CSG Systems International, Inc. (NASDAQ:CSGS) is a company that provides business support solutions primarily for the communications industry. It offers a range of services including billing, customer care, and digital monetization. CSGS competes with companies like ExlService Holdings, Inc., Blackbaud, Inc., CorVel Corporation, Amdocs Limited, and TTEC Holdings, Inc. in the technology and business services sector.
CSGS has a Return on Invested Capital (ROIC) of 12.11% and a Weighted Average Cost of Capital (WACC) of 9.07%. This results in a ROIC to WACC ratio of 1.33, indicating that CSGS is generating returns above its cost of capital. This is a positive indicator for investors as it suggests efficient capital utilization.
In comparison, ExlService Holdings, Inc. has a higher ROIC of 14.80% and a WACC of 9.30%, resulting in a ROIC to WACC ratio of 1.59. This suggests that EXLS is also effectively using its capital to generate returns, outperforming CSGS in this metric.
CorVel Corporation stands out with a ROIC of 19.52% and a WACC of 9.00%, leading to the highest ROIC to WACC ratio of 2.17 among the peers. This indicates that CorVel is the most efficient in capital utilization, generating significantly higher returns on its invested capital compared to its cost of capital.
On the other hand, Blackbaud, Inc. has a negative ROIC of -19.36% and a WACC of 7.42%, resulting in a ROIC to WACC ratio of -2.61. This suggests that Blackbaud is not generating sufficient returns to cover its cost of capital, which could be a concern for investors.
