Corsair Gaming (CRSR) AI Stock Analysis

• Market Cap: $621.33M
• Dividend Yield: N/A
• Average Volume (3M): 932.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: 9.79%
• EPS Growth: 63.17%
• Country: US
• Employees: 2,567
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.06
• Shares Outstanding: 106,575,210
• 10 Day Avg. Volume: 668,323
• 30 Day Avg. Volume: 932,971
• PEG Ratio: <0.01
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 26.45
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 36.17
• 1Y Price Target: $9.50
• Price Target Upside: 68.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $5.50 ▼(-2.65% Downside)

Corsair Gaming's overall stock score reflects a mixed outlook. The company's strong revenue growth and improved profitability are positive, but significant challenges remain, including bearish technical indicators, a negative P/E ratio, and profitability issues. The earnings call provided some optimism, but external factors like tariffs and market conditions pose risks.

Positive Factors

Revenue Growth

The 14% YoY revenue growth indicates strong demand for Corsair's products, suggesting a robust market position and effective sales strategies.

Gross Profit Margin Improvement

Improved gross margins reflect better cost management and pricing power, enhancing long-term profitability prospects.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder long-term financial health and shareholder returns, despite revenue growth.

Declining Free Cash Flow

Declining free cash flow growth may limit Corsair's ability to invest in new opportunities and manage financial obligations.

Tight DDR5 Memory Market

Supply constraints in DDR5 memory could impact Corsair's ability to meet demand, affecting revenue and market competitiveness.

Corsair Gaming Business Overview & Revenue Model

Company Description

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. In addition, the company offers coaching and training, and other services. It sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its website. The company was incorporated in 1994 and is headquartered in Fremont, California. Corsair Gaming, Inc. is a subsidiary of Corsair Group (Cayman), LP.

How the Company Makes Money

Corsair generates revenue through multiple streams, primarily from the sale of gaming peripherals and systems. Key revenue streams include direct sales of hardware products such as keyboards, mice, headsets, and other gaming accessories, often through both retail and online channels. Additionally, Corsair earns significant revenue from its software products that enhance gaming performance and user experience. The company also benefits from partnerships and collaborations with other gaming hardware manufacturers, esports organizations, and streaming platforms, allowing for co-marketing opportunities and brand visibility. Corsair's strategic focus on the growing esports and gaming community further drives its earnings, as the demand for high-quality gaming equipment continues to rise.

Corsair Gaming Financial Statement Overview

Summary

Corsair Gaming shows revenue growth and a strong balance sheet with low leverage, but struggles with profitability and cash flow growth. The income statement reflects challenges in achieving positive margins, while the balance sheet indicates financial stability. Cash flow management is efficient, but declining free cash flow growth is a concern. Overall, the company needs to focus on improving profitability and cash flow growth to enhance its financial health.

Income Statement

Corsair Gaming's TTM revenue shows a modest growth of 2.95% compared to the previous year, indicating a slight recovery. However, the company is struggling with profitability as evidenced by a negative net profit margin of -2.39% and a negative EBIT margin of -1.21%. The gross profit margin is relatively stable at 26.88%, suggesting some efficiency in production costs. Overall, the income statement reflects challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. However, the return on equity is negative at -12.73%, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a solid capital structure. Overall, the balance sheet shows financial stability but highlights issues with profitability.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth of -53.08%, which is concerning. However, the operating cash flow to net income ratio is positive at 0.16, indicating some ability to generate cash from operations. The free cash flow to net income ratio is relatively strong at 0.83, suggesting efficient cash management despite profitability challenges. Overall, the cash flow statement shows mixed performance with strong cash management but declining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.32B	1.46B	1.38B	1.90B	1.70B
Gross Profit	389.54M	327.60M	360.26M	296.63M	513.85M	465.43M
EBITDA	29.83M	3.45M	64.64M	-683.00K	172.42M	196.30M
Net Income	-39.66M	-85.18M	-2.59M	-54.39M	100.96M	103.22M
Balance Sheet
Total Assets	1.20B	1.24B	1.36B	1.30B	1.34B	1.31B
Cash, Cash Equivalents and Short-Term Investments	65.80M	107.01M	175.62M	151.18M	62.41M	129.54M
Total Debt	186.25M	237.04M	246.50M	295.17M	308.26M	348.03M
Total Liabilities	587.92M	616.38M	663.48M	641.81M	769.22M	876.73M
Stockholders Equity	600.23M	604.30M	667.58M	623.84M	568.18M	437.39M
Cash Flow
Free Cash Flow	55.88M	26.03M	76.39M	40.07M	9.22M	159.96M
Operating Cash Flow	67.51M	35.88M	89.15M	66.39M	20.19M	168.95M
Investing Cash Flow	-12.29M	-52.70M	-26.98M	-47.03M	-20.54M	-10.28M
Financing Cash Flow	-51.46M	-50.68M	-37.39M	72.61M	-65.40M	-79.13M

Corsair Gaming Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRSR, the sentiment is Negative. The current price of 5.65 is below the 20-day moving average (MA) of 6.16, below the 50-day MA of 6.47, and below the 200-day MA of 8.01, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRSR.

Corsair Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRCT	75 Outperform	$1.03B	12.90	19.38%	10.80%	-2.72%	32.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OSS	60 Neutral	$157.88M	-24.26	-24.26%	―	14.33%	36.97%
CRSR	57 Neutral	$621.33M	-16.95	-5.88%	―	9.79%	63.17%
DDD	48 Neutral	$285.80M	-20.57	7.15%	―	-11.78%	―
SSYS	45 Neutral	$878.44M	-6.21	-15.13%	―	-2.93%	-22.55%