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
|Historical stock prices|
|Current Share Price||US$17.32|
|52 Week High||US$30.77|
|52 Week Low||US$12.23|
|1 Month Change||36.81%|
|3 Month Change||8.25%|
|1 Year Change||-35.45%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||21.54%|
Recent News & Updates
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...
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.
|CRSR||US Tech||US Market|
Return vs Industry: CRSR underperformed the US Tech industry which returned 14.5% over the past year.
Return vs Market: CRSR underperformed the US Market which returned -10.2% over the past year.
|CRSR Average Weekly Movement||7.1%|
|Tech Industry Average Movement||8.2%|
|Market Average Movement||7.7%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
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
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
|CRSR fundamental statistics|
Is CRSR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CRSR income statement (TTM)|
|Cost of Revenue||US$1.22b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.40|
|Net Profit Margin||-2.43%|
How did CRSR perform over the long term?See historical performance and comparison
Is CRSR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
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.
|What is CRSR's n/a Ratio?|
Price to Sales Ratio vs Peers
How does CRSR's PS Ratio compare to its peers?
|CRSR PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
DDD 3D Systems
NNDM Nano Dimension
AVID Avid Technology
CRSR Corsair Gaming
Price-To-Sales vs Peers: CRSR is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (13.3x).
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 (1.1x) 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.
|Current PS Ratio||1.1x|
|Fair PS Ratio||1x|
Price-To-Sales vs Fair Ratio: CRSR is expensive based on its Price-To-Sales Ratio (1.1x) 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 ($17.32) is trading below our estimate of fair value ($31.75)
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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How is Corsair Gaming forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (7.9% 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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How has Corsair Gaming performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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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How is Corsair Gaming's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
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 ($313.0M).
Debt to Equity History and Analysis
Debt Level: CRSR's net debt to equity ratio (37.2%) is considered satisfactory.
Reducing Debt: CRSR's debt to equity ratio has reduced from 125.5% to 43.6% over the past 5 years.
Debt Coverage: CRSR's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if CRSR's interest payments on its debt are well covered by EBIT.
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What is Corsair Gaming current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CRSR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CRSR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CRSR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CRSR's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CRSR has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andy Paul (65 yo)
Mr. Andrew J. Paul, also known as Andy, has been the Chief Executive Officer at Corsair Components, Inc. since 1994 and serves as its Director since September 2018 and served as its President since 1994 un...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD10.17M) is above average for companies of similar size in the US market ($USD5.40M).
Compensation vs Earnings: Andy's compensation has increased whilst the company is unprofitable.
Experienced Management: CRSR's management team is considered experienced (2.2 years average tenure).
Experienced Board: CRSR's board of directors are considered experienced (3.9 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.
Corsair Gaming, Inc.'s employee growth, exchange listings and data sources
- Name: Corsair Gaming, Inc.
- Ticker: CRSR
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Technology Hardware, Storage and Peripherals
- Sector: Tech
- Implied Market Cap: US$1.659b
- Shares outstanding: 95.79m
- Website: https://www.corsair.com
Number of Employees
- Corsair Gaming, Inc.
- 47100 Bayside Parkway
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/15 00:00|
|End of Day Share Price||2022/08/15 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.