Turtle Beach Corporation Fundamental Analysis (NASDAQ: TBCH)
Turtle Beach Corporation Fundamental Analysis (NASDAQ: TBCH)
Turtle Beach Corporation (NASDAQ: TBCH) shows weak financial fundamentals with a PE ratio of -65.53, profit margin of -1.07%, and ROE of -2.96%. The company generates $0.3B in annual revenue with weak year-over-year growth of -14.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 4.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TBCH's fundamental strength across five key dimensions:
Efficiency Score
WeakTBCH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTBCH trades at attractive valuation levels.
Growth Score
WeakTBCH faces weak or negative growth trends.
Financial Health Score
ExcellentTBCH maintains a strong and stable balance sheet.
Profitability Score
WeakTBCH struggles to sustain strong margins.
Key Financial Metrics
Is TBCH Expensive or Cheap?
P/E Ratio
TBCH trades at -65.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TBCH's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Turtle Beach Corporation at 2.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.42 times EBITDA. This is generally considered low.
How Well Does TBCH Make Money?
Net Profit Margin
For every $100 in sales, Turtle Beach Corporation keeps $-1.07 as profit after all expenses.
Operating Margin
Core operations generate 3.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.96 in profit for every $100 of shareholder equity.
ROA
Turtle Beach Corporation generates $-1.48 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 $35.20M, showing steady but balanced cash generation.
Free Cash Flow
Turtle Beach Corporation generates strong free cash flow of $33.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.68 in free cash annually.
FCF Yield
TBCH converts 13.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-65.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TBCH Stacks Against Its Sector Peers
| Metric | TBCH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -65.53 | 34.20 | Better (Cheaper) |
| ROE | -2.96% | 715.00% | Weak |
| Net Margin | -1.07% | -3125.00% (disorted) | Weak |
| Debt/Equity | 1.00 | 0.22 | Weak (High Leverage) |
| Current Ratio | 2.38 | 5.99 | Strong Liquidity |
| ROA | -1.48% | 246.00% | Weak |
TBCH 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
-35.11%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-70.34%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-49.26%
Industry Style: Growth, Innovation, High Beta
Declining