NasdaqGM:CSPI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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

Stable Share Price: CSPI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

CSPI

-2.3%

US IT

-3.1%

US Market


1 Year Return

-29.4%

CSPI

22.4%

US IT

12.7%

US Market

Return vs Industry: CSPI underperformed the US IT industry which returned 22.4% over the past year.

Return vs Market: CSPI underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

CSPIIndustryMarket
7 Day3.5%-2.3%-3.1%
30 Day-6.9%-3.0%-2.9%
90 Day11.5%7.9%8.2%
1 Year-27.7%-29.4%23.7%22.4%15.3%12.7%
3 Year-2.3%-12.8%94.8%87.1%37.8%28.5%
5 Year106.4%65.5%169.2%147.0%90.9%69.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSPI ($9.05) is trading below our estimate of fair value ($24.87)

Significantly Below Fair Value: CSPI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSPI is unprofitable, so we can't compare its PE Ratio to the US 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 (1.4x) compared to the US IT industry average (3.6x).


Next Steps

Future Growth

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

25.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CSP has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CSP performed over the past 5 years?

-44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSPI is currently unprofitable.

Growing Profit Margin: CSPI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CSPI is unprofitable, and losses have increased over the past 5 years at a rate of 44.9% 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 (8.6%).


Return on Equity

High ROE: CSPI has a negative Return on Equity (-6.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is CSP's financial position?


Financial Position Analysis

Short Term Liabilities: CSPI's short term assets ($41.5M) exceed its short term liabilities ($14.1M).

Long Term Liabilities: CSPI's short term assets ($41.5M) exceed its long term liabilities ($11.7M).


Debt to Equity History and Analysis

Debt Level: CSPI's debt to equity ratio (20.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CSPI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CSPI's debt is well covered by operating cash flow (43.1%).

Interest Coverage: Insufficient data to determine if CSPI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: CSPI is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Vic Dellovo (50 yo)

8.08yrs

Tenure

US$922,953

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 ($USD922.95K) is above average for companies of similar size in the US market ($USD601.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Victor Dellovo
CEO, President & Director8.08yrsUS$922.95k6.89%
$ 2.7m
Gary Levine
VP of Finance37yrsUS$333.00k1.69%
$ 655.3k
Michael Newbanks
VP of Finance & Chief Accounting Officer3.17yrsUS$270.80k0.53%
$ 206.4k
Gary Southwell
VP & GM of High Performance Products Segment3.75yrsUS$298.33k0.41%
$ 159.7k

5.9yrs

Average Tenure

57.5yo

Average Age

Experienced Management: CSPI's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Victor Dellovo
CEO, President & Director8.08yrsUS$922.95k6.89%
$ 2.7m
C. James
Independent Chairman of the Board8.08yrsUS$102.60k1.02%
$ 396.4k
Ismail Azeri
Independent Director4.67yrsUS$77.60k0.65%
$ 253.4k
Raymond Blackmon
Independent Director7.17yrsUS$85.66k0.80%
$ 310.0k
Marilyn Smith
Independent Director7.17yrsUS$85.66k0.80%
$ 310.0k

7.2yrs

Average Tenure

70yo

Average Age

Experienced Board: CSPI's board of directors are considered experienced (7.2 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 been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

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$38.705m
  • Shares outstanding: 4.28m
  • 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 products, managed IT services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 05:48
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.