CSG SYSTEMS INTERNATIONAL INC

CSGS

Country: United StatesPrice: $80.04Market Cap: $2.3B

Investment snapshot

8%positive consensus

Scored 37d ago

Positive

BUY / PASS

Neutral / negative

3 / 8

NEUTRAL / FAIL

Median fair value

$35.38

-55.8% vs price

Models with upside

0 / 12

Positive margin of safety

Key risk

CSGS overvalued: all 8 models price fair value below $80.04 (median $35.38)

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Scored from 10-K37d ago

Metric	O'Shaughnessy Systematic Factor Composite	Munger Quality Focus	Marks Risk-Aware Value	Buffett Quality Compounder	Lynch GARP	Pabrai Dhandho Framework	Akre Three-Legged Stool	Ackman Activist Value	Dreman Contrarian Value	Piotroski F-Score	Greenblatt Magic Formula	Graham Defensive Value
Verdict	NEUTRAL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	NEUTRAL	FAIL	NEUTRAL	BUY · Rank #576 (Top 17.9%)	FAIL
Score
Analysis
Intrinsic Value	N/A			N/A		N/A				N/A
Margin of Safety	N/A	-34.2%	-153.7%	N/A	-2282.1%	N/A	-45.7%	-14.1%	-122.0%	N/A	-130.6%	-279.2%
Data As Of	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-13)	10-K (2026-08-13)	10-K (2026-08-13)	10-K (2026-08-13)	10-K (2026-08-13)

Where It Passes

Where It Falls Short

Valuation models0% pass✗ 8▾
CSGS overvalued: all 8 models price fair value below $80.04 (median $35.38)
Munger fair value$59.64
✗Munger-34.2% margin vs $80.04
Marks fair value$31.55
✗Marks-153.7% margin vs $80.04
Lynch fair value$3.36
✗Lynch-2282.1% margin vs $80.04
Akre fair value$54.92
✗Akre-45.7% margin vs $80.04
Ackman fair value$70.14
✗Ackman-14.1% margin vs $80.04
Dreman fair value$36.05
✗Dreman-122.0% margin vs $80.04
Greenblatt fair value$34.71
✗Greenblatt-130.6% margin vs $80.04
Graham fair value$21.11
✗Graham-279.2% margin vs $80.04
Profitability9% pass✓ 10✗ 16▾
10 of 11 flag CSGS's profitability — Oshaughnessy, Marks, Buffett +7 more
Net income / market capitalization+2.45%; #2411/6251 (top 38.6%)
✗OshaughnessyTop 10% of eligible cross-section
Discount to Intrinsic Value-122.0% (IV=$36.05 vs Price=$80.04)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency27/27 years positive
✓MarksPositive net income in >= 7 of last 10 years
Net Income Positive (10+ years)27/28 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)20.7%
✓Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)9.7% (latest)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)23.79
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR1.7%
✓Lynch15-30% (Fast Grower); > 0% to pass
ROE19.7%
✓Lynch> 15%
Margin of SafetyP/E=40.4x, P/B=8.0x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity24.9% (3-yr avg)
✓AkreROE > 20% (3-year avg)
Operating Income / Revenue9.7%
✗Ackman>= 15%
Net Income / Shareholders Equity19.7%
✓Ackman>= 15%
Pre-Tax Income / Revenue7.4%
✗Dreman>= 8%
Net Income / Shareholders' Equity19.7%
✓Dreman> 12%
Net Income / Total Assets3.62%
✓PiotroskiROA > 0
ROA Change YoY5.79% -> 3.62% (delta: -2.17%)
✗PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=10.10%, ROA=3.62%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY48.7% -> 49.0%
✓PiotroskiImproved YoY
EBIT / Enterprise Value4.5%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=4.5%, ROC=79.5%
✗GreenblattBoth EY > 10% and ROC > 25%
Positive EPS (10 years)16/20 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Debt & Leverage11% pass✓ 1✗ 10▾
8 of 9 flag CSGS's debt & leverage — Munger, Marks, Buffett +5 more
Debt Levels1.90
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=4.7x, D/EBITDA=N/A (D&A unavailable)
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Debt/Equity & Interest CoverageD/E: 1.90, IC: 4.7x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity1.90
✗Lynch< 0.33
Cash - Long-term Debt$-359.4M
✗LynchPositive preferred
Total Debt / Shareholders Equity1.90
✗Ackman<= 1.0
Current Assets / Current Liabilities1.44
✗Dreman> 1.5
Total Debt / Shareholders' Equity1.90
✗Dreman< 0.8
LT Debt / Total Assets Change35.38% -> 34.92%
✓PiotroskiDecreased YoY
LT Debt vs Net Current AssetsLT Debt $539.5M vs NCA $286.9M
✗GrahamLT Debt <= Net Current Assets
Valuation11% pass✓ 1✗ 17▾
8 of 9 flag CSGS's valuation — Oshaughnessy, Munger, Marks +5 more
Revenue / market capitalization+0.5359; #2400/5203 (top 46.1%)
✗OshaughnessyTop 10% of eligible cross-section
Net income / market capitalization+2.45%; #2411/6251 (top 38.6%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+6.19%; #1228/4487 (top 27.4%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date
✗OshaughnessyTop 10% of eligible cross-section
Valuation ReasonablenessP/E=40.4x
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/B or P/E vs. Historical AverageP/E=40.4x, P/B=8.0x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-122.0% (IV=$36.05 vs Price=$80.04)
✗Marks>= 20% below intrinsic value
Basic earnings-growth PEG (dividends excluded)23.79
✗Lynch< 1.0 (ideally < 0.5)
P/E or FCF YieldP/E=40.4x, FCF Yield=6.2%
✗PabraiP/E < 15 or FCF Yield > 10%
Price / FCF per Share16.1x
✓Ackman<= 25
Price / EPS40.4x
✗Dreman< 12x
Price / (CFO / Shares)14.6x
✗Dreman< 8x
Price / Book Value per Share8.0x
✗Dreman< 1.2x
EBIT / Enterprise Value4.5%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=4.5%, ROC=79.5%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / 3-yr avg EPS33.3x
✗Graham<= 15x
Price-to-Book Ratio8.0x
✗Graham<= 1.5x
P/E x P/B266.60
✗Graham<= 22.5
Verdicts11% pass✓ 1✗ 8▾
Split decision: 8 FAIL · 3 NEUTRAL
Overall verdict
•OshaughnessyNEUTRAL (Not ranked)✗MungerFAIL (1/4)✗MarksFAIL (2/5)✗BuffettFAIL (3/9)✗LynchFAIL (4/7)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)•AckmanNEUTRAL (6/9)✗DremanFAIL (4/11)•PiotroskiNEUTRAL (F-Score 6)✓GreenblattRank #576✗GrahamFAIL (1/9)
Efficiency29% pass✓ 3✗ 7▾
5 of 7 flag CSGS's efficiency — Munger, Akre, Dreman +2 more
Return on Invested Capital11.4%
✗Munger> 15%
ROIC (3-5 yr avg)14.4%
✓Buffett> 10%
ROIC - WACC+4.4%
✓BuffettPositive (WACC = 10%)
ROIC (high and growing)FY2023: ROIC=12.0%; FY2024: ROIC=12.6%; FY2025: ROIC=11.4%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC3.8% (RR=33% x ROIC=11.4%)
✗AkreReinvestment Rate * ROIC > 10%
Current Assets / Current Liabilities1.44
✗Dreman> 1.5
Current Ratio Change YoY1.46 -> 1.44
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.80x -> 0.79x
✗PiotroskiImproved YoY
EBIT / (NWC + Net Fixed Assets)79.5%
✓Greenblatt> 25%
Current Ratio1.44
✗Graham>= 2.0
Growth40% pass✓ 6✗ 3▾
3 of 5 flag CSGS's growth — Lynch, Ackman and Graham
Positive Net Income Frequency27/27 years positive
✓MarksPositive net income in >= 7 of last 10 years
Basic earnings-growth PEG (dividends excluded)23.79
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR1.7%
✓Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthN/A (no inventory)
✓LynchInventory growth < Revenue growth
3yr Median Revenue Growth2.4%
✗Ackman>= 5%
Positive EPS Growth Frequency3/5 years with positive EPS growth
✓AckmanPositive EPS growth in >= 3 of last 5 years
EPS Growth Direction$0.15 (2002) -> $1.98 (2025)
✓DremanPositive over recent years
EPS CAGR11.9% CAGR over 23 years
✓Dreman> 5% annualized
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Cash Flow50% pass✓ 6✗ 4▾
4 of 8 pass — Oshaughnessy, Buffett, Pabrai +1 more object
(Operating cash flow - capex) / market capitalization+6.19%; #1228/4487 (top 27.4%)
✗OshaughnessyTop 10% of eligible cross-section
FCF Positive17/17 years FCF positive
✓MarksPositive FCF in majority of recent years
Free Cash Flow Proxy
✗BuffettPositive and growing
FCF Positive and Growing$141.4M
✓LynchPositive and growing
P/E or FCF YieldP/E=40.4x, FCF Yield=6.2%
✗PabraiP/E < 15 or FCF Yield > 10%
(OCF - CapEx) / Market Cap6.2%
✓Ackman>= 4%
Price / FCF per Share16.1x
✓Ackman<= 25
Price / (CFO / Shares)14.6x
✗Dreman< 8x
Operating Cash Flow$155.9M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=10.10%, ROA=3.62%
✓PiotroskiCFO/Assets > ROA

Business & financials

Company Profile

Industry: Business Services

Size: Mid Cap($2.3B)

Revenue: $1.2B+2.2% YoY

Net Income: $55.9M-35.7% YoY

Financial Snapshot

Operating Margin9.7%

Return on Equity19.7%

Debt / Equity1.90

Current Ratio1.44

EPS (Diluted)$1.98−34.7% 1y

Buybacks (1y)$83.2M

Buybacks (2y)$150.9M

Shares Retired1.7% / 4.0% 2y

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Shareholder Return

Fiscal 2025

Retired 1.7% of shares last year, 4.0% over two.

Buybacks: $83.2M
Dividends: $37.4M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22

−37.6% = −39.1% + 2.4%

FY23

56.0% = 50.4% + 3.8%

FY24

37.7% = 31.1% + 5.1%

FY25

−34.7% = −35.7% + 1.6%

Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Market Cap	$2.3B	$1.7Best.	$1.4Best.	$1.7Best.	$1.7Best.
Revenue	$1.2B↑2%	$1.2B↑2%	$1.2B↑7%	$1.1B↑4%	$1.0B
Operating Income	$118.7M↓10%	$131.3M↑6%	$123.9M↑57%	$78.7M↓37%	$124.2M
Net Income	$55.9M↓36%	$86.9M↑31%	$66.2M↑50%	$44.1M↓39%	$72.3M
EPS (Diluted)	$1.98↓35%	$3.03↑38%	$2.20↑56%	$1.41↓38%	$2.26
Gross Margin	49.0%↑1%	48.7%↑3%	47.4%↓2%	48.1%	48.1%
Operating Margin	9.7%↓12%	11.0%↑4%	10.6%↑47%	7.2%↓39%	11.9%
ROE	19.7%↓36%	30.7%↑27%	24.2%↑95%	12.4%↓25%	16.6%
Total Debt	$539.5M	$538.5M↓1%	$542.5M↑31%	$413.0M↑10%	$374.7M
Shareholders' Equity	$283.7M	$282.6M↑3%	$273.3M↓23%	$355.2M↓19%	$436.6M
Current Ratio	1.44↓2%	1.46↓5%	1.54↑6%	1.45↑35%	1.08
Debt / Equity	1.90	1.91↓4%	1.98↑71%	1.16↑35%	0.86
Operating Cash Flow	$155.9M↑15%	$135.7M↑3%	$131.9M↑107%	$63.6M↓55%	$140.2M
Free Cash Flow	$141.4M↑25%	$113.3M↑9%	$103.9M↑291%	$26.6M↓77%	$113.7M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Business Services

CSGS vs Peers — Financial Grading

Revenue$1.2BBottom 25%

Net Income$55.9MBottom 25%

ROE19.7%Median

D/E1.90Bottom 25%

Op. Margin9.7%Median

Curr. Ratio1.44Median

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
Mastercard IncMA	$514.8B	$568.26	$32.8B	$15.0B	193.5%	2.46	57.6%	1.03	2/9	5/9	4/7	0/3	F-Score 8	3/11
AUTOMATIC DATA PROCESSING INCADP	$103.7B	$261.80	$21.9B	$4.4B	73.2%	0.82	24.2%	1.05	4/9	5/9	3/7	0/3	F-Score 6	5/11
ELECTRONIC ARTS INC.EA	$52.9B	$209.70	$7.5B	$887.0M	13.1%	0.22	15.4%	1.05	1/9	4/9	3/7	0/3	F-Score 6	6/11
PAYCHEX INCPAYX	$35.4B	$99.31	$6.5B	$1.8B	47.1%	1.22	38.6%	1.26	4/9	6/9	4/7	1/3	F-Score 7	6/11
Rubrik, Inc.RBRK	$23.4B	$113.80	$1.3B	$348.8M	67.1%	—	-26.2%	1.69	1/9	0/9	0/7	0/3	F-Score 4	2/11
Grab Holdings LtdGRAB	$12.7B	$3.10	$3.4B	$268.0M	4.0%	0.31	1.9%	1.75	2/9	2/9	2/7	0/3	F-Score 4	4/11
COMMVAULT SYSTEMS INCCVLT	$6.1B	$148.08	$1.2B	$70.7M	942.8%	—	6.3%	1.95	1/9	2/9	4/7	0/3	F-Score 6	5/11
ROBERT HALF INC.RHI	$3.8B	$36.88	$5.4B	$133.0M	10.4%	—	1.4%	1.53	4/9	5/9	1/7	0/3	F-Score 5	4/11