3/22/2015

Good Company at a Cheap Price, Micro Cap


Computer Task Group Inc (CTG): “Computer Task Group Inc is an IT solutions and staffing services company with operations in North America and Europe. The Company's services include IT Solutions and IT other Staffing.” Morningstar

IT solutions include planning, developing, implementing, and managing technology requirements. Staffing service involve the recruitment, and management of IT talent. CTG also supports organizations that need flexible IT staff . The company’s market focus includes Healthcare, Technology Service Providers, Financial Services and Energy.

CTG is cheap as measured by their earning yield , EV/EBIT = 5.77. Its a good company with a consistent high ROIC. Current ROIC is 17.30%. The ROIC can be higher or lower depending how you calculate invested capital.
Note the financial statistics below highlighting the historical low valuations and market size.  Enterprise value to tangible book, revenue, EBIT or GP are all at historical lows. Further a solid financial position is demonstrated by the Z score, zero debt, positive cash flow and 3.25% TTM dividend yield. CTG is oversold and cheap.







 
























Value institutions have maintained or increased their positions.  See below; Royce, Heartland,Robeco,TETON Westwood Mighty Mites and other respected value institutions.








 
 
 
 
 















CTG = $7.45
Market Cap: 139.67M , Enterprise Value:98.82M
Price/Book (mrq): 1.25 , Enterprise Value/Revenue (ttm): 0.25
Enterprise Value/EBITDA (ttm): 4.84

Revenue (ttm):393.27M , Qtrly Revenue Growth (yoy):-4.40%
Gross Profit (ttm):  79.34M , EBITDA (ttm):  20.43M
Total Cash (mrq): 40.86M , Total Cash Per Share (mrq): 2.18
Current Ratio (mrq):  2.57 , Book Value Per Share (mrq): 5.99
Operating Cash Flow (ttm): 6.71M ,Free Cash Flow (ttm): 7.32M
52-Week Change: -55.60%

52-Week High :17.47 , 52-Week Low : 7.27
Shares Outstanding: 18.75M  Float: 13.34M
% Held by Insiders: 32.95% , % Held by Institutions:  58.10%
Trailing Annual Dividend Yield:   3.20%








 

The stock's underperformance versus its strong valuation creates a mean reversion candidate . Below, view the stock's performance versus its industry peer group.
 
 
 
 
 
 
 

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