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TURTLE BEACH CORP (HEAR) Stock Fundamental Analysis

NASDAQ:HEAR - Nasdaq - US9004502061 - Common Stock - Currency: USD

17.47  -0.06 (-0.34%)

After market: 17.47 0 (0%)

Fundamental Rating

3

HEAR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of HEAR have multiple concerns. HEAR has a correct valuation and a medium 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.
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.
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

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.
HEAR has a better Return On Equity (4.51%) than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.40%, HEAR is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
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 of 1.41%. This is comparable to the rest of the industry: HEAR outperforms 59.38% of its industry peers.
With a Operating Margin value of 4.53%, HEAR perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
HEAR has a Gross Margin (32.74%) which 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

HEAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HEAR has more shares outstanding than it did 1 year ago.
HEAR has more shares outstanding than it did 5 years ago.
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

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 (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 of 15.08. This is comparable 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.
Looking at the Debt to Equity ratio, with a value of 1.02, HEAR is in line with its industry, outperforming 43.75% of the companies in the same 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

A Current Ratio of 1.26 indicates that HEAR should not have too much problems paying its short term obligations.
HEAR's Current ratio of 1.26 is on the low side compared to the rest of the industry. HEAR is outperformed by 65.63% of its industry peers.
A Quick Ratio of 0.60 indicates that HEAR may have some problems paying its short term obligations.
HEAR has a Quick ratio of 0.60. This is amonst the worse of the industry: HEAR underperforms 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%.
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

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.
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.
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

A Price/Earnings ratio of 49.91 indicates a quite expensive valuation of HEAR.
HEAR's Price/Earnings ratio is in line with the industry average.
HEAR is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.01, which indicates a very decent valuation of HEAR.
71.88% of the companies in the same industry are more expensive than HEAR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. HEAR is valued slightly cheaper when compared to this.
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 ratio is in line with 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.
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%

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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 SectorInformation Technology
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 Change3.03%
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%