First Cut Stock Study Report



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Transcription:

Firt Cut Stock Study Rort Comany Nam: Comutr Program and Sytm Tickr: CPSI Dat of Study: //20 Pric: $ 6.7 Your Nam: Email addr: Joyc Ivanovitch joyc.ivanovitch@gmail.com City: Nw York Stat: NY Chatr Nam (if alicabl): Nw York Chatr Dicu why you conidr thi to b a high quality, growth comany that hould b invtigatd furthr. Pla includ commnt on hitorical al and EPS growth, r-tax rofit margin, rturn on quity, and dbt. Earning ar growing fatr than al -- a harbingr of a riing tock ric. 0-yr hitorical al avragd 9.%; at yar 0.%;& currnt Q yr/yr, %. 0-yr hitorical EPS grw.9%; at yar.7%; & currnt Q yr/yr EPS 27.% Pr-tax rofit margin avragd 22.% for lat yar, and wa 2.2% in 20 ROE avragd 9.% for lat yar, and wa 7.% in 20 Dbt i minimal, and ntially conidrd "no dbt." Brifly dcrib how th comany mak mony: Foundd in 979, CPSI i a halthcar information tchnology comany that dign, dvlo, markt, intall and uort comutrizd information tchnology ytm to mt th uniqu dmand of mall and midiz hoital. CPSI rovid lctronic halth rcord (EHR) ytm for mor than 60 community, rural and critical acc hoital and thir 2,000 rovidr in 6 tat and th Ditrict of Columbia. Projctd growth rat for al: a conrvativ 9.% Why did you lct thi rat? Dicu from whr futur growth will com. I cho a likly utainabl, though conrvativ, growth rat. Futur growth will com from th halthcar tranition to lctronic halth rcord (EHR) ytm. Projctd growth rat for arning r har: 0% Why did you lct thi rat? A 0% EPS t'd growth rat i at th lowr nd of Analyt' timat. Morningtar t'd growth of 8.% to.% = mdian 9.8% Rutr t'd growth of 8.8% to % Yahoo t'd growth of 9.7% Thi tock tudy rflct th judgmnt of th contributor() only and no invtmnt rcommndation i intndd. Invtor hould alway conduct thir own analyi bfor making an invtmnt dciion. Thi rort may rfrnc wbit, roduct or rvic not ndord by BttrInvting and that may rquir uag f. Th rarr() of thi rort i not ndoring or romoting th u of th wbit, roduct or rvic.

Zack t'd growth of.% TK6 Connu Analyt t'd growth of.% on -yr EPS of $6.0 Projctd High P/E: 26.9 Why did you lct thi valu? Th -yar avrag high P/E i 28.8 Eliminating 2009 rducd th P/E to a mor conrvativ 26.9 Projctd Low P/E: 6. Why did you lct thi valu? Th -yar avrag low P/E i 7. Eliminating th hight -yr low P/E rducd th avg low P/E to a mor conrvativ 6. Projctd Low Pric: $8.0 Why did you lct thi valu? Avg. Low P/E: 6. X Etimat Low Earning/Shar 2.9 = Forcatd Low Pric: $8.0 At th currnt ric, th tock i a (chck on): Buy or Hold or Sll At th currnt ric, th uid-downid ratio i:.9 to Comound Annual Rturn Uing Forcat High P/E: 20.6% Your final rcommndation (chck on): Exlain: Buy or Hold or Sll CPSI rovid a comlt information and atint car ytm from buin offic to bdid combind with comrhniv imlmntation, training and ongoing uort from a taff of mor than,00 halthcar and buin rofional. CPSI i th clar ladr in th mall hoital and clinical ractic markt of lctronic halth rcord (EHR) ytm. CPSI clint bnfit from Th Amrican Rcovry and Rinvtmnt Act (ARRA) incntiv which ncourag th imlmntation and utilization of a crtifid lctronic halth rcord. Th Elctronic Halth Rcord indutry i hr to tay with th markt continuing it growth, with or without th Amrican Rcovry and Rinvtmnt Act and th Affordabl Car Act (ACA). At around $62/har, a P/E ratio of 9.0 v. a r avrag of 27.6, and a.6% dividnd, CPSI i a trong buy and long-trm hold. Thi tock tudy rflct th judgmnt of th contributor() only and no invtmnt rcommndation i intndd. Invtor hould alway conduct thir own analyi bfor making an invtmnt dciion. Thi rort may rfrnc wbit, roduct or rvic not ndord by BttrInvting and that may rquir uag f. Th rarr() of thi rort i not ndoring or romoting th u of th wbit, roduct or rvic.

Additionally, conidring it mall markt ca iz of $79.m, CPSI could b a buyout candidat at om oint in th futur Thi tock tudy rflct th judgmnt of th contributor() only and no invtmnt rcommndation i intndd. Invtor hould alway conduct thir own analyi bfor making an invtmnt dciion. Thi rort may rfrnc wbit, roduct or rvic not ndord by BttrInvting and that may rquir uag f. Th rarr() of thi rort i not ndoring or romoting th u of th wbit, roduct or rvic.

) 200 00 90 80 70 60 0 0 0 20 Growth Analyi FY 20 Q (Endd 9/0/20) RECENT QUARTERLY FIGURES EARNINGS SALES ($M) PER SHARE ($) Latt Quartr. 0.8 Yar Ago Quartr Prcntag Chang Stock Study 6.8 0.66.0% 27.% Comany Study by Sctor Tchnology Indutry Halth Information Srvi Prfrrd($M) Dilutd(M Shar) Dbt($M) % Dbt to Tot.Ca. COMPUTER PROGRAMS & S.. Pric Dat // Joyc Data Dat /0/ 200.9 0.7 Lat Judgmnt// Data Sourc BI Rfrnc.0 % Inidr. % Intitution Quality NAS: 88. CPSI 0.2 0 9 8 (Buy).2 7 6 2.9 2 Dfault Ovrrid Projctd Yar Sal @ 9.% 0.2 L Exn 22.% -27.2 L Tax.% -2.8 L Prfrrd Dividnd $ =========== Projctd Yr Total Earning 7. Dividd by Shar Out..0.29 Calculatd Growth Rat.7 200 200 2006 2007 2008 2009 200 20 202 20 20 20 206 207 208 () Hitorical Sal Growth 9. % () Hitorical Earning Pr Shar Growth.9 % www.iclub.com (2) Etimatd Futur Sal Growth 9. % () Etimatd Futur Earning Pr Shar Growth % () Sal Growth R 2 0.9 (6) Earning Pr Shar Growth R 2 0.82 Printd: // 0: PM Prard by: Joyc Uing Toolkit 6

2 A B C QUALITY ANALYSIS % Pr-tax Profit on Sal % ROE (Bginning Yr) % Dbt to Equity 200.2 200 22.0.6 2006 22.2.0 Comany 2007 8.. 2008 20.6 0. PRICE, PRICE/EARNINGS RATIO and DIVIDEND ANALYSIS COMPUTER PROGRAMS & SYSTEMS (CPSI) // 2009 8.9 7.2 YEAR AVG. CURRENT PRICE (P/E) 6.7 (9.0) 2-WEEK HIGH (P/E) 7.89 (22.) 2-WEEK LOW (P/E) 6.60 (7.) 200 9..9 20 2.2.2 202 22.9 2.2 20 2.2 7. TREND UP / DOWN 22. UP 9. UP EVEN Fical Yar High Pric Low Pric EPS High P/E Low P/E Dividnd % Payout % High Yild 2 6 2009 0. 2..9 6...080 77.9. 200 9..9.7 29.0 9.8.0 8..2 20 79..8 2..8 7.9.0 6.. 202 6.0.0 2.7 2.6 6.6.80 67.9. 20 62.9 6. 2.9 2..6 2.00 69.2. AVERAGE 7.6 26.9 6. 72.2 AVERAGE P/E RATIO 22.9 2.6 PROJECTED P/E RATIO 7. TTM EPS.2 CURRENT P/E RATIO 9.0 PEG RATIO.7 FTM EPS.8 RELATIVE VALUE 8.0% 88.0% PROJ. RELATIVE VALUE 7.% 79.8% AVG TTM + FTM EPS. EVALUATING REWARD and RISK ovr th nxt yar A FUTURE HIGH PRICE ANALYSIS -- NEXT YEARS Slctd High P/E 26.9 X Etimatd High Earning/Shar.2 = Forcat High Pric $.0 B FUTURE LOW PRICE ANALYSIS -- NEXT YEARS (a) Sl. Low P/E 6. X Etimatd Low Earning/Shar 2.9 = $ 8. (a adj.) (b) Avrag -Yar Low Pric = 7.6 (c) Rcnt Svr Low Pric =.0 (d) Pric Dividnd Will Suort = Prnt Divd. High Yild = 2.280 =.0 Slctd Etimatd Low Pric = $ 8. C PRICE RANGES Forcat High Pric.0 - Etimatd Low Pric 8. = Rang 92.6 2% of Rang = 2. BUY (Lowr 2% of Rang) = 8. to 7. MAYBE (Middl 0% of Rang) = 7. to 7.9 SELL (Ur 2% of Rang) = 7.9 to.0 Currnt Pric 6.70 i in th Buy Rang D REWARD/RISK ANALYSIS (Potntial Gain v. Rik of Lo) (Forcat High Pric.0- Currnt Pric 6.70 ) ( Currnt Pric 6.70 - Etimatd Low Pric 8. ) =.9 To TOTAL RETURN ANALYSIS A CURRENT YIELD Prnt Full Yar' Dividnd $ 2.280 Currnt Pric of Stock $ 6.70 =.7 % Prnt Yild or % Rturnd on Purcha Pric B AVERAGE YIELD - USING FORECAST HIGH P/E Avg. % Payout 72.2 Forcat High P/E 26.9 = Avg. Yild 2.7 AVERAGE YIELD - USING FORECAST AVERAGE P/E Avg. % Payout 72.2 Forcat Avg P/E 2.7 = Avg. Yild. C % COMPOUND ANNUAL TOTAL RETURN - USING FORECAST HIGH P/E Avrag Yild 2.7 % + Annual Arciation 8.0 % = Comound Annual Total Rturn 20.6 % D % PROJECTED AVERAGE RETURN - USING FORECAST AVERAGE P/E Avrag Yild. % + Annual Arciation 2.9 % = Projctd Avrag Total Rturn 6. % 200 ICLUBcntral Inc., 7 Wt Mil Road, Madion Hight, MI 807 (28)-6-00 www.iclub.com Printd: // 0: PM Prard by: Joyc Uing Toolkit 6