CSP, Inc. (CSPI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Solaris Oilfield Infrastructure, Inc.

Telos Corp.

TruBridge, Inc.

CI&T, Inc. (Brazil)

CSP, Inc.

NETGEAR, Inc.

Cibus, Inc.

Blend Labs, Inc.

Upland Software, Inc.

Rimini Street, Inc.

Unisys Corp.

Why is CSP, Inc. ?

Poor Management Efficiency with a low ROE of 3.13%

The company has been able to generate a Return on Equity (avg) of 3.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.07% over the last 5 years

Positive results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Highest at 114.5%
DEBTORS TURNOVER RATIO(HY) Highest at 2.9 times
NET SALES(Q) Highest at USD 16.01 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -25.70%, its profits have fallen by -56%

High Institutional Holdings at 35.25%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.51% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.70% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CSP, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CSP, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CSP, Inc.

-25.7%

-0.74

55.47%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.07%

EBIT Growth (5y)

-30.66%

EBIT to Interest (avg)

-0.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

1.21

Tax Ratio

41.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

35.25%

ROCE (avg)

2.55%

ROE (avg)

3.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.76

EV to EBIT

-19.33

EV to EBITDA

-25.22

EV to Capital Employed

2.60

EV to Sales

1.01

PEG Ratio

Dividend Yield

71.90%

ROCE (Latest)

-13.45%

ROE (Latest)

-1.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 114.5%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.9 times

NET SALES(Q)

Highest at USD 16.01 MM

NET PROFIT(Q)

Highest at USD 0.26 MM

EPS(Q)

Highest at USD 0.03

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -4.79 MM

INTEREST(HY)

At USD 0.3 MM has Grown at 91.56%

RAW MATERIAL COST(Y)

Grown by 13.13% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -46.71 %

Here's what is working for CSP, Inc.

Net Profit

At USD 0.26 MM has Grown at 313.84%

over average net sales of the previous four periods of USD -0.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 16.01 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Profit

Highest at USD 0.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 2.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 114.5%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for CSP, Inc.

Interest

At USD 0.3 MM has Grown at 91.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -4.79 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at -46.71 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 13.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales