CPI Card Group Inc. Common Stock (PMTS)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look first at business quality and durability. CPI Card Group supplies physical and digital payment cards and services to financial institutions, processors and fintechs. That is necessary but competitive work. Revenue has grown: fiscal 2025 revenue was $543.5M, up from $480.6M in fiscal 2024 and $444.5M in fiscal 2023. Profits, however, went the wrong way. Fiscal 2025 net income was $14.9M, below fiscal 2024's $19.5M and fiscal 2023's $24.0M; diluted EPS fell from $2.01 to $1.64 to $1.25. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $149.2M and net income was just $2.0M, or $0.17 per diluted share. So sales are rising, but margins are very thin. At the 2026-10-13 close of $25.71, FairStock shows a P/E of 22.55, EV/EBITDA of 6.91, and trailing free cash flow of $76.6M, a 25.8% FCF yield. That cash-flow yield is striking, but an Altman Z-Score of 1.54 and ROCE of 8.17% argue for caution; the Piotroski F-Score is a middling 6/9. FairStock classifies the company as a SLOW GROWER - Shrinking: profit -1.5% a year over five years, revenue 11.7%. That matches the filed record: top-line progress without bottom-line progress. Without evidence of durable pricing power or a wider moat, I would treat the cash flow as potentially cyclical or working-capital-driven rather than a clear margin of safety. The price may be fair if margins recover, but the business has not yet proved it.

In plain English: CPI Card Group makes credit and debit cards and related digital payment services for banks, processors, and fintechs. Revenue has been rising, but profits are thin and have shrunk over recent years; in the quarter ended June 30, 2026, it earned $2.0 million on $149.2 million of sales. At the 2026-10-13 close of $25.71, the shares look inexpensive compared with the cash the company produces but only fair relative to its small and falling profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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