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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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 4.31% and Operating profit at 3.92% over the last 5 years

Flat results in Dec 25

NET PROFIT(Q) Lowest at USD 10.9 MM
EPS(Q) Lowest at USD 0.25

With ROCE of 23.01%, it has a expensive valuation with a 8.57 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 31.34%, its profits have fallen by -24.9%

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 31.34% in the last 1 year, much higher than market (S&P 500) returns of 14.90%

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.

31.34%

3.95

25.17%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.31%

EBIT Growth (5y)

3.92%

EBIT to Interest (avg)

6.13

Debt to EBITDA (avg)

1.48

Net Debt to Equity (avg)

1.44

Sales to Capital Employed (avg)

1.43

Tax Ratio

21.43%

Dividend Payout Ratio

64.64%

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

18.30

EV to EBIT

37.27

EV to EBITDA

25.80

EV to Capital Employed

8.57

EV to Sales

4.54

PEG Ratio

Dividend Yield

58.88%

ROCE (Latest)

23.01%

ROE (Latest)

25.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 155.94 MM

DIVIDEND PER SHARE(HY)

Highest at USD 3.39

INTEREST COVERAGE RATIO(Q)

Highest at 841.29

DIVIDEND PAYOUT RATIO(Y)

Highest at 130.29%

RAW MATERIAL COST(Y)

Fallen by 1.81% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 135.86 %

NET SALES(Q)

Highest at USD 323.09 MM

-11What is not working for the Company

NET PROFIT(Q)

Lowest at USD 10.9 MM

EPS(Q)

Lowest at USD 0.25

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

Operating Cash Flow

Highest at USD 155.94 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)

Interest Coverage Ratio

Highest at 841.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 3.39 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 323.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 135.86 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 130.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.81% (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 10.9 MM has Fallen at -54.98%

over average net sales of the previous four periods of USD 24.22 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Profit

Lowest at USD 10.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.25

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)