NasdaqGS:CASA

Stock Analysis Report

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Market Cap

US$646.6m

Last Updated

2021/08/03 23:26 UTC

Data Sources

Company Financials +

Executive Summary

Casa Systems, Inc., a communications technology company, provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.


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: CASA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CASA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

CASA

2.2%

US Communications

0.9%

US Market


1 Year Return

35.0%

CASA

19.4%

US Communications

34.7%

US Market

Return vs Industry: CASA exceeded the US Communications industry which returned 19% over the past year.

Return vs Market: CASA matched the US Market which returned 34.4% over the past year.


Shareholder returns

CASAIndustryMarket
7 Day-0.8%2.2%0.9%
30 Day-12.6%4.2%0.2%
90 Day-4.2%9.7%4.7%
1 Year35.0%35.0%22.4%19.4%36.8%34.7%
3 Year-52.5%-52.5%33.0%23.6%62.5%52.4%
5 Yearn/a91.7%69.8%123.1%98.4%

Long-Term 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

Valuation

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

21.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CASA ($7.56) is trading above our estimate of fair value ($5.94)

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


Price To Earnings Ratio

PE vs Industry: CASA is good value based on its PE Ratio (21.7x) compared to the US Communications industry average (33.8x).

PE vs Market: CASA is poor value based on its PE Ratio (21.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: CASA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CASA is overvalued based on its PB Ratio (7.9x) compared to the US Communications industry average (2.5x).


Future Growth

How is Casa Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CASA's earnings are forecast to decline over the next 3 years (-4.6% per year).

Earnings vs Market: CASA's earnings are forecast to decline over the next 3 years (-4.6% per year).

High Growth Earnings: CASA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CASA's revenue (8.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CASA's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CASA's Return on Equity is forecast to be high in 3 years time (30.9%)


Past Performance

How has Casa Systems performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CASA has a large one-off gain of $4.8M impacting its June 30 2021 financial results.

Growing Profit Margin: CASA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CASA's earnings have declined by 3% per year over the past 5 years.

Accelerating Growth: CASA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CASA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (124.7%).


Return on Equity

High ROE: Whilst CASA's Return on Equity (35.66%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Casa Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CASA's short term assets ($352.1M) exceed its short term liabilities ($88.2M).

Long Term Liabilities: CASA's short term assets ($352.1M) exceed its long term liabilities ($299.1M).


Debt to Equity History and Analysis

Debt Level: CASA's debt to equity ratio (346%) is considered high.

Reducing Debt: CASA's debt to equity ratio has increased from 4.2% to 346% over the past 5 years.

Debt Coverage: CASA's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: CASA's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CASA'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 CASA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CASA'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 CASA'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?

3.1yrs

Average management tenure


CEO

Jerry Guo (58 yo)

18.58yrs

Tenure

US$6,040,724

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD6.04M) is above average for companies of similar size in the US market ($USD2.42M).

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


Leadership Team

Experienced Management: CASA's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: CASA's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CASA insiders have only sold shares 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 2.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Casa Systems, Inc.
  • Ticker: CASA
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$646.593m
  • Shares outstanding: 85.53m
  • Website: https://www.casa-systems.com

Number of Employees


Location

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

Listings


Biography

Casa Systems, Inc., a communications technology company, provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wirele...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:26
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.