CPI Card Group - No Major Worries, Almost A Buy

Summary

• The lingering effects of the regional banking crisis could see a sequential dip in PMTS's key metrics, from what was seen in Q1.
• The CPI Card Group's long-standing track record of generating superior operating leverage will persist over the next two years.
• The net leverage is in a much better place and FCF this year could double.
• Given the degree of earnings growth on offer, the stock looks very cheap, and is also a promising rotation candidate within micro-caps.
• However, we still feel this isn't the most optimal point to get in.

Just_Super

Introduction

The stock of CPI Card Group (NASDAQ:PMTS), a micro-cap, payment tech specialist has had a rough ride this year, particularly since May; all in all, on a YTD basis, the stock has lost around a third of its market-cap, even as its peers

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.