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Corsair Gaming (CRSR)
NASDAQ:CRSR
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Corsair Gaming
(NASDAQ:CRSR)60Neutral
Positive Factors
Market Rebound
Corsair's domestic market has rebounded after a macro-driven slowdown, while its European market is beginning to rebound.
Product Innovation
Corsair launched quality partnerships on key products in peripherals and should benefit from a solid year of game releases.
Negative Factors
Challenging Year
2024 has been a challenging year with the expected hardware refresh cycle continually being pushed back.
Corsair Gaming (CRSR) vs. S&P 500 (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth-9.83%
EPS Growth-3191.56%
CountryUS
Employees2,387
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-0.95
Shares Outstanding104,855,200
10 Day Avg. Volume1,097,811
30 Day Avg. Volume1,344,861
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.89
Price to Cash Flow (P/CF)5.30
P/FCF Ratio5.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.00Price Target Upside6.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Corsair Gaming Business Overview & Revenue Model
Company DescriptionCorsair Gaming, Inc. (NASDAQ: CRSR) is a leading global provider of high-performance gear and technology solutions for gamers, content creators, and PC enthusiasts. Established in 1994 and headquartered in Fremont, California, the company operates across several sectors, including gaming peripherals, components, and systems. Corsair's diverse product portfolio includes gaming keyboards, mice, headsets, streaming equipment, computer components like memory and power supplies, and complete gaming systems, catering to both casual and professional users.
How the Company Makes MoneyCorsair Gaming generates revenue through the sale of its broad range of gaming and computing products. The company's primary revenue streams consist of gaming peripherals, such as keyboards, mice, and headsets, as well as gaming components including memory modules, cooling solutions, and power supplies. Additionally, Corsair's revenue is bolstered by its gaming PC systems and streaming gear offerings. The company benefits from strong brand recognition and a loyal customer base, which is enhanced by strategic partnerships and collaborations with esports teams, streamers, and gaming influencers. These partnerships help increase brand visibility and drive product demand within the gaming community.
Corsair Gaming Financial Statement Overview
Summary
Corsair Gaming faces operational and profitability challenges with negative net income and declining revenues. High operational costs lead to negative EBIT and EBITDA margins, though the company maintains a relatively strong equity position and positive free cash flow, indicating efficient cash management.Income Statement
The company has faced challenges with negative net income and declining revenue, as seen in the TTM (Trailing-Twelve-Months) data. Gross profit margin is stable, but EBIT and EBITDA margins have turned negative, indicating operational difficulties. There is a negative revenue growth trend from 2023 to 2024, which affects overall profitability.45
Neutral
Balance Sheet
Corsair Gaming maintains a relatively strong equity position with an improving debt-to-equity ratio, suggesting a conservative leverage approach. However, the declining equity ratio indicates potential asset management issues. Return on equity remains negative due to negative net income, impacting overall balance sheet health.60
Neutral
Cash Flow
The company demonstrates positive free cash flow despite declining operating cash flow, which is a positive sign of cash management. However, the free cash flow growth rate has declined significantly compared to previous periods. The operating cash flow to net income ratio is strong, showing efficient cash generation relative to net income.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.32B | 1.46B | 1.38B | 1.90B | 1.70B | Gross Profit |
| 327.60M | 360.26M | 296.63M | 513.85M | 465.43M | EBIT |
| -49.95M | 9.69M | -54.79M | 137.89M | 158.36M | EBITDA |
| -49.95M | 64.64M | -1.06M | 182.99M | 201.59M | Net Income Common Stockholders |
| -85.18M | -2.59M | -53.95M | 100.96M | 103.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 107.01M | 175.62M | 153.83M | 65.15M | 133.34M | Total Assets |
| 1.24B | 1.36B | 1.30B | 1.34B | 1.31B | Total Debt |
| 12.23M | 246.50M | 295.17M | 308.26M | 338.96M | Net Debt |
| -94.78M | 70.88M | 141.35M | 243.11M | 205.63M | Total Liabilities |
| 616.38M | 663.48M | 641.81M | 769.22M | 876.73M | Stockholders Equity |
| 604.30M | 667.58M | 623.84M | 568.18M | 437.39M |
| Cash Flow | Free Cash Flow | |||
| 26.03M | 76.39M | 40.07M | 9.22M | 159.96M | Operating Cash Flow |
| 35.88M | 89.15M | 66.39M | 20.19M | 168.95M | Investing Cash Flow |
| -52.70M | -26.98M | -47.03M | -20.54M | -10.28M | Financing Cash Flow |
| -50.68M | -37.39M | 72.61M | -65.40M | -79.13M |
Corsair Gaming Technical Analysis
Positive
11.22
Price Trends
9.39
Positive
8.19
Positive
8.35
Positive
Market Momentum
0.50
Positive
54.92
Neutral
31.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRSR, the sentiment is Positive. The current price of 11.22 is below the 20-day moving average (MA) of 11.34, above the 50-day MA of 9.39, and above the 200-day MA of 8.35, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRSR.
Corsair Gaming Risk Analysis
Corsair Gaming disclosed 62 risk factors in its most recent earnings report. Corsair Gaming reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Corsair Gaming Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $70.64B | 45.83 | 129.87% | 0.95% | 8.41% | -7.83% | |
65 Neutral | $300.99M | 55.70 | 5.28% | ― | 25.72% | ― | |
60 Neutral | $1.18B | ― | -15.60% | ― | -9.83% | -3191.56% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
51 Neutral | $1.53B | ― | -12.95% | ― | -8.74% | -2452.05% | |
39 Underperform | $115.89M | ― | -122.20% | ― | -20.29% | -729.53% |
* Technology Sector Average
Performance Comparison
CRSR
Corsair Gaming
11.22
-1.43
-11.30%
GPRO
GoPro
0.74
-1.60
-68.38%
MSI
Motorola Solutions
423.13
88.47
26.44%
TBCH
Turtle Beach
15.48
4.09
35.91%
SONO
Sonos
12.88
-6.08
-32.07%
Corsair Gaming Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 12.88% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with strong quarterly performance and positive outlook for 2025, driven by successful acquisitions and product lines. However, there were notable declines in certain revenue segments and overall yearly financial metrics. The sentiment is balanced with both positive growth prospects and challenges.Highlights
Strong Quarterly Revenue
Corsair reported a solid quarterly revenue number of $414 million and adjusted EBITDA at $33 million, indicating robust financial performance in Q4.
Fanatec Acquisition Success
The integration of the Fanatec sim racing company is seen as a positive revenue and EBITDA driver, with strong enthusiasm from customers and the racing ecosystem.
Growth in Gaming and Creator Peripherals
The Gamer and Creator Peripherals segment showed growth with $169.6 million in Q4 2024 revenue, up from $136.8 million in Q4 2023.
Elgato Product Line Success
Elgato's Stream Deck product line has formed a new market category, contributing significantly to Corsair's growth with innovative AI features.
Positive Outlook for 2025
Corsair expects revenue growth in 2025 with an improvement in adjusted EBITDA, driven by new GPU launches and a rebound in demand for high-performance gear.
Strong Gross Profit Margins
Overall gross profit in Q4 was $108.2 million, with a gross margin increase to 26.2% from 24.6% in Q4 2023, reflecting strong performance in the Gamer and Creator Peripherals segment.
Leadership Transition
Andy Paul's retirement after 31 years and Thi La's transition to CEO is seen as a smooth transition to continue Corsair's growth trajectory.
Lowlights
Decline in Gaming Components and Systems Revenue
The Gaming Components and Systems segment revenue decreased to $244.1 million in Q4 2024 from $280.5 million in Q4 2023.
Memory Products Revenue Decline
Memory products revenue dropped to $126.3 million in Q4 2024 from $145.5 million in Q4 2023, showing a challenge in this segment.
Full Year Revenue Decline
Net revenue for the full year 2024 was $1,316.4 million compared to $1,459.9 million in 2023, indicating a year-over-year decline.
Decrease in Adjusted Operating Income
Adjusted operating income for the full year 2024 was $45.7 million, down from $85.4 million in 2023.
Company Guidance
During Corsair Gaming's fourth quarter and full year 2024 earnings call, the guidance for 2025 highlighted several key metrics and strategic initiatives. The company expects total revenue to range between $1.4 billion and $1.6 billion, with adjusted operating income anticipated between $67 million and $87 million, and adjusted EBITDA projected to be between $80 million and $100 million. These projections are supported by expected growth in the gaming and creator peripherals segment, which showed a year-on-year increase of 20% in 2024, and the integration of the Fanatec sim racing business, which is expected to drive positive revenue and EBITDA contributions. Corsair also announced plans to continue investing in innovation, reducing operating costs, and strategically expanding their portfolio. The company anticipates every quarter in 2025 to outperform those of 2024, with the most significant year-over-year improvement expected in Q2, primarily due to new NVIDIA GPU launches.Corsair Gaming Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Corsair Gaming Announces CEO Transition in 2025
Positive
Feb 14, 2025
On February 12, 2025, Corsair Gaming announced the retirement of its founder and CEO, Andy Paul, effective July 1, 2025, after 31 years with the company. Thi La, currently President and COO, has been appointed as his successor and will take over on the same date. La has been with Corsair since 2010, significantly contributing to its growth from a $300 million company to a diverse entity with 30 product lines. Her appointment is expected to continue the company’s trajectory of innovation and market leadership. Stakeholders can anticipate a seamless transition, as La’s extensive experience and vision align with Corsair’s goals of further growth and product development.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.