CPI Card Group (PMTS) AI Stock Analysis

• Market Cap: $155.78M
• Dividend Yield: N/A
• Average Volume (3M): 67.26K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.81
• 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: 53,879
• 30 Day Avg. Volume: 67,260
• 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: 3.11
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 6.72
• 1Y Price Target: $28.25
• Price Target Upside: 106.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.33
• Revenue Forecast (FY): $536.78M

• Rating: 55 Neutral
• Price Target: $12.50 ▼(-8.63% Downside)

CPI Card Group's overall stock score is driven by moderate financial performance with strong cash flow but high leverage and declining margins. Technical indicators suggest bearish momentum, while valuation is reasonable. The earnings call provided mixed signals with strategic growth offset by margin pressures.

Positive Factors

Revenue Growth

The 11% sales increase highlights CPI's ability to expand its market reach and capitalize on growth opportunities, particularly in the SaaS instant issuance sector, which is likely to sustain revenue growth over the next few months.

Strategic Initiatives

CPI's strategic initiatives, such as market expansion and new product offerings, are beginning to bear fruit, enhancing its competitive position and potentially driving long-term growth.

Cash Flow Generation

Strong cash flow generation indicates robust operational efficiency and financial health, providing CPI with the flexibility to invest in growth opportunities and manage debt effectively.

Negative Factors

Leverage and Financial Instability

High leverage and negative equity pose significant financial risks, potentially limiting CPI's ability to invest in growth or weather economic downturns, impacting long-term stability.

Profitability Margins

Declining profit margins indicate cost pressures and operational inefficiencies, which could erode profitability and competitiveness if not addressed.

Adjusted EBITDA Outlook

The revised EBITDA outlook suggests ongoing challenges in maintaining profitability, potentially affecting investor confidence and limiting financial flexibility.

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 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. However, it faces challenges with profitability margins and a highly leveraged balance sheet, with negative stockholders' equity posing a risk.

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: Neutral
• Last Price: 13.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 13.68 is above the 20-day moving average (MA) of 13.66, below the 50-day MA of 14.89, and below the 200-day MA of 20.94, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 is Neutral, 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
YRD	70 Outperform	$381.05M	2.21	12.53%	9.52%	10.48%	-30.67%
LX	69 Neutral	$555.27M	2.31	15.88%	9.21%	-3.48%	132.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	65 Neutral	$2.76B	3.77	97.70%	10.84%	-2.51%	17.47%
QD	63 Neutral	$805.82M	7.29	6.75%	―	-62.48%	1441.74%
PMTS	55 Neutral	$155.78M	11.37	―	―	12.48%	-7.47%
GDOT	52 Neutral	$681.70M	―	-5.09%	―	23.12%	19.37%

CPI Card Group Corporate Events

CPI Card Group Reports Q3 2025 Financial Results

CPI Card Group Inc. is a payments technology company that offers a wide range of payment cards and digital solutions, primarily serving the U.S. market with a focus on innovation and customer relationships.

CPI Card Group’s Earnings Call: Mixed Sentiments and Strategic Focus

The recent earnings call of CPI Card Group Inc. presented a mixed sentiment, reflecting both optimism and caution. The company reported an 11% increase in sales, bolstered by strategic initiatives and market share gains. However, this positive news was counterbalanced by declines in adjusted EBITDA and gross profit margins, alongside challenges such as tariffs and a drop in prepaid sales. The outlook for EBITDA growth was also revised downward, indicating a cautious approach to future expectations.

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.