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CSP Inc (CSPI)
NASDAQ:CSPI
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CSP
(NASDAQ:CSPI)
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Rating:50Neutral
Price Target:
$11.50
▲(2.22% Upside)
CSPi's overall stock score reflects a mixed financial performance with profitability and cash flow challenges, offset by positive earnings call sentiment and strategic growth in key segments. Technical indicators and valuation suggest caution, as the stock may be overvalued given its current financial state.
CSP (CSPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$110.94M
Dividend Yield1.07%
Average Volume (3M)19.23K
Price to Earnings (P/E)40175.0
Beta (1Y)1.64
Revenue Growth-0.37%
EPS Growth-161.02%
CountryUS
Employees111
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding9,861,327
10 Day Avg. Volume14,866
30 Day Avg. Volume19,226
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda-36.34
Forecast
1Y Price Target
$11.50Price Target Upside2.22% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 generates revenue through several key streams, including the sale of high-performance computing systems and related hardware, which is a significant part of their business model. Additionally, they provide managed services, including system integration and support, which contribute to recurring revenue. The company also engages in strategic partnerships with technology vendors and service providers, enhancing their product offerings and expanding their customer base. Revenue is further bolstered by government contracts and projects, particularly in sectors that require advanced computing solutions and secure data management.
CSP Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and momentum in the Technology Solutions and AZT PROTECT segments, along with strategic wins in new markets. However, the decline in gross profit margin and increased expenses were noted as challenges. The sentiment is positive given the significant achievements and future potential.Q3-2025 Updates
Positive Updates
Revenue Growth
Fiscal third quarter revenue was $15.4 million, an 18% increase over the previous year and sequentially from the prior quarter.
Technology Solutions Segment Success
The Technology Solutions segment is driving revenue growth with significant deal pipeline for the AZT PROTECT cybersecurity offering in niche markets such as the container shipping industry.
AZT PROTECT Momentum
AZT PROTECT continues to build momentum with deployments in industries like steel, concrete, and lumber through Gold Star Rockwell Automation resellers, and a significant opportunity with a global pharmaceutical company.
Expansion in South Africa
Initial orders received to protect energy management and security camera systems at cell towers in South Africa, indicating potential for expansion in industrial IoT markets.
Strong Cash Position
Finished the quarter with over $26 million in cash and cash equivalents, enabling continued investment in the AZT product line and shareholder dividends.
Russell 3000 Index Inclusion
CSPi was added to the Russell 3000 Index, enhancing visibility among institutional investors.
Negative Updates
Gross Profit Margin Decline
Gross profit for the quarter was $4.5 million or 29% of sales, down from 35% of sales the previous year due to higher component costs and sales mix.
Increased Expenses
Engineering and development expenses increased by 7% due to consulting on AZT product, and SG&A expenses rose by $0.2 million due to sales and marketing costs.
Quarterly Loss
Reported a tax benefit of $751,000 due to a quarterly loss.
Company Guidance
During the CSPi fiscal 2025 third-quarter results conference call, management provided guidance on the company's performance and strategic initiatives. The company achieved a revenue of $15.4 million, reflecting an 18% increase compared to the previous quarter and the same period last year. The Technology Solutions segment drove this growth, while the High Performance Products segment expanded its deal pipeline, notably with the AZT PROTECT cybersecurity offering. CSPi's cloud business exceeded expectations, with over 20 active projects in various industries. The company's AZT PROTECT product has secured significant new clients in sectors like steel, concrete, and lumber, with a notable partnership in South Africa protecting cell towers. CSPi finished the quarter with over $26 million in cash and cash equivalents, repurchased 19,000 common shares, and declared a $0.03 per share dividend. The company remains confident in its ability to capitalize on market opportunities and anticipates strong performance to continue into the fiscal fourth quarter.CSP Financial Statement Overview
Summary
CSP's financial performance is mixed. While there is revenue growth and a strong equity position, the company faces profitability and cash flow challenges. Negative margins and cash flow ratios highlight operational inefficiencies and liquidity concerns.Income Statement
CSP's income statement shows a mixed performance. The TTM gross profit margin is healthy at 29.54%, but the net profit margin is negative at -2.72%, indicating profitability challenges. Revenue growth is positive at 4.26% TTM, but the EBIT and EBITDA margins are negative, reflecting operational inefficiencies. Overall, while there is revenue growth, the company struggles with profitability.45
Neutral
Balance Sheet
The balance sheet is relatively stable with a low debt-to-equity ratio of 0.03 TTM, suggesting low financial leverage. However, the return on equity is negative at -3.28% TTM, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is strong, showing a solid equity base relative to total assets.60
Neutral
Cash Flow
Cash flow analysis reveals significant challenges. The TTM free cash flow growth is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. However, the free cash flow to net income ratio is positive, suggesting some ability to generate free cash flow relative to net income.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.30M | 55.22M | 64.65M | 54.36M | 49.21M | 61.79M |
| Gross Profit | 16.92M | 18.86M | 21.92M | 18.83M | 16.15M | 17.17M |
| EBITDA | -2.65M | 610.00K | 5.93M | 3.24M | 2.08M | 271.00K |
| Net Income | -1.56M | -326.00K | 5.20M | 1.89M | 234.00K | -1.45M |
Balance Sheet | ||||||
| Total Assets | 66.78M | 69.44M | 65.90M | 75.06M | 62.97M | 53.65M |
| Cash, Cash Equivalents and Short-Term Investments | 26.31M | 30.59M | 25.22M | 23.98M | 20.01M | 19.26M |
| Total Debt | 1.29M | 4.67M | 2.95M | 5.18M | 1.70M | 3.88M |
| Total Liabilities | 19.30M | 22.17M | 19.76M | 36.10M | 28.93M | 24.11M |
| Stockholders Equity | 47.48M | 47.27M | 46.15M | 38.96M | 34.05M | 29.53M |
Cash Flow | ||||||
| Free Cash Flow | -1.28M | 4.02M | 3.63M | 2.44M | 1.80M | 14.00K |
| Operating Cash Flow | -1.14M | 4.21M | 3.91M | 2.67M | 1.90M | 244.00K |
| Investing Cash Flow | -192.00K | -256.00K | -341.00K | 20.00K | -166.00K | -345.00K |
| Financing Cash Flow | -1.25M | 1.38M | -2.40M | 1.33M | -954.00K | 832.00K |
CSP Technical Analysis
Negative
11.25
Price Trends
11.79
Negative
11.91
Negative
14.15
Negative
Market Momentum
-0.13
Positive
44.72
Neutral
17.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Negative. The current price of 11.25 is below the 20-day moving average (MA) of 11.97, below the 50-day MA of 11.79, and below the 200-day MA of 14.15, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 17.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSPI.
CSP Risk Analysis
CSP disclosed 26 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $262.67M | 34.91 | 8.29% | 3.23% | -9.86% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $492.20M | ― | -41.49% | ― | -13.76% | -75.18% | |
53 Neutral | $388.62M | 79.87 | 2.21% | ― | -14.36% | -73.74% | |
50 Neutral | $110.94M | 40,175.00 | -3.33% | 1.07% | -0.37% | -161.02% | |
44 Neutral | $173.50M | ― | -9.11% | 1.75% | -8.21% | 91.83% | |
41 Neutral | $255.23M | ― | 192.24% | ― | -1.53% | 78.84% |
* Technology Sector Average
CSPI
CSP
11.25
-1.82
-13.93%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.