One-glance verdict
Within fair range
$8.50 our estimate vs market $7.71
9% below our estimate
Fundamentals snapshot
CSP Inc.
CSPI · NGM · Technology · Information Technology Services
Current price
$7.71
52-week range
$7.11 - $15.00
Market cap
$77.72M
Balance sheet
Healthy
-8.71x Concerning
Net cash $21.09M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 9/10 years.
- Reward Dividend yield is 1.6% with 15-year payout history.
- Risk Operating margin compressed from -0.1% to -10.7% over 3 years.
- Risk Return on equity was -1.5% last year — the company lost money on shareholders' equity.
What this company does
CSP Inc.
CSP Inc. acts as an outsourced IT department for other businesses and government agencies, selling and managing their computer systems and security. A large part of their business involves providing these ongoing managed services, which can create recurring revenue (predictable income that comes in regularly, like a subscription). The company also develops its own specialized cybersecurity products and high-performance computer parts for customers with critical security needs.
How the company got here
Founded way back in 1968, CSP Inc. started out in the world of early computer technology. Over the decades, it has changed significantly, moving with the times from making computer hardware to focusing on information technology (IT) services. Instead of being led by its original founders, the company has been shaped by professional managers who have guided it through various strategic shifts. This long history means they have adapted to many changes in technology, from the first minicomputers to today's complex cybersecurity threats.
What it actually does
Think of CSP Inc. as a technology helper for other businesses, both commercial and government. They don't make the phones or laptops you buy in a store, but they provide the essential IT services and security that businesses need to operate smoothly and safely. This includes everything from setting up a company's computer network and protecting it from hackers to providing ongoing IT support and cloud services (where businesses can store their data and run applications online). They essentially act as a one-stop-shop for a company's complex technology needs.
Technology Solutions
This is the larger of its two main businesses and makes up the vast majority of the company's revenue (the total money it brings in). In this part of the business, CSP Inc. acts as a value-added reseller (VAR), which means they sell other major companies' tech products, like those from Cisco and Microsoft, and add their own expertise and services to create a complete solution for their customers. This segment helps businesses with setting up data centers, network security, and provides managed IT services, which is like having an outsourced IT department that monitors and manages a company's computer systems 24/7.
High Performance Products
This is a smaller but highly specialized part of the company. This segment develops and sells its own advanced products, primarily focused on cybersecurity and high-speed networking. Their main product line here is called ARIA, a cybersecurity platform that helps organizations protect their critical computer systems from cyberattacks. They also make specialized network adapters (cards that plug into computers to connect them to a network) designed for very demanding tasks like financial trading and defense applications.
What management is betting on now
The company is focused on growing its cybersecurity offerings, particularly its ARIA platform, to protect businesses from increasingly sophisticated online threats. They are also concentrating on providing managed IT services, which creates a steady, recurring stream of revenue (money that comes in regularly from subscriptions). By partnering with major technology companies and offering their own specialized security products, they aim to be the go-to technology partner for businesses that need reliable and secure IT systems.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.52M
FY2025 Q1
$1.69M
FY2025 Q2
$1.91M
FY2025 Q3
$-3.35M
FY2025 Q4
$1.67M
FY2026 Q1
$-3.02M
FY2026 Q2
$-507.00K
FY2026 Q3
$447.00K
Revenue
$14.40M
Net income
$-846.00K
Diluted EPS
-0.09
Operating cash flow
$447.00K
Free cash flow
$447.00K
Fetching…
Sources
Revenue
$16.01M
Net income
$264.00K
Diluted EPS
0.03
Operating cash flow
$-493.00K
Free cash flow
$-507.00K
Fetching…
Sources
Revenue
$12.04M
Net income
$91.00K
Diluted EPS
0.01
Operating cash flow
$-2.92M
Free cash flow
$-3.02M
Fetching…
Sources
Revenue
$14.46M
Net income
$-191.00K
Diluted EPS
-0.02
Operating cash flow
$1.90M
Free cash flow
$1.67M
Fetching…
Sources
Revenue
$15.45M
Net income
$-264.00K
Diluted EPS
-0.03
Operating cash flow
$-3.28M
Free cash flow
$-3.35M
Fetching…
Sources
Revenue
$13.15M
Net income
$-108.00K
Diluted EPS
-0.01
Operating cash flow
$1.91M
Free cash flow
$1.91M
Fetching…
Sources
Revenue
$15.67M
Net income
$472.00K
Diluted EPS
0.05
Operating cash flow
$1.74M
Free cash flow
$1.69M
Fetching…
Sources
Revenue
$13.03M
Net income
$-1.66M
Diluted EPS
-0.16
Operating cash flow
$-1.51M
Free cash flow
$-1.52M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.50 vs current price $7.71
Our most-likely fair value is $8.50 a share — about 10.3% away from today's price of $7.71, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $21.1M - more cash than debt. Interest coverage -8.7x.
Net debt
$-21.09M
Interest coverage
-8.71x
CSP Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CSPI
BASELINE
CSP Inc.
Total debt $3.58M Interest coverage -8.71x This is the baseline the peer rows are being compared against.
Total debt $4.32M Interest coverage -13.76x Neither company has much profit cushion over interest right now.
Total debt $958.91K Interest coverage -2.43x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -30.03x Neither company has much profit cushion over interest right now.
Total debt $141.14M Interest coverage 1.26x This peer still has a real interest-payment cushion, while CSPI does not.
What you should know
The case for and against CSPI
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 1.6% with 15-year payout history.
Risks
-
Operating margin compressed from -0.1% to -10.7% over 3 years.
-
Return on equity was -1.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
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P/B
1.75x
P/S
1.37x
EV/EBITDA
-20.08x
PEG ratio
0.92x
Profitability
How much profit each dollar creates
Gross margin
33.1%
Operating margin
-10.7%
Net margin
-1.2%
ROE
-1.5%
ROA
-2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.08x
Current ratio
2.40x
Quick ratio
2.20x
Total debt
$3.58M
Total cash
$24.67M
Growth
How the business has been compounding
Revenue TTM
$56.91M
Revenue 5Y CAGR
4.5%
EPS TTM
-0.07
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-1.06M
Free CF TTM
$1.92M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
575.0%
Last ex-div date
2026-08-28