CPI Card Group (PMTS) AI Stock Analysis

• Market Cap: $177.32M
• Dividend Yield: N/A
• Average Volume (3M): 48.46K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.64
• Revenue Growth: 14.31%
• EPS Growth: -25.64%
• Country: US
• Employees: 1,500
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.29
• Shares Outstanding: 11,337,367
• 10 Day Avg. Volume: 56,896
• 30 Day Avg. Volume: 48,464
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.32
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 8.19
• 1Y Price Target: $34.00
• Price Target Upside: 117.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: $17.50 ▲(11.89% Upside)

CPI Card Group's overall stock score is driven by strong sales growth and strategic acquisitions, as highlighted in the earnings call. Despite challenges with profitability margins and a highly leveraged balance sheet, the company maintains strong cash flow generation. Technical indicators show moderate bullish momentum in the short term, while valuation metrics suggest the stock is reasonably priced.

Positive Factors

Revenue Growth

The consistent revenue growth, driven by strategic acquisitions and market expansion, indicates a strong market position and potential for future growth.

Strategic Acquisitions

The successful integration of Arroweye enhances CPI's service offerings and market reach, contributing to long-term revenue and profitability.

Cash Flow Generation

Strong cash flow generation supports financial stability and provides resources for strategic investments and debt management.

Negative Factors

Profitability Margins

Declining margins due to increased production costs and sales mix pressures could impact long-term profitability if not addressed.

High Leverage

High leverage increases financial risk and may limit the company's ability to invest in growth opportunities or weather economic downturns.

Tariff Impact

Tariffs and increased costs can strain margins and reduce competitiveness, affecting long-term financial performance.

CPI Card Group Business Overview & Revenue Model

Company Description

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing banks. Its products include Europay, Mastercard, And Visa (EMV) and non-EMV financial payment cards and metal cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, and instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, group service providers, and card transaction processors in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is based in Littleton, Colorado.

How the Company Makes Money

CPI Card Group generates revenue through several key streams including the production and sale of payment cards, which encompass EMV chip technology, contactless cards, and other card-related services. The company also earns income from its card personalization services, where they customize cards with customer branding and data. In addition, CPI Card Group provides secure card fulfillment services, allowing clients to outsource the entire card issuance process. Significant partnerships with banks, credit unions, and fintech companies bolster its revenue, as these institutions rely on CPI's expertise to manage their card programs. Furthermore, the rise of digital payments has expanded CPI's offerings into mobile payment solutions, contributing to its overall growth and revenue generation.

CPI Card Group Financial Statement Overview

Summary

CPI Card Group shows moderate revenue growth and strong cash flow generation, but faces challenges with profitability margins and a highly leveraged balance sheet. The negative equity position poses a risk, though cash flow growth is a positive indicator for future stability.

Income Statement

CPI Card Group shows moderate revenue growth with a TTM increase of 2.23%. However, the gross profit margin has slightly decreased to 33.47% from 35.63% in the previous year. The net profit margin also declined to 2.99% from 4.06%. EBIT and EBITDA margins have decreased, indicating some pressure on operational efficiency.

Balance Sheet

The company has a negative stockholders' equity, resulting in a high and negative debt-to-equity ratio of -10.71. This indicates significant leverage and potential financial instability. Return on equity is also negative, reflecting challenges in generating returns for shareholders.

Cash Flow

CPI Card Group's free cash flow has grown by 20.22% TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.62, indicating a healthy conversion of income to cash. However, the free cash flow to net income ratio is slightly lower at 0.79.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	502.36M	480.60M	444.55M	475.75M	375.12M	312.19M
Gross Profit	168.13M	171.22M	155.49M	175.77M	141.43M	110.31M
EBITDA	71.83M	79.21M	77.31M	93.65M	74.56M	55.11M
Net Income	15.00M	19.52M	23.98M	36.54M	15.94M	16.13M
Balance Sheet
Total Assets	399.80M	349.66M	293.68M	296.67M	268.14M	266.15M
Cash, Cash Equivalents and Short-Term Investments	17.12M	33.54M	12.41M	11.04M	20.68M	57.60M
Total Debt	310.91M	289.47M	272.31M	307.48M	321.11M	349.66M
Total Liabilities	428.82M	385.28M	345.62M	378.74M	389.16M	404.19M
Stockholders Equity	-29.03M	-35.62M	-51.94M	-82.08M	-121.02M	-138.04M
Cash Flow
Free Cash Flow	38.82M	34.06M	27.64M	13.47M	10.15M	14.92M
Operating Cash Flow	49.14M	43.31M	34.04M	31.34M	20.23M	22.01M
Investing Cash Flow	-57.98M	-9.22M	-6.22M	-17.77M	-9.92M	-7.09M
Financing Cash Flow	18.48M	-12.96M	-26.44M	-23.16M	-47.23M	23.98M

CPI Card Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Negative. The current price of 15.64 is below the 20-day moving average (MA) of 15.88, above the 50-day MA of 15.48, and below the 200-day MA of 22.36, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PMTS.

CPI Card Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	―	$482.15M	2.72	13.64%	8.22%	12.69%	-35.36%
LX	―	$811.03M	3.80	14.86%	7.90%	3.11%	95.40%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PMTS	―	$177.32M	13.99	―	―	14.31%	-25.64%
WU	―	$2.97B	4.05	97.70%	9.98%	-2.51%	17.47%
GDOT	―	$643.11M	-26.37	-2.68%	―	22.15%	57.64%
QD	―	$752.98M	10.77	4.57%	―	-39.25%	―

CPI Card Group Corporate Events

CPI Card Group: Mixed Earnings Call with Positive Outlook

The recent earnings call for CPI Card Group Inc. was a mixed bag of optimism and challenges. The company reported strong sales growth and successful market expansions, yet faced hurdles with gross margin pressures and unexpected tariffs. Despite these challenges, CPI Card Group has raised its revenue outlook for 2025, reflecting a positive long-term perspective.

CPI Card Group Reports Q2 2025 Earnings Growth

CPI Card Group Inc. is a payments technology company that offers a comprehensive range of payment cards and related digital solutions, primarily serving the U.S. market with a focus on building personal relationships and trust with its clients.

CPI Card Group Reports Q2 Results with Sales Growth

On August 8, 2025, CPI Card Group Inc. reported its second quarter financial results, highlighting a 9% increase in net sales, driven by strong performance from Arroweye and growth in debit and credit card sales. Despite a 91% decrease in net income due to acquisition costs and restructuring charges, the company saw a 3% increase in Adjusted EBITDA. CPI updated its 2025 outlook, projecting higher net sales growth, primarily due to the Arroweye acquisition, while maintaining its Adjusted EBITDA outlook. The company continues to expand its market presence and product offerings, including healthcare payments and digital solutions, while also investing in a new production facility to enhance capacity and efficiency.

The most recent analyst rating on (PMTS) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on CPI Card Group stock, see the PMTS Stock Forecast page.