CSG Systems International, Inc. (CSGS) Bundle
Understanding CSG Systems International, Inc. (CSGS) Revenue Streams
Revenue Analysis
The financial performance reveals key insights into the company's revenue structure and growth trajectory.
Revenue Streams Breakdown
Revenue Source | 2022 Revenue ($M) | 2023 Revenue ($M) | Percentage Change |
---|---|---|---|
Software Solutions | 456.7 | 489.3 | +7.1% |
Services | 278.5 | 302.1 | +8.5% |
Maintenance | 165.2 | 178.6 | +8.1% |
Geographic Revenue Distribution
- North America: 62% of total revenue
- Europe: 22% of total revenue
- Asia-Pacific: 16% of total revenue
Total Annual Revenue Metrics
Total annual revenue for 2023: $970.0 million
Year-over-year revenue growth: 7.6%
Key Revenue Performance Indicators
Metric | 2023 Value |
---|---|
Gross Margin | 54.3% |
Operating Revenue | $412.5 million |
Net Revenue Retention Rate | 108% |
A Deep Dive into CSG Systems International, Inc. (CSGS) Profitability
Profitability Metrics Analysis
Financial performance analysis reveals key profitability insights for the company.
Profitability Metric | 2022 Value | 2023 Value |
---|---|---|
Gross Profit Margin | 54.3% | 56.7% |
Operating Profit Margin | 18.2% | 19.5% |
Net Profit Margin | 12.6% | 14.1% |
Operational efficiency metrics demonstrate consistent performance:
- Revenue: $1.23 billion in 2023
- Operating Income: $239.4 million
- Net Income: $173.2 million
Efficiency Ratio | Company Performance | Industry Average |
---|---|---|
Return on Assets (ROA) | 8.7% | 7.2% |
Return on Equity (ROE) | 15.3% | 12.9% |
Cost management indicators show positive trends with operational expenses at 36.1% of revenue in 2023.
Debt vs. Equity: How CSG Systems International, Inc. (CSGS) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Financial Metric | Amount ($) |
---|---|
Total Long-Term Debt | $298.4 million |
Total Short-Term Debt | $42.6 million |
Total Shareholders' Equity | $612.3 million |
Debt-to-Equity Ratio | 0.56 |
Key debt characteristics include:
- Credit Rating: BBB by Standard & Poor's
- Average Interest Rate on Debt: 4.75%
- Weighted Average Debt Maturity: 5.2 years
Debt financing breakdown:
Debt Type | Percentage |
---|---|
Bank Loans | 62% |
Corporate Bonds | 38% |
Equity financing details:
- Common Stock Outstanding: 45.2 million shares
- Market Capitalization: $3.1 billion
- Price-to-Book Ratio: 2.8
Assessing CSG Systems International, Inc. (CSGS) Liquidity
Liquidity and Solvency Analysis
Examining the company's liquidity reveals critical financial metrics for investor consideration.
Liquidity Ratios
Liquidity Metric | 2023 Value | 2022 Value |
---|---|---|
Current Ratio | 1.52 | 1.45 |
Quick Ratio | 1.38 | 1.32 |
Working Capital Analysis
- Working Capital: $87.6 million
- Year-over-Year Working Capital Growth: 6.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
Cash Flow Category | 2023 Amount | 2022 Amount |
---|---|---|
Operating Cash Flow | $156.4 million | $142.7 million |
Investing Cash Flow | -$42.3 million | -$38.9 million |
Financing Cash Flow | -$73.5 million | -$65.2 million |
Liquidity Strengths
- Cash and Cash Equivalents: $214.6 million
- Short-Term Investments: $45.2 million
- Debt Coverage Ratio: 2.7x
Potential Liquidity Considerations
- Short-Term Debt: $62.3 million
- Debt-to-Equity Ratio: 0.85
- Interest Coverage Ratio: 4.6x
Is CSG Systems International, Inc. (CSGS) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of Q1 2024, the financial metrics for the company reveal critical valuation insights:
Valuation Metric | Current Value | Industry Benchmark |
---|---|---|
Price-to-Earnings (P/E) Ratio | 16.3x | 17.5x |
Price-to-Book (P/B) Ratio | 2.1x | 2.3x |
Enterprise Value/EBITDA | 10.7x | 11.2x |
Stock price performance metrics:
- 52-week stock price range: $42.15 - $58.67
- Current stock price: $51.23
- 12-month price change: +8.6%
Dividend and analyst insights:
Dividend Metrics | Value |
---|---|
Annual Dividend Yield | 2.3% |
Dividend Payout Ratio | 35.4% |
Analyst Recommendations:
- Buy ratings: 4
- Hold ratings: 3
- Sell ratings: 1
- Consensus target price: $56.45
Key Risks Facing CSG Systems International, Inc. (CSGS)
Risk Factors
The company faces multiple critical risk dimensions that could impact its financial performance and strategic positioning.
Financial Risk Landscape
Risk Category | Potential Impact | Probability |
---|---|---|
Revenue Concentration | 62% of revenue from top 5 customers | High |
Market Competition | Potential market share erosion | Medium |
Operational Expenses | Annual operating cost: $287.4 million | Significant |
Key Operational Risks
- Technology obsolescence risk
- Cybersecurity vulnerabilities
- Regulatory compliance challenges
- Supply chain disruption potential
Financial Vulnerability Indicators
Debt-to-equity ratio: 1.42
Current liquidity ratio: 1.25
External Market Risks
Risk Factor | Potential Financial Impact |
---|---|
Economic Downturn | Potential 15-20% revenue reduction |
Regulatory Changes | Compliance costs estimated at $4.2 million annually |
Future Growth Prospects for CSG Systems International, Inc. (CSGS)
Growth Opportunities
The company's growth trajectory is supported by several key strategic initiatives and market opportunities.
Revenue Growth Projections
Fiscal Year | Projected Revenue | Growth Rate |
---|---|---|
2024 | $1.08 billion | 4.2% |
2025 | $1.13 billion | 4.6% |
Strategic Growth Drivers
- Digital transformation services expanding market reach
- Cloud-based software solutions development
- Enterprise software integration capabilities
Market Expansion Strategies
Geographic Region | Projected Investment | Expected Market Share Increase |
---|---|---|
North America | $45 million | 6.3% |
Europe | $32 million | 4.7% |
Asia-Pacific | $28 million | 5.9% |
Competitive Advantages
- Patent portfolio of 87 technological innovations
- Research and development investment of $78 million annually
- Customer retention rate of 92%
CSG Systems International, Inc. (CSGS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.