CSP (CSPI) AI Stock Analysis

• Market Cap: $132.82M
• Dividend Yield: 0.95%
• Average Volume (3M): 19.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 6.36%
• EPS Growth: 73.88%
• Country: US
• Employees: 111
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 9,904,783
• 10 Day Avg. Volume: 33,055
• 30 Day Avg. Volume: 19,494
• PEG Ratio: 16.20
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 56.70
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: -138.34
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $14.00 ▲(22.27% Upside)

CSP's overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. Technical analysis shows positive momentum, which is a favorable factor. The earnings call provided optimism for future growth, but valuation concerns due to a negative P/E ratio weigh heavily on the score.

Positive Factors

Service Revenue Growth

The significant increase in service revenue indicates a successful shift towards more sustainable and recurring revenue streams, enhancing long-term financial stability.

Strategic Partnerships

Strengthening partnerships with industry leaders can enhance CSP's market reach and drive growth through collaborative opportunities and shared resources.

Improved Gross Margins

Higher gross margins reflect improved cost management and operational efficiency, which can lead to better profitability and competitive positioning.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate difficulties in cost management and operational efficiency, which could hinder long-term financial health and growth.

Net Loss Reported

The net loss highlights ongoing financial challenges, potentially impacting investor confidence and the company's ability to reinvest in growth initiatives.

Delayed Revenue Realization

Delays in revenue realization can affect cash flow and financial planning, limiting the company's ability to capitalize on growth opportunities and manage expenses effectively.

CSP Business Overview & Revenue Model

Company Description

CSP (CSPI) is a technology-driven company specializing in high-performance computing and advanced engineering solutions. The company operates primarily in two sectors: High-Performance Computing (HPC) and IT Services. CSP designs and manufactures a range of products, including servers, storage solutions, and networking equipment, while also providing tailored IT services that enhance computational efficiency and reliability for various industries, including government, healthcare, and education.

How the Company Makes Money

CSP generates revenue through multiple streams, primarily by selling its proprietary high-performance computing hardware and software solutions. The company also earns money from service contracts and consulting fees related to the deployment and maintenance of its computing systems. Key revenue streams include direct product sales, ongoing service agreements, and custom engineering projects for clients. CSP has established significant partnerships with technology providers and industry leaders, which enhance its market reach and contribute to revenue growth. Additionally, the company's focus on innovative solutions in HPC positions it to capitalize on the increasing demand for advanced computing capabilities across various sectors.

CSP Financial Statement Overview

Summary

CSP has stable revenue growth but struggles with profitability and cash flow generation. The strong equity position and low leverage provide financial stability, but negative net profit margins and declining free cash flow are concerns.

Income Statement

CSP has shown a modest revenue growth rate of 2.5% in the latest year, indicating some stability in its revenue stream. However, the company is struggling with profitability, as evidenced by negative EBIT and net income margins. The gross profit margin remains relatively stable, but the negative net profit margin highlights ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, suggesting financial stability and low leverage risk. However, the return on equity is negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is healthy, showing a solid asset base supported by equity.

Cash Flow

CSP's cash flow statement reveals a significant decline in free cash flow growth, which could be a concern for future liquidity. The operating cash flow to net income ratio is positive, indicating some level of cash generation from operations. However, the free cash flow to net income ratio is negative, reflecting challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.73M	58.73M	55.22M	64.65M	54.36M	49.21M
Gross Profit	18.51M	18.51M	18.86M	21.92M	18.83M	16.15M
EBITDA	-602.00K	-602.00K	610.00K	5.93M	3.24M	2.08M
Net Income	-91.00K	-91.00K	-326.00K	5.20M	1.89M	234.00K
Balance Sheet
Total Assets	71.16M	71.16M	69.44M	65.90M	75.06M	62.97M
Cash, Cash Equivalents and Short-Term Investments	27.42M	27.42M	30.59M	25.22M	23.98M	20.01M
Total Debt	2.58M	2.58M	4.67M	2.95M	5.18M	4.01M
Total Liabilities	26.61M	26.61M	22.17M	19.76M	36.10M	28.93M
Stockholders Equity	44.55M	44.55M	47.27M	46.15M	38.96M	34.05M
Cash Flow
Free Cash Flow	1.89M	1.89M	4.02M	3.63M	2.44M	1.80M
Operating Cash Flow	2.27M	2.27M	4.21M	3.91M	2.67M	1.90M
Investing Cash Flow	-428.00K	-428.00K	-256.00K	-341.00K	20.00K	-166.00K
Financing Cash Flow	-5.04M	-5.04M	1.38M	-2.40M	1.33M	-954.00K

CSP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Positive. The current price of 11.45 is below the 20-day moving average (MA) of 12.82, below the 50-day MA of 12.25, and below the 200-day MA of 13.01, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSPI.

CSP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	69 Neutral	$283.47M	30.55	10.22%	3.05%	-5.74%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CSPI	57 Neutral	$132.82M	-894.52	-0.27%	0.95%	6.36%	73.88%
TLS	52 Neutral	$399.01M	-12.77	-23.73%	―	17.44%	41.97%
TTEC	51 Neutral	$177.69M	-9.76	-6.65%	―	-5.70%	94.70%
CNDT	47 Neutral	$314.95M	-1.96	-15.87%	―	-12.45%	-142.77%
UIS	45 Neutral	$200.37M	-0.61	―	―	-4.93%	18.65%

CSP Corporate Events

CSP Inc. Earnings Call: Strong Growth Amid Challenges

CSP Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company showcased strong revenue growth and momentum in its Technology Solutions and AZT PROTECT segments, alongside strategic wins in new markets. However, a decline in gross profit margin and increased expenses were noted as areas of concern. Overall, the sentiment remains optimistic due to significant achievements and future potential.

CSP Inc. Reports Strong Growth in Cybersecurity Sector

CSP Inc. is a technology company specializing in IT solutions and services, primarily serving the defense and commercial markets with a focus on cybersecurity and wireless technology.