Computer Programs and Systems, Inc. (CPSI) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Computer Programs and Systems, Inc. (CPSI) Healthcare & Pipeline Overview

Computer Programs and Systems, Inc. (CPSI) delivers healthcare IT solutions, including patient management and clinical software, focusing on community hospitals and post-acute care. With a market capitalization of $134M, CPSI's solutions aim to enhance clinical and financial outcomes for healthcare providers through integrated data management.

What Is the Investment Thesis for CPSI?

CPSI presents a focused investment opportunity within the healthcare IT sector, targeting community hospitals and post-acute care facilities. The company's comprehensive suite of software solutions, including patient management, financial accounting, and clinical applications, addresses the evolving needs of healthcare providers. With a market capitalization of $134M and a P/E ratio of 85.48, CPSI's financial performance reflects its established presence in the market. Key growth catalysts include the increasing demand for healthcare IT solutions driven by regulatory requirements and the need for improved efficiency and data-driven decision-making. However, investors may want to evaluate the company's relatively low profit margin of 1.3% and the competitive landscape within the healthcare IT sector. CPSI's ability to innovate and expand its product offerings will be crucial for sustaining growth and maintaining its market position. The company's beta of 0.63 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

CPSI Key Highlights

• Market capitalization of $134M indicates CPSI's size within the healthcare IT sector.
• P/E ratio of 85.48 reflects investor expectations and valuation relative to earnings.
• Gross margin of 53.2% demonstrates CPSI's ability to maintain profitability on its core offerings.
• Profit margin of 1.3% highlights areas for potential improvement in operational efficiency.
• Beta of 0.63 suggests lower volatility compared to the broader market, indicating a more stable investment.

Who Are CPSI's Competitors?

CPSI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CPSI's Key Strengths?

• Comprehensive suite of healthcare IT solutions.
• Strong focus on community hospitals and post-acute care.
• Long-standing customer relationships.
• Integrated data management capabilities.

What Are CPSI's Weaknesses?

• Relatively low profit margin.
• Limited international presence.
• Dependence on the US healthcare market.
• Smaller market capitalization compared to larger competitors.

What Could Drive CPSI Stock Higher?

• Potential acquisitions to expand product offerings and market reach.
• Increasing demand for healthcare IT solutions driven by regulatory requirements.
• Adoption of electronic health records (EHRs) and digital health technologies.
• Expansion of value-based care models.

What Are the Key Risks for CPSI?

• Financial-distress signal — its Altman Z-Score of 1.30 sits in the distress zone (elevated bankruptcy risk).
• Intense competition from larger healthcare IT vendors.
• Evolving healthcare regulations and standards.
• Cybersecurity threats and data breaches.
• Economic downturn affecting healthcare spending.
• Dependence on key customer relationships.

What Are the Growth Opportunities for CPSI?

• Expansion in Post-Acute Care: CPSI has a significant opportunity to expand its presence in the post-acute care market, which includes skilled nursing facilities and assisted living facilities. The increasing demand for integrated healthcare solutions in this sector, driven by the aging population and the shift towards value-based care, presents a substantial growth opportunity. CPSI's software solutions that promote data-driven clinical and financial outcomes are well-positioned to capture a larger share of this market. The post-acute care market is estimated to reach $240 billion by 2028.
• Enhanced Patient Engagement Solutions: CPSI can further enhance its patient engagement solutions to improve patient outcomes and satisfaction. By offering tools that facilitate communication between patients and providers, such as patient portals and mobile apps, CPSI can drive greater adoption of its solutions. The patient engagement solutions market is projected to reach $30 billion by 2027, driven by the increasing focus on patient-centric care and the need for improved healthcare outcomes. CPSI can leverage its existing customer base to cross-sell these solutions.
• Revenue Cycle Management (RCM) Services: CPSI's revenue cycle management products and services offer a significant growth opportunity. As healthcare providers face increasing pressure to optimize their revenue cycle processes, the demand for RCM solutions is expected to grow. CPSI can expand its RCM offerings to include more comprehensive services, such as coding, billing, and collections. The RCM market is projected to reach $100 billion by 2028, driven by the increasing complexity of healthcare reimbursement and the need for improved financial performance.
• Cloud-Based Solutions: Transitioning more of its solutions to the cloud can provide CPSI with several advantages, including improved scalability, reduced IT costs, and enhanced security. By offering cloud-based solutions, CPSI can attract a wider range of customers, including smaller healthcare providers who may not have the resources to invest in on-premise infrastructure. The cloud-based healthcare IT market is projected to reach $50 billion by 2027, driven by the increasing adoption of cloud computing and the need for more flexible and cost-effective IT solutions. CPSI can leverage its existing expertise to develop and deploy cloud-based solutions.
• Strategic Partnerships and Acquisitions: CPSI can pursue strategic partnerships and acquisitions to expand its product offerings and market reach. By partnering with other healthcare IT companies, CPSI can offer a more comprehensive suite of solutions to its customers. Acquisitions can also provide CPSI with access to new technologies and markets. The healthcare IT market is highly fragmented, with numerous small and medium-sized companies offering specialized solutions. CPSI can consolidate some of these companies to create a larger and more competitive organization.

What Opportunities Does CPSI Have?

• Expansion in the post-acute care market.
• Enhanced patient engagement solutions.
• Growth in revenue cycle management services.
• Adoption of cloud-based solutions.

What Threats Does CPSI Face?

• Intense competition from larger healthcare IT vendors.
• Evolving healthcare regulations and standards.
• Cybersecurity threats and data breaches.
• Economic downturn affecting healthcare spending.

What Are CPSI's Competitive Advantages?

• Specialized Focus: Focus on community hospitals and post-acute care creates specialized expertise and solutions.
• Integrated Solutions: Offers a suite of integrated software solutions covering patient management, financial accounting, and clinical operations.
• Long-Term Customer Relationships: Builds long-term relationships with customers through ongoing support and maintenance services.
• Regulatory Compliance: Helps customers comply with healthcare regulations and standards.

What Does CPSI Do?

Founded in 1979 and headquartered in Mobile, Alabama, Computer Programs and Systems, Inc. (CPSI) specializes in providing healthcare information technology solutions and services. The company's core offerings include a suite of software systems designed to streamline patient management, financial accounting, and clinical operations for healthcare providers. CPSI's patient management software enables hospitals to efficiently identify patients and maintain their information throughout the care process. The financial accounting software offers business office applications to track and coordinate information crucial for managerial decision-making. CPSI's clinical software automates record-keeping and reporting for various clinical functions, such as laboratory, radiology, physical therapy, respiratory care, and pharmacy. CPSI also provides patient care and enterprise applications that support its products across different hospital departments. Centriq, an intuitive user interface, centralizes data from various care areas, offering end-users a comprehensive view of patient information. Additionally, CPSI offers software solutions tailored for the post-acute care industry, focusing on improving clinical and financial outcomes. The company's services include software application support, hardware maintenance, education, revenue cycle management, consulting, and managed IT services. CPSI primarily serves community hospitals, physician clinics, skilled nursing facilities, and assisted living facilities, extending its reach across the United States and the Caribbean nation of St. Maarten.

What Products and Services Does CPSI Offer?

• Provides patient management software to identify and track patients.
• Offers financial accounting software for business office applications.
• Delivers clinical software for automating record-keeping and reporting.
• Provides patient care applications for various clinical functions.
• Offers enterprise applications for use in different hospital areas.
• Provides Centriq, a user interface to centralize patient data.
• Offers software solutions for post-acute care to improve clinical and financial outcomes.

How Does CPSI Make Money?

• Software Licensing: Generates revenue through licensing its healthcare IT software to hospitals and clinics.
• Subscription Services: Provides ongoing software support, maintenance, and updates through subscription-based contracts.
• Professional Services: Offers consulting, implementation, and training services to assist clients in deploying and using its software.
• Managed Services: Provides managed IT services, including hosting and data management, to healthcare providers.

What Industry Does CPSI Operate In?

CPSI operates in the healthcare information technology (IT) sector, which is experiencing significant growth driven by factors such as increasing regulatory requirements, the need for improved healthcare efficiency, and the growing adoption of electronic health records (EHRs). The market is competitive, with companies like Allscripts Healthcare Solutions and Cerner Corporation vying for market share. CPSI focuses on community hospitals and post-acute care facilities, differentiating itself through tailored solutions and services. The healthcare IT market is projected to continue growing, driven by the ongoing digital transformation of the healthcare industry.

Who Are CPSI's Key Customers?

• Community Hospitals: Serves small to medium-sized community hospitals across the United States.
• Physician Clinics: Provides IT solutions to physician clinics and group practices.
• Skilled Nursing Facilities: Offers specialized software for skilled nursing facilities.
• Assisted Living Facilities: Caters to assisted living facilities with tailored IT solutions.

ROE 2%Key Financial Metrics

Return on equity for Computer Programs and Systems, Inc. stands at 2.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.1%, showing how much profit it generates from its asset base. CPSI trades at a trailing price-to-earnings ratio of 86.74, above the Healthcare sector average of ~23x. Its free cash flow yield is 10.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.78 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.2%, the inverse of the P/E and a quick read on earnings relative to price.

How Computer Programs and Systems, Inc. Is Valued

Computer Programs and Systems, Inc. carries a market capitalization of $134M, placing it in the micro-cap category. Relative to its peer group, CPSI's quantitative score of 49/100 is roughly in line with the peer average of 58/100.

F-Score 7/9Financial Health

Computer Programs and Systems, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.30 places it in the distress zone, a signal of elevated financial risk.

CPSI Financials

CPSI Latest News

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CPSI Analyst Consensus

CPSI MoonshotScore

What Investors Ask About Computer Programs and Systems, Inc. (CPSI) — Healthcare

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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