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Fundamental analysis: CSG Systems International, Inc. (CSGS)

Awarener score: 7.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business growth has been almost stagnant. It's been almost average when measured against peer companies.
  • CSG Systems International, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 7.2

  • CSGS profit margins -on goods and services sold- are usually good. They stand mediocre against rival companies.
  • Business profit on sales tends to be very good. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in good shape compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 2.3

  • CSG Systems International, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
  • In recent years, earnings -on operations- have been shrinking, which has been mediocre against comparable firms.
  • Profits -available to repay debt and purchase properties- tended to shrink, which compares weak when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- tended to shrink. It turns to be in a very weak position compared to similar stocks.
  • In past years, profits -before income taxes- tended to shrink. It was worse than most rivals.
  • In the previous years, growth on total net profit has been negative, and weak when measured against peer companies.
  • Earnings per share have been shrinking in the past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 5.0

  • CSGS had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • Research and development expenses consume a moderate portion of revenues. It's more than average in relation to competitors.
  • The company grows sparsely in relation to research and development efforts. It stands close to average when compared to rival companies.

Profitability score: 8.8

  • CSG Systems International, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
  • In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.9

  • CSGS usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands great when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is almost average when measured against industry peers.
  • In the past twelve months it paid some dividends, considering the current stock price. It came slightly worse than competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved rather normal in relation to similar firms.
  • The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks slightly worse than comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
  • The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks similar to competitors.

Balance Sheet score: 5.7

  • CSG Systems International, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a very weak position compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks almost average when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are mostly on cash. It still ranks weak when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers before a month from the purchase. It ranks weak when measured against industry peers.
  • The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's in a very weak position compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands slightly better than rival firms.
  • Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
  • Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.2

  • CSG Systems International, Inc. looks heavily expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands better than most similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still great when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks mediocre against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
  • The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 5.9


CSGS logos

Company at a glance: CSG Systems International, Inc. (CSGS)

Sector, industry: Technology, Software—Infrastructure

Market Cap: 1.72 billions

Revenues TTM: 1.06 billions

CSG Systems International, Inc. provides revenue management and digital monetization, customer engagement, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private SaaS based platform; related solutions, including field force automation, analytics, electronic bill presentment, ACH, etc. to the North American cable and satellite markets. The company also provides managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging. It serves retail, financial services, healthcare, insurance, and government entities. The company was incorporated in 1994 and is headquartered in Greenwood Village, Colorado.

Awarener score: 7.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).