NasdaqGS:CSGS

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CSG Systems International

Executive Summary

CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has CSG Systems International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

0.4%

CSGS

-2.5%

US IT

-4.6%

US Market


1 Year Return

4.3%

CSGS

38.9%

US IT

38.5%

US Market

Return vs Industry: CSGS underperformed the US IT industry which returned 38.9% over the past year.

Return vs Market: CSGS underperformed the US Market which returned 38.5% over the past year.


Shareholder returns

CSGSIndustryMarket
7 Day0.4%-2.5%-4.6%
30 Day6.5%7.9%0.6%
90 Day5.6%5.1%1.9%
1 Year6.6%4.3%40.3%38.9%41.5%38.5%
3 Year5.3%-1.0%96.1%88.7%56.7%46.7%
5 Year32.4%20.0%208.4%186.5%123.5%98.6%

Long-Term Price Volatility Vs. Market

How volatile is CSG Systems International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CSG Systems International undervalued compared to its fair value and its price relative to the market?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSGS ($46.15) is trading below our estimate of fair value ($57.67)

Significantly Below Fair Value: CSGS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CSGS is good value based on its PE Ratio (25.2x) compared to the US IT industry average (34.7x).

PE vs Market: CSGS is poor value based on its PE Ratio (25.2x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: CSGS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: CSGS is good value based on its PB Ratio (3.5x) compared to the US IT industry average (5x).


Next Steps

Future Growth

How is CSG Systems International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGS's forecast earnings growth (15.3% per year) is above the savings rate (2%).

Earnings vs Market: CSGS's earnings (15.3% per year) are forecast to grow slower than the US market (20.3% per year).

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

Revenue vs Market: CSGS's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: CSGS's revenue is forecast to decline over the next 3 years (-1% 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 (16.9%).


Next Steps

Past Performance

How has CSG Systems International performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGS has a large one-off loss of $28.3M impacting its December 31 2020 financial results.

Growing Profit Margin: CSGS's current net profit margins (5.9%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: CSGS's earnings have grown by 2.5% per year over the past 5 years.

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

Earnings vs Industry: CSGS had negative earnings growth (-29.1%) over the past year, making it difficult to compare to the IT industry average (6.5%).


Return on Equity

High ROE: CSGS's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is CSG Systems International's financial position?


Financial Position Analysis

Short Term Liabilities: CSGS's short term assets ($698.3M) exceed its short term liabilities ($420.0M).

Long Term Liabilities: CSGS's short term assets ($698.3M) exceed its long term liabilities ($489.6M).


Debt to Equity History and Analysis

Debt Level: CSGS's debt to equity ratio (83.1%) is considered high.

Reducing Debt: CSGS's debt to equity ratio has increased from 83.1% to 83.1% over the past 5 years.

Debt Coverage: CSGS's debt is well covered by operating cash flow (49.3%).

Interest Coverage: CSGS's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

What is CSG Systems International current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSGS's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: CSGS's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (3.76%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), CSGS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSGS's dividends in 3 years are forecast to be well covered by earnings (23.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Brian Shepherd (52 yo)

0.083

Tenure

US$2,195,745

Compensation

Mr. Brian A. Shepherd serves as CEO, President & Director at CSG Systems International, Inc. since January 01, 2021. He had been the Executive Vice President and Group President at CSG Systems Internationa...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD2.20M) is below average for companies of similar size in the US market ($USD3.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Shepherd
CEO, President & Director0.083yrUS$2.20m0.62%
$ 9.0m
Rolland Johns
Executive VP & CFO2.75yrsUS$1.77m0.20%
$ 2.8m
Kenneth Kennedy
COO and President of Revenue Management & Digital Monetization0.083yrUS$2.07m0.38%
$ 5.6m
David Schaaf
Chief Accounting Officer & Treasurer1.75yrsno data0.030%
$ 442.6k
Scott Prugh
Chief Technology Officerno datano datano data
Doran Stienike
Chief Information Officerno datano datano data
Gregory Cannon
Chief Legal Officer & Corporate Secretary4.58yrsno datano data
Lynn Stange
Chief Compliance Officerno datano datano data
Liz Bauer
Chief Marketing & Custom Officerno datano datano data
Christine Mellon
Chief Human Resources Officer & Senior VP4.58yrsno datano data
Patrick Costello
VP & Controllerno datano datano data
Ken Jenkinson
Senior Vice President of Software Development10.17yrsno datano data

2.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: CSGS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Shepherd
CEO, President & Director0.083yrUS$2.20m0.62%
$ 9.0m
Frank Sica
Independent Director26.33yrsUS$251.88k0.090%
$ 1.3m
David Barnes
Independent Director7yrsUS$267.88k0.070%
$ 1.0m
Silvio Tavares
Director0.75yrno data0.013%
$ 189.0k
Janice Obuchowski
Independent Director23.25yrsUS$254.38k0.16%
$ 2.3m
Ronald Cooper
Independent Director14.25yrsUS$267.88k0.11%
$ 1.6m
James Unruh
Independent Director15.67yrsUS$251.88k0.15%
$ 2.2m
Donald Reed
Independent Chairman of the Board11.08yrsUS$301.88k0.13%
$ 2.0m
Marwan Fawaz
Independent Director4.92yrsUS$259.38k0.052%
$ 757.5k
Haiyan Song
Independent Director1.08yrsno data0.013%
$ 189.0k
Rajan Naik
Independent Director2.5yrsUS$251.88k0.033%
$ 480.5k
Tse Yang
Directorno datano datano data

7.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CSGS's board of directors are considered experienced (7 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 company bio, 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
  • Market Cap: US$1.458b
  • Shares outstanding: 31.60m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSGSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1996
CSNDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1996

Biography

CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers reven...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 00:46
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.