📊 CSPI Key Takeaways
Is Csp Inc. /Ma/ (CSPI) a Good Investment?
CSP Inc exhibits a critical disconnect between reported earnings and operational reality: while the company shows positive net income and modest revenue growth, it is burning cash operationally with -$3.4M operating cash flow and -$3.5M free cash flow. Despite a fortress balance sheet with zero debt and $23.1M cash reserves, the company's negative operating margin (-3.4%) and deteriorating cash generation indicate fundamental operational distress that will eventually consume equity value.
CSP Inc. shows modest top-line growth and a very strong balance sheet with significant cash and no long-term debt, but the quality of that growth is weak given negative operating income and deeply negative free cash flow. Profitability remains near breakeven, and until revenue growth converts into sustained operating leverage and positive cash generation, the fundamentals look fragile rather than compelling.
Csp Inc. /Ma/ Key Strengths (CSPI)
- Strong balance sheet with $45M stockholders equity and zero long-term debt
- Substantial cash reserves of $23.1M providing operational runway
- Excellent liquidity metrics (2.64x current ratio, 2.56x quick ratio)
- Positive net income at $355K despite operational challenges
- Reasonable gross margin of 32.8% indicates underlying product viability
- Strong liquidity with $24.93M in cash, a 2.75x current ratio, and no long-term debt
- Revenue grew 6.4% year over year, indicating some ongoing demand support
- Gross margin of 39.3% provides a reasonable base if operating expenses are controlled
CSPI Stock Risks: Csp Inc. /Ma/ Investment Risks
- Negative operating cash flow of -$3.4M and negative free cash flow of -$3.5M indicate unsustainable operations
- Large gap between reported net income and operating cash flow signals low earnings quality and potential accounting issues
- Negative operating income and -3.4% operating margin demonstrate company is operationally unprofitable
- Revenue growth of 6.4% is insufficient to drive profitability or cash generation improvements
- Operating expense efficiency problem: gross margin of 32.8% collapses to -3.4% operating margin indicating significant operational bloat
- Operating margin is negative and net margin is only 0.8%, showing weak underlying profitability
- Operating cash flow of -$2.92M and free cash flow of -$3.02M indicate poor cash conversion
- Returns on capital are minimal, with ROE of 0.2% and ROA of 0.1%, suggesting inefficient use of assets and equity
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Operating margin improvement path and timeline to breakeven
- Cash burn rate and estimated runway before balance sheet depletion
- Operating expense ratio relative to revenue
- Return to sustainable revenue growth above cost inflation rates
- Operating cash flow and free cash flow trend
- Operating margin improvement versus revenue growth
Csp Inc. /Ma/ (CSPI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.64x current ratio provides a solid financial cushion.
CSPI Profit Margin, ROE & Profitability Analysis
CSPI vs Technology Sector: How Csp Inc. /Ma/ Compares
How Csp Inc. /Ma/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Csp Inc. /Ma/ Stock Overvalued? CSPI Valuation Analysis 2026
Based on fundamental analysis, Csp Inc. /Ma/ has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Csp Inc. /Ma/ Balance Sheet: CSPI Debt, Cash & Liquidity
CSPI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Csp Inc. /Ma/'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $-0.04 indicates the company is currently unprofitable.
CSPI Revenue Growth, EPS Growth & YoY Performance
CSPI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $13.1M | -$108.0K | $-0.01 |
| Q1 2026 | $12.0M | $91.0K | $0.01 |
| Q3 2025 | $13.1M | $100.0K | $0.01 |
| Q2 2025 | $13.1M | -$108.0K | $-0.01 |
| Q1 2025 | $15.4M | -$73.0K | $-0.01 |
| Q3 2024 | $13.1M | -$185.0K | $-0.02 |
| Q2 2024 | $13.3M | $321.0K | $0.03 |
| Q1 2024 | $15.4M | -$73.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Csp Inc. /Ma/ Dividends, Buybacks & Capital Allocation
CSPI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Csp Inc. /Ma/ (CIK: 0000356037)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSPI
What is the AI rating for CSPI?
Csp Inc. /Ma/ (CSPI) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSPI's key strengths?
Claude: Strong balance sheet with $45M stockholders equity and zero long-term debt. Substantial cash reserves of $23.1M providing operational runway. ChatGPT: Strong liquidity with $24.93M in cash, a 2.75x current ratio, and no long-term debt. Revenue grew 6.4% year over year, indicating some ongoing demand support.
What are the risks of investing in CSPI?
Claude: Negative operating cash flow of -$3.4M and negative free cash flow of -$3.5M indicate unsustainable operations. Large gap between reported net income and operating cash flow signals low earnings quality and potential accounting issues. ChatGPT: Operating margin is negative and net margin is only 0.8%, showing weak underlying profitability. Operating cash flow of -$2.92M and free cash flow of -$3.02M indicate poor cash conversion.
What is CSPI's revenue and growth?
Csp Inc. /Ma/ reported revenue of $28.0M.
Does CSPI pay dividends?
Csp Inc. /Ma/ pays dividends, with $0.6M distributed to shareholders in the trailing twelve months.
Where can I find CSPI SEC filings?
Official SEC filings for Csp Inc. /Ma/ (CIK: 0000356037) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSPI's EPS?
Csp Inc. /Ma/ has a diluted EPS of $0.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CSPI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Csp Inc. /Ma/ has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CSPI stock overvalued or undervalued?
Valuation metrics for CSPI: ROE of 0.8% (sector avg: 22%), net margin of 1.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CSPI's AI grade for 2026?
Our dual AI analysis gives Csp Inc. /Ma/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CSPI's free cash flow?
Csp Inc. /Ma/'s operating cash flow is $-3.4M, with capital expenditures of $119.0K. FCF margin is -12.6%.
How does CSPI compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.3% (avg: 18%), ROE 0.8% (avg: 22%), current ratio 2.64 (avg: 2.5).