Consensus Cloud Solutions (CCSI) AI Stock Analysis

• Market Cap: $462.34M
• Dividend Yield: N/A
• Average Volume (3M): 149.67K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.15
• Revenue Growth: -2.75%
• EPS Growth: -4.13%
• Country: US
• Employees: 518
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 1.37
• Shares Outstanding: 19,540,937
• 10 Day Avg. Volume: 165,209
• 30 Day Avg. Volume: 149,674
• PEG Ratio: -0.33
• Price to Book (P/B): -4.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.43
• Enterprise Value/Market Cap: 3.86
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 2.60
• 1Y Price Target: $31.50
• Price Target Upside: 33.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $24.00 ▲(1.44%Upside)

The overall stock score is primarily influenced by financial performance risks such as declining revenue and high leverage, which are partially offset by strong technical indicators and attractive valuation. Earnings call insights highlight a strategic pivot towards more profitable sectors, providing a balanced view of future prospects.

Positive Factors

Financial Strategy

Management continues to pay down debt, and the overall market appears to be improving.

Product Adoption

Adoption of CCSI's advanced products like Clarity and Unite are in early stages but are seen as promising up-sell opportunities for the company.

Revenue Growth

Corporate revenue growth increased +5.6% y/y, the highest growth rate in 2 years, driven by new account wins and 101% revenue retention.

Negative Factors

Profitability Concerns

CCSI provided 2025 EBITDA guidance below previous estimates, reflecting a potentially challenging outlook for profitability.

Revenue Decline

SoHo revenue of ~$32.8M declined by -11% y/y, and the number of SoHo customers declined by approximately -10% y/y.

Consensus Cloud Solutions Business Overview & Revenue Model

Company Description

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. Its products and solutions include eFax, an online faxing solution, as well as MyFax, MetroFax, Sfax, SRfax, and other brands; eFax Corporate, a digital cloud-fax technology; jsign, which provides electronic and digital signature solutions; Unite, a single platform that allows the user to choose between several protocols to send and receive healthcare information in an environment that can integrate into an existing electronic health record (EHR) system or stand-alone if no EHR is present; Signal, a solution that integrates with a hospital's EHR system and uses rules-based triggering logic to automatically send admit, discharge, and transfer notifications using cloud fax and direct secure messaging technology; and Clarity that transforms unstructured documents into structured actionable data. It serves healthcare, education, law, and financial services industries. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

How the Company Makes Money

Consensus Cloud Solutions makes money through a subscription-based revenue model, wherein customers pay recurring fees for access to its secure cloud faxing and document delivery services. The company offers various pricing tiers based on usage volume and specific features required, allowing clients to choose plans that best suit their needs. Additionally, CCSI generates revenue through value-added services and solutions that enhance document management capabilities. Key revenue streams include subscriptions from healthcare providers, legal firms, and enterprises that rely on secure document transmission. Partnerships with technology integrators and service providers also contribute to its earnings by expanding its market reach and facilitating customer acquisition.

Consensus Cloud Solutions Financial Statement Overview

Summary

The company shows strong operational efficiency with stable EBIT and EBITDA margins. However, the decline in revenue and high financial leverage with negative equity pose significant risks, impacting the company's financial stability.

Income Statement

The company experienced a decline in revenue over the recent periods, with total revenue dropping from $362.56M in 2023 to $349.37M TTM. The gross profit margin remains healthy at approximately 79.7% TTM, although net profit margins have slightly decreased to about 24.1%. EBIT and EBITDA margins are stable, indicating effective cost management, but the revenue contraction is concerning.

Balance Sheet

The balance sheet shows a negative stockholders' equity of -$49.36M TTM, suggesting high leverage. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, indicating significant financial risk. The company's total liabilities exceed total assets, highlighting potential solvency issues.

Cash Flow

The company maintains healthy cash flows with an operating cash flow of $118M TTM and a free cash flow of $86.29M. The free cash flow growth rate is positive, and the operating cash flow to net income ratio remains strong, suggesting good cash conversion efficiency. However, the overall cash flow is impacted by high financing outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.37M	350.38M	362.56M	362.42M	617.89M	678.46M
Gross Profit	278.66M	280.69M	294.24M	300.47M	487.19M	524.21M
EBITDA	167.81M	176.74M	165.95M	166.97M	188.94M	241.28M
Net Income	84.22M	89.43M	77.24M	72.71M	109.00M	152.91M
Balance Sheet
Total Assets	629.65M	602.20M	647.25M	636.74M	559.59M	1.49B
Cash, Cash Equivalents and Short-Term Investments	53.40M	33.55M	88.72M	94.16M	67.19M	128.19M
Total Debt	11.47M	607.15M	749.23M	810.53M	808.57M	59.12M
Total Liabilities	679.00M	681.66M	823.38M	891.52M	893.39M	368.88M
Stockholders Equity	-49.36M	-79.46M	-176.12M	-254.78M	-333.80M	1.12B
Cash Flow
Free Cash Flow	86.29M	88.31M	77.65M	52.28M	215.64M	203.22M
Operating Cash Flow	118.00M	121.75M	114.11M	83.32M	250.22M	238.79M
Investing Cash Flow	-36.71M	-33.44M	-40.46M	-43.27M	-42.54M	-60.92M
Financing Cash Flow	-89.91M	-138.62M	-81.66M	-10.62M	-880.00K	-179.09M

Consensus Cloud Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCSI, the sentiment is Positive. The current price of 23.66 is above the 20-day moving average (MA) of 22.74, above the 50-day MA of 22.04, and above the 200-day MA of 23.53, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 77.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCSI.

Consensus Cloud Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAND	67 Neutral	$479.48M	―	-0.32%	―	18.51%	97.57%
JG	64 Neutral	$65.97M	―	-10.44%	―	16.93%	85.85%
KLTR	64 Neutral	$307.24M	―	-89.29%	―	2.40%	54.99%
CCSI	60 Neutral	$462.34M	5.47	-94.58%	―	-2.75%	-4.13%
GRRR	56 Neutral	$405.05M	―	24.92%	―	―	―
Sector *	50 Neutral	AU$1.48B	1.44	-28.24%	3.27%	16.24%	-7.89%
RXT	47 Neutral	$303.86M	―	81.52%	―	-6.14%	67.53%

Consensus Cloud Solutions Corporate Events

Consensus Cloud Solutions’ Annual Stockholder Meeting Results

On June 11, 2025, Consensus Cloud Solutions held its annual meeting of stockholders where three key proposals were voted on. The election of Class I directors, appointment of Deloitte & Touche, LLP as the independent auditor for fiscal 2025, and the approval of executive compensation were all passed, indicating strong shareholder support for the company’s current leadership and strategic direction.

The most recent analyst rating on (CCSI) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Consensus Cloud Solutions stock, see the CCSI Stock Forecast page.