TURTLE BEACH CORP (TBCH) Stock Fundamental Analysis
NASDAQ:TBCH - Nasdaq - US9004502061 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TBCH. TBCH was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. TBCH has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on TBCH.
1. Profitability
1.1 Basic Checks
In the past year TBCH was profitable.
In the past year TBCH had a positive cash flow from operations.
In multiple years TBCH reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: TBCH reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.22%, TBCH is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
TBCH has a better Return On Equity (12.71%) than 81.25% of its industry peers.
With a decent Return On Invested Capital value of 13.24%, TBCH is doing good in the industry, outperforming 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 12.71% | ||
| ROIC | 13.24% |
ROA(3y)-14.26%
ROA(5y)-3.22%
ROE(3y)-24.76%
ROE(5y)-5.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TBCH has a better Profit Margin (4.03%) than 65.63% of its industry peers.
TBCH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.97%, TBCH is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
TBCH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.34%, TBCH is doing good in the industry, outperforming 68.75% of the companies in the same industry.
TBCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.97% | ||
| PM (TTM) | 4.03% | ||
| GM | 35.34% |
OM growth 3Y14.14%
OM growth 5Y13.32%
PM growth 3Y-3.5%
PM growth 5Y-10.66%
GM growth 3Y-0.42%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TBCH is still creating some value.
The number of shares outstanding for TBCH has been increased compared to 1 year ago.
The number of shares outstanding for TBCH has been increased compared to 5 years ago.
Compared to 1 year ago, TBCH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 indicates that TBCH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.69, TBCH is doing good in the industry, outperforming 65.63% of the companies in the same industry.
TBCH has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as TBCH would need 3.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.65, TBCH is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
TBCH has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
TBCH has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.39
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.96 indicates that TBCH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.96, TBCH is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
TBCH has a Quick Ratio of 1.96. This is a bad value and indicates that TBCH is not financially healthy enough and could expect problems in meeting its short term obligations.
TBCH's Quick ratio of 0.95 is in line compared to the rest of the industry. TBCH outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2150.00% over the past year.
The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
TBCH shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.03%.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
EPS 1Y (TTM)2150%
EPS 3Y-11.84%
EPS 5Y6.11%
EPS Q2Q%-92.86%
Revenue 1Y (TTM)45.03%
Revenue growth 3Y0.58%
Revenue growth 5Y9.69%
Sales Q2Q%14.42%
3.2 Future
The Earnings Per Share is expected to grow by 45.60% on average over the next years. This is a very strong growth
TBCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.68% yearly.
EPS Next Y108.41%
EPS Next 2Y58.6%
EPS Next 3Y45.6%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y4.49%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.88, the valuation of TBCH can be described as correct.
65.63% of the companies in the same industry are more expensive than TBCH, based on the Price/Earnings ratio.
TBCH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 6.17, which indicates a rather cheap valuation of TBCH.
84.38% of the companies in the same industry are more expensive than TBCH, based on the Price/Forward Earnings ratio.
TBCH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 6.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TBCH indicates a rather cheap valuation: TBCH is cheaper than 93.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TBCH indicates a somewhat cheap valuation: TBCH is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.84 | ||
| EV/EBITDA | 6.01 |
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.
TBCH's earnings are expected to grow with 45.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)2.76
EPS Next 2Y58.6%
EPS Next 3Y45.6%
5. Dividend
5.1 Amount
TBCH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.48
+0.27 (+2.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners65.73%
Inst Owner ChangeN/A
Ins Owners4.39%
Ins Owner Change22.48%
Market Cap231.32M
Analysts85.45
Price Target22.95 (99.91%)
Short Float %12.07%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.31%
Min EPS beat(2)-15.85%
Max EPS beat(2)1.23%
EPS beat(4)3
Avg EPS beat(4)-1.32%
Min EPS beat(4)-15.85%
Max EPS beat(4)5.75%
EPS beat(8)5
Avg EPS beat(8)14.52%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)9
Avg EPS beat(16)43.15%
Revenue beat(2)1
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-6.18%
Max Revenue beat(2)1.36%
Revenue beat(4)3
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-6.18%
Max Revenue beat(4)6.13%
Revenue beat(8)5
Avg Revenue beat(8)-0.11%
Revenue beat(12)6
Avg Revenue beat(12)-2.2%
Revenue beat(16)9
Avg Revenue beat(16)-0.33%
PT rev (1m)0.75%
PT rev (3m)-3.02%
EPS NQ rev (1m)-155%
EPS NQ rev (3m)-2166.67%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-18.05%
Revenue NQ rev (3m)-25.69%
Revenue NY rev (1m)-7.51%
Revenue NY rev (3m)-13.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 6.17 | ||
| P/S | 0.61 | ||
| P/FCF | 15.84 | ||
| P/OCF | 12.2 | ||
| P/B | 1.91 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 6.01 |
EPS(TTM)0.68
EY5.92%
EPS(NY)1.86
Fwd EY16.22%
FCF(TTM)0.72
FCFY6.31%
OCF(TTM)0.94
OCFY8.19%
SpS18.9
BVpS6
TBVpS1.49
PEG (NY)0.16
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 12.71% | ||
| ROCE | 17.39% | ||
| ROIC | 13.24% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 30.49% | ||
| OM | 7.97% | ||
| PM (TTM) | 4.03% | ||
| GM | 35.34% | ||
| FCFM | 3.84% |
ROA(3y)-14.26%
ROA(5y)-3.22%
ROE(3y)-24.76%
ROE(5y)-5.71%
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 3Y8.48%
ROICexcg growth 5Y8.82%
ROICexc growth 3Y-6.43%
ROICexc growth 5Y0.82%
OM growth 3Y14.14%
OM growth 5Y13.32%
PM growth 3Y-3.5%
PM growth 5Y-10.66%
GM growth 3Y-0.42%
GM growth 5Y0.63%
F-Score8
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 33.35% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 43.67% | ||
| Profit Quality | 95.07% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.69 |
F-Score8
WACC9.51%
ROIC/WACC1.39
Cap/Depr(3y)49.58%
Cap/Depr(5y)72.48%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2150%
EPS 3Y-11.84%
EPS 5Y6.11%
EPS Q2Q%-92.86%
EPS Next Y108.41%
EPS Next 2Y58.6%
EPS Next 3Y45.6%
EPS Next 5YN/A
Revenue 1Y (TTM)45.03%
Revenue growth 3Y0.58%
Revenue growth 5Y9.69%
Sales Q2Q%14.42%
Revenue Next Year-2%
Revenue Next 2Y4.49%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
EBIT growth 1Y382.66%
EBIT growth 3Y14.8%
EBIT growth 5Y24.3%
EBIT Next Year108.64%
EBIT Next 3Y34.3%
EBIT Next 5YN/A
FCF growth 1Y537.34%
FCF growth 3YN/A
FCF growth 5Y-53.13%
OCF growth 1Y3768.57%
OCF growth 3YN/A
OCF growth 5Y-31.91%