NasdaqGS:CSGS

Stock Analysis Report

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.

Snowflake

Fundamentals

Solid 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


Market Performance


7 Day Return

0.7%

NasdaqGS:CSGS

1.1%

US IT

0.8%

US Market


1 Year Return

28.5%

NasdaqGS:CSGS

16.0%

US IT

1.9%

US Market

CSGS outperformed the IT industry which returned 15.6% over the past year.

CSGS outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

CSGSIndustryMarket
7 Day0.7%1.1%0.8%
30 Day0.8%0.03%3.4%
90 Day9.8%1.9%2.1%
1 Year31.2%28.5%17.2%16.0%4.2%1.9%
3 Year31.5%24.0%97.9%89.6%46.7%37.2%
5 Year121.2%99.9%143.3%118.7%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CSG Systems International's share price is below the future cash flow value, but not at a moderate discount (< 20%).

CSG Systems International's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CSG Systems International is good value based on earnings compared to the US IT industry average.

CSG Systems International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

CSG Systems International is poor value based on expected growth next year.


Price Based on Value of Assets

CSG Systems International is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CSG Systems International's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

CSG Systems International's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

CSG Systems International's revenue growth is positive but not above the United States of America market average.

CSG Systems International's earnings growth is positive but not above the United States of America market average.

CSG Systems International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

CSG Systems International is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CSG Systems International's year on year earnings growth rate has been positive over the past 5 years.

CSG Systems International's 1-year earnings growth exceeds its 5-year average (28.9% vs 10.2%)

CSG Systems International's earnings growth has exceeded the US IT industry average in the past year (28.9% vs 11.2%).


Return on Equity

CSG Systems International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

CSG Systems International used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

CSG Systems International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CSG Systems International's financial position?


Financial Position Analysis

CSG Systems International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CSG Systems International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CSG Systems International's level of debt (95.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (68% vs 95.7% today).

Debt is well covered by operating cash flow (40.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

1.69%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CSG Systems International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

CSG Systems International's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, CSG Systems International has been paying a dividend for less than 10 years.

Dividend payments have increased, but CSG Systems International only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Bret Griess (51yo)

3.7yrs

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

Bret's remuneration is higher than average for companies of similar size in United States of America.

Bret's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

50yo

Average Age

The tenure for the CSG Systems International management team is about average.


Board Age and Tenure

11.3yrs

Average Tenure

64yo

Average Age

The average tenure for the CSG Systems International board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$313,41222 May 19
Donald Reed
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares6,800
Max PriceUS$46.09
SellUS$9,22021 May 19
Donald Reed
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares200
Max PriceUS$46.10

Ownership Breakdown


Management Team

  • Pat Costello

    VP & Controller

    • Tenure: 0yrs
  • Liz Bauer

    Senior VP

    • Tenure: 9.9yrs
  • Ken Kennedy (49yo)

    Executive VP and President of Technology & Products

    • Tenure: 1.9yrs
    • Compensation: US$2.34m
  • Bret Griess (51yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$6.54m
  • Lonnie Mahrt

    Senior VP & Head of Customer Communications Management

    • Tenure: 1.9yrs
  • Brian Shepherd (51yo)

    Executive VP & Group President of CSG

    • Tenure: 3.5yrs
    • Compensation: US$2.44m
  • Rollie Johns (50yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.42m
  • Christine Mellon

    Chief Human Resources Officer & Senior VP

    • Tenure: 3.2yrs
  • Gregory Cannon

    Senior VP

    • Tenure: 3.2yrs
  • David Schaaf (49yo)

    Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Frank Sica (68yo)

    Director

    • Tenure: 24.9yrs
    • Compensation: US$189.00k
  • David Barnes (57yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$205.00k
  • Janice Obuchowski (67yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$199.00k
  • Ron Cooper (61yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$205.00k
  • Jim Unruh (78yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$189.00k
  • Don Reed (74yo)

    Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: US$239.00k
  • Don Smith (77yo)

    Director

    • Tenure: 17.7yrs
    • Compensation: US$189.00k
  • Marwan Fawaz (56yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$189.00k
  • Bret Griess (51yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$6.54m
  • Rajan Naik (47yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$151.50k

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$1.690b
  • Shares outstanding: 31.83m
  • 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 Analysis2019/09/17 23:32
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
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.