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CSP Inc (CSPI)
:CSPI
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CSP
(NASDAQ:CSPI)
59Neutral
CSP (CSPI) vs. S&P 500 (SPY)
Market Cap
$148.24M
Dividend Yield0.8%
Average Volume (3M)17.04K
Price to Earnings (P/E)40175.0
Beta (1Y)1.44
Revenue Growth-11.53%
EPS Growth-128.96%
CountryUS
Employees111
SectorTechnology
Sector Strength77
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding9,863,101
10 Day Avg. Volume19,883
30 Day Avg. Volume17,043
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)2.86
Price to Sales (P/S)0.00
P/FCF Ratio32.42
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit6.72
Enterprise Value/Ebitda38.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CSP Business Overview & Revenue Model
Company DescriptionCSP Inc. develops and markets IT integration solutions, security products, managed IT services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value added reseller to various customers in Web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.
How the Company Makes MoneyCSP Inc. generates revenue through multiple streams, primarily by selling its cybersecurity and IT services to enterprise clients. The company offers managed services that include IT infrastructure management, data protection, and cybersecurity solutions, which are sold on a subscription basis. Additionally, CSPI earns income from the sale of its Myricom network adapters, which are used in various high-performance computing environments. Strategic partnerships with technology providers and value-added resellers also play a significant role in expanding the company's market reach and contributing to its earnings.
CSP Financial Statement Overview
Summary
CSP's financial performance is mixed. The income statement indicates challenges with declining revenues and profitability, scoring 55. However, the balance sheet is strong with a low debt-to-equity ratio and substantial equity, scoring 72. The cash flow statement is positive, reflecting strong cash management and free cash flow growth, scoring 78. Overall, CSP shows resilience in cash management but needs to improve revenue growth and profitability.Income Statement
CSP's income statement shows a challenging position with declining revenues and profitability. The TTM revenue decreased by 0.48%, indicating flat growth, while gross and net profit margins are negative, reflecting operational inefficiencies. The EBIT and EBITDA margins are also negative, suggesting difficulties in covering operational costs.55
Neutral
Balance Sheet
The company's balance sheet is relatively strong with a low debt-to-equity ratio of 0.01, suggesting prudent financial leverage. The equity ratio stands at 70.69%, indicating a solid equity base relative to total assets. However, return on equity has been negative in recent periods, highlighting profitability challenges.72
Positive
Cash Flow
CSP's cash flow statement shows resilience, with a positive free cash flow growth rate of 10.09% in the TTM period. The operating cash flow to net income ratio is robust, indicating effective cash management despite the net losses. Free cash flow to net income ratio is positive, reflecting strong cash generation capabilities.78
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 54.95M | 55.22M | 64.65M | 54.36M | 49.21M | 61.79M |
| Gross Profit | |||||
| 17.05M | 18.86M | 21.92M | 18.83M | 16.15M | 17.17M |
| EBIT | |||||
| -4.11M | -1.87M | 1.87M | -40.00K | -1.36M | -1.42M |
| EBITDA | |||||
| -1.91M | 610.00K | 5.93M | 3.24M | 2.08M | 271.00K |
| Net Income Common Stockholders | |||||
| -1.51M | -326.00K | 5.20M | 1.89M | 234.00K | -1.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 29.50M | 30.59M | 25.22M | 23.98M | 20.01M | 19.26M |
| Total Assets | |||||
| 67.12M | 69.44M | 65.90M | 75.06M | 62.97M | 53.65M |
| Total Debt | |||||
| 654.00K | 4.67M | 2.95M | 5.18M | 1.70M | 3.88M |
| Net Debt | |||||
| -28.84M | -25.92M | -22.27M | -18.80M | -18.31M | -15.39M |
| Total Liabilities | |||||
| 19.67M | 22.17M | 19.76M | 36.10M | 28.93M | 24.11M |
| Stockholders Equity | |||||
| 47.45M | 47.27M | 46.15M | 38.96M | 34.05M | 29.53M |
| Cash Flow | Free Cash Flow | ||||
| 4.42M | 4.02M | 3.63M | 2.44M | 1.80M | 14.00K |
| Operating Cash Flow | |||||
| 4.54M | 4.21M | 3.91M | 2.67M | 1.90M | 244.00K |
| Investing Cash Flow | |||||
| -171.00K | -256.00K | -341.00K | 20.00K | -166.00K | -345.00K |
| Financing Cash Flow | |||||
| -1.98M | 1.38M | -2.40M | 1.33M | -954.00K | 832.00K |
CSP Technical Analysis
Neutral
15.32
Price Trends
15.77
Negative
16.49
Negative
15.17
Positive
Market Momentum
-0.17
Positive
46.60
Neutral
30.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Neutral. The current price of 15.32 is below the 20-day moving average (MA) of 16.15, below the 50-day MA of 15.77, and above the 200-day MA of 15.17, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 30.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSPI.
CSP Risk Analysis
CSP disclosed 25 risk factors in its most recent earnings report. CSP reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $228.49M | 30.84 | 8.09% | 3.80% | -12.26% | ― | |
66 Neutral | $349.29M | 32.96 | 137.01% | ― | 262.87% | 873.76% | |
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% | |
59 Neutral | $148.24M | 40,175.00 | -3.16% | 0.80% | -11.53% | -128.96% | |
56 Neutral | $246.34M | ― | -73.85% | 1.17% | -9.86% | -2426.25% | |
51 Neutral | $195.47M | ― | -38.32% | ― | -21.83% | -67.07% | |
44 Neutral | $109.14M | 14.84 | -44.27% | ― | -13.18% | 4.83% |
* Technology Sector Average
Performance Comparison
CSPI
CSP
15.32
0.03
0.20%
III
Information Services Group
4.84
1.84
61.33%
TTEC
TTEC Holdings
5.55
-1.12
-16.79%
TSSI
TSS
11.70
10.30
735.71%
TLS
Telos
2.62
-1.44
-35.47%
NOTE
FiscalNote Holdings
0.68
-0.82
-54.67%
CSP Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q2-2025)
| % Change Since: -4.67%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments in the AZT PROTECT product line and reseller partnerships, alongside challenges such as a decline in service revenue and gross profit margin, resulting in an overall revenue decline and a quarterly loss.Q2-2025 Updates
Positive Updates
AZT PROTECT Gains Traction
Six new customers signed during the quarter, with potential for follow-on sales reaching seven figures. The pipeline for AZT has increased fivefold over the past few quarters.
New Reseller Partnerships
New reseller partnership with Rexel USA and Oryx Industries, expanding market reach in the U.S. and South Africa. This includes significant projects like protecting a large building material manufacturer and cell tower providers.
Strong Cash Position
The company ended the quarter with over $29 million in cash and cash equivalents, supporting ongoing investments and shareholder returns.
Technology Solutions Revenue and Contracts
Technology Solutions business generated $12 million in revenue. New contracts include a Microsoft Azure migration project for a Florida-based healthcare provider.
Negative Updates
Decline in Service Revenue
Service revenue decreased to $4.6 million from $5.2 million in the prior year due to the absence of a repeat multi-million dollar deal.
Higher Component Costs
Gross profit margin decreased from 45.3% to 32% due to higher component costs and absence of a high-margin contract from the previous year.
Overall Revenue Decline
Overall revenue for the quarter dropped to $13.1 million from $13.7 million in the previous year.
Quarterly Loss
The company reported a loss of $108,000 or $0.01 per diluted share for the fiscal second quarter.
Company Guidance
During the CSPI fiscal 2025 second quarter results conference call, several key metrics and guidance were discussed. Revenue for the quarter was $13.1 million, slightly down from $13.7 million in the prior year, with service revenue at $4.6 million compared to $5.2 million previously. Despite a challenging operating environment, the company secured a six-figure 12-month customer support contract and signed six new customers for its AZT PROTECT solution, which is gaining traction in the OT marketplace. The Technology Solutions segment generated $12 million in revenue, maintaining profitability. The company ended the quarter with over $29 million in cash and cash equivalents, while repurchasing $384,000 worth of common shares and declaring a $0.03 per share quarterly cash dividend. The pipeline for AZT PROTECT expanded fivefold over recent quarters, with new reseller partnerships and significant contracts, including a notable South African cell tower protection agreement expected to generate seven-figure sales over 18 months. Despite potential challenges from price increases and customer spending reductions, CSPI is focused on maximizing opportunities, particularly in the growth of its AZT PROTECT offering.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.