CSG Systems International (CSGS) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: 1.61%
• Average Volume (3M): 228.94K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.65
• Revenue Growth: 3.31%
• EPS Growth: 31.16%
• Country: US
• Employees: 5,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.16
• Shares Outstanding: 27,428,510
• 10 Day Avg. Volume: 185,074
• 30 Day Avg. Volume: 228,938
• PEG Ratio: 0.43
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 10.40
• 1Y Price Target: $80.78
• Price Target Upside: 3.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Neutral
• Price Target: $86.00 ▲(9.88% Upside)

CSG Systems International's overall stock score reflects strong financial performance and positive earnings call sentiment, which are slightly offset by technical indicators suggesting overbought conditions and moderate valuation metrics. The company's strategic efforts in revenue diversification and profitability improvements are key strengths, while managing debt levels and ensuring consistent cash flow remain areas to watch.

Positive Factors

Revenue Diversification

CSG's strategic move to diversify revenue sources reduces dependency on cable and telecom sectors, enhancing resilience against sector-specific downturns.

Improved Profitability

Improved operating margins indicate better cost management and operational efficiency, supporting long-term profitability and competitive positioning.

Strong Cash Flow Generation

Significant increase in free cash flow enhances financial flexibility, allowing for strategic investments, debt reduction, or shareholder returns.

Negative Factors

Rising Debt Levels

Increasing reliance on debt financing poses risks, especially if interest rates rise, potentially impacting financial stability and cash flow.

Lower Revenue Growth Guidance

Slower revenue growth due to market headwinds could limit top-line expansion and affect long-term growth prospects.

Contract Termination

Loss of contracts can impact revenue streams and highlights potential vulnerabilities in client relationships, affecting future revenue stability.

CSG Systems International Business Overview & Revenue Model

Company Description

CSG Systems International (CSGS) is a global leader in revenue management and customer experience solutions, primarily serving the telecommunications, cable, and media sectors. The company provides a comprehensive suite of services that includes billing and revenue management, customer relationship management (CRM), and digital engagement solutions, enabling clients to enhance customer experiences, streamline operations, and maximize revenue growth.

How the Company Makes Money

CSG Systems International generates revenue through a combination of software licenses, subscription services, and professional services. The company’s primary revenue streams include licensing fees for its software solutions, ongoing subscription fees for cloud-based services, and consulting and implementation services that support customers in deploying and optimizing their systems. Additionally, CSG maintains strategic partnerships with major telecommunications and media companies, which enhance its market reach and drive sales through bundled service offerings. The company also benefits from long-term contracts with clients, providing a stable and predictable revenue base.

CSG Systems International Financial Statement Overview

Summary

CSG Systems International demonstrates solid revenue growth and profitability, with stable margins and improving cash flow from operations. However, the increasing debt levels and variability in free cash flow growth present potential risks. The company should focus on managing its leverage and ensuring consistent cash flow generation to maintain financial stability.

Income Statement

CSG Systems International shows a strong revenue growth trajectory, particularly with a significant increase in the TTM period. Gross profit margins are healthy, consistently around 48-49%, indicating efficient cost management. However, the net profit margin has slightly declined in the TTM period, suggesting some pressure on net earnings. EBIT and EBITDA margins remain stable, supporting overall profitability.

Balance Sheet

The company has a high debt-to-equity ratio, which has increased over time, indicating a reliance on debt financing. This poses a potential risk if interest rates rise or if the company faces cash flow challenges. Return on equity is strong, reflecting efficient use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to asset financing.

Cash Flow

Operating cash flow has improved in the TTM period, indicating better cash generation from operations. However, free cash flow growth has been volatile, with a significant decline in the most recent period. The operating cash flow to net income ratio is improving, suggesting better cash conversion, but the free cash flow to net income ratio indicates some variability in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.20B	1.17B	1.09B	1.05B	990.53M
Gross Profit	600.05M	582.78M	554.22M	524.58M	503.28M	454.94M
EBITDA	216.92M	215.25M	194.78M	149.04M	189.55M	170.71M
Net Income	81.95M	86.85M	66.25M	44.06M	72.33M	58.71M
Balance Sheet
Total Assets	1.42B	1.50B	1.44B	1.35B	1.39B	1.33B
Cash, Cash Equivalents and Short-Term Investments	145.88M	161.79M	186.26M	150.44M	233.67M	240.30M
Total Debt	564.94M	574.58M	592.80M	487.19M	468.06M	469.79M
Total Liabilities	1.13B	1.22B	1.17B	993.30M	946.90M	909.61M
Stockholders Equity	290.72M	282.57M	273.33M	355.25M	436.61M	422.39M
Cash Flow
Free Cash Flow	153.01M	113.30M	103.92M	26.61M	113.66M	143.62M
Operating Cash Flow	170.76M	135.72M	131.90M	63.60M	140.22M	173.02M
Investing Cash Flow	-20.35M	-5.13M	-27.91M	-9.04M	-66.71M	-66.26M
Financing Cash Flow	-94.21M	-79.92M	-31.30M	-51.69M	-33.39M	-76.97M

CSG Systems International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGS, the sentiment is Positive. The current price of 78.27 is above the 20-day moving average (MA) of 67.34, above the 50-day MA of 65.70, and above the 200-day MA of 62.49, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 84.01 is Negative, neither overbought nor oversold. The STOCH value of 95.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSGS.

CSG Systems International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	―	$1.29B	26.07	24.39%	1.35%	11.04%	18.70%
NTCT	―	$2.00B	27.78	4.88%	―	5.29%	―
RAMP	―	$1.79B	127.28	1.34%	―	12.16%	139.72%
CSGS	―	$2.15B	27.12	29.06%	1.61%	3.31%	31.16%
RDWR	―	$1.09B	68.36	5.09%	―	10.40%	―
VRNT	―	$1.23B	30.76	4.72%	―	-2.32%	7.70%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CSG Systems International Corporate Events

NEC to Acquire CSG Systems for $2.9 Billion

On October 29, 2025, CSG Systems International and NEC Corporation announced a definitive agreement for NEC to acquire CSG for approximately $2.9 billion. This acquisition aims to bolster NEC’s position in digital transformation by integrating CSG’s SaaS portfolio and global customer base, enhancing NEC’s offerings in AI and cloud-driven solutions across various industries. The merger, approved by both companies’ boards, is expected to close in 2026, pending customary conditions and regulatory approvals.

The most recent analyst rating on (CSGS) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.

CSG Systems Merges with NEC, Delists from Nasdaq

On October 29, 2025, CSG Systems International entered into a Merger Agreement with NEC Corporation and Canvas Transaction Company, where CSG will merge with and become a wholly owned subsidiary of NEC. The merger will result in CSG’s shares being converted to cash, delisted from Nasdaq, and deregistered under the Securities Exchange Act of 1934. The agreement includes various conditions and covenants, such as maintaining business operations in the ordinary course and prohibiting solicitation of alternative offers, with specific termination rights and fees outlined for both parties.

The most recent analyst rating on (CSGS) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.

CSG Systems Expands Contract with Charter Communications

On September 4, 2025, CSG Systems International announced an extension and expansion of its contract with Charter Communications, extending their partnership through September 30, 2031. This agreement allows CSG to continue providing revenue management and monetization services to Charter, leveraging their cloud-native SaaS platform, CSG Ascendon, to enhance Charter’s digital entertainment offerings. The extension of this relationship is expected to create significant value for both companies, as CSG continues to support Charter’s residential Internet, TV, and home phone services.

The most recent analyst rating on (CSGS) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on CSG Systems International stock, see the CSGS Stock Forecast page.

CSG Systems’ Earnings Call: Record Revenue and Strategic Growth

CSG Systems’ latest earnings call painted a picture of robust financial health, marked by record revenue and improved margins. The sentiment was largely positive, with the company showcasing significant cash flow growth and successful diversification of revenue streams. Despite these achievements, CSG acknowledged that revenue growth is expected to be at the lower end of its guidance range, partly due to a contract termination that slightly impacted revenue.

CSG Systems Reports Strong Q2 2025 Results

CSG Systems International, a company specializing in customer experience, billing, and payments solutions, operates primarily in the SaaS sector. The company reported its second quarter 2025 results, highlighting strong operating income growth and significant customer wins. CSG Systems International achieved a total revenue of $297.1 million for the second quarter of 2025, with a GAAP operating income of $29.9 million and a non-GAAP operating income of $54.5 million. The company also reported a non-GAAP EPS of $1.16, reflecting a 13.7% increase from the previous year. CSG’s strategic focus on efficiency gains and its transition towards a more asset-light SaaS model have contributed to a 19.5% non-GAAP operating margin for the first half of 2025. The company also announced exciting customer wins and extensions, including partnerships with Orange Business and Liberty Puerto Rico. Looking forward, CSG Systems International has raised its full-year profitability and non-GAAP adjusted free cash flow guidance targets, reinforcing its strategy to deliver double-digit free cash flow growth in 2025 and 2026.