CSP INC (CSPI)
US1263891053 - Common Stock
Overall CSPI gets a fundamental rating of 4 out of 10. We evaluated CSPI against 86 industry peers in the IT Services industry. CSPI has an excellent financial health rating, but there are some minor concerns on its profitability. CSPI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CSPI was profitable.
CSPI had a positive operating cash flow in the past year.
In multiple years CSPI reported negative net income over the last 5 years.
CSPI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CSPI has a better Return On Assets (5.79%) than 71.43% of its industry peers.
CSPI's Return On Equity of 8.41% is fine compared to the rest of the industry. CSPI outperforms 64.29% of its industry peers.
CSPI has a Return On Invested Capital of 0.26%. This is comparable to the rest of the industry: CSPI outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 8.41% | ||
| ROIC | 0.26% |
ROA(3y)3.64%
ROA(5y)1.53%
ROE(3y)5.75%
ROE(5y)2.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CSPI has a Profit Margin of 6.33%. This is in the better half of the industry: CSPI outperforms 66.67% of its industry peers.
CSPI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 0.28%, CSPI is in line with its industry, outperforming 46.43% of the companies in the same industry.
CSPI's Gross Margin of 32.75% is in line compared to the rest of the industry. CSPI outperforms 45.24% of its industry peers.
CSPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.28% | ||
| PM (TTM) | 6.33% | ||
| GM | 32.75% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-16.78%
GM growth 3Y6.8%
GM growth 5Y6.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CSPI is destroying value.
Compared to 1 year ago, CSPI has more shares outstanding
CSPI has more shares outstanding than it did 5 years ago.
CSPI has a better debt/assets ratio than last year.
2.2 Solvency
CSPI has an Altman-Z score of 5.82. This indicates that CSPI is financially healthy and has little risk of bankruptcy at the moment.
CSPI has a Altman-Z score of 5.82. This is in the better half of the industry: CSPI outperforms 78.57% of its industry peers.
The Debt to FCF ratio of CSPI is 0.08, which is an excellent value as it means it would take CSPI, only 0.08 years of fcf income to pay off all of its debts.
CSPI has a Debt to FCF ratio of 0.08. This is amongst the best in the industry. CSPI outperforms 91.67% of its industry peers.
CSPI has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.02, CSPI belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.82 |
ROIC/WACC0.02
WACC10.78%
2.3 Liquidity
A Current Ratio of 3.16 indicates that CSPI has no problem at all paying its short term obligations.
CSPI has a better Current ratio (3.16) than 79.76% of its industry peers.
CSPI has a Quick Ratio of 2.75. This indicates that CSPI is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.75, CSPI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.24% over the past year.
The earnings per share for CSPI have been decreasing by -31.53% on average. This is quite bad
The Revenue has been growing slightly by 2.22% in the past year.
The Revenue has been decreasing by -2.37% on average over the past years.
EPS 1Y (TTM)2.24%
EPS 3YN/A
EPS 5Y-31.53%
EPS growth Q2Q-109.52%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y1.51%
Revenue growth 5Y-2.37%
Revenue growth Q2Q-16.17%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.68, the valuation of CSPI can be described as rather expensive.
70.24% of the companies in the same industry are more expensive than CSPI, based on the Price/Earnings ratio.
CSPI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | N/A |
4.2 Price Multiples
CSPI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CSPI is more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSPI indicates a rather cheap valuation: CSPI is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 193.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, CSPI is not a good candidate for dividend investing.
CSPI's Dividend Yield is rather good when compared to the industry average which is at 2.84. CSPI pays more dividend than 82.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, CSPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of CSPI decreases each year by -27.94%.
CSPI has paid a dividend for at least 10 years, which is a reliable track record.
CSPI has decreased its dividend recently.
Dividend Growth(5Y)-27.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CSPI pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of CSPI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP16.79%
EPS Next 2YN/A
EPS Next 3YN/A
CSP INC
NASDAQ:CSPI (5/3/2024, 7:00:01 PM)
After market: 12.91 0 (0%)12.91
+0.71 (+5.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap125.87M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 8.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.28% | ||
| PM (TTM) | 6.33% | ||
| GM | 32.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.24%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.22%
Revenue growth 3Y1.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y