Daily Stock Analysis: CSG Systems

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CSG Systems International Inc has the ticker symbol CSGS and is a member of the technology sector as a software - infrastructure company. It has good value and strong fundamental scores on its track record and is 4% overpriced based on its historic valuation. This is my first report ever of CSGS in any of my six portfolios.

CSG Systems International Inc has found favor with investors lately. CSGS reported record revenues for its fourth quarter.

CSG Systems International Inc. is a provider of business support solutions for the communications industry. 

Its solutions include cable and satellite care and billing, content management and monetization, convergent rating and billing, mediation and data management, and wholesale settlement and routing. 

They help companies with transaction-centric models to manage operations by capturing and managing revenue associated with large transaction volumes. 

The company derives revenue from software license agreements and professional services. A large majority of the firm's revenue is generated in the United States.

It serves financial services, healthcare, media and entertainment companies, and government markets. 

The company was incorporated in 1994 and is headquartered in Greenwood Village, Colorado.

Three key data points gauge dividend equities or funds like CSG Systems International Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

CSGS Price

CSG's price per share closed at $45.65 yesterday. A year ago its price was $45.73. Price per share has nearly recovered from the COVID recession, being 0.17% below last year's mark. 

If CSG Systems International Inc stock trades in the range of $38 to $52 this next year, its recent $45.85 price might rise by $4.15 to reach $50.00 by March 4, 2022. That's below the median of three CSGS broker analyst projections. 

CSGS Dividends

CSG Systems International Inc's most recently declared quarterly dividend was $0.235 paid December 18th. Dividends are estimated to total $0.94 per share annually and yield 2.05% at yesterday's $45.85 closing price. It has paid annually increasing dividends for eight years

CSGS Returns

Adding the $0.94 annual CSGS anticipated dividend to my $4.15 price upside shows a $5.09 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in CSG Systems International Inc at $45.85 per share and we'd buy 22 shares of CSGS stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.48 per share.

Subtract that maybe $0.48 brokerage cost from my estimated $5.09 gross gain per share results in a net gain of $4.60 X 22 shares = $101.20 for a 10.1% net gain on a $1,008.70 investment.

CSG Systems International Inc shows a possible 10.10% net gain including a 2.05% dividend yield. 

Over the next year at this time, a $1000 investment could generate $20.50 in cash dividends. And a single share bought at yesterday's closing price was about $46.00! So, if CSGS is your kind of software and services investment, the price is not near where the dividend income from $1,000 invested exceeds the single share price. You might consider holding off for a price pull-back.

All of the estimates above are speculation based on the past history of CSG Systems International Inc. Only time and money invested in this stock will determine its worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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