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Is CSG Systems International (CSGS) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is CSG Systems International (CSGS - Free Report) . CSGS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.50, which compares to its industry's average of 20.29. CSGS's Forward P/E has been as high as 14.67 and as low as 9.56, with a median of 11.14, all within the past year.

CSGS is also sporting a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CSGS's industry has an average PEG of 1.90 right now. CSGS's PEG has been as high as 2.10 and as low as 0.96, with a median of 1.11, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CSGS has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.62.

Finally, investors should note that CSGS has a P/CF ratio of 11.66. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.02. Over the past 52 weeks, CSGS's P/CF has been as high as 11.66 and as low as 8.36, with a median of 10.12.

These are only a few of the key metrics included in CSG Systems International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CSGS looks like an impressive value stock at the moment.


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