Corsair Gaming, Inc. (CRSR) Report Analysis
Corsair Gaming published concerning discouraging results on 2022-05-06. Their negative income and value factors indicate that it is finding it increasingly difficult to produce impressive numbers. These results indicate a weak income potential for Corsair Gaming's stock's price moving forward. Therefore, Corsair Gaming earned a score of 48 and a UNDERPERFORM recommendation.
Corsair Gaming reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported sales was USD 380.69 million compared to USD 529.41 million a year ago. Net loss was USD 2.87 million compared to net income of USD 46.72 million a year ago. Basic loss per share from continuing operations was USD 0.05 compared to basic earnings per share from continuing operations of USD 0.51 a year ago. Diluted loss per share from continuing operations was USD 0.05 compared to diluted earnings per share from continuing operations of USD 0.47 a year ago.
Business Description
Corsair Gaming, together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, stream decks, USB microphones, studio accessories, and EpocCam software. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato’s streaming suite for streamers and content creators. In addition, the company offers coaching and training, and other services. It sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its website. The company was incorporated in 1994 and is headquartered in Fremont, California. Corsair Gaming is a subsidiary of Corsair Group (Cayman), LP.
Sector Overview
Corsair Gaming is included in the Technology Hardware, Storage & Peripherals according to GICS (global industry classification standard). The Technology Hardware, Storage & Peripherals industry is part of the Information Technology sector. It includes manufacturers of mobile phones, PCs, servers, electronic computer components and peripherals. Corsair Gaming's industry and sector affiliation are expected to negatively affect their likelihood to overperform the market in the upcoming period, as other sectors appear more likely to benefit from the macroeconomic environment we see now.
Parameter | Value | Change | Score | |
---|---|---|---|---|
Return on Equity | 9.3 | -53.8% | 39 | |
Net Cashflow | -93.6 | -37.3% | 50 | |
Capital Expenditure | -13.3 | -21.2% | 48 | |
Asset Turnover | 1.3 | -7.9% | 46 | |
Free Cashflow | -0.3 | -390.2% | 37 |
* All values are TTM
The below chart reflects Corsair Gaming's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Corsair Gaming's peer average final assessment score stands on 68.0, Corsair Gaming's score is 48.
When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Corsair Gaming's stock is now priced above its 5-day, but below its 50-day and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a positive setup in the near-term. The company is trading near it's 12-month low, which signals it struggle to keep above it support price. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Corsair Gaming's stock indicates that it's likely oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 47.
Corsair Gaming's recently published balance sheet showed overall, underwhelming numbers. Both Cash & Equivalents and Liabilities were particularly concerning. Corsair Gaming's management did a relatively poor job managing cash and cash equivalents, which now sit at 29.0 and represents a -53.5% change from the last reporting period. This performance is significantly less impressive than its peers and competitors. Its cash and cash equivalents movement, therefore, received a grade of 38. Also, In terms of liabilities, Corsair Gaming published uninspiring results. Their reported liabilities were 707.9, representing a -8.0% change from the previous report. Corsair Gaming's liabilities changes appear mediocre compared to their peers. Contextually, they convey that management finds balancing asset growth, resource allocation, and liabilities challenging. Therefore, we rated their liabilities movement with a score of 50. At the same time, one balance sheet metric, Assets, was actually strongly positive. Corsair Gaming's management was effective in managing the value of the assets on their balance sheet, which now sits at 1319.4 and represents a -1.3% change from the previous report. These results, specifically in contrast to their industry peers' performance, should support an upswing in the company's stock price. Therefore, its asset component earned a score of 72. Consequently, their balance sheet earned a rank of 52.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 1,319.4 | -1.3% | 72 |
Liabilities | 707.9 | -8.0% | 50 |
Price to Book | 2.4 | -30.2% | 63 |
Cash & Equivalents | 29.0 | -53.5% | 38 |
Equity | 580.3 | 2.1% | 64 |
The below chart describes Corsair Gaming's performance as reflected on its balance sheet with respect to its peers. While Corsair Gaming received a balance sheet score of 52, the average of its peers stands on 67.0.
Name | Market Cap | Liabilities Movement | Asset Change | Equity/Intangibles Adjustments | Cash & Equivalents | Book Value Momentum | Balance Sheet | mc_sort | Hidden |
---|---|---|---|---|---|---|---|---|---|
Apple Inc. | 2.3T | 50 | 80 | 60 | 46 | 56 | 53 | 0 | 1 |
Seagate Technology Holdings plc | 15.9B | 60 | 80 | 58 | 46 | 52 | 56 | 1 | 1 |
Western Digital Corporation | 14.9B | 60 | 77 | 55 | 68 | 62 | 59 | 2 | 1 |
NetApp, Inc. | 14.9B | 78 | 67 | 60 | 67 | 52 | 62 | 3 | 1 |
Xerox Holdings Corporation | 2.5B | 67 | 77 | 60 | 58 | 56 | 62 | 4 | 1 |
Super Micro Computer, Inc. | 2.2B | 89 | 62 | 93 | 70 | 90 | 93 | 5 | 1 |
Stratasys Ltd. | 1.3B | 58 | 81 | 47 | 88 | 54 | 57 | 6 | 1 |
Avid Technology, Inc. | 1.2B | 52 | 82 | 43 | 45 | 59 | 49 | 7 | 1 |
Dell Technologies Inc. | 37.2B | 56 | 80 | 57 | 44 | 55 | 54 | 8 | 1 |
HP Inc. | 36.5B | 71 | 73 | 97 | 91 | 92 | 95 | 9 | 1 |
Hewlett Packard Enterprise Company | 18.4B | 52 | 78 | 73 | 46 | 67 | 63 | 10 | 1 |
Pure Storage, Inc. | 8.0B | 42 | 82 | 62 | 66 | 57 | 55 | 11 | 1 |
3D Systems Corporation | 1.3B | 57 | 80 | 46 | 38 | 45 | 45 | 12 | 1 |
IonQ, Inc. | 957.0M | 38 | 74 | 53 | 37 | 49 | 37 | 13 | 1 |
Nano Dimension Ltd. | 834.0M | 96 | 85 | 59 | 48 | 60 | 82 | 14 | 1 |
Canaan Inc. | 600.4M | 76 | 62 | 88 | 67 | 83 | 81 | 15 | 1 |
CompoSecure, Inc. | 441.4M | 58 | 64 | 66 | 44 | 82 | 59 | 16 | 1 |
Eastman Kodak Company | 419.9M | 67 | 70 | 55 | 53 | 66 | 58 | 17 | 1 |
Coolpad Group Limited | 275.6M | 48 | 86 | 47 | 63 | 45 | 53 | 18 | 1 |
Turtle Beach Corporation | 227.4M | 39 | 80 | 69 | 86 | 67 | 67 | 19 | 1 |
Diebold Nixdorf, Incorporated | 190.3M | 65 | 83 | 43 | 40 | 56 | 54 | 20 | 1 |
Corsair Gaming seems to be balancing strong Revenue Efficiency and EBITDA along with an overall impressive positive income statement. Corsair Gaming did an excellent job managing its revenue efficiency this past period. Corsair Gaming's revenue efficiency is 1755.3 according to the metrics in the current filing, which represents a -7.8% change from the previous report. This characteristic can affect companies in the same industry and market capitalization by up to 18.5%. Their industry-leading revenue efficiency makes a strong case for upward pressure on its's stock price. As a result, its revenue efficiency earned a score of 97. Also, Corsair Gaming's management was effective in improving its EBIDTA, which now sits at 139.0 and represents a -32.4% change from the last reporting period. Companies in the same industry and market capitalization are typically affected by this parameter by up to 13.2%. Their EBITDA metrics are even more impressive relative to their peers and competitors, and its likely the stock price has room to grow to reflect its intrinsic value accurately. Consequently, their EBITDA movement received a grade of 41. However, one discouraging result, Return Factors, stood out. Corsair Gaming's reported return on equity (ROE) ratio was 9.3, representing a change of -53.8%. This metric might have a 3.1 percent impact on companies in the same industry and with the same market capitalization. These numbers show that management has been unsuccessful in fostering appropriate growth related to return on assets and return on equity momentum relative to their peers. Consequently, their return factors received a grade of 39. Because its management is doing an excellent job managing these critical metrics, the income statement was given a score of 71.
Parameter | Value | Change | Score |
---|---|---|---|
EBITDA | 139.0 | -32.4% | 41 |
Total Revenues | 1,755.3 | -7.8% | 97 |
Return on Equity | 9.3 | -53.8% | 39 |
The below chart describes Corsair Gaming's performance as reflected on its income statement with respect to its peers. While Corsair Gaming received a income statement score of 71 , the average of its peers stands on 68.0.
Name | Market Cap | Revenue Momentum | Earning Movement | Return Factors Momentum | Income Statement | mc_sort | Hidden |
---|---|---|---|---|---|---|---|
Apple Inc. | 2.3T | 76 | 67 | 79 | 74 | 0 | 1 |
Seagate Technology Holdings plc | 15.9B | 83 | 69 | 90 | 79 | 1 | 1 |
Western Digital Corporation | 14.9B | 80 | 83 | 71 | 82 | 2 | 1 |
NetApp, Inc. | 14.9B | 76 | 63 | 52 | 70 | 3 | 1 |
Xerox Holdings Corporation | 2.5B | 88 | 46 | 45 | 69 | 4 | 1 |
Super Micro Computer, Inc. | 2.2B | 43 | 95 | 95 | 69 | 5 | 1 |
Stratasys Ltd. | 1.3B | 61 | 48 | 81 | 58 | 6 | 1 |
Avid Technology, Inc. | 1.2B | 79 | 68 | 69 | 75 | 7 | 1 |
Dell Technologies Inc. | 37.2B | 68 | 65 | 82 | 69 | 8 | 1 |
HP Inc. | 36.5B | 81 | 61 | 64 | 73 | 9 | 1 |
Hewlett Packard Enterprise Company | 18.4B | 85 | 56 | 61 | 73 | 10 | 1 |
Pure Storage, Inc. | 8.0B | 46 | 97 | 96 | 71 | 11 | 1 |
3D Systems Corporation | 1.3B | 91 | 38 | 42 | 67 | 12 | 1 |
IonQ, Inc. | 957.0M | 37 | 47 | 61 | 43 | 13 | 1 |
Nano Dimension Ltd. | 834.0M | 37 | 46 | 73 | 45 | 14 | 1 |
Canaan Inc. | 600.4M | 38 | 93 | 77 | 64 | 15 | 1 |
CompoSecure, Inc. | 441.4M | 51 | 69 | 53 | 58 | 16 | 1 |
Eastman Kodak Company | 419.9M | 75 | 61 | 49 | 68 | 17 | 1 |
Coolpad Group Limited | 275.6M | 98 | 58 | 63 | 80 | 18 | 1 |
Turtle Beach Corporation | 227.4M | 96 | 41 | 42 | 69 | 19 | 1 |
Diebold Nixdorf, Incorporated | 190.3M | 92 | 42 | 73 | 72 | 20 | 1 |
Corsair Gaming's cash flow factors had several troubling metrics this period. Free cash flow numbers published by Corsair Gaming were -0.3, which was a -390.2% change from the previous filing. Companies in the same industry and market capitalization are typically affected by this parameter by up to 7.4%. Their free cash flow situation is more concerning relative to their peers and competitors. Disappointing results in free cash flow often lead to negative pressure in stock prices, so we rated their free cash flow with a score of 37. Also, Corsair Gaming's asset turnover numbers were discouraging, reflecting significant concerns related to management's ability to leverage assets to generate sales effectively and efficiently. Corsair Gaming recorded asset turnover of 1.3, which represents a -7.9% change from the previous report. Companies in the same industry and market capitalization are typically affected by this parameter by up to 10.7%. The company's asset turnover metrics seem especially problematic relative to their peers. Correspondingly, their asset turnover movement received a grade of 46. However, we can we draw some encouragement from Corsair Gaming's momentum in cash flow generation. Corsair Gaming presents exciting net cash flow numbers for its recent financial release, illustrated by a net cash flow of -93.6, which is a change of -37.3% from the last filing. Their net cash flow metrics are especially remarkable relative to their peers. Consequently, their net cash flow movement received a grade of 50. Consequently, the company's cash flow earned a rank of 40.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | -93.6 | -37.3% | 50 |
Capital Expenditure | -13.3 | -21.2% | 48 |
Asset Turnover | 1.3 | -7.9% | 46 |
Free Cashflow | -0.3 | -390.2% | 37 |
The below chart describes Corsair Gaming's performance as reflected on its cash flow with respect to its peers. While Corsair Gaming received a cash flow score of 40, the average of its peers stands on 63.0.
Name | Market Cap | Cashflow Momentum | Free Cashflow Growth | Capital Expenditure Growth | Assets Factors Momentum | Cash Flow | mc_sort | Hidden |
---|---|---|---|---|---|---|---|---|
Apple Inc. | 2.3T | 76 | 75 | 68 | 91 | 84 | 0 | 1 |
Seagate Technology Holdings plc | 15.9B | 64 | 77 | 76 | 79 | 76 | 1 | 1 |
Western Digital Corporation | 14.9B | 65 | 82 | 54 | 70 | 70 | 2 | 1 |
NetApp, Inc. | 14.9B | 77 | 58 | 37 | 53 | 55 | 3 | 1 |
Xerox Holdings Corporation | 2.5B | 59 | 64 | 77 | 75 | 69 | 4 | 1 |
Super Micro Computer, Inc. | 2.2B | 51 | 51 | 90 | 68 | 62 | 5 | 1 |
Stratasys Ltd. | 1.3B | 83 | 37 | 77 | 51 | 55 | 6 | 1 |
Avid Technology, Inc. | 1.2B | 58 | 59 | 45 | 94 | 74 | 7 | 1 |
Dell Technologies Inc. | 37.2B | 68 | 50 | 68 | 85 | 72 | 8 | 1 |
HP Inc. | 36.5B | 56 | 59 | 60 | 59 | 57 | 9 | 1 |
Hewlett Packard Enterprise Company | 18.4B | 77 | 52 | 62 | 71 | 66 | 10 | 1 |
Pure Storage, Inc. | 8.0B | 94 | 91 | 64 | 97 | 95 | 11 | 1 |
3D Systems Corporation | 1.3B | 58 | 40 | 61 | 65 | 55 | 12 | 1 |
IonQ, Inc. | 957.0M | 69 | 66 | 54 | 98 | 82 | 13 | 1 |
Nano Dimension Ltd. | 834.0M | 69 | 70 | 74 | 55 | 70 | 14 | 1 |
Canaan Inc. | 600.4M | 67 | 69 | 73 | 46 | 57 | 15 | 1 |
CompoSecure, Inc. | 441.4M | 77 | 76 | 46 | 48 | 58 | 16 | 1 |
Eastman Kodak Company | 419.9M | 84 | 50 | 50 | 54 | 57 | 17 | 1 |
Coolpad Group Limited | 275.6M | 59 | 74 | 79 | 43 | 58 | 18 | 1 |
Turtle Beach Corporation | 227.4M | 87 | 38 | 87 | 51 | 60 | 19 | 1 |
Diebold Nixdorf, Incorporated | 190.3M | 38 | 38 | 59 | 72 | 53 | 20 | 1 |
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