Turtle Beach Corporation
Turtle Beach Corporation Fundamental Analysis
Turtle Beach Corporation (HEAR) shows weak financial fundamentals with a PE ratio of 19.57, profit margin of 5.26%, and ROE of 15.58%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HEAR's fundamental strength across five key dimensions:
Efficiency Score
WeakHEAR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHEAR trades at attractive valuation levels.
Growth Score
ModerateHEAR shows steady but slowing expansion.
Financial Health Score
ExcellentHEAR maintains a strong and stable balance sheet.
Profitability Score
ModerateHEAR maintains healthy but balanced margins.
Key Financial Metrics
Is HEAR Expensive or Cheap?
P/E Ratio
HEAR trades at 19.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HEAR's PEG of -2.47 indicates potential undervaluation.
Price to Book
The market values Turtle Beach Corporation at 3.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.21 times EBITDA. This is generally considered low.
How Well Does HEAR Make Money?
Net Profit Margin
For every $100 in sales, Turtle Beach Corporation keeps $5.26 as profit after all expenses.
Operating Margin
Core operations generate 6.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.58 in profit for every $100 of shareholder equity.
ROA
Turtle Beach Corporation generates $6.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Turtle Beach Corporation produces operating cash flow of $36.45M, showing steady but balanced cash generation.
Free Cash Flow
Turtle Beach Corporation produces free cash flow of $33.75M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.68 in free cash annually.
FCF Yield
HEAR converts 9.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How HEAR Stacks Against Its Sector Peers
| Metric | HEAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.57 | 35.80 | Better (Cheaper) |
| ROE | 15.58% | 1168.00% | Weak |
| Net Margin | 5.26% | -136302.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 1.60 | 4.81 | Neutral |
| ROA | 6.56% | -313096.00% (disorted) | Weak |
HEAR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Turtle Beach Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta