What Corsair does Corsair is a well-established company offering PC components like high-performance memory and power supplies, as well as peripherals like keyboards and mice, along with computer cases catered to gaming enthusiasts. In 2018 the company acquired Elgato Gaming. Elgato is one of the leading providers of live-streaming gear like capture cards, content control panels, and green screens. In 2019, it purchased Origin, which makes high-performance custom PCs, and SCUF controllers and headsets). In late 2020, followed EpocCam, which turns smartphones into high-definition webcams, and Gamer Sensei, a paid game coaching platform.
Live-streaming is an unstoppable megatrend
The rise of live-streaming and esports is not particularly new. According to Streamlabs, the total hours watched across all live-streaming platforms skyrocketed by 92% year over year to 7.5 billion hours in Q4/2020. Live-streaming channels are becoming “social sharing mechanisms,” according to the CEP of Corsair, which means that the market opportunity includes just about anyone that might be interested in casually streaming.
Company’s annual organic sales growth rates surpasses 50%! At the same time gross margins are expanding too, but at a slightly lower pace. In the immediate run, the company focuses on reducing its overall debt to equity ratio which is relatively high given the recent acquisitions. Provided it can execute will its strategy, it should grow at the same speed as Logitech and eventually close the discount ratio.
Early April 2021, the lock-up period will end for EagleTree Capital, who is a major shareholder. Provided they wish to exit, one should expect some above average share price volatility.