TURTLE BEACH CORP (HEAR) Stock Fundamental Analysis
USA - NASDAQ:HEAR - US9004502061 - Common Stock
17.47 USD
-0.06 (-0.34%)
17.47 USD
0 (0%)
Overall HEAR gets a fundamental rating of 3 out of 10. We evaluated HEAR against 33 industry peers in the Technology Hardware, Storage & Peripherals industry. HEAR has a bad profitability rating. Also its financial health evaluation is rather negative. HEAR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HEAR had positive earnings in the past year.
HEAR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HEAR reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: HEAR reported negative operating cash flow in multiple years.
1.2 Ratios
HEAR's Return On Assets of 1.47% is in line compared to the rest of the industry. HEAR outperforms 59.38% of its industry peers.
HEAR has a better Return On Equity (4.51%) than 75.00% of its industry peers.
HEAR has a better Return On Invested Capital (5.40%) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.51% | ||
| ROIC | 5.4% |
ROA(3y)-13.51%
ROA(5y)-1.58%
ROE(3y)-25.06%
ROE(5y)-2.74%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.41%, HEAR is in line with its industry, outperforming 59.38% of the companies in the same industry.
With a Operating Margin value of 4.53%, HEAR perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
The Gross Margin of HEAR (32.74%) is comparable to the rest of the industry.
HEAR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | 1.41% | ||
| GM | 32.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.66%
GM growth 5Y-5.01%
2. Health
2.1 Basic Checks
HEAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HEAR has been increased compared to 1 year ago.
HEAR has more shares outstanding than it did 5 years ago.
HEAR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HEAR has an Altman-Z score of 1.73. This is a bad value and indicates that HEAR is not financially healthy and even has some risk of bankruptcy.
HEAR has a Altman-Z score (1.73) which is in line with its industry peers.
The Debt to FCF ratio of HEAR is 15.08, which is on the high side as it means it would take HEAR, 15.08 years of fcf income to pay off all of its debts.
HEAR has a Debt to FCF ratio (15.08) which is in line with its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that HEAR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.02, HEAR perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.08 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.47
WACC11.52%
2.3 Liquidity
A Current Ratio of 1.26 indicates that HEAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, HEAR is doing worse than 65.63% of the companies in the same industry.
HEAR has a Quick Ratio of 1.26. This is a bad value and indicates that HEAR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.60, HEAR is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 155.56% over the past year.
The Revenue has grown by 25.71% in the past year. This is a very strong growth!
Measured over the past years, HEAR shows a decrease in Revenue. The Revenue has been decreasing by -2.13% on average per year.
EPS 1Y (TTM)155.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%420%
Revenue 1Y (TTM)25.71%
Revenue growth 3Y-10.5%
Revenue growth 5Y-2.13%
Sales Q2Q%59.51%
3.2 Future
Based on estimates for the next years, HEAR will show a very strong growth in Earnings Per Share. The EPS will grow by 137.84% on average per year.
HEAR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.06% yearly.
EPS Next Y649%
EPS Next 2Y236.62%
EPS Next 3Y137.84%
EPS Next 5YN/A
Revenue Next Year39.76%
Revenue Next 2Y25.77%
Revenue Next 3Y19.06%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 49.91, the valuation of HEAR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HEAR.
When comparing the Price/Earnings ratio of HEAR to the average of the S&P500 Index (27.38), we can say HEAR is valued expensively.
Based on the Price/Forward Earnings ratio of 11.01, the valuation of HEAR can be described as reasonable.
71.88% of the companies in the same industry are more expensive than HEAR, based on the Price/Forward Earnings ratio.
HEAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
65.63% of the companies in the same industry are more expensive than HEAR, based on the Enterprise Value to EBITDA ratio.
HEAR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.69 | ||
| EV/EBITDA | 15.92 |
4.3 Compensation for Growth
HEAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HEAR's earnings are expected to grow with 137.84% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y236.62%
EPS Next 3Y137.84%
5. Dividend
5.1 Amount
HEAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.47
-0.06 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners74.67%
Inst Owner Change-0.22%
Ins Owners4.16%
Ins Owner Change0%
Market Cap350.80M
Analysts86.67
Price Target23.29 (33.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.66%
Min EPS beat(2)3.57%
Max EPS beat(2)5.75%
EPS beat(4)3
Avg EPS beat(4)17.38%
Min EPS beat(4)-8.88%
Max EPS beat(4)69.09%
EPS beat(8)5
Avg EPS beat(8)14.17%
EPS beat(12)6
Avg EPS beat(12)2.06%
EPS beat(16)10
Avg EPS beat(16)45.13%
Revenue beat(2)2
Avg Revenue beat(2)5.98%
Min Revenue beat(2)5.83%
Max Revenue beat(2)6.13%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-12.56%
Max Revenue beat(4)6.13%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)6
Avg Revenue beat(12)-1.42%
Revenue beat(16)9
Avg Revenue beat(16)0.15%
PT rev (1m)0%
PT rev (3m)6.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.08 | ||
| P/FCF | 50.69 | ||
| P/OCF | 33.25 | ||
| P/B | 3.45 | ||
| P/tB | 610.08 | ||
| EV/EBITDA | 15.92 |
EPS(TTM)0.35
EY2%
EPS(NY)1.59
Fwd EY9.08%
FCF(TTM)0.34
FCFY1.97%
OCF(TTM)0.53
OCFY3.01%
SpS16.25
BVpS5.07
TBVpS0.03
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.51% | ||
| ROCE | 9.38% | ||
| ROIC | 5.4% | ||
| ROICexc | 5.77% | ||
| ROICexgc | 11.55% | ||
| OM | 4.53% | ||
| PM (TTM) | 1.41% | ||
| GM | 32.74% | ||
| FCFM | 2.12% |
ROA(3y)-13.51%
ROA(5y)-1.58%
ROE(3y)-25.06%
ROE(5y)-2.74%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.66%
GM growth 5Y-5.01%
F-Score6
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.08 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 39.16% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 43.88% | ||
| Profit Quality | 150.57% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.73 |
F-Score6
WACC11.52%
ROIC/WACC0.47
Cap/Depr(3y)70.48%
Cap/Depr(5y)71.2%
Cap/Sales(3y)1.28%
Cap/Sales(5y)1.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)155.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%420%
EPS Next Y649%
EPS Next 2Y236.62%
EPS Next 3Y137.84%
EPS Next 5YN/A
Revenue 1Y (TTM)25.71%
Revenue growth 3Y-10.5%
Revenue growth 5Y-2.13%
Sales Q2Q%59.51%
Revenue Next Year39.76%
Revenue Next 2Y25.77%
Revenue Next 3Y19.06%
Revenue Next 5YN/A
EBIT growth 1Y147.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year546.49%
EBIT Next 3Y101.14%
EBIT Next 5YN/A
FCF growth 1Y111.07%
FCF growth 3Y-18.15%
FCF growth 5Y-7.71%
OCF growth 1Y117.71%
OCF growth 3Y-19.09%
OCF growth 5Y-8.54%