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CPI Card Group
(NASDAQ:PMTS)
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Rating:67Neutral
Price Target:
$22.00
▲(17.33% Upside)
Action:Reiterated
Date:07/07/26
The score is primarily held back by balance-sheet risk (persistent negative equity and sizable debt) and margin compression despite profitability. Offsetting this, technicals are strong with clear upward momentum, and recent results/guidance point to solid revenue growth and improved free cash flow with expected H2 integration-cost relief; valuation is moderate based on the provided P/E, with no dividend yield data to add support.
Positive Factors
Strong free cash flow
Sustained free cash flow generation provides durable capacity to service debt, fund capital needs, and support integration-related spend without issuing equity. Over a 2–6 month horizon, stronger FCF improves refinancing optionality and underpins the company’s ability to deleverage and invest in high-return initiatives.
Negative Factors
Negative shareholder equity and high debt
Persistent negative equity and a sizable debt load materially constrain financial flexibility and increase refinancing risk. Even with improving cash flow, negative equity raises covenants and creditor scrutiny, limiting strategic options and increasing vulnerability to downturns or slower-than-expected deleveraging over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained free cash flow generation provides durable capacity to service debt, fund capital needs, and support integration-related spend without issuing equity. Over a 2–6 month horizon, stronger FCF improves refinancing optionality and underpins the company’s ability to deleverage and invest in high-return initiatives.
Read all positive factors
CPI Card Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Data provided by:
The Fly
The FlyCPI Card Group (PMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$224.23M
Dividend YieldN/A
Average Volume (3M)48.57K
Price to Earnings (P/E)18.1
Beta (1Y)1.57
Revenue Growth15.56%
EPS Growth-36.51%
CountryUS
Employees1,500
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.07
Shares Outstanding11,475,608
10 Day Avg. Volume35,268
30 Day Avg. Volume48,573
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)-9.59
Price to Sales (P/S)0.31
P/FCF Ratio4.02
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit2.74
Enterprise Value/Ebitda6.31
Forecast
1Y Price Target
$27.33Price Target Upside45.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.7
Revenue Forecast (FY)$592.86M
CPI Card Group Business Overview & Revenue Model
Company Description
CPI Card Group Inc., along with its affiliated entities, specializes in the full spectrum of financial payment card services. This includes everything from the initial design and manufacturing to the personalized data integration, secure packaging...
How the Company Makes Money
CPI Card Group primarily generates revenue by selling payment-card products and associated services to customers such as card issuers, fintechs, and program managers. Key revenue streams typically include: (1) card manufacturing revenue from produ...
CPI Card Group Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture driven by strong top-line growth (+20% revenue) led by Secure Card Solutions (+35%) and markedly improved cash generation (free cash flow $10.1M). Management acknowledged near-term margin pressure from integration costs, tariffs, and higher depreciation that reduced net income and gross margins, and Prepaid Solutions saw a notable decline (-17%) due to order timing. Management reaffirmed full-year guidance, expects Integrated Paytech to accelerate (targeting >15% growth) supported by a Fiserv referral agreement and Instant Issuance demand, and anticipates integration costs to taper in H2. Overall, strengths in revenue growth, cash flow, and strategic partnerships outweigh the near-term margin and segment-specific headwinds.Positive Updates
Revenue Growth
Total revenue increased 20% year-over-year to $147.0 million in Q1 2026, driven by Secure Card Solutions and contribution from ArrowEye (AOI).
Negative Updates
Net Income Decline
Net income declined 57% year-over-year to $2.1 million in Q1, primarily due to $3.0 million of pretax integration costs (excluded from adjusted EBITDA).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 20% year-over-year to $147.0 million in Q1 2026, driven by Secure Card Solutions and contribution from ArrowEye (AOI).
Read all positive updates
Company Guidance
CPI affirmed its March full-year guidance calling for high single‑digit revenue growth, low‑ to mid‑single‑digit adjusted EBITDA growth, free cash‑flow conversion roughly in line with 2025, and a year‑end net leverage ratio of 2.5x–3.0x; the company expects Q2 revenue to be similar to Q1 and Q2 adjusted EBITDA to be slightly lower than the prior year due to timing of investment spending. First‑quarter results that underpin the outlook included revenue of $147.0M (+20% YoY), adjusted EBITDA up 9%, free cash flow of $10.1M (operating cash flow $13.6M), net income of $2.1M (‑57%), gross margin of 30.0% (vs. 33.2% prior year), Secure Card Solutions +35% (including $16M from ArrowEye), Prepaid ‑17%, Integrated Paytech +1% with gross margins >55%, Q1 pretax integration costs of $3M (expected similar in Q2 then to drop significantly in H2), $19M cash, $15M ABL borrowings and $265M senior notes, and management reiterated Integrated Paytech is expected to grow >15% for 2026.CPI Card Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
24
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 567.88M | 543.53M | 480.60M | 444.55M | 475.75M | 375.12M |
| Gross Profit | 173.52M | 170.10M | 171.22M | 155.49M | 175.77M | 141.43M |
| EBITDA | 75.34M | 77.30M | 79.21M | 77.31M | 93.65M | 74.56M |
| Net Income | 12.23M | 14.95M | 19.52M | 23.98M | 36.54M | 15.94M |
Balance Sheet | ||||||
| Total Assets | 386.45M | 403.19M | 349.66M | 293.68M | 296.67M | 268.14M |
| Cash, Cash Equivalents and Short-Term Investments | 19.30M | 21.70M | 33.54M | 12.41M | 11.04M | 20.68M |
| Total Debt | 289.81M | 337.47M | 289.47M | 272.31M | 291.22M | 307.74M |
| Total Liabilities | 400.46M | 420.52M | 385.28M | 345.62M | 378.74M | 389.16M |
| Stockholders Equity | -14.01M | -17.33M | -35.62M | -51.94M | -82.08M | -121.02M |
Cash Flow | ||||||
| Free Cash Flow | 51.17M | 41.33M | 34.06M | 27.64M | 13.47M | 10.15M |
| Operating Cash Flow | 67.56M | 59.50M | 43.31M | 34.04M | 31.34M | 20.23M |
| Investing Cash Flow | -63.39M | -65.13M | -9.22M | -6.22M | -17.77M | -9.92M |
| Financing Cash Flow | -16.39M | -6.22M | -12.96M | -26.44M | -23.16M | -47.23M |
CPI Card Group Technical Analysis
Positive
18.75
Price Trends
17.75
Positive
16.45
Positive
15.50
Positive
Market Momentum
0.54
Positive
55.43
Neutral
25.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Positive. The current price of 18.75 is below the 20-day moving average (MA) of 19.33, above the 50-day MA of 17.75, and above the 200-day MA of 15.50, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 25.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PMTS.
CPI Card Group Risk Analysis
CPI Card Group disclosed 40 risk factors in its most recent earnings report. CPI Card Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CPI Card Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $268.38M | 1.27 | 12.17% | 8.86% | -3.40% | 8.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $224.23M | 18.15 | -56.87% | ― | 15.56% | -36.51% | |
62 Neutral | $2.45B | 5.73 | 47.95% | 10.18% | -2.34% | -49.33% | |
59 Neutral | $754.98M | -10.33 | -7.74% | ― | 18.96% | -1025.15% | |
54 Neutral | $110.05M | -0.37 | 0.54% | 10.37% | -13.83% | -154.13% |
* Financial Sector Average
PMTS
CPI Card Group
19.54
-2.45
-11.14%
GDOT
Green Dot
13.32
2.73
25.78%
WU
Western Union
7.84
0.40
5.35%
YRD
Yiren Digital
1.26
-4.53
-78.24%
LX
Lexinfintech Holdings
1.60
-4.65
-74.45%
CPI Card Group Corporate Events
Business Operations and Strategy
CPI Card Group Announces Partial Senior Notes Redemption
Positive
Jul 6, 2026
On July 2, 2026, CPI Card Group announced it will redeem $26.5 million of its outstanding $265.0 million 10.000% senior secured notes due 2029, with the redemption scheduled for July 15, 2026. The notes will be redeemed at 103.000% of par plus acc...
Business Operations and StrategyExecutive/Board Changes
CPI Card Group Confirms Terra Grantham as New CFO
Positive
Jul 1, 2026
On June 29, 2026, CPI Card Group appointed Terra Grantham as Chief Financial Officer, confirming her in the role after she had served as interim CFO since February 2026. The board’s compensation committee set her annual base salary at $450,0...
Executive/Board ChangesShareholder Meetings
CPI Card Group Shareholders Back Board, Auditor, Executive Pay
Positive
May 26, 2026
CPI Card Group Inc. reported the results of its 2026 annual meeting of stockholders held on May 21, 2026, where shareholders elected eight directors, including Thomas Furey and Valerie Soranno Keating, to one-year terms expiring at the 2027 annual...
Business Operations and StrategyFinancial Disclosures
CPI Card Group Posts Strong Q1 2026 Revenue Growth
Positive
May 5, 2026
On May 5, 2026, CPI Card Group reported first-quarter 2026 revenue up 20% year-on-year to $147.1 million, driven by the Arroweye acquisition and higher sales of contactless cards and personalization services. Net income fell 57% to $2.1 million du...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.