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

-0.4%

CSGS

2.0%

US IT

1.3%

US Market


1 Year Return

42.5%

CSGS

23.1%

US IT

5.9%

US Market

Return vs Industry: CSGS exceeded the US IT industry which returned 23.1% over the past year.

Return vs Market: CSGS exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

CSGSIndustryMarket
7 Day-0.4%2.0%1.3%
30 Day-2.6%-0.1%-1.9%
90 Day5.3%-2.2%-1.8%
1 Year45.5%42.5%24.5%23.1%8.3%5.9%
3 Year36.8%29.0%97.9%89.7%45.6%36.2%
5 Year123.3%101.8%154.6%131.0%66.1%47.9%

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?

12.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CSGS ($51.51) is trading below our estimate of fair value ($58.56)

Significantly Undervalued: 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 (22x) compared to the IT industry average (35.9x).

PE vs Market: CSGS is poor value based on its PE Ratio (22x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: CSGS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CSGS is overvalued based on its PB Ratio (4.4x) compared to the US IT industry average (4.3x).


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?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGS's forecast earnings growth (10% per year) is above the savings rate (2.7%).

Earnings vs Market: CSGS's earnings (10% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: CSGS's revenue (1.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CSGS's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CSGS's Return on Equity is forecast to be high in 3 years time (20.4%)


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

Earnings Trend: CSGS's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: CSGS's earnings growth over the past year (28.9%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: CSGS earnings growth over the past year (28.9%) exceeded the IT industry 8.4%.


Return on Equity

High ROE: CSGS's Return on Equity (20.2%) is considered high.


Return on Assets

ROA vs Industry: CSGS has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: CSGS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is CSG Systems International's financial position?


Financial Position Analysis

Short Term Liabilities: CSGS's short term assets ($572.6M) exceeds its short term liabilities ($335.6M)

Long Term Liabilities: CSGS's short term assets (572.6M) exceeds its long term liabilities (469.8M)


Debt to Equity History and Analysis

Debt Level: CSGS's debt to equity ratio (95.7%) is considered high

Reducing Debt: CSGS's debt to equity ratio has increased from 68% to 95.7% over the past 5 years.

Debt Coverage: CSGS's debt is well covered by operating cash flow (40.6%).

Interest Coverage: CSGS's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: CSGS has a low level of unsold assets or inventory.

Debt Coverage by Assets: CSGS's debt is covered by short term assets (assets are 1.598180x debt).


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSGS's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CSGS's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.9%), 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 (23.3% payout ratio).


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?

3.3yrs

Average management tenure


CEO

Bret Griess (51yo)

3.8yrs

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 ($USD6.54M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Bret's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: CSGS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

11.3yrs

Average Tenure

64yo

Average Age

Experienced Board: CSGS's board of directors are seasoned and experienced ( 11.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 10yrs
  • Ken Kennedy (49yo)

    Executive VP and President of Technology & Products

    • Tenure: 2yrs
    • Compensation: US$2.34m
  • Bret Griess (51yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$6.54m
  • Lonnie Mahrt

    Senior VP & Head of Customer Communications Management

    • Tenure: 2yrs
  • Brian Shepherd (51yo)

    Executive VP & Group President of CSG

    • Tenure: 3.6yrs
    • Compensation: US$2.44m
  • Rollie Johns (50yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$1.42m
  • Christine Mellon

    Chief Human Resources Officer & Senior VP

    • Tenure: 3.3yrs
  • Gregory Cannon

    Senior VP

    • Tenure: 3.3yrs
  • David Schaaf (49yo)

    Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Frank Sica (68yo)

    Director

    • Tenure: 25yrs
    • Compensation: US$189.00k
  • David Barnes (57yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$205.00k
  • Janice Obuchowski (67yo)

    Director

    • Tenure: 21.9yrs
    • Compensation: US$199.00k
  • Ron Cooper (61yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$205.00k
  • Jim Unruh (78yo)

    Director

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

    Chairman of the Board

    • Tenure: 9.8yrs
    • Compensation: US$239.00k
  • Don Smith (77yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$189.00k
  • Marwan Fawaz (56yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$189.00k
  • Bret Griess (51yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$6.54m
  • Rajan Naik (47yo)

    Director

    • Tenure: 1.2yrs
    • 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$1.639b
  • 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 Analysis2019/10/14 23:33
End of Day Share Price2019/10/14 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.