CSG Systems International, Inc. (CSGS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Tyler Technologies, Inc.

Euronet Worldwide, Inc.

CSG Systems International, Inc.

DXC Technology Co.

Akamai Technologies, Inc.

Jacobs Solutions, Inc.

Dropbox, Inc.

Why is CSG Systems International, Inc. ?

High Management Efficiency with a high ROCE of 20.49%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.48 times

Poor long term growth as Net Sales has grown by an annual rate of 4.02% and Operating profit at 2.24% over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 170.76 MM
DIVIDEND PER SHARE(HY) Highest at USD 3.38
RAW MATERIAL COST(Y) Fallen by -5.46% (YoY)

With ROCE of 21.46%, it has a fair valuation with a 6.68 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.66%, its profits have risen by 26.6% ; the PEG ratio of the company is 1.5

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 41.66% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CSG Systems International, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CSG Systems International, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

CSG Systems International, Inc.

41.21%

3.33

28.63%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.02%

EBIT Growth (5y)

2.24%

EBIT to Interest (avg)

6.13

Debt to EBITDA (avg)

1.48

Net Debt to Equity (avg)

1.44

Sales to Capital Employed (avg)

1.41

Tax Ratio

21.43%

Dividend Payout Ratio

39.61%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

20.49%

ROE (avg)

24.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.85

EV to EBIT

31.15

EV to EBITDA

21.26

EV to Capital Employed

6.68

EV to Sales

3.84

PEG Ratio

1.47

Dividend Yield

92.14%

ROCE (Latest)

21.46%

ROE (Latest)

34.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 170.76 MM

DIVIDEND PER SHARE(HY)

Highest at USD 3.38

RAW MATERIAL COST(Y)

Fallen by -5.46% (YoY

-8What is not working for the Company

OPERATING PROFIT(Q)

Lowest at USD 50.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.97 %

PRE-TAX PROFIT(Q)

Lowest at USD 24.52 MM

NET PROFIT(Q)

Lowest at USD 15.09 MM

EPS(Q)

Lowest at USD 0.44

Here's what is working for CSG Systems International, Inc.

Operating Cash Flow

Highest at USD 170.76 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 3.38 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -5.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for CSG Systems International, Inc.

Net Profit

At USD 15.09 MM has Fallen at -38.34%

over average net sales of the previous four periods of USD 24.47 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 50.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 16.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 24.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 24.52 MM has Fallen at -22.06%

over average net sales of the previous four periods of USD 31.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 15.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)