CSG Systems International Inc. Common Stock (CSGS)
FairStock Score: 35/100 — MIXED
Key Financials
| Current Price | $80.69 |
| Market Cap | $2.3B |
| P/E Ratio | 36.02 |
| ROE | 22.06% |
| Dividend Yield | 1.69% |
| Sector | Technology |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At the close on 2026-05-15, CSG Systems traded at $80.69, giving it a $2.3B market capitalization. It sells revenue management, digital monetization and payment software, chiefly to communications providers. That is a sticky, mission-critical niche: once billing and customer-experience systems are embedded, switching is painful. The latest reported quarter—the first quarter of 2026—showed revenue of $313.7M and net income of $23.9M, a 7.62% net margin. That is decent, but not lush for a software business. FairStock calculates trailing free cash flow of $131.4M, a 5.7% FCF yield, and a 22.06% ROE. Yet the same data show a 1.95 debt-to-equity ratio, a 6.91% ROCE, and an Altman Z-score of 2.70, so leverage is doing some work and returns on total capital are modest. Valuation is the rub. At that close, FairStock’s P/E is 36.02 and P/B is 7.84. The Graham Number is only $22.80, implying a margin of safety of -253.90%. The Piotroski F-score is 4/9, and the FairStock score is 35/100. The PEG ratio of 0.75 and the 1.69% dividend yield offer some comfort, and the 0.82 beta is defensive. The supplied growth figures lack a named period in the data, so I would not lean on them without more context. In Graham’s terms, this looks like a fair business priced as an excellent one. I would want a wider discount before calling it a value opportunity.
In plain English: CSG Systems International sells software and services that help communications companies with billing, payments, and customer experience. The business is profitable and produces positive cash flow, but it uses a lot of debt and the stock price looks high compared with its earnings and book value. At the 2026-05-15 close of $80.69, the numbers suggest the shares are not an obvious bargain.
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Data as of 2026-05-15 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer