* Note: Prices are in Million (M) USD.
Description:
Consensus Cloud Solutions, Inc. provides information delivery services with a worldwide software-as-a-service platform. The company is headquartered in Los Angeles, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $34 M
Debt : $607 M
EBITDA : $170 M
Net Debt (Debt - Cash): $574 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Information Technology
Industry: Software - Infrastructure
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 4.21
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $152 M
Average Revenue: $470 M
Revenue Converted To Free Cash Flow (%): 32%
Avg Free Cash Flow Growth Per Year (Last 5 Years): -1.53%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $350 M
Revenue 4 Years Ago (2020-12-31): $678 M
Last 5 Years Average Revenue Growth: -10%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $19 M
Share Count 5 Years Ago (2020-12-31): $20 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.94
Trailing 12-Month Earnings Per Share (EPS): $5.59
Average Earnings Per Share (EPS): $6.26
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 30%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $26
52-Week Low: $18
Threshold Price (15% Above 52-Week Low): $21
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $391 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above Consensus Cloud Solutions Inc (CCSI) stock.
Last 3 Years Avg PE (Limited to last 3 years of EPS data) 7.05, Fair Value PE 25 and Industry Based PE is 30. Based on these three values average assigned is 20.68.
Value-Trades has assined P/E value 20.68. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.26.
The fair value of Consensus Cloud Solutions Inc (CCSI) stock should be (20.68 x $6.26) = $129.46
