CSG Systems International (CSGS) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: 1.95%
• Average Volume (3M): 228.76K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.66
• Revenue Growth: 3.31%
• EPS Growth: 31.16%
• Country: US
• Employees: 5,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.16
• Shares Outstanding: 28,768,398
• 10 Day Avg. Volume: 290,480
• 30 Day Avg. Volume: 228,765
• 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: 1.21
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 10.40
• 1Y Price Target: $76.33
• Price Target Upside: 17.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $74.00 ▲(14.23% 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

Contract Expansion

The extension of the Charter Communications contract through 2031 strengthens CSG's revenue base and enhances long-term growth prospects by solidifying a key partnership.

Revenue Diversification

CSG's efforts to diversify revenue sources reduce dependency on the telecom sector, enhancing stability and opening new growth avenues.

Improved Cash Flow

Significant improvement in free cash flow indicates better cash generation, supporting financial flexibility and potential reinvestment in growth initiatives.

Negative Factors

High Debt Levels

Rising debt levels could strain financial resources, especially if interest rates increase, potentially impacting long-term financial health.

Variable Free Cash Flow

Volatility in free cash flow growth may lead to inconsistent cash availability, affecting the company’s ability to fund operations and investments reliably.

Lower Revenue Growth Guidance

Lower revenue growth expectations due to market headwinds could limit future expansion and impact investor confidence in sustained growth.

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 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 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	1.21B	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: Neutral
• Last Price: 64.78
• 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 Neutral. The current price of 64.78 is below the 20-day moving average (MA) of 65.00, above the 50-day MA of 63.43, and above the 200-day MA of 60.58, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSGS.

CSG Systems International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGS	76 Outperform	$1.86B	22.45	29.06%	1.95%	3.31%	31.16%
ATEN	76 Outperform	$1.32B	26.75	25.01%	1.31%	11.04%	18.70%
ACIW	74 Outperform	$5.39B	22.12	18.02%	―	11.22%	40.85%
DOX	74 Outperform	$8.98B	16.49	15.84%	2.46%	-6.76%	13.90%
WEX	69 Neutral	$5.50B	20.29	31.31%	―	-1.62%	36.57%
SPSC	67 Neutral	$4.03B	48.83	8.73%	―	20.51%	12.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.