GoPro, Inc. (NASDAQ: GPRO)

Sector: Technology Industry: Consumer Electronics CIK: 0001500435
Market Cap 233.55 Mn
P/B 2.90
P/E -1.92
P/S 0.36
ROIC (Qtr) -46.74
Div Yield % 0.00
Rev 1y % (Qtr) -37.07
Total Debt (Qtr) 204.92 Mn
Debt/Equity (Qtr) 2.55

About

GoPro, Inc. (GPRO) operates in the technology industry, specifically focusing on the development and manufacturing of cameras, mounts, and accessories for capturing and sharing immersive experiences. The company's main business activities encompass the design, development, and manufacturing of cameras, mounts, and accessories, as well as the provision of software and services for editing, sharing, and storing content. GoPro's reach extends to various countries and regions, with its products being used in outdoor activities, sports, and everyday...

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Price action

Investment thesis

Bull case

  • Tangible assets of 404.86M provide exceptional 7.78x coverage of deferred revenue 52.01M, showing strong service capability backing.
  • Operating cash flow of (61.37M) fully covers other non-current liabilities (27.56M) by 2.23x, showing strong long-term stability.
  • R&D investment of 144.69M represents healthy 2.78x of deferred revenue 52.01M, indicating strong future innovation pipeline.
  • Cash reserves of 152.77M exceed inventory value of 84.06M by 1.82x, indicating strong liquidity and inventory management.
  • Cash position of 152.77M provides strong 2.94x coverage of deferred revenue 52.01M, ensuring service delivery capability.

Bear case

  • Investment activities of (3.13M) provide weak support for R&D spending of 144.69M, which is -0.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (61.37M) provides insufficient coverage of deferred revenue obligations of 52.01M, which is -1.18x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (61.37M) shows concerning coverage of stock compensation expenses of 20.35M, with a -3.02 ratio indicating potential earnings quality issues.
  • Free cash flow of (64.50M) provides weak coverage of capital expenditures of 3.13M, with a -20.59 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (114.24M) show weak coverage of depreciation charges of 10.29M, with a -11.11 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Consumer Electronics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AAPL Apple Inc. 3,878.78 Bn 34.63 9.32 98.66 Bn
2 SONY Sony Group Corp 150.52 Bn 19.23 1.76 13.01 Bn
3 LPL LG Display Co., Ltd. 2.14 Bn -16.47 0.11 9.69 Bn
4 SONO Sonos Inc 1.99 Bn -32.61 1.38 0.05 Bn
5 ZEPP Zepp Health Corp 0.42 Bn -6.30 1.78 0.21 Bn
6 TBCH Turtle Beach Corp 0.26 Bn 14.29 0.75 0.09 Bn
7 VUZI Vuzix Corp 0.26 Bn -6.90 48.49 0.00 Bn
8 GPRO GoPro, Inc. 0.23 Bn -1.92 0.36 0.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.55 1.60
EV to Cash from Ops. EV/CFO -4.87 12.05
EV to Debt EV to Debt 1.46 190.88
EV to EBIT EV/EBIT -2.61 -26.74
EV to EBITDA EV/EBITDA -2.87 5.01
EV to Free Cash Flow [EV/FCF] EV/FCF -4.63 91.29
EV to Market Cap EV to Market Cap 1.28 4.51
EV to Revenue EV/Rev 0.46 3.74
Price to Book Value [P/B] P/B 2.90 4.74
Price to Earnings [P/E] P/E -1.92 -22.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -85.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.06
Dividend per Basic Share Div per Share (Qtr) 0.00 0.06
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.86
Interest Coverage Int. cover (Qtr) -19.02 -21.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 24.65 -25,917.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 17.34 24.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.99
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 69.88 -460.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -5.22 -135.96
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.76 574.68
EBT Growth (1y) % EBT 1y % (Qtr) -21.58 39.32
EPS Growth (1y) % EPS 1y % (Qtr) 70.99 -8.06
FCF Growth (1y) % FCF 1y % (Qtr) -6.67 -2,232.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -25.77 60.40
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.21 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.40 0.81
Current Ratio Curr Ratio (Qtr) 0.95 3.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.55 3.74
Interest Cover Ratio Int Coverage (Qtr) -19.02 -21.34
Times Interest Earned Times Interest Earned (Qtr) -19.02 -21.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -16.00 -156.08
EBIT Margin % EBIT Margin % (Qtr) -17.56 393.83
EBT Margin % EBT Margin % (Qtr) -18.48 -168.19
Gross Margin % Gross Margin % (Qtr) 34.50 19.36
Net Profit Margin % Net Margin % (Qtr) -18.70 -169.48