NasdaqGM:CSPI

Stock Analysis Report

Executive Summary

CSP Inc. develops and markets IT integration solutions, security and managed services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide.

Snowflake

Fundamentals

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

CSPI

-1.8%

US IT

1.0%

US Market


1 Year Return

0.5%

CSPI

20.6%

US IT

8.0%

US Market

Return vs Industry: CSPI underperformed the US IT industry which returned 20.6% over the past year.

Return vs Market: CSPI underperformed the US Market which returned 8% over the past year.


Shareholder returns

CSPIIndustryMarket
7 Day-0.5%-1.8%1.0%
30 Day-2.0%-0.9%-0.07%
90 Day-6.7%-5.5%-1.0%
1 Year5.9%0.5%21.9%20.6%10.4%8.0%
3 Year33.1%16.2%93.3%85.4%46.2%36.7%
5 Year120.0%69.5%146.1%123.5%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CSPI ($13.17) is trading above our estimate of fair value ($9.24)

Significantly Below Fair Value: CSPI is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: CSPI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CSPI is good value based on its PB Ratio (1.7x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is CSP forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSPI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CSPI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CSPI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if CSPI's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if CSPI's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CSPI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CSP performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSPI is unprofitable, and losses have increased over the past 5 years at a rate of -29.4% per year.

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

Earnings vs Industry: CSPI is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (9.8%).


Return on Equity

High ROE: CSPI has a negative Return on Equity (-2.26%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CSPI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CSPI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CSP's financial position?


Financial Position Analysis

Short Term Liabilities: CSPI's short term assets ($48.3M) exceeds its short term liabilities ($17.1M)

Long Term Liabilities: CSPI's short term assets (48.3M) exceeds its long term liabilities (6.8M)


Debt to Equity History and Analysis

Debt Level: CSPI is debt free.

Reducing Debt: CSPI has not had any debt for past 5 years.

Debt Coverage: CSPI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CSPI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CSPI has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CSPI's debt is covered by short term assets.


Next Steps

Dividend

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

4.56%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSPI's dividend (4.56%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CSPI's dividend (4.56%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: Whilst dividend payments have been stable, CSPI has been paying a dividend for less than 10 years.

Growing Dividend: CSPI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: CSPI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of CSP's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Vic Dellovo (49yo)

7.2yrs

Tenure

US$1,483,439

Compensation

Mr. Victor J. Dellovo, also known as Vic, has been the Chief Executive Officer of CSP Inc, since August 20, 2012 and has been its President since August 2012. Mr. Dellovo is an industry veteran with more t ...


CEO Compensation Analysis

Compensation vs. Market: Vic's total compensation ($USD1.48M) is about average for companies of similar size in the US market ($USD509.77K).

Compensation vs Earnings: Vic's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CSPI's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

69yo

Average Age

Experienced Board: CSPI's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Gary Levine (71yo)

    VP of Finance

    • Tenure: 36.1yrs
    • Compensation: US$431.00k
  • Vic Dellovo (49yo)

    CEO, President & Director

    • Tenure: 7.2yrs
    • Compensation: US$1.48m
  • Gary Southwell (56yo)

    VP & GM of High Performance Products Segment

    • Tenure: 2.8yrs
    • Compensation: US$265.73k
  • Mike Newbanks (55yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 2.2yrs
    • Compensation: US$342.84k

Board Members

  • Shelly James (79yo)

    Independent Chairman

    • Tenure: 7.2yrs
    • Compensation: US$120.47k
  • Vic Dellovo (49yo)

    CEO, President & Director

    • Tenure: 7.2yrs
    • Compensation: US$1.48m
  • Izzy Azeri (40yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$95.47k
  • Raymond Blackmon (69yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$103.52k
  • Marilyn Smith (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$103.52k

Company Information

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


Key Information

  • Name: CSP Inc.
  • Ticker: CSPI
  • Exchange: NasdaqGM
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$54.705m
  • Shares outstanding: 4.15m
  • Website: https://www.cspi.com

Number of Employees


Location

  • CSP Inc.
  • 175 Cabot Street
  • Suite 210
  • Lowell
  • Massachusetts
  • 1854
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSPINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1982

Biography

CSP Inc. develops and markets IT integration solutions, security and managed services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:32
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.