CSG Systems International (CSGS) AI Stock Analysis

• Market Cap: $2.28B
• Dividend Yield: 1.66%
• Average Volume (3M): 522.26K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.59
• Revenue Growth: 3.30%
• EPS Growth: 31.18%
• Country: US
• Employees: 5,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.53
• Shares Outstanding: 28,501,936
• 10 Day Avg. Volume: 455,821
• 30 Day Avg. Volume: 522,262
• PEG Ratio: -1.12
• Price to Book (P/B): 7.49
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 15.02
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 14.15
• 1Y Price Target: $80.70
• Price Target Upside: 1.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.18
• Revenue Forecast (FY): $1.19B

• Rating: 70 Outperform
• Price Target: $87.00 ▲(9.12% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

Overall score reflects strong financial momentum and steady cash generation as the main positives, supported by constructive technicals. The key constraints are elevated leverage and a relatively high P/E with only a modest dividend yield, while the NEC acquisition progress adds a meaningful positive corporate catalyst.

Positive Factors

Recurring subscription revenue & strong top-line growth

CSG’s subscription-heavy software and services model combined with TTM revenue growth near 52.9% indicates durable, contract-driven revenue expansion. Recurring licenses, maintenance and managed services support predictable cash flows and scalable margins as telecom/media customers digitize over the coming months.

Healthy cash generation and FCF conversion

Consistent operating cash flow (~$156M TTM) and free cash flow (~$145M) with FCF close to net income demonstrate earnings quality and strong cash conversion. This provides durable capacity to fund operations, shareholder returns, M&A integration, and deleveraging over the next several quarters.

Strategic acquisition progress and governance change

Shareholder approval and regulatory progress toward NEC’s acquisition create a structural change: CSG should gain access to NEC’s global scale, R&D and distribution. Over months this can strengthen competitive positioning, expand enterprise sales channels and fund product roadmap acceleration under new ownership.

Negative Factors

Elevated leverage

A debt-to-equity ratio near 2.0 constrains financial flexibility and raises refinancing and interest-rate sensitivity. Elevated leverage limits room for opportunistic investment or sustained dividend increases and requires sustained cash generation or deleveraging to materially reduce balance-sheet risk.

Modest margin compression

Though profitable, CSG has experienced modest declines in EBITDA and net margins versus 2024, signaling cost pressure or mix shifts. Sustained margin erosion would reduce cash available for reinvestment and debt paydown and could pressure returns if revenue growth slows or integration costs rise.

Slowing free cash flow growth

A ~10.7% drop in FCF growth suggests working-capital or reinvestment headwinds that can persist across quarters. Slower FCF expansion constrains the company’s ability to accelerate deleveraging, sustain dividend increases, or fund growth initiatives without relying on external financing.

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

Fundamentals are solid: TTM revenue growth is strong (~52.9%) with positive profitability (gross margin ~49%, EBITDA margin ~17.3%, net margin ~6.8%) and healthy free cash flow (~$145M). Key offsets are modest margin easing and elevated leverage (debt-to-equity ~2.0), though the apparent TTM debt reduction is a positive risk-trend if sustained.

Income Statement

TTM (Trailing-Twelve-Months) results show strong top-line momentum (revenue growth ~52.9%) with solid profitability: gross margin ~49%, EBITDA margin ~17.3%, and net margin ~6.8%. Profit levels are stable versus 2024 (net income roughly flat), but margins have eased modestly from 2024 (net and EBITDA margins down), indicating some cost pressure despite the growth.

Balance Sheet

Leverage remains a key watch item with debt-to-equity around ~2.0 in both 2024 and TTM (Trailing-Twelve-Months), which is elevated for balance-sheet flexibility. Positively, returns on equity are strong (~29% TTM), and reported total debt appears to drop sharply in TTM versus 2024, suggesting meaningful de-levering (or a reporting mix shift) that improves risk profile if sustained.

Cash Flow

Cash generation is healthy in TTM (Trailing-Twelve-Months) with operating cash flow of ~$156M and free cash flow of ~$145M, and free cash flow runs close to net income (~0.90x), supporting earnings quality. The main weakness is a decline in free cash flow growth (down ~10.7% TTM) after prior-year improvement, suggesting working-capital or reinvestment headwinds.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22B	1.20B	1.17B	1.09B	1.05B
Gross Profit	581.61M	582.78M	554.22M	524.58M	503.28M
EBITDA	191.24M	215.25M	194.78M	154.16M	191.34M
Net Income	55.88M	86.85M	66.25M	44.06M	72.33M
Balance Sheet
Total Assets	1.54B	1.50B	1.44B	1.35B	1.39B
Cash, Cash Equivalents and Short-Term Investments	180.01M	161.79M	186.26M	150.44M	233.67M
Total Debt	586.59M	574.58M	592.80M	487.19M	468.06M
Total Liabilities	1.26B	1.22B	1.17B	993.30M	946.90M
Stockholders Equity	283.70M	282.57M	273.33M	355.25M	436.61M
Cash Flow
Free Cash Flow	141.39M	113.30M	103.92M	26.61M	113.66M
Operating Cash Flow	155.94M	135.72M	131.90M	63.60M	140.22M
Investing Cash Flow	-14.14M	-5.13M	-27.91M	-9.04M	-66.71M
Financing Cash Flow	-121.44M	-79.92M	-31.30M	-51.69M	-33.39M

CSG Systems International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.73
• 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 79.73 is above the 20-day moving average (MA) of 79.72, above the 50-day MA of 78.77, and above the 200-day MA of 69.59, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.83 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
RAMP	73 Outperform	$1.63B	24.89	7.16%	―	10.13%	1280.04%
NTCT	71 Outperform	$2.07B	22.51	6.07%	―	9.60%	―
CSGS	70 Outperform	$2.28B	40.31	28.84%	1.66%	3.30%	31.18%
ATEN	70 Outperform	$1.36B	33.32	19.01%	1.33%	10.27%	3.52%
RDWR	69 Neutral	$970.54M	50.78	6.09%	―	10.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CSG Systems International Corporate Events

CSG Shareholders Approve Merger to Become NEC Subsidiary

On January 30, 2026, CSG Systems International, Inc. held a special meeting of stockholders at which a quorum of 23,588,332 shares of common stock was present or represented by proxy, out of 28,520,509 shares outstanding as of the December 10, 2025 record date. Stockholders overwhelmingly approved the Agreement and Plan of Merger with Japan’s NEC Corporation and its wholly owned subsidiary, Canvas Transaction Company, Inc., under which Canvas will merge with and into CSG, and CSG will survive as a wholly owned subsidiary of NEC, while also giving non-binding advisory approval to the merger-related compensation for CSG’s named executive officers. The adjournment proposal was not needed because the merger agreement received sufficient support, and, assuming all remaining customary closing conditions and regulatory approvals are satisfied on time, the companies expect to close the transaction within the 2026 calendar year, marking a significant step toward CSG’s transition into NEC’s corporate structure and potentially altering its future strategic direction and governance for existing stakeholders.

The most recent analyst rating on (CSGS) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.

CSG Systems Advances Toward Acquisition by NEC Corporation

On October 29, 2025, CSG Systems International, Inc. entered into a merger agreement with Japan’s NEC Corporation under which a wholly owned NEC subsidiary, Canvas Transaction Company, Inc., will merge with CSG, leaving CSG as the surviving entity and a wholly owned subsidiary of NEC. The transaction cleared a key regulatory hurdle when the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired at 11:59 p.m. Eastern Time on January 5, 2026, though the closing still depends on additional regulatory approvals, majority shareholder approval of the merger agreement, and other customary conditions, marking continued progress toward CSG’s planned acquisition and integration into NEC’s global operations.

The most recent analyst rating on (CSGS) stock is a Hold with a $80.70 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.