Computer Programs & Systems Stock Analysis, Valuation (NASDAQ:CPSI)

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$26.43 $0.08 (0.3%) CPSI stock closing price Oct 12, 2018 (Closing)

Take a look at Amigobulls Computer Programs & Systems stock analysis video. Our analyst opinion covering the buy and sell arguments for CPSI stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Computer Programs & Systems, Inc. Stock Rating 2.9/5

Amigobulls CPSI stock analysis uses latest quarter 2018 Q2 financial data like Computer Programs & Systems revenue growth, profit margins and cash flows. We compare Computer Programs & Systems valuation with its sector peers to gauge relative attractiveness of CPSI stock. Computer Programs & Systems stock rating is our opinion about the business fundamentals of the company.

Should you buy CPSI stock?

  • The Computer Programs & Systems stock currently trades at a price to earnings ratio of 18.1, compared to the sector average of 24.2. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.3, the price-to-sales ratio of 1.3 for CPSI stock is attractive.
  • The company has a healthy free cash flow margin of 4.3.

Should you sell CPSI stock?

  • Revenue growth of 8.5 has been weak over the last 5 years.
  • Computer Programs & Systems registered a negative operating margin of -0.14 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Computer Programs & Systems had an average Net loss of -4.8%.
  • With a debt/equity ratio of 1, Computer Programs & Systems is highly leveraged in comparison to Medical peers.
  • The company has a negative Return on Invested Capital of -0.1, which is a red flag.
  • A negative ROE of -9.1 indicates that the company is not able to generate profits with the money shareholders have invested.

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Investors can make use of the Amigobulls Computer Programs & Systems stock analysis to ascertain how CPSI stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of CPSI stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Computer Programs & Systems revenue growth and profit or net income are two main metrics which help in identifying whether CPSI stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about CPSI stock.