CSPI  Csp Inc.

Exchange

NASDAQ

Sector

Technology

Industry

EDP Services

Market Cap.

43.35M

Vuru Grade

33.13/100

Current Price

$11.05
-0.07 (-0.63%)

Growth Price

$11.50
Fairly valued

Stability Price

$14.01
Undervalued by 26.81%

Company Metrics

  • P/E 26.37
  • P/S 0.43
  • P/B 2.43
  • EPS 0.42
  • Cash ROIC 10.40%
  • Cash Ratio 0.75
  • Dividend 0.44 / 3.98%
  • Avg. Vol. 4,765.00
  • Shares 3.92M
  • Market Cap. 43.35M

Company Description

CSP Inc. engages in the development and marketing of information technology (IT) integration solutions and high-performance cluster computer systems to industrial, commercial, and defense customers worldwide. The company operates in two segments: Systems, and Service and System Integration. The Systems segment designs and manufactures specialty, high-performance computer signal processing systems ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Is CSP Inc (CSPI) Cheap And High Growth?
Simply Wall St - 10 hours ago
CSP Inc (NASDAQ:CSPI), is a USD$43.63M small-cap, which operates in the IT services industry based in United States. In the past decade, the mega-tech companies, such as Amazon and Microsoft, have built highly successful and ubiquitous platforms and ...
Indicator Review: Kaufman Adaptive Moving Average Trending Higher on Shares of ...
Stock Press Daily - 33 minutes ago
Watching the numbers for C S P Inc (CSPI), we have noted that the Kaufman Adaptive Moving Average is trending higher over the last five sessions.
CSP Inc. (NASDAQ:CSPI) Stock Closed Over Its 50 Day Moving Average
Highlight Press - Oct 20, 2017
The value of the company's investment in CSP Inc. increased from $2,619,000 to $2,686,000 a change of 2.6% quarter over quarter.
CSP Inc. (NASDAQ:CSPI) Experiences Light Trading Volume - First News 24
CSP Inc. (NASDAQ:CSPI) Closed 5.5% Above Its 50 Day Moving Average - Finance Daily
9 Kum & Go C-Stores Change Hands
CSPDailyNews.com - Oct 20, 2017
One of the c-stores is located in Red Oak, and two each are located in Council Bluffs, Sioux City, Sioux Center and Missouri Valley, Narendra "Matt" Manney, director of Matt Business Services Inc., told CSP Daily News. Chicago-based Matt Business ...
Csp Incorporated (NASDAQ:CSPI) Shorted Shares Increased 2% After Market Selling
WeeklyHub - Oct 18, 2017
Investors sentiment decreased to 0.5 in Q2 2017. Its down 3.17, from 3.67 in 2017Q1. It turned negative, as 2 investors sold CSP Inc. shares while 4 reduced holdings. 0 funds opened positions while 3 raised stakes. 1.01 million shares or 51.12% less ...
CSP Inc. (NASDAQ:CSPI) Sees Significantly Lower Trading Volume - Highlight Press
CSP Inc. (NASDAQ:CSPI) Closed Higher Than Its 50 Day Moving Average - Modern Readers
CSP Inc (NASDAQ:CSPI): Negative Stock Sentiment
WeeklyHub - Oct 7, 2017
CSP Inc (NASDAQ:CSPI) institutional sentiment decreased to 0.5 in Q2 2017. Its down -3.17, from 3.67 in 2017Q1. The ratio has dropped, as 3 funds increased or opened new positions, while 6 reduced and sold their equity positions in CSP Inc. The funds ...
CSP's 2017 Retail Leader of the Year: Ari Haseotes
CSPDailyNews.com - Oct 19, 2017
CHICAGO -- Winsight's CSP is honored to name Ari Haseotes, CEO of Cumberland Farms, as its 2017 Retail Leader of the Year.
Franchisee Group Files Lawsuit Against 7-Eleven Inc.
CSPDailyNews.com - Oct 13, 2017
The National Coalition of Associations of 7-Eleven Franchisees (NCASEF), which represents the owners of nearly 7,000 franchised convenience stores in the United States, has filed a lawsuit against 7-Eleven Inc. claiming that the franchisor has not ...
CSP Inc. (NASDAQ:CSPI) Short interest grew by 68.35% – Shares Trading Up
HugoPress - Oct 12, 2017
The value of the investment in CSP Inc. decreased from $114,000 to $106,000 decreasing 7.0% quarter over quarter. As of quarter end Renaissance Technologies LLC had sold a total of 2,100 shares trimming its holdings by 0.8%.
CSP Inc. (NASDAQ:CSPI) Experiences Lighter than Average Trading Volume
Modern Readers - Oct 17, 2017
CSP Inc. shares had a trading volume of 305 by the end of trading on Tuesday. Trading volume was down 95.45% under the stocks average daily volume.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CSPI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CSPI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$11.05 Current Price

$11.50 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: -1.71%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$14.01 Stability Price (EPV)

Undervalued by 26.81%


Discount Rate: 15.0%

$2.74 NCA Price

Overvalued by 75.17%

$4.73 Book Price

Overvalued by 57.17%


Inconsistent Cash Return on Invested Capital over the past 5 years

CSPI has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

CSPI has created $10.40 of cash for every $100 invested.
Figures in USD. Fiscal year ends in September
20122013201420152016
Free Cash Flow 5.76M -631,000.00 533,000.00 -3.06M 4.27M
divided by
Invested Capital 12.41M 13.48M 15.35M 18.43M 18.22M
Cash ROIC 46.39% -4.68% 3.47% -16.62% 23.43%

Inconsistent Return on Equity over the past 5 years

CSPI has generated adequate returns with capital that shareholders have invested. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

CSPI has generated $10.05 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in September
20122013201420152016
Net Income 6.61M 368,000.00 1.33M -210,000.00 2.60M
divided by
Stockholders' Equity 23.04M 23.04M 21.29M 19.59M 17.66M
Return on Equity 28.68% 1.60% 6.27% -1.07% 14.75%

Mediocre Business Performance over the past 10 years

CSPI isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

CSPI has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Free Cash Flow 8.88M -716,000.00 2.96M -2.41M 1.20M 5.76M -631,000.00 533,000.00 -3.06M 4.27M

Weak Balance Sheet

CSPI's financial position is not ideal. The key is to check whether CSPI is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Cash 21.38M 18.49M 18.90M 15.53M 15.87M 20.49M 18.62M 16.45M 11.18M 13.10M
Current Assets 39.97M 41.35M 35.87M 35.95M 37.88M 44.71M 40.92M 39.45M 40.08M 41.82M
Total Assets 46.44M 50.02M 40.49M 41.38M 43.11M 51.07M 47.23M 46.31M 47.00M 48.71M
Current Liabilities 13.86M 17.78M 13.16M 13.95M 15.87M 18.17M 15.13M 14.51M 17.38M 17.38M
Total Liabilities 21.11M 26.07M 21.79M 22.90M 25.21M 28.03M 24.19M 25.02M 27.41M 31.05M
Stockholder' Equity 25.33M 23.95M 18.70M 18.48M 17.90M 23.04M 23.04M 21.29M 19.59M 17.66M
Current Ratio 2.88 2.33 2.73 2.58 2.39 2.46 2.71 2.72 2.31 2.41
TL-to-TA 0.45 0.52 0.54 0.55 0.58 0.55 0.51 0.54 0.58 0.64

Low or No Reinvestment of Profits over the past 10 years

CSPI has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CSPI operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Retained Earnings 15.24M 15.39M 11.60M 12.52M 12.89M 18.74M 17.73M 17.52M 15.69M 16.62M
Retained Earnings Growth - 0.98% -24.59% 7.88% 2.95% 45.47% -5.42% -1.19% -10.44% 5.95%

Highly Competitive Industry over the past 10 years

It's likely that CSPI is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely CSPI invests heavily in R&D and Sales, General & Administrative expenses.

Only $1.28 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income 4.05M -407,000.00 -3.78M 914,000.00 369,000.00 6.61M 368,000.00 1.33M -210,000.00 2.60M
divided by
Revenue 94.04M 76.78M 83.36M 95.02M 73.65M 84.81M 87.62M 84.62M 89.31M 103.37M
Net Profit Margin 4.31% -0.53% -4.54% 0.96% 0.50% 7.79% 0.42% 1.58% -0.24% 2.52%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. CSPI has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$21.69 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit 23.36M 14.00M 14.95M 17.19M 16.37M 20.42M 18.58M 20.82M 19.19M 25.04M
divided by
Revenue 94.04M 76.78M 83.36M 95.02M 73.65M 84.81M 87.62M 84.62M 89.31M 103.37M
Gross Margin 24.84% 18.23% 17.94% 18.09% 22.23% 24.08% 21.21% 24.61% 21.48% 24.23%

High Capital Intensity over the past 10 years

CSPI spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

67.36% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure 520,000.00 436,000.00 402,000.00 483,000.00 339,000.00 551,000.00 858,000.00 590,000.00 724,000.00 735,000.00
divided by
Net Income 4.05M -407,000.00 -3.78M 914,000.00 369,000.00 6.61M 368,000.00 1.33M -210,000.00 2.60M
Capital Expenditure Ratio 12.84% -107.13% -10.63% 52.84% 91.87% 8.34% 233.15% 44.23% -344.76% 28.23%

No Dividend History over the past 10 years

CSPI has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 3.93M 3.78M 3.59M 3.57M 3.48M 3.41M 3.44M 3.50M 3.55M 3.73M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 6.44 2.55 3.71 3.79 3.14 6.02 8.02 7.62 6.70 10.58
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CSPI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Shares Outstanding 3.93M 3.78M 3.59M 3.57M 3.48M 3.41M 3.44M 3.50M 3.55M 3.73M
Stock Bought Back - 3.97% 5.26% 0.76% 2.44% 2.26% -1.05% -1.66% -1.38% -4.98%
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