CPI Card Group (PMTS) AI Stock Analysis

• Market Cap: $147.92M
• Dividend Yield: N/A
• Average Volume (3M): 29.89K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.80
• Revenue Growth: 12.48%
• EPS Growth: -7.47%
• Country: US
• Employees: 1,500
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.42
• Shares Outstanding: 11,387,538
• 10 Day Avg. Volume: 27,149
• 30 Day Avg. Volume: 29,891
• PEG Ratio: -1.02
• Price to Book (P/B): -9.36
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 9.79
• Enterprise Value/Market Cap: 3.06
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $28.25
• Price Target Upside: 117.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $13.50 ▲(3.93% Upside)

CPI Card Group's overall stock score is driven by moderate financial performance and valuation, with strong cash flow generation offset by profitability and leverage concerns. Technical indicators suggest potential overbought conditions, while recent corporate events and strategic initiatives provide a positive outlook. However, mixed earnings call results and margin pressures remain significant risks.

Positive Factors

Strong free cash flow growth

Sustained 20%+ TTM free cash flow growth provides durable internal funding for capex, technology investments and debt reduction. Reliable cash generation improves financial flexibility, supports strategic M&A or product development, and reduces reliance on external financing over the medium term.

Recurring SaaS instant-issuance growth

Rapid expansion of the instant-issuance SaaS business diversifies revenue toward higher-margin, recurring streams. SaaS adoption improves customer retention, increases lifetime value, and reduces dependence on one-time card production, bolstering durable revenue visibility and margin resilience.

Board/shareholder alignment and strategic backing

A major shareholder transaction and director nomination agreement signal committed ownership and governance continuity. Strong sponsor support can enable strategic initiatives, access to capital, and long-term planning, reducing execution risk and aiding strategic M&A or operational turnarounds.

Negative Factors

Negative equity and high leverage

Negative equity and extreme leverage materially constrain financial flexibility. Elevated leverage raises refinancing and covenant risks, limits capacity for organic or inorganic growth investments, and leaves the firm sensitive to interest rate or cash-flow shocks over the medium term.

Margin pressure from sales mix and tariffs

Declining adjusted EBITDA driven by sales mix shifts and tariff costs indicates structural margin headwinds. Persistent tariffs and lower-margin product mix can compress operating profit margins, reducing reinvestment capacity and slowing progress on deleveraging and margin improvement initiatives.

Volatility in prepaid sales and sales mix

Material swings in prepaid volumes point to demand volatility and order timing risk. Reliance on volatile prepaid business segments undermines revenue predictability and can exacerbate margin pressure from adverse sales mix, complicating long-term planning and stable cash-flow forecasting.

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. Their revenue model consists of several key streams: card production, which includes the manufacturing of plastic cards; personalization services, where cards are customized with customer-specific data; and value-added services such as card design, fulfillment, and digital payment solutions. Additionally, CPI benefits from partnerships with financial institutions and technology companies that expand their service offerings, leading to increased demand for their products. The company may also leverage economies of scale and operational efficiencies to improve profit margins, while ongoing innovation in secure payment technologies helps to drive future revenue growth.

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 strong 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	515.58M	480.60M	444.55M	475.75M	375.12M	312.19M
Gross Profit	164.42M	171.22M	155.49M	175.77M	141.43M	110.31M
EBITDA	72.01M	79.21M	77.31M	93.65M	74.56M	55.11M
Net Income	14.37M	19.52M	23.98M	36.54M	15.94M	16.13M
Balance Sheet
Total Assets	407.06M	349.66M	293.68M	296.67M	268.14M	266.15M
Cash, Cash Equivalents and Short-Term Investments	15.96M	33.54M	12.41M	11.04M	20.68M	57.60M
Total Debt	320.74M	289.47M	272.31M	291.22M	307.74M	341.12M
Total Liabilities	432.72M	385.28M	345.62M	378.74M	389.16M	404.19M
Stockholders Equity	-25.66M	-35.62M	-51.94M	-82.08M	-121.02M	-138.04M
Cash Flow
Free Cash Flow	22.43M	34.06M	27.64M	13.47M	10.15M	14.92M
Operating Cash Flow	36.60M	43.31M	34.04M	31.34M	20.23M	22.01M
Investing Cash Flow	-56.53M	-9.22M	-6.22M	-17.77M	-9.92M	-7.09M
Financing Cash Flow	22.40M	-12.96M	-26.44M	-23.16M	-47.23M	23.98M

CPI Card Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 12.99 is below the 20-day moving average (MA) of 13.67, below the 50-day MA of 14.41, and below the 200-day MA of 17.93, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.14 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
YRD	73 Outperform	$343.03M	1.99	12.53%	10.37%	10.48%	-30.67%
LX	69 Neutral	$479.55M	2.01	16.09%	8.86%	-0.60%	135.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	67 Neutral	$2.98B	4.07	97.70%	10.18%	-2.51%	17.47%
PMTS	56 Neutral	$147.92M	10.79	―	―	12.48%	-7.47%
GDOT	56 Neutral	$676.58M	-14.33	-5.09%	―	23.12%	19.37%

CPI Card Group Corporate Events

CPI Card Group’s Major Shareholder Transaction and Board Changes

On December 4, 2025, significant stockholders of CPI Card Group, Tricor Pacific Capital Partners, sold 1.9 million shares of the company’s common stock to Tricor PMT25 Holdings Inc., a wholly-owned affiliate of Tricor Pacific Capital Inc., in a privately negotiated transaction. This transaction led to a director nomination agreement allowing Tricor Family Office to nominate individuals to CPI’s board, contingent on holding 10% or more of the company’s shares. Additionally, CPI’s Chairman, Sandy Riley, purchased 0.2 million shares, reflecting confidence in the company’s growth prospects. These transactions reduced Parallel49’s ownership from 42% to 24% and increased Tricor Family Office’s direct ownership to nearly 20%. The move is seen as a commitment to CPI’s strategy and governance continuity, supporting shareholder value and business growth.

The most recent analyst rating on (PMTS) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on CPI Card Group stock, see the PMTS Stock Forecast page.

CPI Card Group Reports Q3 2025 Financial Results

CPI Card Group Inc. reported an 11% increase in net sales to $138 million for the third quarter of 2025, driven by the acquisition of Arroweye and growth in instant issuance solutions, despite a decline in prepaid sales. The company’s net income rose by 78% to $2.3 million, while Adjusted EBITDA decreased by 7% due to lower gross margins and tariff expenses. CPI updated its 2025 outlook, projecting lower net sales and Adjusted EBITDA growth than previously expected, influenced by sales mix impacts and order timing. The company continues to advance its strategic growth initiatives, including prepaid and instant issuance expansion and digital payment solutions, while focusing on improving margins and reducing net leverage.

The most recent analyst rating on (PMTS) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on CPI Card Group stock, see the PMTS Stock Forecast page.