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CSG

CSG HoldingsJSE:CSG Stock Report

Market Cap

R162.3m

7D

3.2%

1Y

128.6%

Updated

22 Oct, 2021

Data

Company Financials
CSG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

CSG Overview

CSG Holdings Limited, together with its subsidiaries, provides facilities management, security and risk solutions, and staffing solutions primarily in South Africa, Mozambique, Malawi, and Botswana.

Price History & Performance

Summary of all time highs, changes and price drops for CSG Holdings
Historical stock prices
Current Share PriceR0.32
52 Week HighR0.11
52 Week LowR0.39
Beta0.89
1 Month Change39.13%
3 Month Change10.35%
1 Year Change128.57%
3 Year Change-73.33%
5 Year Change-76.47%
Change since IPO-82.22%

Recent News & Updates

Jul 08
CSG Holdings (JSE:CSG) Is Posting Promising Earnings But The Good News Doesn’t Stop There

CSG Holdings (JSE:CSG) Is Posting Promising Earnings But The Good News Doesn’t Stop There

The market seemed underwhelmed by last week's earnings announcement from CSG Holdings Limited ( JSE:CSG ) despite the...

May 10
CSG Holdings (JSE:CSG) Is Reinvesting At Lower Rates Of Return

CSG Holdings (JSE:CSG) Is Reinvesting At Lower Rates Of Return

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jan 22
Does CSG Holdings' (JSE:CSG) CEO Salary Compare Well With The Performance Of The Company?

Does CSG Holdings' (JSE:CSG) CEO Salary Compare Well With The Performance Of The Company?

Pieter Dry has been the CEO of CSG Holdings Limited ( JSE:CSG ) since 2013, and this article will examine the...

Shareholder Returns

CSGZA Professional ServicesZA Market
7D3.2%0.3%-0.7%
1Y128.6%31.9%19.0%

Return vs Industry: CSG exceeded the ZA Professional Services industry which returned 31.9% over the past year.

Return vs Market: CSG exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is CSG's price volatile compared to industry and market?
CSG volatility
CSG Beta0.89
Industry Beta0.91
Market Beta1

Stable Share Price: CSG is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 21% a week.

Volatility Over Time: CSG's weekly volatility (21%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
20065,058Kobus Nieuwoudthttps://www.csgholdings.co.za

CSG Holdings Limited, together with its subsidiaries, provides facilities management, security and risk solutions, and staffing solutions primarily in South Africa, Mozambique, Malawi, and Botswana. The company operates through CSG Facilities, CSG Security, and CSG People segments. It offers temporary outsourced personnel, permanent placements, timekeeping, payroll, human resource, and industrial relations services.

CSG Holdings Fundamentals Summary

How do CSG Holdings's earnings and revenue compare to its market cap?
CSG fundamental statistics
Market CapR162.27m
Earnings (TTM)R26.17m
Revenue (TTM)R1.30b

6.4x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSG income statement (TTM)
RevenueR1.30b
Cost of RevenueR1.02b
Gross ProfitR280.46m
ExpensesR254.29m
EarningsR26.17m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.05
Gross Margin21.54%
Net Profit Margin2.01%
Debt/Equity Ratio1.2%

How did CSG perform over the long term?

See historical performance and comparison

Valuation

Is CSG Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSG (ZAR0.32) is trading below our estimate of fair value (ZAR2.17)

Significantly Below Fair Value: CSG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSG is good value based on its PE Ratio (6.4x) compared to the Global Professional Services industry average (26.2x).

PE vs Market: CSG is good value based on its PE Ratio (6.4x) compared to the ZA market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CSG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CSG is good value based on its PB Ratio (0.4x) compared to the XX Professional Services industry average (2.9x).


Future Growth

How is CSG Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.8%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CSG Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has CSG Holdings performed over the past 5 years?

-43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSG has high quality earnings.

Growing Profit Margin: CSG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CSG's earnings have declined by 43% per year over the past 5 years.

Accelerating Growth: CSG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CSG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (18.1%).


Return on Equity

High ROE: CSG's Return on Equity (6.8%) is considered low.


Financial Health

How is CSG Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CSG's short term assets (ZAR347.7M) exceed its short term liabilities (ZAR196.9M).

Long Term Liabilities: CSG's short term assets (ZAR347.7M) exceed its long term liabilities (ZAR103.3M).


Debt to Equity History and Analysis

Debt Level: CSG's debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: CSG's debt to equity ratio has increased from 0.3% to 1.2% over the past 5 years.

Debt Coverage: CSG's debt is well covered by operating cash flow (2382.5%).

Interest Coverage: CSG's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CSG'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 CSG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: CSG is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CSG's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Kobus Nieuwoudt (58 yo)

0.50

Tenure

R3,207,000

Compensation

Mr. Jacobus Gerrit Nieuwoudt, BCom Hons (Accounting), also known as Kobus, has been the Chief Operating Officer of CSG Holdings Ltd. since November 27, 2013 and also serves as the Chief Executive Officer s...


CEO Compensation Analysis

Compensation vs Market: Kobus's total compensation ($USD216.91K) is about average for companies of similar size in the ZA market ($USD279.53K).

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


Leadership Team

Experienced Management: CSG's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: CSG's board of directors are considered experienced (7.3 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 Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: CSG Holdings Limited
  • Ticker: CSG
  • Exchange: JSE
  • Founded: 2006
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: R162.271m
  • Shares outstanding: 523.45m
  • Website: https://www.csgholdings.co.za

Number of Employees


Location

  • CSG Holdings Limited
  • Brooklyn Office Park
  • Block D
  • Pretoria
  • Gauteng
  • 181
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 17:02
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.