Corsair Gaming Stock, What you need to know - Analysis and forecast

Considered to be one of the fastest-growing industries on the planet, online gaming has exploded over the years.

Just a decade ago the gaming industry was bringing in less than $60 Billion in revenue, and now we are forecasting over $200 billion in revenue by 2023.

PC gaming, driven by its 1.3 billion players, will grow +4.8% year on year to $36.9 billion.

What is Corsair Gaming?

Founded in 1994, and went public in 2020.

CRSR is a developer and manufacturer of high-performance tech gear for gamers or anyone looking for well-built pc components and equipment.

Products they offer;

Software

iCUE — lets you fully synchronize the RGB lighting on all your compatible CORSAIR devices for a setup-wide light show beyond compare.

PC Components

1. CPU Coolers
2. Cases
3. Fans
4. Memory
5. SSDs and USB Flash Drives
6. Power supply units

Gaming Gear

1. Keyboards
2. Headsets
3. Mice
4. Mousepads
5. Ambient lighting
6. Chairs

Streaming Gear

1. Cameras
2. Lighting
3. Green screen
4. Stream Deck
5. Microphones

They also sell pre-built Gaming pc and sell apparel. Corsair also owns an interesting service that is called Gaming Sensei which consists of gaming training and coaching 1–1.

Competitive edge

Loyal fan base

Corsair has been booming for the last years, in you go online and check gaming youtube videos you will see that for every 10 gamers 7 of them own a Corsair product.

Partnership with streamers

They have a global team of influencers and gamers promoting and bringing in new audiences. Some of them are;

Team Dignitas- https://dignitas.gg/

BajeeraWoW — https://www.twitch.tv/bajheera

CyborgAngel — https://www.twitch.tv/CyborgAngel

VoyBoy — https://www.twitch.tv/voyboy

Summit1g — https://www.twitch.tv/summit1g

LoserFruit — https://www.twitch.tv/loserfruit

Very focused on gaming

As they stated, they don’t create products for offices. Their focus is on creating modern, ‘’wow’’ products that give the best performance for gamers without compromising the quality of materials.

Simple Financials

Taking a look at the balance sheet, income statement, and cash flow of Corsair gaming company we can see they have a very healthy growth rate.

Income statement

Total revenue

From 2018–2019 increased by 15.68%.

From 2019–2020 Total revenues increased a whopping 43.23%.

While revenue tripled from 2019–2020, their Cost of revenue went from 15.82% to an increase of 34.51%.

• From 2018–2019 increased by 15.15%
• From 2019–2020 increased by 69.92%

Gross profit quadruples from 2019–2020 while keeping expenses pretty low.

Balance sheet

Total Assets

• From 2018–2019 increased by 26.59%
• From 2019–2020 increased by 21.43%

Total debt is the most interesting part,

From 2018–2019 they had an increase of 17.89% but from 2019–2020 they had a decrease of 41.93%

Cash flow

Operating Cash Flow

In 2018 they were on a negative free cash flow, and then boom. From 2019 to 2020 they had an increase of 140% of free cash flow.

Stock profile

CRSR went public last year at a $14 price per share. As for today, it is holding the 29$. I am dollar-cost averaging, and whenever I see it at a good buying area I add bigger positions.

Buying areas to take into consideration when adding to your portfolio are $27.00, $21.00, $14.00

If we look at CRSR competitors the average prices for the gaming stocks are between $80–$150. So, there is so much upside for this company.

The 8 analysts offering 12-month price forecasts for Corsair Gaming Inc have a median target of 47.50, with a high estimate of 55.00 and a low estimate of 37.00.

Social media:

Medium: https://maximemanuelr.medium.com/

Twitter: https://twitter.com/manuel_lucien

Disclaimer: This is not financial advice, I am just a guy with a laptop sharing his opinions and experience. This is for entertainment purposes only. Always Do your research before investing.