CPI Card Group Inc. (PMTS)
NASDAQ:PMTS
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CPI Card Group
(NASDAQ:PMTS)
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Rating:61Neutral
Price Target:
$18.00
▼(-4.00% Downside)
Action:Reiterated
Date:05/27/26
The score is anchored by solid and improving cash flow plus reaffirmed full-year guidance and strong recent revenue growth. Offsetting these positives are elevated balance-sheet risk from persistent negative equity and sizable debt, along with margin pressure (integration costs, tariffs, and depreciation) that has compressed profitability. Technicals are moderately supportive, while valuation appears mid-range with no dividend yield support provided.
Positive Factors
Strong Cash Generation
Consistently positive and improving operating and free cash flow provides durable internal funding for debt reduction, working-capital needs and targeted investments. Solid FCF enhances financial flexibility, supporting deleveraging and execution of strategic initiatives without relying solely on external financing.
Negative Factors
Weak Balance Sheet / Negative Equity
A negative equity position and sizable outstanding debt materially constrain financial flexibility and increase refinancing risk. Even with improving cash flow, persistent negative equity limits capital options, raises creditor scrutiny and heightens vulnerability to adverse market or cyclical shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Consistently positive and improving operating and free cash flow provides durable internal funding for debt reduction, working-capital needs and targeted investments. Solid FCF enhances financial flexibility, supporting deleveraging and execution of strategic initiatives without relying solely on external financing.
Read all positive factors
CPI Card Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
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The Fly
The FlyCPI Card Group (PMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$209.54M
Dividend YieldN/A
Average Volume (3M)48.36K
Price to Earnings (P/E)17.1
Beta (1Y)1.63
Revenue Growth15.56%
EPS Growth-36.51%
CountryUS
Employees1,500
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.07
Shares Outstanding11,475,608
10 Day Avg. Volume47,720
30 Day Avg. Volume48,363
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)-9.59
Price to Sales (P/S)0.31
P/FCF Ratio4.02
Enterprise Value/Market Cap2.27
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit2.74
Enterprise Value/Ebitda6.31
Forecast
1Y Price Target
$26.00Price Target Upside38.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.35
Revenue Forecast (FY)$592.86M
CPI Card Group Business Overview & Revenue Model
Company Description
CPI Card Group Inc., along with its affiliated entities, specializes in the full spectrum of financial payment card services. This includes everything from the initial design and manufacturing to the personalized data integration, secure packaging...
How the Company Makes Money
CPI Card Group makes money primarily by selling payment card products and associated services to financial institutions, fintech program managers, and other card issuers. Key revenue streams include: (1) Card manufacturing and packaging: producing...
CPI Card Group Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture driven by strong top-line growth (+20% revenue) led by Secure Card Solutions (+35%) and markedly improved cash generation (free cash flow $10.1M). Management acknowledged near-term margin pressure from integration costs, tariffs, and higher depreciation that reduced net income and gross margins, and Prepaid Solutions saw a notable decline (-17%) due to order timing. Management reaffirmed full-year guidance, expects Integrated Paytech to accelerate (targeting >15% growth) supported by a Fiserv referral agreement and Instant Issuance demand, and anticipates integration costs to taper in H2. Overall, strengths in revenue growth, cash flow, and strategic partnerships outweigh the near-term margin and segment-specific headwinds.Positive Updates
Revenue Growth
Total revenue increased 20% year-over-year to $147.0 million in Q1 2026, driven by Secure Card Solutions and contribution from ArrowEye (AOI).
Negative Updates
Net Income Decline
Net income declined 57% year-over-year to $2.1 million in Q1, primarily due to $3.0 million of pretax integration costs (excluded from adjusted EBITDA).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 20% year-over-year to $147.0 million in Q1 2026, driven by Secure Card Solutions and contribution from ArrowEye (AOI).
Read all positive updates
Company Guidance
CPI affirmed its March full-year guidance calling for high single‑digit revenue growth, low‑ to mid‑single‑digit adjusted EBITDA growth, free cash‑flow conversion roughly in line with 2025, and a year‑end net leverage ratio of 2.5x–3.0x; the company expects Q2 revenue to be similar to Q1 and Q2 adjusted EBITDA to be slightly lower than the prior year due to timing of investment spending. First‑quarter results that underpin the outlook included revenue of $147.0M (+20% YoY), adjusted EBITDA up 9%, free cash flow of $10.1M (operating cash flow $13.6M), net income of $2.1M (‑57%), gross margin of 30.0% (vs. 33.2% prior year), Secure Card Solutions +35% (including $16M from ArrowEye), Prepaid ‑17%, Integrated Paytech +1% with gross margins >55%, Q1 pretax integration costs of $3M (expected similar in Q2 then to drop significantly in H2), $19M cash, $15M ABL borrowings and $265M senior notes, and management reiterated Integrated Paytech is expected to grow >15% for 2026.CPI Card Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
24
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 567.88M | 543.53M | 480.60M | 444.55M | 475.75M | 375.12M |
| Gross Profit | 173.52M | 170.10M | 171.22M | 155.49M | 175.77M | 141.43M |
| EBITDA | 75.34M | 77.30M | 79.21M | 77.31M | 93.65M | 74.56M |
| Net Income | 12.23M | 14.95M | 19.52M | 23.98M | 36.54M | 15.94M |
Balance Sheet | ||||||
| Total Assets | 386.45M | 403.19M | 349.66M | 293.68M | 296.67M | 268.14M |
| Cash, Cash Equivalents and Short-Term Investments | 19.30M | 21.70M | 33.54M | 12.41M | 11.04M | 20.68M |
| Total Debt | 289.81M | 337.47M | 289.47M | 272.31M | 291.22M | 307.74M |
| Total Liabilities | 400.46M | 420.52M | 385.28M | 345.62M | 378.74M | 389.16M |
| Stockholders Equity | -14.01M | -17.33M | -35.62M | -51.94M | -82.08M | -121.02M |
Cash Flow | ||||||
| Free Cash Flow | 51.17M | 41.33M | 34.06M | 27.64M | 13.47M | 10.15M |
| Operating Cash Flow | 67.56M | 59.50M | 43.31M | 34.04M | 31.34M | 20.23M |
| Investing Cash Flow | -63.39M | -65.13M | -9.22M | -6.22M | -17.77M | -9.92M |
| Financing Cash Flow | -16.39M | -6.22M | -12.96M | -26.44M | -23.16M | -47.23M |
CPI Card Group Technical Analysis
Positive
18.75
Price Trends
17.27
Positive
15.47
Positive
15.17
Positive
Market Momentum
0.51
Negative
55.84
Neutral
52.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Positive. The current price of 18.75 is above the 20-day moving average (MA) of 17.67, above the 50-day MA of 17.27, and above the 200-day MA of 15.17, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 52.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PMTS.
CPI Card Group Risk Analysis
CPI Card Group disclosed 40 risk factors in its most recent earnings report. CPI Card Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CPI Card Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $336.53M | 1.55 | 12.17% | 8.86% | -3.40% | 8.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $722.67M | -10.03 | -7.74% | ― | 18.96% | -1025.15% | |
62 Neutral | $2.22B | 5.09 | 47.95% | 10.18% | -2.34% | -49.33% | |
61 Neutral | $209.54M | 17.10 | -56.87% | ― | 15.56% | -36.51% | |
60 Neutral | $100.44M | 6.43 | 0.54% | 10.37% | -1.41% | -98.13% |
* Financial Sector Average
PMTS
CPI Card Group
18.26
-4.80
-20.82%
GDOT
Green Dot
12.75
2.74
27.37%
WU
Western Union
7.12
-0.45
-5.91%
YRD
Yiren Digital
1.15
-4.55
-79.84%
LX
Lexinfintech Holdings
2.00
-4.51
-69.26%
CPI Card Group Corporate Events
Executive/Board ChangesShareholder Meetings
CPI Card Group Shareholders Back Board, Auditor, Executive Pay
Positive
May 26, 2026
CPI Card Group Inc. reported the results of its 2026 annual meeting of stockholders held on May 21, 2026, where shareholders elected eight directors, including Thomas Furey and Valerie Soranno Keating, to one-year terms expiring at the 2027 annual...
Business Operations and StrategyFinancial Disclosures
CPI Card Group Posts Strong Q1 2026 Revenue Growth
Positive
May 5, 2026
On May 5, 2026, CPI Card Group reported first-quarter 2026 revenue up 20% year-on-year to $147.1 million, driven by the Arroweye acquisition and higher sales of contactless cards and personalization services. Net income fell 57% to $2.1 million du...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
CPI Card Group Announces Strong Q4 Results, 2026 Outlook
Positive
Mar 5, 2026
On March 5, 2026, CPI Card Group reported that fourth-quarter 2025 revenue rose 22% year-on-year to a record $153.1 million, with net income up 9% to $7.4 million and adjusted EBITDA up 34% to $29.4 million. For full-year 2025, revenue increased 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.