FORT WAYNE, Ind. - CPI Card Group Inc . (NASDAQ: NASDAQ:PMTS (TSX:PMTS)), a provider of payment technology solutions, announced plans to construct a new manufacturing facility in Fort Wayne, Indiana. The new site will double the company's footprint in the area, marking a significant expansion aimed at bolstering its production capabilities and fostering innovation within the payments industry.
The company, which offers credit, debit, and prepaid card products, as well as digital solutions through Software-as-a-Service (SaaS) instant issuance, has been a part of the Fort Wayne community for over 16 years.
The new facility, located at 6993 Lima Road, represents the first time CPI has had the opportunity to build a manufacturing site to its own specifications. Site preparation has begun, with construction set to start this month and operations expected to kick off in mid-2025. The transition of Fort Wayne employees to the new location is anticipated to be completed by early 2026.
John Lowe, President and CEO of CPI Card Group, expressed excitement over the milestone, stating, "This is the first time in CPI's nearly 30-year history that we've had the opportunity to build a manufacturing facility to our specifications. It's a chance to provide our employees with the latest and most advanced tools, and will solidify CPI as a top workplace now and in the future."
The new facility will feature digital integration and automation, including collaborative robots, conveyor systems, and inline production to enhance productivity and maintain high-quality standards. New equipment is also planned to optimize floor layout and material flow, along with process automations to streamline tasks and improve throughput.
In line with its commitment to environmental sustainability, CPI Card Group aims to incorporate several initiatives into the new facility's design. The company is exploring renewable energy alternatives and Leadership in Energy and Environmental Design (LEED) certification to maximize efficiency and minimize waste.
The expansion reflects CPI's dedication to meeting customer needs and driving industry innovation. The information regarding the new facility and CPI's plans for growth is based on a press release statement.
InvestingPro Insights
As CPI Card Group Inc. (NASDAQ: PMTS) embarks on its ambitious expansion with the construction of a new manufacturing facility in Fort Wayne, Indiana, the company's financial health and market performance provide a broader context for investors. With a market capitalization of $216.62 million, CPI Card Group's valuation suggests a robust free cash flow yield, according to InvestingPro Tips. This metric is particularly relevant for investors looking for companies with strong cash generation relative to their share price.
Moreover, the company's current P/E ratio stands at 9.14, with a slight adjustment in the last twelve months as of Q4 2023 to 9.03, indicating a potentially attractive valuation in comparison to earnings. This could signal an opportunity for investors considering the company's profitability prospects, as analysts predict CPI will be profitable this year. In addition, the company's liquid assets have been noted to exceed its short-term obligations, providing a cushion that may reassure investors of its financial stability amidst expansion efforts.
Investors tracking the company's stock performance will find that despite a significant price drop over the last year, CPI has experienced a strong return over the last month, with a price total return of 26.5%. This recent uptick could be indicative of market optimism surrounding the company's future prospects, including the potential benefits of the new facility. For those interested in further analysis and additional insights, there are 7 more InvestingPro Tips available, which can be accessed with an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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