One-glance verdict
Undervalued
$7.85 our estimate vs market $6.93
12% below our estimate, below the bear case
Fundamentals snapshot
CSP Inc.
CSPI · NGM · Technology · Information Technology Services
Current price
$6.93
52-week range
$6.39 - $15.00
Market cap
$69.86M
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 1.7% 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. provides technology solutions that help businesses and defense organizations manage their computer systems and security. Their main money comes from selling hardware, software, and services that keep computer networks running smoothly and safely. This is important because strong IT infrastructure and security are crucial for almost every modern business to operate efficiently.
How the company got here
CSP Inc. has a long history, starting in 1968 and based in Lowell, Massachusetts. Over the decades, it has evolved to provide a range of technology solutions. The company has adapted to changing market needs, shifting its focus to areas like IT integration, security, and cloud services to serve both commercial and defense clients globally. This evolution reflects a strategy of staying relevant in the fast-paced technology sector.
What it actually does
CSP Inc. offers a variety of technology solutions and services. Think of them as a company that helps other businesses and government entities manage their computer systems and data securely. This includes selling them the necessary computer hardware and software, setting it all up, and then providing ongoing support and management. They also develop specialized products for high-performance computing needs, particularly for defense applications.
Technology Solutions
This is the largest part of CSP Inc.'s business, making up a significant portion of its revenue. It's like a one-stop shop for a company's IT needs. They provide everything from the basic building blocks of computer systems, like servers and storage (data center infrastructure solutions), to networking equipment and advanced security software. They also offer expert advice on how to set up and manage these systems, including cloud services and ongoing IT support, ensuring everything runs smoothly and securely.
High Performance Products
This segment is a smaller but specialized slice of CSP Inc.'s offerings, focusing on advanced technology for demanding applications. They develop unique products like network adapters (Myricom SmartNIC adapters) that speed up data processing and cybersecurity solutions designed to protect critical infrastructure from sophisticated attacks (ARIA Zero Trust PROTECT). These products are particularly important for defense customers who require high levels of performance and security for complex tasks like digital signal processing.
What management is betting on now
CSP Inc.'s management is focused on expanding its managed IT services and cloud offerings. These services provide recurring revenue, meaning the company gets paid regularly for ongoing support and access to technology, which can lead to more predictable income. They are also emphasizing their cybersecurity solutions, recognizing the growing importance of protecting data and systems from threats. By focusing on these areas, the company aims to capture a larger share of the market for essential IT support and security services.
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 $7.85 vs current price $6.93
Our most-likely fair value is $7.85 a share — about 13.2% above today's price of $6.93, so the stock currently looks cheap (undervalued).
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 1.7% 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)
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Forward P/E
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P/B
1.57x
P/S
1.23x
EV/EBITDA
-17.29x
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
1.7%
Payout ratio
1,150.0%
Last ex-div date
2026-08-28