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 with moderate growth potential.

Risks

  • CSP is not covered by any analysts.

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

-4.9%

NasdaqGM:CSPI

1.1%

US IT

0.8%

US Market


1 Year Return

-6.8%

NasdaqGM:CSPI

16.0%

US IT

1.9%

US Market

CSPI underperformed the IT industry which returned 15.6% over the past year.

CSPI underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

CSPIIndustryMarket
7 Day-4.9%1.1%0.8%
30 Day-5.5%0.03%3.4%
90 Day-15.3%1.9%2.1%
1 Year-1.8%-6.8%17.2%16.0%4.2%1.9%
3 Year46.2%27.7%97.9%89.6%46.7%37.2%
5 Year105.3%58.2%143.3%118.7%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

1.64x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

CSP's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CSP's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CSP is loss making, we can't compare its value to the US IT industry average.

CSP is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for CSP, we can't assess if its growth is good value.


Price Based on Value of Assets

CSP is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is CSP expected 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 Estimates


Future Annual Growth Analysis

Unable to determine if CSP is high growth as no revenue estimate data is available.

CSP's earnings are expected to grow significantly at over 20% yearly.

Unable to compare CSP's revenue growth to the United States of America market average as no estimate data is available.

CSP's earnings growth is expected to exceed the United States of America market average.

CSP's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CSP will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

CSP does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare CSP's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare CSP's 1-year growth to the US IT industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if CSP has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if CSP has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if CSP improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is CSP's financial position?


Financial Position Analysis

CSP is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CSP's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CSP has no debt.

CSP has not taken on any debt in the past 5 years.

CSP has no debt, it does not need to be covered by operating cash flow.

CSP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

CSP has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

4.65%

Current Dividend Yield


Dividend Yield and Payments Analysis

CSP's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

CSP's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, CSP has been paying a dividend for less than 10 years.

Dividend payments have increased, but CSP only paid a dividend in the past 8 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Vic Dellovo (49yo)

7.1yrs

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

Vic's remuneration is higher than average for companies of similar size in United States of America.

Vic's compensation has increased whilst company is loss making.


Management Age and Tenure

4.9yrs

Average Tenure

55.5yo

Average Age

The tenure for the CSP management team is about average.


Board Age and Tenure

6.2yrs

Average Tenure

69yo

Average Age

The tenure for the CSP board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gary Levine (71yo)

    VP of Finance

    • Tenure: 36yrs
    • Compensation: US$431.00k
  • Vic Dellovo (49yo)

    CEO, President & Director

    • Tenure: 7.1yrs
    • 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: 2.1yrs
    • Compensation: US$342.84k

Board Members

  • Shelly James (79yo)

    Chairman

    • Tenure: 7.1yrs
    • Compensation: US$120.47k
  • Vic Dellovo (49yo)

    CEO, President & Director

    • Tenure: 7.1yrs
    • Compensation: US$1.48m
  • Izzy Azeri (40yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$95.47k
  • Raymond Blackmon (69yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$103.52k
  • Marilyn Smith (70yo)

    Director

    • Tenure: 6.2yrs
    • 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$53.583m
  • 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 Analysis2019/09/17 23:34
End of Day Share Price2019/09/17 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.