Computer Programs and Systems, Inc. (CPSI) is a healthcare information technology company that designs, develops, markets, installs and supports computerized information technology systems. The Company’s target market includes acute care community hospitals with 300 or fewer beds and small specialty hospitals, with its primary focus on hospitals with 100 or fewer acute care beds. CPSI is providing software and hardware products, complemented by data conversion, installation, support and information technology management and professional services.
-Taken from company description
Healthcare reform has given a big push to businesses such as CPSI as hospitals are required to implement new systems by regulation. CPSI's systems (patient management, accounting and clinical) meet these regulations. The company has a very solid record posting $2.39 EPS and a Price/Earnings ratio of 22.5. A few reasons why I believe CPSI stock is a bargain at current prices:
- CPSI's systems are compliant with healthcare reform regulations. Their is a huge demand for their systems that doesn't look to be going away.
- There is potential for a boom in demand in Q1 2013 as deadlines for reform approach.
- The company has consistently increased dividends for close to 10 years with an annual yield of 3.44%.
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