CPI Card Group (PMTS) AI Stock Analysis

• Market Cap: $162.12M
• Dividend Yield: N/A
• Average Volume (3M): 68.30K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.50
• Revenue Growth: 14.31%
• EPS Growth: -25.64%
• Country: US
• Employees: 1,500
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.29
• Shares Outstanding: 11,337,367
• 10 Day Avg. Volume: 34,086
• 30 Day Avg. Volume: 68,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.63
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 8.19
• 1Y Price Target: $35.67
• Price Target Upside: 153.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $14.50 ▲(3.20% Upside)

CPI Card Group's overall stock score is driven by moderate financial performance and strong earnings call highlights. However, bearish technical indicators and financial leverage concerns weigh down the score. The company's strategic moves in borrowing capacity and acquisitions provide a positive outlook, but challenges remain.

Positive Factors

Investment and Expansion

CPI Card Group is making investments to cater to a broader closed-loop prepaid opportunity and is adding tech and capacity at its Indiana facility.

Market Position

CPI is the fourth largest global card manufacturer and the largest U.S.-based according to Nilson Report.

Revenue Growth

Revenue growth of 21% was driven by higher-value packaging solutions and healthcare payment solutions.

Negative Factors

Gross Margin

Better operating leverage was overshadowed by gross margin softness resulting from a negative product mix.

Valuation

Shares trade at a significant discount to comps despite an EPS growth rate in line with the median peer group.

CPI Card Group Business Overview & Revenue Model

Company Description

CPI Card Group (PMTS) is a leading provider of secure payment card production and related services, specializing in the design, manufacturing, and personalization of both physical and digital payment solutions. The company operates primarily in the financial services sector, offering products such as EMV chip cards, contactless payment cards, and mobile payment solutions. CPI Card Group serves a diverse clientele that includes financial institutions, retailers, and technology companies, ensuring a comprehensive range of services from card issuance to fulfillment and secure printing.

How the Company Makes Money

CPI Card Group generates revenue through several key streams including the production and sale of payment cards, which encompass EMV chip technology, contactless cards, and other card-related services. The company also earns income from its card personalization services, where they customize cards with customer branding and data. In addition, CPI Card Group provides secure card fulfillment services, allowing clients to outsource the entire card issuance process. Significant partnerships with banks, credit unions, and fintech companies bolster its revenue, as these institutions rely on CPI's expertise to manage their card programs. Furthermore, the rise of digital payments has expanded CPI's offerings into mobile payment solutions, contributing to its overall growth and revenue generation.

CPI Card Group Financial Statement Overview

Summary

CPI Card Group shows moderate revenue growth and strong cash flow generation, but faces challenges with profitability margins and a highly leveraged balance sheet. The negative equity position poses a risk, though cash flow growth is a positive indicator for future stability.

Income Statement

CPI Card Group shows moderate revenue growth with a TTM increase of 2.23%. However, the gross profit margin has slightly decreased to 33.47% from 35.63% in the previous year. The net profit margin also declined to 2.99% from 4.06%. EBIT and EBITDA margins have decreased, indicating some pressure on operational efficiency.

Balance Sheet

The company has a negative stockholders' equity, resulting in a high and negative debt-to-equity ratio of -10.71. This indicates significant leverage and potential financial instability. Return on equity is also negative, reflecting challenges in generating returns for shareholders.

Cash Flow

CPI Card Group's free cash flow has grown by 20.22% TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.62, indicating a healthy conversion of income to cash. However, the free cash flow to net income ratio is slightly lower at 0.79.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	502.36M	480.60M	444.55M	475.75M	375.12M	312.19M
Gross Profit	168.13M	171.22M	155.49M	175.77M	141.43M	110.31M
EBITDA	71.83M	79.21M	77.31M	93.65M	74.56M	55.11M
Net Income	15.00M	19.52M	23.98M	36.54M	15.94M	16.13M
Balance Sheet
Total Assets	399.80M	349.66M	293.68M	296.67M	268.14M	266.15M
Cash, Cash Equivalents and Short-Term Investments	17.12M	33.54M	12.41M	11.04M	20.68M	57.60M
Total Debt	310.91M	289.47M	272.31M	307.48M	321.11M	349.66M
Total Liabilities	428.82M	385.28M	345.62M	378.74M	389.16M	404.19M
Stockholders Equity	-29.03M	-35.62M	-51.94M	-82.08M	-121.02M	-138.04M
Cash Flow
Free Cash Flow	38.82M	34.06M	27.64M	13.47M	10.15M	14.92M
Operating Cash Flow	49.14M	43.31M	34.04M	31.34M	20.23M	22.01M
Investing Cash Flow	-57.98M	-9.22M	-6.22M	-17.77M	-9.92M	-7.09M
Financing Cash Flow	18.48M	-12.96M	-26.44M	-23.16M	-47.23M	23.98M

CPI Card Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Negative. The current price of 14.05 is below the 20-day moving average (MA) of 15.23, below the 50-day MA of 18.82, and below the 200-day MA of 25.48, indicating a bearish trend. The MACD of -1.12 indicates Negative momentum. The RSI at 32.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PMTS.

CPI Card Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	79 Outperform	$2.00B	5.35	18.75%	3.56%	8.41%	34.76%
YRD	76 Outperform	$495.11M	2.79	13.64%	6.82%	12.69%	-35.36%
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%
GDOT	65 Neutral	$759.99M	―	-2.68%	―	22.15%	57.64%
PMTS	58 Neutral	$162.12M	12.79	-36.18%	―	14.31%	-25.64%
UPST	51 Neutral	$6.44B	―	-0.96%	―	60.62%	96.91%
AHG	45 Neutral	$954.66M	―	-79.90%	―	510.69%	-145.92%

CPI Card Group Corporate Events

CPI Card Group Reports Q2 Results with Sales Growth

On August 8, 2025, CPI Card Group Inc. reported its second quarter financial results, highlighting a 9% increase in net sales, driven by strong performance from Arroweye and growth in debit and credit card sales. Despite a 91% decrease in net income due to acquisition costs and restructuring charges, the company saw a 3% increase in Adjusted EBITDA. CPI updated its 2025 outlook, projecting higher net sales growth, primarily due to the Arroweye acquisition, while maintaining its Adjusted EBITDA outlook. The company continues to expand its market presence and product offerings, including healthcare payments and digital solutions, while also investing in a new production facility to enhance capacity and efficiency.

CPI Card Group Increases Borrowing Capacity to $100 Million

On July 2, 2025, CPI Card Group Inc. amended its credit agreement to increase its borrowing capacity from $75 million to $100 million, potentially enhancing its financial flexibility. Additionally, the company announced a redemption of $20 million of its senior secured notes on July 3, 2025, which could impact its debt structure and interest obligations.