Focusrite plc
Focusrite plc Fundamental Analysis
Focusrite plc (FOCIF) shows weak financial fundamentals with a PE ratio of 21.96, profit margin of 3.18%, and ROE of 4.61%. The company generates $0.2B in annual revenue with weak year-over-year growth of -11.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FOCIF's fundamental strength across five key dimensions:
Efficiency Score
WeakFOCIF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFOCIF trades at attractive valuation levels.
Growth Score
WeakFOCIF faces weak or negative growth trends.
Financial Health Score
ExcellentFOCIF maintains a strong and stable balance sheet.
Profitability Score
WeakFOCIF struggles to sustain strong margins.
Key Financial Metrics
Is FOCIF Expensive or Cheap?
P/E Ratio
FOCIF trades at 21.96 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FOCIF's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Focusrite plc at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.97 times EBITDA. This is generally considered low.
How Well Does FOCIF Make Money?
Net Profit Margin
For every $100 in sales, Focusrite plc keeps $3.18 as profit after all expenses.
Operating Margin
Core operations generate 5.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.61 in profit for every $100 of shareholder equity.
ROA
Focusrite plc generates $2.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Focusrite plc produces operating cash flow of $22.35M, showing steady but balanced cash generation.
Free Cash Flow
Focusrite plc generates strong free cash flow of $20.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
FOCIF converts 17.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.000
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FOCIF Stacks Against Its Sector Peers
| Metric | FOCIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.96 | 23.72 | Neutral |
| ROE | 4.61% | 1091.00% | Weak |
| Net Margin | 3.18% | -629.00% (disorted) | Weak |
| Debt/Equity | 0.26 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 3.11 | 2.64 | Strong Liquidity |
| ROA | 2.72% | 1050.00% | Weak |
FOCIF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Focusrite plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.79%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-78.17%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-22.68%
Industry Style: Cyclical, Growth, Discretionary
Declining