CPSI Intrinsic Stock Value – COMPUTER PROGRAMS AND SYSTEMS Reports Third Quarter Earnings for Fiscal Year 2023
November 21, 2023
🌥️Earnings Overview
On November 9, 2023, COMPUTER PROGRAMS AND SYSTEMS ($NASDAQ:CPSI) announced their financial results for the third quarter of the 2023 fiscal year (ending September 30, 2023). Total revenue was USD 82.7 million, representing a slight decrease of 0.1% year-on-year. Compared to the same quarter of the preceding year, the company reported a net income of USD -3.6 million, compared to a net profit of 2.2 million for that period.
Stock Price
The stock opened at $12.8 before the announcement, but dropped to $11.7 by the close of the day, provoking a 11.5% plunge from the last closing price of 13.2. Investors were disappointed with the results as they had expected higher earnings from the company. The main reason for the decrease in revenue was attributed to reduced sales of their products due to the current market conditions. Company executives stated that despite the negative results in the third quarter, they remain confident that their long-term goals remain intact. They stated that they have taken steps to ensure that they can adjust to the changing market conditions and continue to provide innovative products and services to their customers in the coming quarters. Despite the decrease in revenue and earnings, COMPUTER PROGRAMS AND SYSTEMS still managed to maintain its strong financial position. They reported that their cash balance still remains strong and all of their liabilities are well within acceptable limits. The third quarter report from COMPUTER PROGRAMS AND SYSTEMS has caused a great deal of concern among investors.
However, the company has made it clear that they are committed to making adjustments in order to ensure their long-term success. With a well-managed financial position and innovative products, COMPUTER PROGRAMS AND SYSTEMS is well positioned to overcome any challenges they may face in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CPSI. More…
| Total Revenues | Net Income | Net Margin |
| 336.79 | -0.78 | -0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CPSI. More…
| Operations | Investing | Financing |
| 15.48 | -22.62 | -6.95 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CPSI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 429.53 | 201.55 | 15.67 |
Key Ratios Snapshot
Some of the financial key ratios for CPSI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | -1.1% | 1.1% |
| FCF Margin | ROE | ROA |
| -2.2% | 1.0% | 0.6% |
Analysis – CPSI Intrinsic Stock Value
We at GoodWhale have conducted an in-depth analysis of the fundamentals of COMPUTER PROGRAMS AND SYSTEMS. Our proprietary Valuation Line suggests that the intrinsic value of the company’s share is around $32.7. Currently, it is traded at a price of $11.7, which indicates that it is undervalued by 64.2%. More…
Peers
The Company’s solutions and services are designed to improve clinical and financial outcomes for its customers. CPSI’s technology platform is one of the most comprehensive in the healthcare industry, and its solutions are used by more than 4,000 hospitals and 13,000 clinics across the United States and internationally. CPSI’s primary competitors are Think Research Corp, Vigil Health Solutions Inc, Ambea AB. All three companies provide similar software solutions and services to the healthcare industry.
– Think Research Corp ($TSXV:THNK)
Think Research Corp is a healthcare technology company that provides software and services to help healthcare organizations deliver evidence-based care. The company has a market cap of 19.91M and a ROE of -47.72%.
– Vigil Health Solutions Inc ($LTS:0RNX)
Amba AB is a Swedish company that provides healthcare services. It has a market cap of 4.6B as of 2022 and a return on equity of 9.28%. The company offers services such as primary care, specialist care, elderly care, and home care. It also provides other services such as medical equipment and pharmaceuticals.
Summary
Investors were disappointed with the poor earnings report from COMPUTER PROGRAMS AND SYSTEMS for the third quarter of fiscal year 2023, with total revenue decreasing by 0.1% and net income dropping to a loss of -3.6 million. As a result, the stock price of the company dropped on November 9th. Despite the decline, analysts suggest that there may be some long term potential in investing in the company, as it has historically generated strong profits and has a solid foothold in the market. However, investors may want to proceed with caution as the current economic environment may be too uncertain to make long-term investments wisely.
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