CSG Systems International (CSGS) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: 2%
• Average Volume (3M): 220.09K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.62
• Revenue Growth: 3.08%
• EPS Growth: 34.87%
• Country: US
• Employees: 5,800
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Infrastructure
• EPS (TTM): 1.14
• Shares Outstanding: 28,976,940
• 10 Day Avg. Volume: 278,831
• 30 Day Avg. Volume: 220,087
• PEG Ratio: -6.29
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.57
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: 2.75
• 1Y Price Target: $74.29
• Price Target Upside: 19.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $71.00 ▲(14.33%Upside)

CSG Systems International shows solid financial performance and strong earnings call results, reflecting robust operational and financial health. While technical indicators present mixed signals, the company's valuation remains moderate. The positive outcomes from the recent corporate events further support investor confidence.

Positive Factors

Market Positioning

The company is well positioned to continue growing market share as it moves into adjacent industry verticals and expands beyond the US CSPs to International CSPs.

Revenue Growth

Charter buying Cox likely a positive, as it could lead to Cox subscribers moving to CSGS's billing platform, potentially adding $12M to revenues.

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

Financial Performance

Valuation at 13.3x our 2025 adj EPS estimate looks attractive with growth poised to improve, yet reflects a below peer group 16x P/E multiple.

Revenue Guidance

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

Revenue Mix Shift

The ongoing firmwide revenue mix shift to cloud is expected to drive adjusted operating and free cash flow margins much higher, but presents a transition challenge.

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 the sale of its software solutions and professional services. Its primary revenue streams include recurring revenue from long-term contracts for software-as-a-service (SaaS) solutions, which involve providing cloud-based billing and customer management platforms to telecommunications and media companies. Additionally, the company earns money from professional services, including consulting and implementation services, which help clients optimize and integrate CSG's solutions into their operations. Significant partnerships with major telecommunications providers and media companies enhance the company's ability to secure long-term contracts and maintain a stable revenue flow.

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. Despite the moderate level of leverage, the company's ability to generate cash and return on equity are commendable. Opportunities exist to strengthen its equity base.

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

CSG Systems International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.10
• 50DMA: Negative
• 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 Negative. The current price of 62.1 is below the 20-day moving average (MA) of 63.58, below the 50-day MA of 63.90, and above the 200-day MA of 57.91, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 62.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSGS.

CSG Systems International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEX	75 Outperform	$5.96B	22.00	22.19%	―	-1.62%	36.57%
ACIW	74 Outperform	$4.72B	17.72	19.69%	―	13.11%	91.21%
DOX	74 Outperform	$9.83B	18.50	15.45%	2.29%	-4.37%	7.18%
ATEN	73 Outperform	$1.35B	28.13	24.36%	1.29%	4.90%	9.91%
CSGS	72 Outperform	$1.83B	21.59	30.24%	2.00%	3.08%	34.87%
SPSC	72 Outperform	$5.23B	64.45	10.13%	―	19.46%	16.20%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%

CSG Systems International Corporate Events

CSG Systems International Annual Stockholders Meeting Outcomes

On May 14, 2025, CSG Systems International, Inc. held its Annual Meeting of Stockholders where key proposals were voted upon. The election of Class I Directors saw high approval rates, with Gregory Conley, Marwan Fawaz, and Samantha Greenberg receiving 98.3%, 97.0%, and 99.1% of votes, respectively. Additionally, the compensation of CSG’s Named Executive Officers was approved with 78.8% in favor, and KPMG LLP was ratified as the independent registered public accounting firm for fiscal 2025 with 96.5% approval. These outcomes indicate strong shareholder support for the company’s leadership and strategic direction.

The most recent analyst rating on (CSGS) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.