CSG Systems International (CSGS) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: 1.61%
• Average Volume (3M): 522.26K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.62
• Revenue Growth: 3.30%
• EPS Growth: 31.18%
• Country: US
• Employees: 5,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.31
• Shares Outstanding: 28,520,178
• 10 Day Avg. Volume: 455,821
• 30 Day Avg. Volume: 522,262
• PEG Ratio: 0.43
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 3.70
• Enterprise Value/Ebitda: 10.50
• 1Y Price Target: $80.78
• Price Target Upside: 3.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.76
• Revenue Forecast (FY): $1.12B

• Rating: 79 Outperform
• Price Target: $90.00 ▲(15.22% Upside)

CSG Systems International's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis indicates bullish momentum, although the stock may be overbought. The valuation suggests the stock is relatively expensive, which slightly tempers the overall score.

Positive Factors

Revenue Diversification

CSG's revenue diversification reduces dependency on traditional telecom sectors, enhancing resilience and growth potential across various industries.

Improved Profitability

Improved operating margins indicate better cost management and operational efficiency, supporting sustainable profitability and competitive positioning.

Strong Cash Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and shareholder returns, bolstering long-term value.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Lower Revenue Growth Guidance

Lower growth expectations may signal challenges in market expansion and could affect investor confidence and future earnings potential.

Contract Termination

Loss of key contracts can reduce revenue streams and indicate potential issues in client retention, impacting long-term business stability.

CSG Systems International Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

CSG Systems International generates revenue primarily through a subscription-based model for its software solutions, which includes billing and revenue management systems. Key revenue streams include software licenses, maintenance, and support services, as well as professional services that encompass consulting and implementation. Additionally, the company earns revenue through managed services and hosting solutions. CSG also benefits from strategic partnerships with telecommunications companies and technology providers, which help expand its market reach and enhance its product offerings. The growing demand for digital transformation in the telecommunications and media sectors further contributes to CSG's earnings by driving the need for advanced billing and customer management solutions.

CSG Systems International Financial Statement Overview

Summary

CSG Systems International demonstrates solid revenue growth and profitability, with stable margins and improving cash flow from operations. However, the increasing debt levels and variability in free cash flow growth present potential risks. The company should focus on managing its leverage and ensuring consistent cash flow generation to maintain financial stability.

Income Statement

CSG Systems International shows a strong revenue growth trajectory, particularly with a significant increase in the TTM period. Gross profit margins are healthy, consistently around 48-49%, indicating efficient cost management. However, the net profit margin has slightly declined in the TTM period, suggesting some pressure on net earnings. EBIT and EBITDA margins remain stable, supporting overall profitability.

Balance Sheet

The company has a high debt-to-equity ratio, which has increased over time, indicating a reliance on debt financing. This poses a potential risk if interest rates rise or if the company faces cash flow challenges. Return on equity is strong, reflecting efficient use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to asset financing.

Cash Flow

Operating cash flow has improved in the TTM period, indicating better cash generation from operations. However, free cash flow growth has been volatile, with a significant decline in the most recent period. The operating cash flow to net income ratio is improving, suggesting better cash conversion, but the free cash flow to net income ratio indicates some variability in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.20B	1.17B	1.09B	1.05B	990.53M
Gross Profit	596.18M	582.78M	554.22M	524.58M	503.28M	454.94M
EBITDA	210.29M	215.25M	194.78M	154.16M	191.34M	170.71M
Net Income	83.35M	86.85M	66.25M	44.06M	72.33M	58.71M
Balance Sheet
Total Assets	1.47B	1.50B	1.44B	1.35B	1.39B	1.33B
Cash, Cash Equivalents and Short-Term Investments	158.38M	161.79M	186.26M	150.44M	233.67M	240.30M
Total Debt	566.30M	574.58M	592.80M	487.19M	468.06M	469.79M
Total Liabilities	1.18B	1.22B	1.17B	993.30M	946.90M	909.61M
Stockholders Equity	289.50M	282.57M	273.33M	355.25M	436.61M	422.39M
Cash Flow
Free Cash Flow	162.19M	113.30M	103.92M	26.61M	113.66M	143.60M
Operating Cash Flow	179.24M	135.72M	131.90M	63.60M	140.22M	172.99M
Investing Cash Flow	-16.72M	-5.13M	-27.91M	-9.04M	-66.71M	-66.26M
Financing Cash Flow	-59.47M	-79.92M	-31.30M	-51.69M	-33.39M	-92.11M

CSG Systems International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGS, the sentiment is Positive. The current price of 78.11 is below the 20-day moving average (MA) of 78.22, above the 50-day MA of 71.49, and above the 200-day MA of 64.62, indicating a neutral trend. The MACD of 1.78 indicates Positive momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSGS.

CSG Systems International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGS	79 Outperform	$2.22B	26.41	28.84%	1.61%	3.30%	31.18%
ATEN	77 Outperform	$1.23B	25.18	23.88%	1.40%	10.27%	3.52%
RAMP	75 Outperform	$1.82B	47.32	4.10%	―	10.13%	1280.04%
NTCT	72 Outperform	$1.93B	21.79	5.91%	―	9.60%	―
RDWR	65 Neutral	$1.01B	61.83	5.09%	―	10.40%	―
VRNT	62 Neutral	$1.24B	31.11	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CSG Systems International Corporate Events

CSG Systems Reports Strong Q3 2025 Financial Results

CSG Systems International, Inc. is a company that specializes in customer experience, billing, and payments solutions, primarily serving the telecommunications and broadband industries with its SaaS offerings. In its third quarter of 2025, CSG Systems reported a total revenue of $303.6 million, marking a 2.9% increase compared to the same period in 2024. The company’s GAAP operating income was $30.5 million, while non-GAAP operating income reached $54.5 million, reflecting a non-GAAP adjusted operating margin of 19.5%. GAAP earnings per share stood at $0.73, with non-GAAP EPS at $1.31.

NEC to Acquire CSG Systems for $2.9 Billion

On October 29, 2025, CSG Systems International and NEC Corporation announced a definitive agreement for NEC to acquire CSG for approximately $2.9 billion. This acquisition aims to bolster NEC’s position in digital transformation by integrating CSG’s SaaS portfolio and global customer base, enhancing NEC’s offerings in AI and cloud-driven solutions across various industries. The merger, approved by both companies’ boards, is expected to close in 2026, pending customary conditions and regulatory approvals.

The most recent analyst rating on (CSGS) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.

CSG Systems Merges with NEC, Delists from Nasdaq

On October 29, 2025, CSG Systems International entered into a Merger Agreement with NEC Corporation and Canvas Transaction Company, where CSG will merge with and become a wholly owned subsidiary of NEC. The merger will result in CSG’s shares being converted to cash, delisted from Nasdaq, and deregistered under the Securities Exchange Act of 1934. The agreement includes various conditions and covenants, such as maintaining business operations in the ordinary course and prohibiting solicitation of alternative offers, with specific termination rights and fees outlined for both parties.

The most recent analyst rating on (CSGS) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.

CSG Systems Expands Contract with Charter Communications

On September 4, 2025, CSG Systems International announced an extension and expansion of its contract with Charter Communications, extending their partnership through September 30, 2031. This agreement allows CSG to continue providing revenue management and monetization services to Charter, leveraging their cloud-native SaaS platform, CSG Ascendon, to enhance Charter’s digital entertainment offerings. The extension of this relationship is expected to create significant value for both companies, as CSG continues to support Charter’s residential Internet, TV, and home phone services.

The most recent analyst rating on (CSGS) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.