CSG Systems International, Inc. (NASDAQ:CSGS) is a leading provider of business support solutions, primarily catering to the communications industry. The company's offerings encompass billing, customer care, and digital monetization services. CSGS operates within a competitive landscape, facing off against peers such as ExlService Holdings, Inc., Blackbaud, Inc., CorVel Corporation, Amdocs Limited, and TTEC Holdings, Inc.
CSGS boasts a Return on Invested Capital (ROIC) of 12.11% and a Weighted Average Cost of Capital (WACC) of 9.27%. This yields a ROIC to WACC ratio of 1.31, signaling that CSGS is generating returns well above its cost of capital. This performance is indicative of efficient capital utilization, presenting a favorable scenario for investors.
In contrast, ExlService Holdings, Inc. (EXLS) showcases a higher ROIC of 14.80% and a WACC of 9.00%, leading to a ROIC to WACC ratio of 1.64. This comparison suggests that EXLS is more effective in generating returns on its invested capital compared to CSGS.
CorVel Corporation (CRVL) stands out with an impressive ROIC of 19.52% and a WACC of 9.47%, resulting in the highest ROIC to WACC ratio of 2.06 among the peers. This indicates that CorVel is the most efficient in utilizing its capital to generate returns, outperforming CSGS and other competitors.
Conversely, Blackbaud, Inc. (BLKB) presents a negative ROIC of -19.36% against a WACC of 7.48%, leading to a ROIC to WACC ratio of -2.59. This performance suggests that Blackbaud is not generating sufficient returns to cover its cost of capital, starkly contrasting with the positive performance of CSGS.
