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CSP Inc (CSPI)
NASDAQ:CSPI
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CSP
(NASDAQ:CSPI)
54Neutral
CSP (CSPI) vs. S&P 500 (SPY)
Market Cap
$133.58M
Dividend Yield0.89%
Average Volume (3M)33.77K
Price to Earnings (P/E)33800.0
Beta (1Y)1.77
Revenue Growth-9.99%
EPS Growth-97.85%
CountryUS
Employees111
SectorTechnology
Sector Strength40
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.00
Shares Outstanding9,880,413
10 Day Avg. Volume21,955
30 Day Avg. Volume33,775
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.02
Price to Cash Flow (P/CF)24.10
P/FCF Ratio23.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CSP Business Overview & Revenue Model
Company DescriptionCSP Inc. (CSPI) operates in the technology sector, focusing on providing cybersecurity solutions, managed IT services, and high-performance Ethernet adapters. The company serves a diverse range of industries, including financial services, healthcare, and defense, offering advanced security products and IT infrastructure services designed to enhance operational efficiency and protect critical data.
How the Company Makes MoneyCSP Inc. generates revenue through multiple streams, primarily by selling its cybersecurity and IT services to enterprise clients. The company offers managed services that include IT infrastructure management, data protection, and cybersecurity solutions, which are sold on a subscription basis. Additionally, CSPI earns income from the sale of its Myricom network adapters, which are used in various high-performance computing environments. Strategic partnerships with technology providers and value-added resellers also play a significant role in expanding the company's market reach and contributing to its earnings.
CSP Financial Statement Overview
Summary
CSP's financials reflect a company with a strong balance sheet and decent cash flow management but challenged by profitability and growth inconsistencies. Stability from low leverage is a key strength, though improving revenue and profit trends are crucial for long-term success.Income Statement
The company exhibits fluctuating revenue trends with a slight recent decline. Gross profit margins remain steady, but recent negative EBIT and net income highlight profitability challenges. Revenue growth is inconsistent, reflecting potential market volatility.45
Neutral
Balance Sheet
CSP maintains a strong equity position with zero debt in the latest period, enhancing financial stability. The equity ratio is high, indicating a low-risk capital structure. However, historical fluctuations in liabilities suggest potential volatility in financial obligations.70
Positive
Cash Flow
Operating cash flow has shown growth, indicating improved efficiency, though free cash flow is inconsistent. The operating cash flow to net income ratio suggests reasonable cash generation relative to net income, but profitability issues may affect future cash flows.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 55.51M | 55.22M | 64.65M | 54.36M | 49.21M | 61.79M | Gross Profit |
| 19.32M | 18.86M | 21.92M | 18.83M | 16.15M | 17.17M | EBIT |
| -1.88M | -1.87M | 1.87M | -40.00K | -1.36M | -1.42M | EBITDA |
| 517.00K | 610.00K | 5.93M | 3.24M | 2.08M | 271.00K | Net Income Common Stockholders |
| 185.00K | -326.00K | 5.20M | 1.89M | 234.00K | -1.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 12.29M | 30.59M | 25.22M | 23.98M | 20.01M | 19.26M | Total Assets |
| 41.74M | 69.44M | 65.90M | 75.06M | 62.97M | 53.65M | Total Debt |
| 48.00K | 4.67M | 2.95M | 5.18M | 1.70M | 3.88M | Net Debt |
| -12.24M | -25.92M | -22.27M | -18.80M | -18.31M | -15.39M | Total Liabilities |
| 23.03M | 22.17M | 19.76M | 36.10M | 28.93M | 24.11M | Stockholders Equity |
| 18.71M | 47.27M | 46.15M | 38.96M | 34.05M | 29.53M |
| Cash Flow | Free Cash Flow | ||||
| 4.15M | 4.02M | 3.63M | 2.44M | 1.80M | 14.00K | Operating Cash Flow |
| 4.28M | 4.21M | 3.91M | 2.67M | 1.90M | 244.00K | Investing Cash Flow |
| -177.00K | -256.00K | -341.00K | 20.00K | -166.00K | -345.00K | Financing Cash Flow |
| 974.00K | 1.38M | -2.40M | 1.33M | -954.00K | 832.00K |
CSP Technical Analysis
Negative
13.52
Price Trends
17.03
Negative
16.48
Negative
15.05
Negative
Market Momentum
-0.42
Positive
39.16
Neutral
14.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Negative. The current price of 13.52 is below the 20-day moving average (MA) of 15.91, below the 50-day MA of 17.03, and below the 200-day MA of 15.05, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 14.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSPI.
CSP Risk Analysis
CSP disclosed 25 risk factors in its most recent earnings report. CSP reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $13.79B | 23.80 | 19.51% | ― | 3.02% | 31.36% | |
74 Outperform | $228.00B | 25.11 | 20.02% | 2.93% | -5.34% | -30.57% | |
67 Neutral | $16.80B | 6.33 | 12.09% | 4.07% | 10.93% | 43.19% | |
60 Neutral | $11.74B | 40.96 | 6.21% | 2.59% | -8.82% | -10.01% | |
57 Neutral | $18.57B | 9.42 | -13.42% | 2.72% | 5.01% | -23.43% | |
57 Neutral | $1.39B | ― | -24.41% | ― | -1.55% | -250.10% | |
54 Neutral | $133.58M | 33,800.00 | 0.17% | 0.89% | -9.99% | -97.85% |
* Technology Sector Average
Performance Comparison
CSPI
CSP
13.52
-5.16
-27.62%
CSCO
Cisco Systems
54.54
7.71
16.46%
FFIV
F5 Networks
239.25
47.56
24.81%
JNPR
Juniper Networks
33.95
-2.30
-6.34%
NTCT
Netscout Systems
19.31
-0.87
-4.31%
HPE
Hewlett Packard Enterprise
12.79
-4.86
-27.54%
CSP Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -31.09% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook for CSPi, with significant revenue growth, a strong cash position, and promising new partnerships. However, challenges remain in fully realizing AZT PROTECT's market potential and enhancing sales channel effectiveness.Highlights
Increase in Total Revenue
The company generated an increase in total revenue, boosted by 17% in service revenue and expanded gross margins by 200 basis points.
Strong Cash Position
CSPi finished the quarter with more than $30 million in cash and cash equivalents.
Technology Solutions Business Success
The Technology Solutions business generated approximately $15.2 million in sales, including a major cruise line order.
AZT PROTECT Deployment and Partnerships
The company signed up several new customers for AZT PROTECT and announced a partnership with United Flow Technologies to protect water treatment facilities.
Positive Financial Performance
CSPi reported a net income of $472,000 or $0.05 per diluted common share for the fiscal first quarter.
Lowlights
Limited AZT PROTECT Revenue Impact
Despite its potential, AZT PROTECT revenues are not yet material in the larger operational technology market.
Sales Channel Development Delays
Rockwell sales channels are still in the early stages of setup, delaying expected sales impact.
Concerns Over Shareholder Dilution
Shareholders expressed concerns about potential dilution due to management and director share allocations without significant stock buybacks.
Company Guidance
During the CSPi's first quarter fiscal year 2025 conference call, the company reported a 17% increase in service revenue, driving a 200 basis point expansion in gross margins, and earning $0.05 per diluted common share. CSPi generated approximately $15.7 million in revenue and ended the quarter with over $30 million in cash and cash equivalents. The Technology Solutions business led the way with $15.2 million in sales, and the company saw increasing demand for its cloud-based services. CSPi continued to invest in its AZT PROTECT product line, signing new customers and renewing contracts with existing ones, which contributed to the strong quarterly performance. The Board also authorized a $0.03 per share quarterly cash dividend.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.