Consensus Cloud Solutions, Inc. (CCSI)
Valuation Overview•Is Consensus Cloud Solutions, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 70/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CCSI exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 22.2% ROIC). However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-1.2% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 42.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $88.5M | -0.2% | -1.2% | +1.1% | — | |
| EBITDA | $42.6M | — | +0.3% | — | — | |
| Net Income | $24.7M | -5.5% | +5.1% | — | — | |
| EPS (Diluted) | $1.30 | -5.6% | +6.3% | -8.5% | — | |
| Free Cash Flow | $38.5M | +19.9% | +26.7% | -12.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 80.2% | 80.4% | 81.5% | 82.3% |
| Operating Margin | 42.9% | 42.1% | 43.6% | 48.0% |
| Net Margin | 25.1% | 23.7% | 24.4% | 33.5% |
| FCF Margin | 32.0% | 25.6% | 29.5% | 38.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.40 | $1.52 | +8.6% | ||
| Q1'26 | $1.31 | $1.41 | +7.6% | ||
| Q1'26 | $1.31 | $1.41 | +7.6% | ||
| Q4'25 | $1.36 | $1.38 | +1.5% | ||
| Q3'25 | $1.36 | $1.46 | +7.4% | ||
| Q2'25 | $1.30 | $1.37 | +5.4% | ||
| Q1'25 | $1.19 | $1.32 | +10.9% | ||
| Q4'24 | $1.29 | $1.31 | +1.6% |
Total return is +53.7% (1Y), outperforming the benchmark by +28.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +57.2% | +47.9% | — |
| 1Y | +53.7% | +28.7% | — |
| 3YCAGR | +1.6% | -17.9% | — |
| 5YCAGR | -0.9% | -13.3% | — |
| 10YCAGR | -0.4% | -14.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Consensus Cloud Solutions, Inc. (CCSI) valuation, health, and returns.
Based on peer relative multiples, Consensus Cloud Solutions, Inc. appears Cheap versus peers compared to industry peers.
Consensus Cloud Solutions, Inc. has multiple valuation anchors: Peer Relative Fair Value: $90.54 | Wall Street Analyst Target: $25.00 (implying -26.8% upside). A convergence of these signals offers higher conviction.
Consensus Cloud Solutions, Inc. displays good financial health with a composite quality score of 70/100, supported by a Altman Z-Score of 0.9 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 22.2%.
Consensus Cloud Solutions, Inc. returns capital via buybacks instead of dividends, carrying a 3.7% buyback yield and reducing outstanding shares by +0.3% in the last 12 months.
Consensus Cloud Solutions, Inc.'s current growth trajectory is Stable. The company achieved -0.2% 1Y revenue growth and -5.6% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.2%.
Wall Street consensus is Buy based on 6 analysts, beating EPS expectations in 92% of recent quarters with a 10-quarter streak. The consensus price target represents a -26.8% change from current levels.
Investment risks for Consensus Cloud Solutions, Inc. include: -31.9% 1-year max drawdown, high beta (1.42x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.42x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.