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
Fair value with questionable track record.
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 +/- 8% a week.
Volatility Over Time: CASA's weekly volatility (8%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CASA exceeded the US Communications industry which returned 21.8% over the past year.
Return vs Market: CASA exceeded the US Market which returned 39% over the past year.
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
1 week ago | Simply Wall StIs Casa Systems (NASDAQ:CASA) Using Too Much Debt?
4 weeks ago | Simply Wall StReturns On Capital At Casa Systems (NASDAQ:CASA) Paint A Concerning Picture
1 month ago | Simply Wall StShareholders May Be More Conservative With Casa Systems, Inc.'s (NASDAQ:CASA) CEO Compensation For Now
Is Casa Systems undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CASA ($8.75) is trading below our estimate of fair value ($12.34)
Significantly Below Fair Value: CASA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CASA is good value based on its PE Ratio (24.9x) compared to the US Communications industry average (34.6x).
PE vs Market: CASA is poor value based on its PE Ratio (24.9x) compared to the US market (19.2x).
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 (9.2x) compared to the US Communications industry average (2.4x).
How is Casa Systems forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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 (-10.5% per year).
Earnings vs Market: CASA's earnings are forecast to decline over the next 3 years (-10.5% 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 (9.4% 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 (31.4%)
How has Casa Systems performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CASA has high quality earnings.
Growing Profit Margin: CASA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CASA's earnings have declined by 8.1% 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 (89.3%).
Return on Equity
High ROE: Whilst CASA's Return on Equity (36.36%) is high, this metric is skewed due to their high level of debt.
How is Casa Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CASA's short term assets ($358.2M) exceed its short term liabilities ($100.8M).
Long Term Liabilities: CASA's short term assets ($358.2M) exceed its long term liabilities ($297.0M).
Debt to Equity History and Analysis
Debt Level: CASA's debt to equity ratio (359.7%) is considered high.
Reducing Debt: CASA's debt to equity ratio has increased from 4.3% to 359.7% over the past 5 years.
Debt Coverage: CASA's debt is not well covered by operating cash flow (7.7%).
Interest Coverage: CASA's interest payments on its debt are not well covered by EBIT (2.4x coverage).
What is Casa Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CASA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CASA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CASA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CASA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CASA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jerry Guo (57 yo)
Mr. Jerry Guo has serves as President, Chief Executive Officer and Chairman of Board of Directors at Casa Systems, Inc since its founding in 2003 and served as its Secretary. Prior to founding Casa, Mr. Gu...
CEO Compensation Analysis
Compensation vs Market: Jerry's total compensation ($USD6.04M) is above average for companies of similar size in the US market ($USD2.34M).
Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.
Experienced Management: CASA's management team is considered experienced (2.9 years average tenure).
Experienced Board: CASA's board of directors are considered experienced (9.3 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.
Casa Systems, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Casa Systems, Inc.
- Ticker: CASA
- Exchange: NasdaqGS
- Founded: 2003
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$743.023m
- Shares outstanding: 84.92m
- Website: https://www.casa-systems.com
Number of Employees
- Casa Systems, Inc.
- 100 Old River Road
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 05:51|
|End of Day Share Price||2021/06/22 00:00|
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.