TURTLE BEACH CORP (TBCH) Stock Fundamental Analysis
USA - NASDAQ:TBCH - US9004502061 - Common Stock
15.25 USD
+0.15 (+0.99%)
15.25 USD
0 (0%)
Taking everything into account, TBCH scores 5 out of 10 in our fundamental rating. TBCH was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. TBCH has only an average score on both its financial health and profitability. TBCH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TBCH was profitable.
TBCH had a positive operating cash flow in the past year.
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
TBCH has a better Return On Assets (8.31%) than 84.85% of its industry peers.
With an excellent Return On Equity value of 17.08%, TBCH belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
TBCH has a Return On Invested Capital of 11.45%. This is in the better half of the industry: TBCH outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 17.08% | ||
| ROIC | 11.45% |
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's Profit Margin of 5.53% is amongst the best of the industry. TBCH outperforms 81.82% of its industry peers.
TBCH's Profit Margin has declined in the last couple of years.
TBCH has a better Operating Margin (7.42%) than 75.76% of its industry peers.
In the last couple of years the Operating Margin of TBCH has grown nicely.
Looking at the Gross Margin, with a value of 35.93%, TBCH is in the better half of the industry, outperforming 69.70% 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 | 7.42% | ||
| PM (TTM) | 5.53% | ||
| GM | 35.93% |
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
TBCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TBCH has been increased compared to 1 year ago.
TBCH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TBCH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.95 indicates that TBCH is not a great score, but indicates only limited risk for bankruptcy at the moment.
TBCH has a better Altman-Z score (2.95) than 66.67% of its industry peers.
TBCH has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as TBCH would need 2.47 years to pay back of all of its debts.
TBCH has a better Debt to FCF ratio (2.47) than 78.79% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that TBCH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, TBCH perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
Although TBCH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.26
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.83 indicates that TBCH should not have too much problems paying its short term obligations.
The Current ratio of TBCH (1.83) is better than 66.67% of its industry peers.
TBCH has a Quick Ratio of 1.83. 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 has a Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 496.43% over the past year.
TBCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.11% yearly.
Looking at the last year, TBCH shows a very strong growth in Revenue. The Revenue has grown by 24.07%.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
EPS 1Y (TTM)496.43%
EPS 3Y-11.84%
EPS 5Y6.11%
EPS Q2Q%53.33%
Revenue 1Y (TTM)24.07%
Revenue growth 3Y0.58%
Revenue growth 5Y9.69%
Sales Q2Q%-25.76%
3.2 Future
Based on estimates for the next years, TBCH will show a very strong growth in Earnings Per Share. The EPS will grow by 21.15% on average per year.
Based on estimates for the next years, TBCH will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y34.53%
EPS Next 2Y28.72%
EPS Next 3Y21.15%
EPS Next 5YN/A
Revenue Next Year-7.6%
Revenue Next 2Y2.45%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TBCH is valuated rather expensively with a Price/Earnings ratio of 18.15.
TBCH's Price/Earnings ratio is a bit cheaper when compared to the industry. TBCH is cheaper than 78.79% of the companies in the same industry.
TBCH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
Based on the Price/Forward Earnings ratio of 12.44, the valuation of TBCH can be described as correct.
Based on the Price/Forward Earnings ratio, TBCH is valued a bit cheaper than 69.70% of the companies in the same industry.
TBCH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TBCH is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
78.79% of the companies in the same industry are more expensive than TBCH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
TBCH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TBCH may justify a higher PE ratio.
TBCH's earnings are expected to grow with 21.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)2.97
EPS Next 2Y28.72%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
TBCH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.25
+0.15 (+0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners60%
Inst Owner ChangeN/A
Ins Owners11.74%
Ins Owner Change-28.33%
Market Cap302.10M
Analysts81.82
Price Target18.67 (22.43%)
Short Float %15.23%
Short Ratio11.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)29.56%
Min EPS beat(2)1.23%
Max EPS beat(2)57.9%
EPS beat(4)3
Avg EPS beat(4)12.26%
Min EPS beat(4)-15.85%
Max EPS beat(4)57.9%
EPS beat(8)6
Avg EPS beat(8)24.11%
EPS beat(12)7
Avg EPS beat(12)11.1%
EPS beat(16)9
Avg EPS beat(16)32.13%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)1.36%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-6.18%
Max Revenue beat(4)5.83%
Revenue beat(8)5
Avg Revenue beat(8)0.57%
Revenue beat(12)6
Avg Revenue beat(12)-0.83%
Revenue beat(16)8
Avg Revenue beat(16)-1.02%
PT rev (1m)1.67%
PT rev (3m)3.39%
EPS NQ rev (1m)-15.62%
EPS NQ rev (3m)-70.43%
EPS NY rev (1m)47.34%
EPS NY rev (3m)-35.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-24.99%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 12.44 | ||
| P/S | 0.84 | ||
| P/FCF | 12.08 | ||
| P/OCF | 10.62 | ||
| P/B | 2.59 | ||
| P/tB | 10.77 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)0.84
EY5.51%
EPS(NY)1.23
Fwd EY8.04%
FCF(TTM)1.26
FCFY8.28%
OCF(TTM)1.44
OCFY9.42%
SpS18.23
BVpS5.9
TBVpS1.42
PEG (NY)0.53
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 17.08% | ||
| ROCE | 16.24% | ||
| ROIC | 11.45% | ||
| ROICexc | 12.22% | ||
| ROICexgc | 25.09% | ||
| OM | 7.42% | ||
| PM (TTM) | 5.53% | ||
| GM | 35.93% | ||
| FCFM | 6.93% |
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-Score9
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 26.83% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.8% | ||
| Profit Quality | 125.31% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.95 |
F-Score9
WACC9.11%
ROIC/WACC1.26
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)496.43%
EPS 3Y-11.84%
EPS 5Y6.11%
EPS Q2Q%53.33%
EPS Next Y34.53%
EPS Next 2Y28.72%
EPS Next 3Y21.15%
EPS Next 5YN/A
Revenue 1Y (TTM)24.07%
Revenue growth 3Y0.58%
Revenue growth 5Y9.69%
Sales Q2Q%-25.76%
Revenue Next Year-7.6%
Revenue Next 2Y2.45%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
EBIT growth 1Y1045.45%
EBIT growth 3Y14.8%
EBIT growth 5Y24.3%
EBIT Next Year80.39%
EBIT Next 3Y34.3%
EBIT Next 5YN/A
FCF growth 1Y24.92%
FCF growth 3YN/A
FCF growth 5Y-53.13%
OCF growth 1Y20.5%
OCF growth 3YN/A
OCF growth 5Y-31.91%