DB:6CS

Stock Analysis Report

Executive Summary

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa.


Snowflake Analysis

High growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Casa Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6CS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

30.2%

6CS

10.1%

DE Communications

7.3%

DE Market


1 Year Return

-58.6%

6CS

-37.9%

DE Communications

-17.7%

DE Market

Return vs Industry: 6CS underperformed the German Communications industry which returned -37.9% over the past year.

Return vs Market: 6CS underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

6CSIndustryMarket
7 Day30.2%10.1%7.3%
30 Day3.4%-14.5%-17.9%
90 Day-15.2%-32.7%-25.8%
1 Year-58.6%-58.6%-37.6%-37.9%-15.1%-17.7%
3 Yearn/a-39.2%-39.4%-18.7%-25.6%
5 Yearn/a13.0%12.8%-17.7%-29.0%

Price Volatility Vs. Market

How volatile is Casa Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Casa Systems undervalued compared to its fair value and its price relative to the market?

7.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 6CS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 6CS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 6CS is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: 6CS is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6CS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6CS is overvalued based on its PB Ratio (7.4x) compared to the DE Communications industry average (2.3x).


Next Steps

Future Growth

How is Casa Systems forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

129.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6CS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 6CS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 6CS's is expected to become profitable in the next 3 years.

Revenue vs Market: 6CS's revenue (14.7% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: 6CS's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6CS's Return on Equity is forecast to be high in 3 years time (38.5%)


Next Steps

Past Performance

How has Casa Systems performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6CS is currently unprofitable.

Growing Profit Margin: 6CS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6CS is unprofitable, and losses have increased over the past 5 years at a rate of -2% per year.

Accelerating Growth: Unable to compare 6CS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6CS is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (21.9%).


Return on Equity

High ROE: 6CS has a negative Return on Equity (-125%), as it is currently unprofitable.


Next Steps

Financial Health

How is Casa Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 6CS's short term assets ($308.4M) exceed its short term liabilities ($94.5M).

Long Term Liabilities: 6CS's short term assets ($308.4M) do not cover its long term liabilities ($311.3M).


Debt to Equity History and Analysis

Debt Level: 6CS's debt to equity ratio (760.5%) is considered high.

Reducing Debt: 6CS's debt to equity ratio has increased from 0.02% to 760.5% over the past 5 years.


Balance Sheet

Inventory Level: 6CS has a high level of physical assets or inventory.

Debt Coverage by Assets: 6CS's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 6CS has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 6CS has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Casa Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6CS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6CS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6CS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6CS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6CS's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Jerry Guo (56yo)

17.17s

Tenure

US$5,549,784

Compensation

Mr. Jerry Guo has served as President, Chief Executive Officer and Chairman of Board of Directors at Casa Systems, Inc since its founding in 2003 and also serves as its Secretary. Prior to founding Casa, M ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD5.55M) is above average for companies of similar size in the German market ($USD765.33K).

Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jerry Guo
Founder17.17yrsUS$5.55m11.99% $31.1m
Lucy Xie
Senior VP of Operations & Director17.17yrsUS$2.19m2.49% $6.5m
Weidong Chen
Chief Technical Officer16.17yrsUS$1.58m2.97% $7.7m
Scott Bruckner
Senior Vice President of Strategy & Corporate Development & Interim CFO0.083yrno data0.0099% $25.6k
Matthew Slepian
Corporate Controller & Principal Accounting Officer0.083yrno datano data
Monica Gould
Head of Investor Relationsno datano datano data
Cheryl George
Vice President of Human Resourcesno datano datano data
Abraham Pucheril
Senior Vice President of Product Strategy & Management2.17yrsno datano data
Alfredo de Cardenas
Chief Customer Officer1.17yrsno datano data
Steve Collins
Senior Vice President of Access Devices0.33yrno datano data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: 6CS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jerry Guo
Founder17.17yrsUS$5.55m11.99% $31.1m
Lucy Xie
Senior VP of Operations & Director17.17yrsUS$2.19m2.49% $6.5m
Bruce Evans
Independent Director10.17yrsUS$10.85kno data
William Styslinger
Independent Director8yrsUS$204.77k0.28% $733.2k
Michael Hayashi
Director1.33yrsUS$305.74k0.016% $41.4k
Daniel Mead
Independent Director2yrsUS$503.23k0.018% $46.9k
Susana D'Emic
Director1.25yrsUS$302.95kno data

8.0yrs

Average Tenure

60yo

Average Age

Experienced Board: 6CS's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Casa Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Casa Systems, Inc.
  • Ticker: 6CS
  • Exchange: DB
  • Founded: 2003
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$287.747m
  • Listing Market Cap: US$259.519m
  • Shares outstanding: 84.14m
  • Website: https://www.casa-systems.com

Number of Employees


Location

  • Casa Systems, Inc.
  • 100 Old River Road
  • Andover
  • Massachusetts
  • 1810
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CASANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2017
6CSDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2017

Biography

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:46
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.