CPI Card Group (NasdaqGM:PMTS) - Share price, News & Analysis

PMTS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	2/6
Financial Health	0/6
Dividends	0/6

PMTS Stock Overview

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards.

Rewards

Price-To-Earnings ratio (10.1x) is below the US market (14.8x)

Earnings are forecast to grow 28.88% per year

Earnings have grown 63.5% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Negative shareholders equity

Volatile share price over the past 3 months

CPI Card Group Competitors

Turtle Beach

NasdaqGM:HEAR

US$227.4m

Immersion

NasdaqGS:IMMR

US$188.9m

One Stop Systems

NasdaqCM:OSS

US$78.9m

Eastman Kodak

NYSE:KODK

US$419.9m

Price History & Performance

Summary of all time highs, changes and price drops for CPI Card Group
Historical stock prices
Current Share Price	US$17.60
52 Week High	US$38.92
52 Week Low	US$10.18
Beta	1.39
1 Month Change	-3.73%
3 Month Change	21.72%
1 Year Change	-9.16%
3 Year Change	587.50%
5 Year Change	13.55%
Change since IPO	-71.08%

Shareholder Returns

	PMTS	US Tech	US Market
7D	27.4%	7.6%	6.3%
1Y	-9.2%	3.8%	-18.8%

Return vs Industry: PMTS underperformed the US Tech industry which returned 5% over the past year.

Return vs Market: PMTS exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is PMTS's price volatile compared to industry and market?
PMTS volatility
PMTS Average Weekly Movement	12.5%
Tech Industry Average Movement	9.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PMTS is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: PMTS's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2007	1,150	Scott Scheirman	https://www.cpicardgroup.com

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing banks.

CPI Card Group Fundamentals Summary

How do CPI Card Group's earnings and revenue compare to its market cap?
PMTS fundamental statistics
Market Cap	US$198.10m
Earnings (TTM)	US$19.53m
Revenue (TTM)	US$397.45m

10.1x

P/E Ratio

0.5x

P/S Ratio

Is PMTS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PMTS income statement (TTM)
Revenue	US$397.45m
Cost of Revenue	US$243.85m
Gross Profit	US$153.60m
Other Expenses	US$134.07m
Earnings	US$19.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.74
Gross Margin	38.65%
Net Profit Margin	4.91%
Debt/Equity Ratio	-275.6%

How did PMTS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PMTS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PMTS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PMTS. This is calculated by dividing PMTS's market cap by their current preferred multiple.
What is PMTS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$198.10m

PMTS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	7x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does PMTS's PE Ratio compare to its peers?

PMTS PE Ratio vs Peers

The above table shows the PE ratio for PMTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	68.5x
HEAR Turtle Beach	94.5x	62.8%	US$227.4m
IMMR Immersion	12.2x	-1.7%	US$188.9m
OSS One Stop Systems	27.5x	34.9%	US$78.9m
KODK Eastman Kodak	140x	n/a	US$419.9m
PMTS CPI Card Group	10.1x	28.9%	US$198.1m

Forward PE

Price-To-Earnings vs Peers: PMTS is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (68.5x).

Price to Earnings Ratio vs Industry

How does PMTS's PE Ratio compare vs other companies in the US Tech Industry?

Price-To-Earnings vs Industry: PMTS is good value based on its Price-To-Earnings Ratio (10.1x) compared to the US Tech industry average (14.7x)

Price to Earnings Ratio vs Fair Ratio

What is PMTS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PMTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.1x
Fair PE Ratio	30.9x

Price-To-Earnings vs Fair Ratio: PMTS is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (30.9x).

Share Price vs Fair Value

What is the Fair Price of PMTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate PMTS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PMTS's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: PMTS is good value based on its PEG Ratio (0.4x)

Discover undervalued companies

Future Growth

How is CPI Card Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMTS's forecast earnings growth (28.9% per year) is above the savings rate (1.9%).

Earnings vs Market: PMTS's earnings (28.9% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: PMTS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PMTS's revenue (7.5% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: PMTS's revenue (7.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PMTS's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has CPI Card Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

63.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PMTS has high quality earnings.

Growing Profit Margin: PMTS's current net profit margins (4.9%) are lower than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: PMTS has become profitable over the past 5 years, growing earnings by 63.5% per year.

Accelerating Growth: PMTS's earnings growth over the past year (16.1%) is below its 5-year average (63.5% per year).

Earnings vs Industry: PMTS earnings growth over the past year (16.1%) underperformed the Tech industry 67.6%.

Return on Equity

High ROE: PMTS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.

Discover strong past performing companies

Financial Health

How is CPI Card Group's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PMTS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PMTS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.

Debt to Equity History and Analysis

Debt Level: PMTS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PMTS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PMTS's debt is not well covered by operating cash flow (1.3%).

Interest Coverage: PMTS's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is CPI Card Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PMTS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PMTS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PMTS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PMTS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: PMTS is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PMTS has not reported any payouts.

Discover strong dividend paying companies

Management

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

0.7yrs

Average management tenure

CEO

Scott Scheirman (58 yo)

4.67yrs

Tenure

US$4,288,431

Compensation

Mr. Scott T. Scheirman has been President and Chief Executive Officer of CPI Card Group since October 5, 2017. Mr. Scheirman serves as Strategic Business Advisor of JKL Ventures LLC. Prior to joining the C...

CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD4.29M) is above average for companies of similar size in the US market ($USD1.69M).

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

Leadership Team

Experienced Management: PMTS's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: PMTS's board of directors are considered experienced (5.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31