6%) are lower than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: CSGS's earnings have grown by 2.1% per year over the past 5 years.
Accelerating Growth: CSGS's earnings growth over the past year (0.5%) is below its 5-year average (2.1% per year).
Earnings vs Industry: CSGS earnings growth over the past year (0.5%) underperformed the IT industry 35.8%.
Return on Equity
High ROE: CSGS's Return on Equity (15.4%) is considered low.
Financial Health
How is CSG Systems International's financial position?
Financial Position Analysis
Short Term Liabilities: CSGS's short term assets ($721.7M) exceed its short term liabilities ($663.2M).
Long Term Liabilities: CSGS's short term assets ($721.7M) exceed its long term liabilities ($257.9M).
Debt to Equity History and Analysis
Debt Level: CSGS's net debt to equity ratio (34%) is considered satisfactory.
Reducing Debt: CSGS's debt to equity ratio has reduced from 160.8% to 84.6% over the past 5 years.
Debt Coverage: CSGS's debt is well covered by operating cash flow (38.7%).
Interest Coverage: CSGS's interest payments on its debt are well covered by EBIT (8x coverage).
Balance Sheet
Dividend
What is CSG Systems International current dividend yield, its reliability and sustainability?
1.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CSGS's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: CSGS's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CSGS has been paying a dividend for less than 10 years.
Growing Dividend: CSGS's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.9%), CSGS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CSGS's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Brian Shepherd (53 yo)
1
Tenure
US$4,271,326
Compensation
Mr. Brian A. Shepherd serves as Chief Executive Officer, President & Director at CSG Systems International, Inc. since January 01, 2021. Mr. Shepherd served as the Executive Vice President and Group Presid...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD4.27M) is about average for companies of similar size in the US market ($USD3.70M).
Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: CSGS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
Experienced Board: CSGS's board of directors are considered experienced (4.6 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CSG Systems International, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: CSG Systems International, Inc.
- Ticker: CSGS
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Implied Market Cap: US$1.773b
- Shares outstanding: 31.50m
- Website: https://www.csgi.com
Number of Employees
Location
- CSG Systems International, Inc.
- 6175 South Willow Drive
- 10th Floor
- Greenwood Village
- Colorado
- 80111
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:31 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.