CSP Inc (CSPI) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

CSP's price-to-book of 1.65 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.20.

Trading below fair value

The share price of $7.26 is below our fair value estimate of $11.76.

Margin of safety over 20%

The price is 38.3% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -0.7% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 33.1% over the last twelve months, against 29.5% a year earlier.

Return on equity under 15%

Return on equity was -1.5% over the last twelve months and averaged 3.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -11.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

CSP's return on equity of -1.5% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -1.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -1.2% over the last twelve months, against a 5-year average of 2.4%.

Net margin above the industry

CSP's net margin of -1.2% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense -5.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.40 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.32; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CSP paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; CSP yields 1.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.