Corsair Gaming (CRSR) AI Stock Analysis

• Market Cap: $911.92M
• Dividend Yield: N/A
• Average Volume (3M): 676.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 2.08%
• EPS Growth: -113.97%
• Country: US
• Employees: 2,567
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.01
• Shares Outstanding: 106,036,970
• 10 Day Avg. Volume: 696,420
• 30 Day Avg. Volume: 676,523
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 523.28
• 1Y Price Target: $11.00
• Price Target Upside: 23.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $9.00 ▲(0.90% Upside)

Corsair Gaming's overall stock score reflects a mixed outlook. The most significant positive factor is the strong performance highlighted in the earnings call, with robust revenue growth and market share gains. Financial performance shows improvement in cash flow and low leverage, but profitability remains a concern. Technical analysis and valuation present challenges, with bearish momentum and a negative P/E ratio. The company's strategic initiatives and optimism for future growth provide a balanced view against these risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Corsair's products and effective market strategies, enhancing its competitive position in the gaming industry.

Cash Flow Improvement

Significant improvement in cash flow enhances financial flexibility, allowing Corsair to invest in growth opportunities and manage potential downturns effectively.

Debt Reduction

Effective debt reduction lowers interest expenses and increases strategic capacity, strengthening Corsair's financial health and long-term sustainability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with negative margins indicate operational inefficiencies, which could hinder long-term growth and shareholder value.

Operating Loss

Continued operating losses highlight the need for cost management and efficiency improvements to achieve sustainable profitability.

Tariff Impact

Tariff impacts could pressure margins and necessitate pricing adjustments, potentially affecting Corsair's competitive pricing strategy and market share.

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's financial performance is mixed. The income statement shows declining revenues and negative net income, indicating profitability issues. However, the balance sheet is stable with low leverage, and cash flow statements show positive trends in operational cash generation, suggesting potential recovery.

Income Statement

Corsair Gaming's income statement reveals a challenging environment with declining revenues and negative net income for the TTM period. The gross profit margin stands at 25.45% and the net profit margin is -6.67%, indicating profitability issues. Revenue growth is negative compared to previous years, reflecting a downward trend. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively stable equity position with an equity ratio of 49.11%, suggesting good financial health. The debt-to-equity ratio is low at 0.02, indicating manageable debt levels. However, the return on equity is negative due to consistent net losses, which is a concern for investors seeking profitability.

Cash Flow

Cash flow analysis shows a positive operating cash flow of $80.94 million in the TTM period, supporting liquidity. Free cash flow has improved significantly, with a growth rate of 171% compared to the previous year, reflecting effective cash management. However, the operating cash flow to net income ratio is high due to negative net income, suggesting reliance on non-operational factors.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.32B	1.46B	1.38B	1.90B	1.70B
Gross Profit	366.11M	327.60M	360.26M	296.63M	513.85M	465.43M
EBITDA	2.09M	3.45M	64.64M	-683.00K	172.42M	196.30M
Net Income	-76.88M	-85.18M	-2.59M	-54.39M	100.96M	103.22M
Balance Sheet
Total Assets	1.22B	1.24B	1.36B	1.30B	1.34B	1.31B
Cash, Cash Equivalents and Short-Term Investments	104.63M	107.01M	175.62M	151.18M	62.41M	129.54M
Total Debt	6.12M	237.04M	246.50M	295.17M	308.26M	348.03M
Total Liabilities	606.71M	616.38M	663.48M	641.81M	769.22M	876.73M
Stockholders Equity	603.90M	604.30M	667.58M	623.84M	568.18M	437.39M
Cash Flow
Free Cash Flow	119.09M	26.03M	76.39M	40.07M	9.22M	159.96M
Operating Cash Flow	129.60M	35.88M	89.15M	66.39M	20.19M	168.95M
Investing Cash Flow	-42.09M	-52.70M	-26.98M	-47.03M	-20.54M	-10.28M
Financing Cash Flow	-75.57M	-50.68M	-37.39M	72.61M	-65.40M	-79.13M

Corsair Gaming Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8.92 is above the 20-day moving average (MA) of 8.74, above the 50-day MA of 8.86, and above the 200-day MA of 8.82, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 54.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRSR.

Corsair Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRCT	74 Outperform	$1.34B	18.88	23.25%	8.41%	-3.99%	7.59%
OSS	60 Neutral	$122.34M	-8.12	-53.38%	―	4.65%	-79.75%
SSYS	59 Neutral	$961.77M	-8.34	-15.17%	―	-6.00%	17.87%
CRSR	58 Neutral	$911.92M	―	-13.50%	―	2.08%	-113.97%
DDD	51 Neutral	$379.63M	-2.21	-60.06%	―	-9.11%	58.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%