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

Undervalued 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

-0.8%

CSGS

-3.5%

US IT

-2.4%

US Market


1 Year Return

-17.9%

CSGS

30.5%

US IT

18.2%

US Market

Return vs Industry: CSGS underperformed the US IT industry which returned 30.2% over the past year.

Return vs Market: CSGS underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

CSGSIndustryMarket
7 Day-0.8%-3.5%-2.4%
30 Day2.8%3.4%4.2%
90 Day-0.4%5.4%6.3%
1 Year-16.3%-17.9%31.9%30.5%20.9%18.2%
3 Year6.6%0.4%92.8%85.2%41.2%31.8%
5 Year40.1%27.0%152.1%132.1%84.8%63.9%

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?

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSGS ($41.54) is trading below our estimate of fair value ($53.98)

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 (17.5x) compared to the US IT industry average (33.1x).

PE vs Market: CSGS is good value based on its PE Ratio (17.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: CSGS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CSGS is good value based on its PB Ratio (3.3x) compared to the US IT industry average (3.8x).


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?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGS's forecast earnings growth (10.4% per year) is above the savings rate (2.2%).

Earnings vs Market: CSGS's earnings (10.4% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: CSGS's revenue (0.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CSGS's revenue (0.8% 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%).


Next Steps

Past Performance

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

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGS has high quality earnings.

Growing Profit Margin: CSGS's current net profit margins (7.7%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: CSGS's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: CSGS's earnings growth over the past year (0.4%) is below its 5-year average (7% per year).

Earnings vs Industry: CSGS earnings growth over the past year (0.4%) underperformed the IT industry 8.1%.


Return on Equity

High ROE: CSGS's Return on Equity (19.1%) 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 ($642.8M) exceed its short term liabilities ($370.8M).

Long Term Liabilities: CSGS's short term assets ($642.8M) exceed its long term liabilities ($501.0M).


Debt to Equity History and Analysis

Debt Level: CSGS's debt to equity ratio (89.1%) is considered high.

Reducing Debt: CSGS's debt to equity ratio has increased from 87% to 89.1% over the past 5 years.

Debt Coverage: CSGS's debt is well covered by operating cash flow (48.8%).

Interest Coverage: CSGS's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSGS's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: CSGS's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 (38.5%), 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 (25.1% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Bret Griess (52 yo)

4.75yrs

Tenure

US$6,066,073

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 ($USD6.07M) is above average for companies of similar size in the US market ($USD4.44M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bret Griess
President4.75yrsUS$6.07m1.09%
$ 14.4m
Rolland Johns
Executive VP & CFO2.42yrsUS$1.77m0.20%
$ 2.6m
Kenneth Kennedy
Executive VP and President of Technology & Products3yrsUS$2.07m0.40%
$ 5.2m
Brian Shepherd
Executive VP & Group President of CSG4.58yrsUS$2.20m0.62%
$ 8.1m
David Schaaf
Chief Accounting Officer1.42yrsno data0.031%
$ 410.8k
Liz Bauer
Senior VP11yrsno datano data
Gregory Cannon
Senior VP4.25yrsno datano data
Christine Mellon
Chief Human Resources Officer & Senior VP4.25yrsno datano data
Patrick Costello
VP & Controllerno datano datano data
Lonnie Mahrt
Senior VP & Head of Customer Communications Management3yrsno datano data
Ken Jenkinson
Senior Vice President of Software Development9.83yrsno datano data
Derek Locke
Chief Strategy Officer & Senior VP4.42yrsno datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: CSGS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bret Griess
President4.75yrsUS$6.07m1.09%
$ 14.4m
Frank Sica
Independent Director26yrsUS$251.88k0.089%
$ 1.2m
David Barnes
Independent Director6.67yrsUS$267.88k0.070%
$ 915.3k
Silvio Tavares
Director0.42yrno data0.013%
$ 168.7k
Janice Obuchowski
Independent Director22.92yrsUS$254.38k0.16%
$ 2.1m
Ronald Cooper
Independent Director13.92yrsUS$267.88k0.11%
$ 1.4m
James Unruh
Independent Director15.33yrsUS$251.88k0.15%
$ 2.0m
Donald Reed
Independent Chairman of the Board10.75yrsUS$301.88k0.13%
$ 1.7m
Marwan Fawaz
Independent Director4.58yrsUS$259.38k0.051%
$ 676.3k
Haiyan Song
Independent Director0.75yrno data0.013%
$ 168.7k
Rajan Naik
Independent Director2.17yrsUS$251.88k0.033%
$ 429.0k

6.7yrs

Average Tenure

58yo

Average Age

Experienced Board: CSGS's board of directors are considered experienced (6.7 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$1.316b
  • Shares outstanding: 31.94m
  • 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 Analysis2020/10/20 23:53
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.