CPI Card Group (PMTS) AI Stock Analysis

• Market Cap: $270.42M
• Dividend Yield: N/A
• Average Volume (3M): 62.15K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.48
• Revenue Growth: 12.81%
• EPS Growth: 3.58%
• Country: US
• Employees: 1,500
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 0.63
• Shares Outstanding: 11,281,489
• 10 Day Avg. Volume: 52,542
• 30 Day Avg. Volume: 62,145
• PEG Ratio: 0.09
• Price to Book (P/B): -4.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.25
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $37.50
• Price Target Upside: 53.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $26.00 ▲(6.43%Upside)

CPI Card Group's stock score is primarily driven by its strong financial performance in terms of revenue growth and profitability, despite a weak balance sheet. The technical analysis indicates positive momentum, supporting the stock's upward trend. Valuation is moderate, and the earnings call provided a mixed but optimistic outlook, highlighting strategic growth initiatives and challenges in cost management.

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 in the financial payment card industry, serving customers across the United States with a comprehensive range of products and services. The company specializes in the design, production, data personalization, packaging, and fulfillment of payment cards such as credit, debit, and prepaid cards. CPI Card Group operates in sectors including financial services, government, and retail, offering secure and innovative card solutions that cater to the evolving needs of its clients.

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 shows strong revenue growth and operational efficiency, but faces financial challenges with high leverage and negative equity. Cash flows are managed well, supporting operations, yet financial stability risks require attention.

Income Statement

CPI Card Group shows a consistent revenue growth with a TTM revenue increase of 2.3% compared to the previous year. Gross profit margins are stable at around 34%, while net profit margin slightly decreased to 3.8% in the TTM. EBIT and EBITDA margins remain solid, indicating efficient operations. However, the decline in net income and EBITDA margins suggests potential cost pressures.

Balance Sheet

The company faces challenges with a negative stockholders' equity, indicating a leveraged position. The debt-to-equity ratio cannot be calculated due to negative equity, but high total debt levels pose a risk. Despite this, the company maintains a stable asset base.

Cash Flow

CPI Card Group demonstrates positive free cash flow growth of -5.2% in the TTM, indicating effective cash management despite a slight decrease. Operating cash flow to net income ratio is strong at 2.13, suggesting good cash generation relative to earnings.

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: Neutral
• Last Price: 24.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Neutral. The current price of 24.43 is above the 20-day moving average (MA) of 22.84, above the 50-day MA of 23.13, and below the 200-day MA of 27.00, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 84.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PMTS.

CPI Card Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	84 Outperform	$2.41B	6.93	17.91%	2.91%	5.13%	25.93%
GDOT	77 Outperform	$618.62M	―	-0.62%	―	19.12%	75.50%
YRD	73 Outperform	$531.40M	2.88	14.69%	3.58%	12.45%	-36.64%
PMTS	66 Neutral	$270.42M	15.42	-36.18%	―	12.81%	3.58%
UPST	66 Neutral	$6.48B	―	-10.30%	―	34.69%	63.65%
Sector *	61 Neutral	C$14.56B	6.16	20.17%	5.70%	26.93%	-38.21%
AHG	45 Neutral	$268.69M	―	-6.43%	―	-81.66%	-214.54%

CPI Card Group Corporate Events

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.