Company Overview
Corsair Gaming, Inc. operates as a designer and seller of gaming and streaming peripherals, components, and systems across Europe, the Middle East, North Africa, North America, Latin America, and the Asia Pacific. The company functions within the Technology sector, specifically targeting the Computer Hardware industry, which positions it to capitalize on the expanding demand for high-performance consumer electronics and streaming equipment. This organization employs a workforce of 2,355 individuals to support its operational scale and global distribution network. With a market capitalization of $607.98 million and annual revenue of $1.47 billion, the company holds a mid-cap valuation that reflects its established presence in the niche hardware market while maintaining a significant operational footprint.
Financial Health
Corsair Gaming, Inc. reported revenue of $1.47 billion over the trailing twelve months, accompanied by a net income of -$12,465,000 and an EBITDA of $57.07 million. The substantial gap between the $1.47 billion in revenue and the negative net income reveals a cost structure where operating expenses and taxes significantly erode bottom-line profitability, resulting in a profit margin of -1.1%. Despite the negative net income, the company generated positive free cash flow of $56.16 million, which indicates a degree of financial flexibility allowing for potential capital expenditures or operational adjustments without relying solely on external financing. The company's profitability metrics vary significantly across different levels of analysis, with a gross margin of 29.0% suggesting efficient production costs, an operating margin of 6.3% indicating moderate control over operating expenses, and a negative profit margin reflecting the impact of non-operating factors or high interest costs. Regarding liquidity and leverage, the company holds $97.18 million in cash against $190.53 million in debt, resulting in a debt-to-equity ratio of 29.50 which characterizes a highly leveraged balance sheet. However, the current ratio stands at 1.54, suggesting that the company possesses sufficient current assets to cover its short-term liabilities with a comfortable margin. Return on Equity is recorded at -2.4% and Return on Assets at 0.1%, metrics that collectively reveal challenges in generating returns relative to the capital invested by shareholders and the total asset base.
Valuation Assessment
The valuation profile of Corsair Gaming, Inc. presents a trailing P/E ratio of N/A due to negative earnings, while the forward P/E is listed at 7.53, implying that the market anticipates a significant recovery in earnings to reach a multiple closer to the forward projection. The price-to-book ratio is 0.96, which indicates that the stock is trading at a discount to its book value, suggesting the market does not currently assign a premium to the company's tangible assets. Alternative valuation metrics such as the price-to-sales ratio of 0.41 and an EV/EBITDA of 12.50 provide context that the stock is priced relative to its sales volume and earnings before interest, taxes, depreciation, and amortization, rather than traditional earnings multiples. In terms of trading range, the 52-week high is $10.41 and the 52-week low is $4.48, placing the current market price within this established volatility band. The beta value of 1.56 indicates that the stock's price volatility is 56% higher than the broader market, signaling heightened sensitivity to market movements and increased risk for price fluctuations.
Growth & Income
Corsair Gaming, Inc. has demonstrated revenue growth of 5.6% year-over-year, while earnings growth is reported at 16,677.9%, a figure that mathematically reflects the transition from a loss to a profit or a normalization of earnings relative to a negative prior period. Since the company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute cash to shareholders but instead retains earnings to fund operations, repay debt, or pursue strategic growth initiatives. The absence of a dividend yield and the 0.0% payout ratio confirm that the company's income profile is entirely focused on capital appreciation and operational reinvestment rather than current income generation. The overall growth and income profile is characterized by strong revenue expansion and a dramatic improvement in reported earnings, though the high leverage and lack of dividends present a distinct risk-return dynamic for holders of the stock.