CSG Systems International
Market Cap
US$1.5b
Last Updated
2020/04/09 02:26 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
11.6%
CSGS
11.3%
US IT
9.4%
US Market
1 Year Return
1.9%
CSGS
2.0%
US IT
-6.8%
US Market
Return vs Industry: CSGS exceeded the US IT industry which returned -10.2% over the past year.
Return vs Market: CSGS exceeded the US Market which returned -15.9% over the past year.
Shareholder returns
| CSGS | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.6% | 11.3% | 9.4% |
| 30 Day | 10.0% | -5.6% | -3.9% |
| 90 Day | -11.2% | -13.5% | -16.5% |
| 1 Year | 3.8%1.9% | 3.0%2.0% | -4.8%-6.8% |
| 3 Year | 34.1%26.5% | 73.0%65.6% | 23.4%15.2% |
| 5 Year | 65.8%50.3% | 101.1%83.5% | 41.3%25.7% |
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
6 days ago | Simply Wall St
Does CSG Systems International, Inc. (NASDAQ:CSGS) Have A Volatile Share Price?3 weeks ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And CSG Systems International (NASDAQ:CSGS) Passed With Ease1 month ago | Simply Wall St
Is It Too Late To Consider Buying CSG Systems International, Inc. (NASDAQ:CSGS)?Valuation
Is CSG Systems International undervalued compared to its fair value and its price relative to the market?
24.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CSGS ($44.63) is trading below our estimate of fair value ($63.01)
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 (17.3x) compared to the IT industry average (22.7x).
PE vs Market: CSGS is poor value based on its PE Ratio (17.3x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: CSGS is poor value based on its PEG Ratio (5.5x)
Price to Book Ratio
PB vs Industry: CSGS is overvalued based on its PB Ratio (3.6x) compared to the US IT industry average (2.7x).
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?
3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSGS's forecast earnings growth (3.1% per year) is above the savings rate (1.7%).
Earnings vs Market: CSGS's earnings (3.1% per year) are forecast to grow slower than the US market (13.4% 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 (-1.1% per year).
High Growth Revenue: CSGS's revenue is forecast to decline over the next 3 years (-1.1% 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 (18.9%).
Next Steps
Past Performance
How has CSG Systems International performed over the past 5 years?
9.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSGS has high quality earnings.
Growing Profit Margin: CSGS's current net profit margins (8.3%) are higher than last year (7.6%).
Past Earnings Growth Analysis
Earnings Trend: CSGS's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: CSGS's earnings growth over the past year (25.2%) exceeds its 5-year average (9.7% per year).
Earnings vs Industry: CSGS earnings growth over the past year (25.2%) exceeded the IT industry 13.7%.
Return on Equity
High ROE: CSGS's Return on Equity (20.9%) is considered high.
Next Steps
Financial Health
How is CSG Systems International's financial position?
Financial Position Analysis
Short Term Liabilities: CSGS's short term assets ($669.1M) exceed its short term liabilities ($418.7M).
Long Term Liabilities: CSGS's short term assets ($669.1M) exceed its long term liabilities ($467.7M).
Debt to Equity History and Analysis
Debt Level: CSGS's debt to equity ratio (90%) is considered high.
Reducing Debt: CSGS's debt to equity ratio has increased from 71.5% to 90% over the past 5 years.
Debt Coverage: CSGS's debt is well covered by operating cash flow (42.3%).
Interest Coverage: CSGS's interest payments on its debt are well covered by EBIT (7x coverage).
Balance Sheet
Next Steps
Dividend
What is CSG Systems International's current dividend yield, its reliability and sustainability?
2.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CSGS's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: CSGS's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (5.82%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.5%), 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 (23.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Bret Griess (51yo)
4.25s
Tenure
US$6,536,382
Compensation
Mr. Bret C. Griess has been the President of CSG Systems International, Inc. since June 2015 and its Chief Executive Officer since January 1, 2016. Mr. Griess served as Chief Operating Officer of CSG Syste ...
CEO Compensation Analysis
Compensation vs Market: Bret's total compensation ($USD6.54M) is above average for companies of similar size in the US market ($USD4.79M).
Compensation vs Earnings: Bret's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.25yrs | US$6.54m | 1.1% $16.0m | |
| Executive VP & CFO | 1.92yrs | US$1.42m | 0.20% $2.9m | |
| Executive VP and President of Technology & Products | 2.5yrs | US$2.34m | 0.27% $3.9m | |
| Executive VP & Group President of CSG | 4.08yrs | US$2.44m | 0.33% $4.8m | |
| Chief Accounting Officer | 0.92yr | no data | 0.032% $462.2k | |
| Senior VP | 10.5yrs | no data | no data | |
| Senior VP | 3.75yrs | no data | no data | |
| Chief Human Resources Officer & Senior VP | 3.75yrs | no data | no data | |
| VP & Controller | no data | no data | no data | |
| Senior VP & Head of Customer Communications Management | 2.5yrs | no data | no data |
3.8yrs
Average Tenure
50yo
Average Age
Experienced Management: CSGS's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.25yrs | US$6.54m | 1.1% $16.0m | |
| Independent Director | 25.5yrs | US$189.00k | 0.077% $1.1m | |
| Independent Director | 6.17yrs | US$205.00k | 0.057% $832.7k | |
| Independent Director | 22.42yrs | US$199.00k | 0.14% $2.1m | |
| Independent Director | 13.42yrs | US$205.00k | 0.098% $1.4m | |
| Independent Director | 14.83yrs | US$189.00k | 0.14% $2.0m | |
| Independent Chairman of the Board | 10.25yrs | US$239.00k | 0.12% $1.8m | |
| Independent Director | 18.25yrs | US$189.00k | 0.083% $1.2m | |
| Independent Director | 4.08yrs | US$189.00k | 0.039% $566.1k | |
| Independent Director | 1.67yrs | US$151.50k | 0.020% $290.4k |
11.8yrs
Average Tenure
64yo
Average Age
Experienced Board: CSGS's board of directors are seasoned and experienced ( 11.8 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
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$1.459b
- Shares outstanding: 31.97m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CSGS | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 1996 |
| CSN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 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 revenue management and digital monetization solutions, including Advanced Convergent Platform, a cloud-based platform; and Ascendon, Singleview, Total Service Mediation, and Wholesale Business Management Solution platforms. It also provides customer communications management solutions, such as field force automation, analytics, electronic bill presentment, ACH, etc. for processing voice, SMS/text, print, and e-mail messages; and payment solutions, such as cloud-based integrated suite of products and solutions. In addition, the company offers managed services; and professional services to implement, configure, and maintain its products, as well as licenses products, such as mediation, partner management, rating, and charging. It serves the media, entertainment, government, insurance, and health care industries. The company was founded in 1994 and is headquartered in Greenwood Village, Colorado.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 02:26 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.