CPI Card Group Inc. Fundamental Analysis (NASDAQ: PMTS)
CPI Card Group Inc. Fundamental Analysis (NASDAQ: PMTS)
CPI Card Group Inc. (NASDAQ: PMTS) shows moderate financial fundamentals with a PE ratio of 22.89, profit margin of 2.34%, and ROE of -80.34%. The company generates $0.6B in annual revenue with strong year-over-year growth of 13.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 214.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PMTS's fundamental strength across five key dimensions:
Efficiency Score
WeakPMTS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPMTS trades at attractive valuation levels.
Growth Score
ModeratePMTS shows steady but slowing expansion.
Financial Health Score
ExcellentPMTS maintains a strong and stable balance sheet.
Profitability Score
WeakPMTS struggles to sustain strong margins.
Key Financial Metrics
Is PMTS Expensive or Cheap?
P/E Ratio
PMTS trades at 22.89 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PMTS's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values CPI Card Group Inc. at -27.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.79 times EBITDA. This is generally considered low.
How Well Does PMTS Make Money?
Net Profit Margin
For every $100 in sales, CPI Card Group Inc. keeps $2.34 as profit after all expenses.
Operating Margin
Core operations generate 9.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-80.34 in profit for every $100 of shareholder equity.
ROA
CPI Card Group Inc. generates $3.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CPI Card Group Inc. produces operating cash flow of $91.74M, showing steady but balanced cash generation.
Free Cash Flow
CPI Card Group Inc. generates strong free cash flow of $76.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.67 in free cash annually.
FCF Yield
PMTS converts 24.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
-27.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-23.98
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.80
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PMTS Stacks Against Its Sector Peers
| Metric | PMTS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.89 | 21.11 | Neutral |
| ROE | -80.34% | 655.00% | Weak |
| Net Margin | 2.34% | -1594.00% (disorted) | Weak |
| Debt/Equity | -23.98 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 2.09 | 910.44 | Strong Liquidity |
| ROA | 3.52% | 4469138.00% | Weak |
PMTS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CPI Card Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.59%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-8.12%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
167.95%
Industry Style: Value, Dividend, Cyclical
High Growth