
PMTS Stock Forecast & Price Target
PMTS Analyst Ratings
Bulls say
CPI Card Group Inc reported a significant year-over-year increase in earnings per share (EPS), achieving $0.19 for 3Q24, which reflects a 79% growth compared to $0.11 in the previous period. The company's expectation for EBITDA to be flat or slightly up in 2025, alongside the dominance of lower-cost plastic cards in the market, suggests a stabilizing revenue environment that may enhance future operating performance. Additionally, the anticipated reduction in holdings by the majority shareholder could improve market liquidity, positioning the company favorably amidst a reasonable level of leverage supported by strong profit margins and cash flow.
Bears say
CPI Card Group has experienced a decline in EBITDA margins, decreasing by 130 basis points due to reduced profitability in both its debit and credit segment and the prepaid debit segment, compounded by supply issues and rising material costs. The company's financial leverage remains a concern, with a net leverage ratio of 3.0x trailing adjusted EBITDA and significant debt of $285 million, highlighting vulnerability if credit issuance slows due to economic conditions. Additionally, the organic growth has been lackluster, showing a potential decline of 1% absent acquisitions, with free cash flow consistently trailing net income, indicating difficulties in cash conversion and ongoing challenges to financial health.
This aggregate rating is based on analysts' research of CPI Card Group and is not a guaranteed prediction by Public.com or investment advice.
PMTS Analyst Forecast & Price Prediction
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