Consensus Cloud Solutions, Inc.

CCSI

Services-Prepackaged Software

Mkt Cap

$407.9M

PE

5.44

Debt

$805M

Cash

$155.7M

EV

$1.057B

FCF

$68.25M

Market Cap

$407.9M

P/E Ratio

5.44

Debt

$805M

Cash

$155.7M

EV

$1.057B

FCF

$68.25M

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. It offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present; jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. It serves healthcare, government, financial services, law, and education industries. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21

DCF

Discounted Cash Flow Valuation of Consensus Cloud Solutions, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$68.25M	$34.74M	$17.68M	$9.001M	$4.582M	$2.332M	$1.187M	$604.3K	$307.6K	$156.6K	$79.71K	$797.1K
DCF		$30.21M	$13.37M	$5.919M	$2.62M	$1.16M	$513.3K	$227.2K	$100.6K	$44.51K	$19.7K	$197K
Value	$54.38M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 20%

Earnings Stability -88%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	55%	37%	31%	20%	21%
ROA	-	13%	31%	24%	21%
ROE	38%	10%	-	-28%	-38%

What is the average Net Margin?

The average Net Margin over the past 5 years is +25.47%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -10.88%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +27.54%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -7.15%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -28.43%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	-	-	4.01	15.16	11.80
Debt Equity	-	0.00	-	-3.15	-4.04
MIN
Graham Stability	-	-	-	53%	53%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 11.80.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 11.15.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.53.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2019	12-2021	Trend
Revenue	4%	2.8%	0.049%
Net Income	-26%	-33%	-0.93%
Stockholders Equity	-	-	-
FCF	-36%	-74%	-37%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.05%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.93%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -37.4%.