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CRSR

Corsair Gaming NasdaqGS:CRSR Stock Report

Last Price

US$16.65

Market Cap

US$1.6b

7D

-1.3%

1Y

-35.0%

Updated

18 Aug, 2022

Data

Company Financials +
CRSR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

CRSR Stock Overview

Corsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific.

Corsair Gaming Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Corsair Gaming
Historical stock prices
Current Share PriceUS$16.65
52 Week HighUS$30.77
52 Week LowUS$12.23
Beta0
1 Month Change26.23%
3 Month Change10.93%
1 Year Change-34.99%
3 Year Changen/a
5 Year Changen/a
Change since IPO16.84%

Recent News & Updates

Aug 08
Analysts Have Just Cut Their Corsair Gaming, Inc. (NASDAQ:CRSR) Revenue Estimates By 12%

Analysts Have Just Cut Their Corsair Gaming, Inc. (NASDAQ:CRSR) Revenue Estimates By 12%

Market forces rained on the parade of Corsair Gaming, Inc. ( NASDAQ:CRSR ) shareholders today, when the analysts...

Aug 05

Corsair Q2 Earnings: What A Disaster

Corsair’s second quarter earnings reported heavy declines in revenue and profitability. The company slashed revenue guidance again. Adjusted EBITDA is now expected to be just 25% of what was predicted earlier this year. The company is setting the stage to dilute shareholders further. There is room for a turnaround, but it may come at a heavy cost. Investment Thesis Corsair (CRSR) has not done a good job of projecting their business growth. The company missed its bottom line expectations. On the top line, reported revenues slid over a heavily reduced projection. Management then cut guidance for the company's top and bottom lines. I believe a turnaround may be possible. Unfortunately, a high valuation and the risk of dilution make me want to avoid this stock. Poor results and a heavy guidance cut Corsair's latest quarterly results were a disaster. The company reported sales of $294 million, down 40% year over year. Adjusted EBITDA was negative, and the company lost $0.62 per share during the quarter. Corsair Q2 2022 Earnings Presentation The company slashed revenue guidance to a range of $1.35 to $1.45 billion. This is down 30% from their Q4 2021 guidance. Adjusted EBITDA guidance was cut to a midpoint of $57.5 million, down almost 75% from six months ago. The largest declines were in the company's peripherals segment. This is Corsair's most discretionary segment. Sales were down 43% year over year and by one third quarterly. The computer components segment also reported poor results. Revenues dipped almost 40% year over year and 21% sequentially. Corsair Q2 2022 Earnings Presentation Corsair reported a total gross margin of 13% in the last quarter, its worst ever reported result. These margins are less than half of what they were during the same quarter last year. Across the business, the peripherals segment was the hardest hit. This is traditionally Corsair's highest margin business. The segment's gross margins tanked from over 35% to just under 12% year over year. This bottom line pressure pushed the company to lay off employees and cut operating costs. Corsair's balance sheet isn't good Corsair has a large inventory excess on its books. As of their last 10-Q filing, there were 109 days of inventory on their balance sheet. This is the highest number on record. Worse, supply gluts and demand downturns are causing issues across the industry. Management reports that competitors are issuing heavy discounts on their products. This added market pressure could further hurt Corsair's top line. The company's net debt profile isn't great, either. Corsair has $36 million in cash on hand and $240 million in long term debt. Most importantly, the interest on this debt is variable. As interest rates continue to march higher, the cost of the company's debt will increase too. It seems like management is setting the stage to dilute the company's shares. The lack of cash on the company's balance sheet makes it likely they'll raise new capital by issuing equity. The midpoint of management's guidance implies a 7% increase in shares outstanding between now and the end of the year. Shares are still expensive Corsair's shares are down 70% from their lockdown highs. I still think they're kind of expensive. Even during the last fiscal year, the company was free cash flow negative. The business trades at a forward EV to adjusted EBITDA of 26. Forward EV/Sales is just under 1.1 times, which seems high for a business with this gross margin profile. The prospect of double digit annualized dilution makes this an even riskier play. I think that shares are expensive and pricing in a strong long term comeback. Is there a light at the end of the tunnel? While the short term outlook is poor, I want to assess Corsair's long term prospects. The company has pointed to a shortage of GPUs as a key factor holding back demand. GPUs are a key component in high end PC builds. Management has repeated that they expect this to be a major growth driver when the shortages end. Corsair Q2 2022 Earnings Presentation GPU prices have now returned to more normal levels. The company discussed this decrease on its earnings call. We expect that the second half will show improvement over the first half, but at lower levels than we expected at the start of the year. In particular, GPU prices have moderated and GPUs are generally available now to our end customers. That coupled with the expected exciting product releases from us for our product lines, plus new AMD motherboards and NVIDIA GPUs, should provide a good foundation for improving results in our components business... If consumer end demand continues to hold up, we expect that the end of 2022 will provide a good foundation for 2023.

Shareholder Returns

CRSRUS TechUS Market
7D-1.3%3.1%1.1%
1Y-35.0%18.3%-9.0%

Return vs Industry: CRSR underperformed the US Tech industry which returned 18.3% over the past year.

Return vs Market: CRSR underperformed the US Market which returned -9% over the past year.

Price Volatility

Is CRSR's price volatile compared to industry and market?
CRSR volatility
CRSR Average Weekly Movement7.1%
Tech Industry Average Movement7.8%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

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

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

About the Company

FoundedEmployeesCEOWebsite
19942,490Andy Paulhttps://www.corsair.com

Corsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, stream decks, USB microphones, studio accessories, and EpocCam software. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato’s streaming suite for streamers and content creators.

Corsair Gaming Fundamentals Summary

How do Corsair Gaming's earnings and revenue compare to its market cap?
CRSR fundamental statistics
Market CapUS$1.59b
Earnings (TTM)-US$38.03m
Revenue (TTM)US$1.57b

1.0x

P/S Ratio

-41.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRSR income statement (TTM)
RevenueUS$1.57b
Cost of RevenueUS$1.22b
Gross ProfitUS$350.39m
Other ExpensesUS$388.42m
Earnings-US$38.03m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.40
Gross Margin22.37%
Net Profit Margin-2.43%
Debt/Equity Ratio43.6%

How did CRSR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CRSR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CRSR?

Other financial metrics that can be useful for relative valuation.

CRSR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA62.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CRSR's PS Ratio compare to its peers?

CRSR PS Ratio vs Peers
The above table shows the PS ratio for CRSR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average12.9x
DDD 3D Systems
2.6x9.1%US$1.5b
NNDM Nano Dimension
45.2xn/aUS$908.6m
SSYS Stratasys
1.9x10.1%US$1.3b
AVID Avid Technology
2.8x8.6%US$1.2b
CRSR Corsair Gaming
1x13.0%US$1.6b

Price-To-Sales vs Peers: CRSR is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

How does CRSR's PE Ratio compare vs other companies in the US Tech Industry?

Price-To-Sales vs Industry: CRSR is good value based on its Price-To-Sales Ratio (1x) compared to the US Tech industry average (1.1x)


Price to Sales Ratio vs Fair Ratio

What is CRSR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CRSR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: CRSR is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (1x).


Share Price vs Fair Value

What is the Fair Price of CRSR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CRSR ($16.65) is trading below our estimate of fair value ($31.66)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Corsair Gaming forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


80.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRSR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: CRSR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CRSR is expected to become profitable in the next 3 years.

Revenue vs Market: CRSR's revenue (13% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: CRSR's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRSR's Return on Equity is forecast to be low in 3 years time (10.3%).


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Past Performance

How has Corsair Gaming performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


53.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CRSR is currently unprofitable.

Growing Profit Margin: CRSR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CRSR is unprofitable, but has reduced losses over the past 5 years at a rate of 53.2% per year.

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

Earnings vs Industry: CRSR is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (83.9%).


Return on Equity

High ROE: CRSR has a negative Return on Equity (-5.09%), as it is currently unprofitable.


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Financial Health

How is Corsair Gaming's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CRSR's short term assets ($554.7M) exceed its short term liabilities ($356.5M).

Long Term Liabilities: CRSR's short term assets ($554.7M) exceed its long term liabilities ($313.0M).


Debt to Equity History and Analysis

Debt Level: CRSR's net debt to equity ratio (37.2%) is considered satisfactory.

Reducing Debt: CRSR's debt to equity ratio has reduced from 125.5% to 43.6% over the past 5 years.

Debt Coverage: CRSR's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


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Dividend

What is Corsair Gaming current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CRSR has not reported any payouts.


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Management

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

2.2yrs

Average management tenure


CEO

Andy Paul (65 yo)

28.58yrs

Tenure

US$10,174,767

Compensation

Mr. Andrew J. Paul, also known as Andy, has been the Chief Executive Officer at Corsair Components, Inc. since 1994 and serves as its Director since September 2018 and served as its President since 1994 un...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD10.17M) is above average for companies of similar size in the US market ($USD5.41M).

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


Leadership Team

Experienced Management: CRSR's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: CRSR's board of directors are considered experienced (3.9 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 2.1%.


Top Shareholders

Company Information

Corsair Gaming, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Corsair Gaming, Inc.
  • Ticker: CRSR
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Implied Market Cap: US$1.595b
  • Shares outstanding: 95.79m
  • Website: https://www.corsair.com

Number of Employees


Location

  • Corsair Gaming, Inc.
  • 47100 Bayside Parkway
  • Fremont
  • California
  • 94538
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.