CPI Card Group Inc. Common Stock (PMTS)

FairStock Score: 71/100 — STEADY

Key Financials

Strengths

• Generates $26 million in annual free cash flow (13.0% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 22.4% demonstrates strong top-line momentum
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

CPI Card Group Inc. Common Stock is a micro-cap financial services company valued at $199 million. The business generates $568 million in annual revenue with a 1.3% net margin and $26 million in free cash flow. From a quality standpoint, CPI shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is reasonably priced at 16.4x earnings, with PEG of 1.92 implies growth is already in the price. Growth dynamics show revenue growing at 22.4% and profit growth of 8.5%. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

CPI's 22% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $26 million in annual free cash flow (13.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer