OTCPK:CSTI

Stock Analysis Report

Costar Technologies

Executive Summary

Costar Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes a range of products for the video surveillance and machine vision markets in the United States.


Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has Costar Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

10.0%

CSTI

-1.9%

US Electronic

-1.0%

US Market


1 Year Return

20.2%

CSTI

6.1%

US Electronic

18.0%

US Market

Return vs Industry: CSTI exceeded the US Electronic industry which returned 6.1% over the past year.

Return vs Market: CSTI exceeded the US Market which returned 18% over the past year.


Shareholder returns

CSTIIndustryMarket
7 Day10.0%-1.9%-1.0%
30 Day3.6%-6.0%0.6%
90 Dayn/a1.1%7.9%
1 Year20.2%20.2%7.2%6.1%20.4%18.0%
3 Year10.0%10.0%34.4%30.8%48.0%38.5%
5 Year-24.1%-24.1%67.4%59.3%72.2%53.3%

Price Volatility Vs. Market

How volatile is Costar Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Costar Technologies 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: CSTI ($11) is trading below our estimate of fair value ($25.19)

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


Price To Earnings Ratio

PE vs Industry: CSTI is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: CSTI 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 CSTI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CSTI is good value based on its PB Ratio (0.9x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

22.0%

Forecasted Tech 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 Costar Technologies 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

  • Examine whether Costar Technologies is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Costar Technologies's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Costar Technologies performed over the past 5 years?

-82.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSTI is currently unprofitable.

Growing Profit Margin: CSTI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CSTI is unprofitable, and losses have increased over the past 5 years at a rate of -82.9% per year.

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

Earnings vs Industry: CSTI is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (13.1%).


Return on Equity

High ROE: CSTI has a negative Return on Equity (-22.51%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Costar Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: CSTI's short term assets ($32.3M) exceed its short term liabilities ($29.5M).

Long Term Liabilities: CSTI's short term assets ($32.3M) exceed its long term liabilities ($3.8M).


Debt to Equity History and Analysis

Debt Level: CSTI's debt to equity ratio (109.8%) is considered high.

Reducing Debt: CSTI's debt to equity ratio has increased from 36.3% to 109.8% over the past 5 years.


Balance Sheet

Inventory Level: CSTI has a high level of physical assets or inventory.

Debt Coverage by Assets: CSTI's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CSTI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CSTI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Costar Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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

2.9yrs

Average management tenure


CEO

Jim Pritchett (72yo)

11.1yrs

Tenure

US$371,795

Compensation

Mr. James D. Pritchett, also known as Jim, serves as the Chief Executive Officer of Arecont Vision Costar, LLC and Chief Executive Officer and President of Costar Video Systems, LLC. Mr. Pritchett has been ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD522.55K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Pritchett
President11.1yrsUS$371.80kno data
Scott Switzer
COO, CFO & Secretary8.7yrsUS$230.90kno data
Mathiew Bais
Chief Technical Officer12.1yrsno datano data
Shane Compton
Chief Engineering Officer1.4yrsno datano data
Douglas Means
Senior Vice President1.1yrsno datano data
Karen Evans
CEO & President of Sielox Llc0yrsUS$120.00kno data
Sarah Ryder
Corporate Controller4.4yrsno datano data
Devin Benjamin
Senior Vice President of Sales & Marketing - Innotech Security0.3yrsno datano data
Moshe Luski
Senior Vice President of Engineering - Innotech Security0.3yrsno datano data

2.9yrs

Average Tenure

Experienced Management: CSTI's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Pritchett
President11.1yrsUS$371.80kno data
Rory Cowan
Chairman16.7yrsUS$46.18kno data
Gregory Hradsky
Director14yrsUS$45.34kno data
Jared Landaw
Director11.7yrsUS$37.34kno data
Jeffrey Wald
Director10.1yrsUS$35.22kno data
Sally Washlow
Director1yrsno datano data
Alan Howe
Director1yrsno datano data

11.1yrs

Average Tenure

57yo

Average Age

Experienced Board: CSTI's board of directors are seasoned and experienced ( 11.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Costar Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Costar Technologies, Inc.
  • Ticker: CSTI
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$17.603m
  • Shares outstanding: 1.60m
  • Website: https://www.costartechnologies.com

Location

  • Costar Technologies, Inc.
  • 101 Wrangler Drive
  • Suite 201
  • Coppell
  • Texas
  • 75019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSTIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 2000

Biography

Costar Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes a range of products for the video surveillance and machine vision markets in the United States. The company operates through three segments: Costar Video Systems, CohuHD Costar, and Other. Its products include surveillance cameras, lenses, digital video recorders, and high speed domes, as well as industrial vision products to observe production and assembly lines. The company also provides IP video solutions for traffic monitoring, security, surveillance, and military applications; and accessories, such as cables, camera mounts, and data storage devices. It provides its solutions for financial institutions, educational facilities, retail stores, manufacturing plants, highways, government buildings, military bases, borders, and other applications. The company was formerly known as Sielox, Inc. and changed its name to Costar Technologies, Inc. in October 2011. Costar Technologies, Inc. was founded in 1997 and is headquartered in Coppell, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:36
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.