CSG Systems International (CSGS) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: 1.9%
• Average Volume (3M): 262.99K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.67
• Revenue Growth: 3.31%
• EPS Growth: 31.16%
• Country: US
• Employees: 5,800
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 1.16
• Shares Outstanding: 28,768,398
• 10 Day Avg. Volume: 208,854
• 30 Day Avg. Volume: 262,986
• 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: 1.20
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 10.40
• 1Y Price Target: $76.00
• Price Target Upside: 16.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $74.00 ▲(13.53% Upside)

CSG Systems International's overall stock score is driven by strong technical indicators and positive earnings call outcomes, highlighting record revenue and improved profitability. The expansion of the Charter Communications contract further boosts confidence in future growth. However, financial performance is tempered by high debt levels and variable free cash flow, and the valuation is fair but not particularly compelling.

Positive Factors

Financial Performance

The quarter's results were strong across the board, similar to last quarter's results, though there seems to be no quarterly change in the operating environment.

Profitability

Cost and gross margin improvements helped drive adjusted EBITDA margin expansion of 250 basis points year-over-year to 25.1%.

Strategic Partnerships

CSG is gaining importance as a strategic partner for high profile technology companies, as manifested by its expanded collaboration with AWS to accelerate cloud transformation in telecommunications & financial services.

Negative Factors

Market Conditions

There seems to be no quarterly change in the operating environment, which might limit growth potential.

Revenue Growth

Organic revenue growth guidance was lowered to the range +2-3% y/y, from +2-4% y/y previously.

CSG Systems International Business Overview & Revenue Model

Company Description

CSG Systems International (CSGS) is a global leader in revenue management and customer experience solutions, primarily serving the telecommunications, cable, and media sectors. The company provides a comprehensive suite of services that includes billing and revenue management, customer relationship management (CRM), and digital engagement solutions, enabling clients to enhance customer experiences, streamline operations, and maximize revenue growth.

How the Company Makes Money

CSG Systems International generates revenue through a combination of software licenses, subscription services, and professional services. The company’s primary revenue streams include licensing fees for its software solutions, ongoing subscription fees for cloud-based services, and consulting and implementation services that support customers in deploying and optimizing their systems. Additionally, CSG maintains strategic partnerships with major telecommunications and media companies, which enhance its market reach and drive sales through bundled service offerings. The company also benefits from long-term contracts with clients, providing a stable and predictable revenue base.

CSG Systems International Financial Statement Overview

Summary

CSG Systems International exhibits solid financial health with stable revenue growth, strong profitability margins, and effective cash flow management. The company has a moderate level of leverage but demonstrates commendable cash generation and return on equity.

Income Statement

CSG Systems International shows a steady growth in revenue, with a Revenue Growth Rate of 0.36% for the TTM (Trailing-Twelve-Months) period. The Gross Profit Margin remains strong at 48.7%, and the Net Profit Margin is a healthy 6.95%. EBIT and EBITDA margins are 11.41% and 17.23% respectively, indicating solid operational efficiency. However, the slight decline in Net Income from the previous period suggests potential areas for improvement.

Balance Sheet

The company maintains a manageable Debt-to-Equity Ratio of 2.00, indicating a moderate level of leverage. The Return on Equity (ROE) for the TTM period is 29.50%, reflecting effective use of equity. However, the Equity Ratio stands at 19.95%, suggesting lower equity financing relative to total assets, which could imply higher financial risk.

Cash Flow

CSG Systems International displays strong cash flow management with an Operating Cash Flow to Net Income Ratio of 2.11, indicating robust cash generation relative to net earnings. The Free Cash Flow to Net Income Ratio is 1.85, highlighting the company's ability to convert earnings into free cash flow efficiently. Furthermore, the Free Cash Flow Growth Rate of 36.36% suggests a positive cash flow trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.20B	1.17B	1.09B	1.05B	990.53M
Gross Profit	600.05M	582.78M	554.22M	524.58M	503.28M	454.94M
EBITDA	216.92M	215.25M	194.78M	149.04M	189.55M	170.71M
Net Income	81.95M	86.85M	66.25M	44.06M	72.33M	58.71M
Balance Sheet
Total Assets	1.42B	1.50B	1.44B	1.35B	1.39B	1.33B
Cash, Cash Equivalents and Short-Term Investments	145.88M	161.79M	186.26M	150.44M	233.67M	240.30M
Total Debt	564.94M	574.58M	592.80M	487.19M	468.06M	469.79M
Total Liabilities	1.13B	1.22B	1.17B	993.30M	946.90M	909.61M
Stockholders Equity	290.72M	282.57M	273.33M	355.25M	436.61M	422.39M
Cash Flow
Free Cash Flow	153.01M	113.30M	103.92M	26.61M	113.66M	143.62M
Operating Cash Flow	170.76M	135.72M	131.90M	63.60M	140.22M	173.02M
Investing Cash Flow	-20.35M	-5.13M	-27.91M	-9.04M	-66.71M	-66.26M
Financing Cash Flow	-94.21M	-79.92M	-31.30M	-51.69M	-33.39M	-76.97M

CSG Systems International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.18
• 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 CSGS, the sentiment is Positive. The current price of 65.18 is above the 20-day moving average (MA) of 63.37, above the 50-day MA of 63.25, and above the 200-day MA of 60.00, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.69 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
WEX	77 Outperform	$5.87B	21.79	22.19%	―	-1.62%	36.57%
CSGS	76 Outperform	$1.88B	22.59	29.06%	1.90%	3.31%	31.16%
ATEN	76 Outperform	$1.27B	25.77	24.39%	1.38%	11.04%	18.70%
ACIW	74 Outperform	$5.19B	21.68	19.09%	―	11.22%	40.85%
DOX	74 Outperform	$9.56B	17.38	15.75%	2.34%	-6.76%	13.90%
SPSC	67 Neutral	$4.19B	50.74	10.03%	―	20.51%	12.84%
Sector *	61 Neutral	$35.56B	8.99	-10.49%	1.86%	8.45%	-8.32%

CSG Systems International Corporate Events

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.