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%)
We assign a fundamental rating of 3 out of 10 to HEAR. HEAR was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HEAR had positive earnings in the past year.
In the past year HEAR had a positive cash flow from operations.
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 has a Return On Assets of 1.47%. This is comparable to the rest of the industry: HEAR outperforms 59.38% of its industry peers.
Looking at the Return On Equity, with a value of 4.51%, HEAR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of HEAR (5.40%) is better 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
HEAR has a Profit Margin (1.41%) which is comparable to the rest of the industry.
HEAR has a Operating Margin (4.53%) which is comparable to the rest of the industry.
HEAR has a Gross Margin of 32.74%. This is comparable to the rest of the industry: HEAR outperforms 56.25% of its industry peers.
In the last couple of years the Gross Margin of HEAR has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HEAR is destroying value.
Compared to 1 year ago, HEAR has more shares outstanding
Compared to 5 years ago, HEAR has more shares outstanding
There is no outstanding debt for HEAR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that HEAR is in the distress zone and has some risk of bankruptcy.
HEAR has a Altman-Z score of 1.73. This is comparable to the rest of the industry: HEAR outperforms 40.63% of 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's Debt to FCF ratio of 15.08 is in line compared to the rest of the industry. HEAR outperforms 50.00% of its industry peers.
HEAR has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
HEAR has a Debt to Equity ratio (1.02) which is comparable to the rest of the 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
HEAR has a Current Ratio of 1.26. This is a normal value and indicates that HEAR is financially healthy and should not expect problems in meeting its short term obligations.
HEAR has a worse Current ratio (1.26) than 65.63% of its industry peers.
A Quick Ratio of 0.60 indicates that HEAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, HEAR is doing worse than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
HEAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 155.56%, which is quite impressive.
HEAR shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.71%.
HEAR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.13% yearly.
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
HEAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 137.84% yearly.
Based on estimates for the next years, HEAR will show a quite strong growth in Revenue. The Revenue will grow by 19.06% on average per year.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 49.91, which means the current valuation is very expensive for HEAR.
Compared to the rest of the industry, the Price/Earnings ratio of HEAR is on the same level as its industry peers.
HEAR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.34.
HEAR is valuated reasonably with a Price/Forward Earnings ratio of 11.01.
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
Based on the Enterprise Value to EBITDA ratio, HEAR is valued a bit cheaper than 65.63% of the companies in the same industry.
HEAR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.69 | ||
| EV/EBITDA | 15.92 |
4.3 Compensation for Growth
The 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
No dividends for HEAR!.
| 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 Change0%
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%