Leatt Corporation
Leatt Corporation Fundamental Analysis
Leatt Corporation (LEAT) shows weak financial fundamentals with a PE ratio of 17.02, profit margin of 5.27%, and ROE of 7.94%. The company generates $0.1B in annual revenue with weak year-over-year growth of -6.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LEAT's fundamental strength across five key dimensions:
Efficiency Score
WeakLEAT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLEAT trades at attractive valuation levels.
Growth Score
WeakLEAT faces weak or negative growth trends.
Financial Health Score
ExcellentLEAT maintains a strong and stable balance sheet.
Profitability Score
WeakLEAT struggles to sustain strong margins.
Key Financial Metrics
Is LEAT Expensive or Cheap?
P/E Ratio
LEAT trades at 17.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LEAT's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values Leatt Corporation at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.10 times EBITDA. This signals the market has high growth expectations.
How Well Does LEAT Make Money?
Net Profit Margin
For every $100 in sales, Leatt Corporation keeps $5.27 as profit after all expenses.
Operating Margin
Core operations generate 6.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.94 in profit for every $100 of shareholder equity.
ROA
Leatt Corporation generates $6.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Leatt Corporation generates limited operating cash flow of $5.78M, signaling weaker underlying cash strength.
Free Cash Flow
Leatt Corporation produces free cash flow of $5.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.83 in free cash annually.
FCF Yield
LEAT converts 9.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How LEAT Stacks Against Its Sector Peers
| Metric | LEAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.02 | 23.78 | Better (Cheaper) |
| ROE | 7.94% | 1098.00% | Weak |
| Net Margin | 5.27% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 4.87 | 2.64 | Strong Liquidity |
| ROA | 6.27% | -8081.00% (disorted) | Weak |
LEAT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Leatt Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.71%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-238.85%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
186.20%
Industry Style: Cyclical, Growth, Discretionary
High Growth