CPI Card Group (PMTS) AI Stock Analysis

• Market Cap: $231.83M
• Dividend Yield: N/A
• Average Volume (3M): 45.83K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.55
• Revenue Growth: 12.81%
• EPS Growth: 3.58%
• Country: US
• Employees: 1,500
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.63
• Shares Outstanding: 11,281,489
• 10 Day Avg. Volume: 37,242
• 30 Day Avg. Volume: 45,833
• PEG Ratio: -3.83
• Price to Book (P/B): -8.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.68
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $37.67
• Price Target Upside: 79.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $25.00 ▲(19.05%Upside)

CPI Card Group's overall stock score reflects strong sales growth and strategic acquisitions bolstering its market position. However, financial stability concerns due to high leverage and negative equity, along with mixed earnings call results, moderate the overall score. Technical indicators and valuation add some positive aspects but are not enough to outweigh financial risks.

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 Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing banks. Its products include Europay, Mastercard, And Visa (EMV) and non-EMV financial payment cards and metal cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, and instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, group service providers, and card transaction processors in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is based in Littleton, Colorado.

How the Company Makes Money

CPI Card Group generates revenue primarily through the production and personalization of payment cards. Its key revenue streams include the sale of secure card products to financial institutions, retailers, and prepaid debit card issuers. The company also earns money by providing related services such as card personalization, data processing, and fulfillment. Additionally, CPI Card Group benefits from strategic partnerships and long-term contracts with major financial institutions and retailers, which contribute to its consistent earnings. The demand for secure, high-quality payment cards and related services drives the company's profitability, as it continues to innovate and expand its offerings to meet market needs.

CPI Card Group Financial Statement Overview

Summary

CPI Card Group demonstrates robust revenue growth and profitability with stable cash flow generation. However, the balance sheet is weakened by high leverage and negative equity, posing financial stability risks. The company should focus on improving margins and reducing debt to enhance its financial position.

Income Statement

CPI Card Group shows a consistent revenue growth trajectory with a TTM revenue increase of 2.25% compared to the previous year. The gross profit margin is healthy at 34.42%, and the net profit margin is stable at 3.83%. However, the EBIT margin has slightly decreased to 12.77% from 13.06% the previous year, indicating potential cost pressures. Overall, the income statement reflects solid growth and profitability, though margins could be improved.

Balance Sheet

The company's balance sheet is concerning with a negative stockholders' equity of -$29.7 million, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, highlighting high leverage. The equity ratio is also negative, which poses a risk to financial stability. Despite these challenges, the company maintains a stable asset base with total assets of $351.9 million.

Cash Flow

CPI Card Group's cash flow statement reveals a positive free cash flow of $32.29 million, with a growth rate of -5.19% from the previous year. The operating cash flow to net income ratio is strong at 2.13, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio of 1.71 suggests room for improvement in cash flow management. Overall, cash flow generation is solid, but growth has slowed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	491.43M	480.60M	444.55M	475.75M	375.12M	312.19M
Gross Profit	169.14M	171.22M	155.49M	175.77M	141.43M	110.31M
EBITDA	106.91M	79.21M	77.31M	93.65M	74.56M	55.11M
Net Income	18.84M	19.52M	23.98M	36.54M	15.94M	16.13M
Balance Sheet
Total Assets	351.91M	349.66M	293.68M	296.67M	268.14M	266.15M
Cash, Cash Equivalents and Short-Term Investments	31.52M	33.54M	12.41M	11.04M	20.68M	57.60M
Total Debt	280.66M	289.47M	272.31M	291.22M	303.63M	336.71M
Total Liabilities	381.63M	385.28M	345.62M	378.74M	389.16M	404.19M
Stockholders Equity	-29.72M	-35.62M	-51.94M	-82.08M	-121.02M	-138.04M
Cash Flow
Free Cash Flow	32.29M	34.06M	27.64M	13.47M	10.15M	14.92M
Operating Cash Flow	40.04M	43.31M	34.04M	31.34M	20.23M	22.01M
Investing Cash Flow	-12.97M	-9.22M	-6.22M	-17.77M	-9.92M	-7.09M
Financing Cash Flow	-12.70M	-12.96M	-26.44M	-23.16M	-47.23M	23.98M

CPI Card Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 21 is below the 20-day moving average (MA) of 22.47, below the 50-day MA of 22.32, and below the 200-day MA of 26.68, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 is Neutral, 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	82 Outperform	$2.39B	6.86	17.91%	0.43%	5.13%	25.93%
GDOT	77 Outperform	$563.18M	―	-0.62%	―	19.12%	75.50%
YRD	74 Outperform	$549.55M	2.98	14.69%	0.96%	12.45%	-36.64%
PMTS	68 Neutral	$231.83M	13.26	-36.18%	―	12.81%	3.58%
UPST	68 Neutral	$7.87B	―	-10.30%	―	34.69%	63.65%
Sector *	62 Neutral	AU$10.03B	9.04	11.83%	4.87%	33.36%	41.81%
AHG	45 Neutral	$422.23M	―	-6.43%	―	-81.66%	-214.54%

CPI Card Group Corporate Events

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.

The most recent analyst rating on (PMTS) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on CPI Card Group stock, see the PMTS Stock Forecast page.

CPI Card Group Holds Annual Stockholders Meeting

On May 21, 2025, CPI Card Group Inc. held its annual meeting of stockholders where three key proposals were considered. The stockholders elected directors for a one-year term, ratified KPMG LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (PMTS) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on CPI Card Group stock, see the PMTS Stock Forecast page.

CPI Card Group Acquires Arroweye Solutions for $45.55M

On May 6, 2025, CPI Card Group Inc. completed the acquisition of Arroweye Solutions, Inc., a provider of on-demand payment card solutions, for $45.55 million. This strategic acquisition aims to enhance CPI’s portfolio by integrating Arroweye’s technology-driven solutions, which allow for hyper-personalization and rapid turnaround times, thus expanding CPI’s offerings and market reach. The merger is expected to generate strong returns for CPI and its shareholders, and Arroweye’s revenues are projected to be in the mid-$50 million range for 2025. The acquisition aligns with CPI’s strategy to grow and diversify its offerings, leveraging its resources to increase Arroweye’s market share and customer base.