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TURTLE BEACH CORP (HEAR) Stock Fundamental Analysis

USA - NASDAQ:HEAR - US9004502061 - Common Stock

17.47 USD
-0.06 (-0.34%)
Last: 1/6/2025, 8:00:01 PM
17.47 USD
0 (0%)
After Hours: 1/6/2025, 8:00:01 PM
Fundamental Rating

3

Taking everything into account, HEAR scores 3 out of 10 in our fundamental rating. HEAR was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of HEAR have multiple concerns. HEAR is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
HEAR Yearly Net Income VS EBIT VS OCF VS FCFHEAR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M

1.2 Ratios

With a Return On Assets value of 1.47%, HEAR perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
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.
HEAR's Return On Invested Capital of 5.40% is fine compared to the rest of the industry. HEAR outperforms 65.63% of its industry peers.
Industry RankSector 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
HEAR Yearly ROA, ROE, ROICHEAR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 300 400

1.3 Margins

HEAR has a Profit Margin (1.41%) which is comparable to the rest of the industry.
HEAR's Operating Margin of 4.53% is in line compared to the rest of the industry. HEAR outperforms 56.25% of its industry peers.
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 RankSector 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%
HEAR Yearly Profit, Operating, Gross MarginsHEAR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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2

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.
HEAR Yearly Shares OutstandingHEAR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
HEAR Yearly Total Debt VS Total AssetsHEAR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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's Altman-Z score of 1.73 is in line compared to the rest of the industry. HEAR outperforms 40.63% of its industry peers.
HEAR has a debt to FCF ratio of 15.08. This is a negative value and a sign of low solvency as HEAR would need 15.08 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.08, HEAR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that HEAR has dependencies on debt financing.
HEAR has a Debt to Equity ratio (1.02) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 15.08
Altman-Z 1.73
ROIC/WACC0.47
WACC11.52%
HEAR Yearly LT Debt VS Equity VS FCFHEAR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

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.
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.
HEAR has a worse Quick ratio (0.60) than 84.38% of its industry peers.
Industry RankSector Rank
Current Ratio 1.26
Quick Ratio 0.6
HEAR Yearly Current Assets VS Current LiabilitesHEAR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 155.56% over the past year.
Looking at the last year, HEAR shows a very strong growth in Revenue. The Revenue has grown by 25.71%.
The Revenue has been decreasing by -2.13% on average over the past years.
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.
The Revenue is expected to grow by 19.06% on average over the next years. This is quite good.
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.
HEAR Yearly Revenue VS EstimatesHEAR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
HEAR Yearly EPS VS EstimatesHEAR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 49.91, which means the current valuation is very expensive for HEAR.
HEAR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. HEAR is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 11.01, the valuation of HEAR can be described as very reasonable.
HEAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HEAR is cheaper than 71.88% of the companies in the same industry.
HEAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 49.91
Fwd PE 11.01
HEAR Price Earnings VS Forward Price EarningsHEAR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 50.69
EV/EBITDA 15.92
HEAR Per share dataHEAR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
HEAR's earnings are expected to grow with 137.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y236.62%
EPS Next 3Y137.84%

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0

5. Dividend

5.1 Amount

HEAR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TURTLE BEACH CORP

NASDAQ:HEAR (1/6/2025, 8:00:01 PM)

After market: 17.47 0 (0%)

17.47

-0.06 (-0.34%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%