GoPro, Inc. (GPRO) Stock Analysis and Metrics

Sector: Technology Industry: Consumer Electronics CIK: 0001500435

P/B 3.50

P/E -2.32

P/S 0.43

Market Cap 281.54 Mn

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...

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 life.

Revenue for GoPro is generated through its primary products and services. The company's flagship camera, the HERO12 Black, is a waterproof and rugged device that can capture high-quality video and photos in a variety of settings, featuring advanced technologies such as HyperSmooth 6.0 image stabilization, high dynamic range (HDR) photos and videos, and wireless audio support. GoPro's mounts and accessories are designed to be highly versatile and can be used with a variety of GoPro cameras, enabling users to capture content from different angles and perspectives.

GoPro's software and services are integral to its business, making it easy for users to edit, share, and store their content. The Quik mobile app allows users to edit their videos and photos using a range of advanced features and effects, while the GoPro cloud storage service provides users with a secure and convenient way to store and access their content.

In the competitive landscape, GoPro competes against established camera manufacturers such as Canon Inc. and Nikon Corporation, as well as large, diversified electronics companies such as Samsung Electronics Co. and Sony Corporation. Despite the competition, GoPro has established a strong brand reputation and has a loyal customer base due to its product durability and versatility, and its software and services designed to make it easy for users to edit, share, and store their content.

GoPro's research and development team is committed to innovation and ensuring that its products remain at the forefront of the industry. The company also has a comprehensive portfolio of intellectual property rights, including trademarks, copyrights, and patents, protecting its products and services.

Human capital is a significant aspect of GoPro's operations, with a global workforce of 930 people and a commitment to creating an inclusive workplace. The company's diversity, equity, inclusion, and belonging (DEIB) program includes training and development opportunities, mentorship programs, and employee resource groups.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	4,169.05 Bn	37.22	10.02	98.66 Bn
2	SONY	Sony Group Corp	162.78 Bn	20.79	1.91	13.01 Bn
3	SONO	Sonos Inc	2.28 Bn	-37.29	1.58	0.05 Bn
4	LPL	LG Display Co., Ltd.	2.27 Bn	-17.49	0.12	9.69 Bn
5	ZEPP	Zepp Health Corp	0.47 Bn	-7.16	2.03	0.21 Bn
6	TBCH	Turtle Beach Corp	0.29 Bn	15.92	0.84	0.09 Bn
7	GPRO	GoPro, Inc.	0.28 Bn	-2.32	0.43	0.20 Bn
8	VUZI	Vuzix Corp	0.24 Bn	-6.54	46.00	0.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.64	1.62
EV to Cash from Ops.	-5.65	6.45
EV to Debt	1.69	200.47
EV to EBIT	-3.03	-28.79
EV to EBITDA	-3.34	6.30
EV to Free Cash Flow [EV/FCF]	-5.37	44.66
EV to Market Cap	1.23	1.96
EV to Revenue	0.53	3.73
Price to Book Value [P/B]	3.50	4.94
Price to Earnings [P/E]	-2.32	-24.97

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-85.09
Dividend Payout Ratio %	0.00	1.06
Dividend per Basic Share	0.00	0.06
FCF Dividend Payout Ratio %	0.00	0.86
Interest Coverage	-19.02	-24.02

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	24.65	-25,923.54
Cash and Equivalents Growth (1y) %	17.34	21.58
Dividend Growth (1y) %	0.00	-3.99
EBIAT Growth (1y) %	69.88	-636.78
EBITDA Growth (1y) %	-5.22	-136.04
EBIT Growth (1y) %	-19.76	392.34
EBT Growth (1y) %	-21.58	-2.62
EPS Growth (1y) %	70.99	-36.64
FCF Growth (1y) %	-6.67	-2,257.13
Gross Profit Growth (1y) %	-25.77	63.03

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.21	0.77
Cash Payout Ratio	0.00	0.01
Cash Ratio	0.40	0.79
Current Ratio	0.95	3.15
Debt to Equity Ratio	2.55	3.74
Interest Cover Ratio	-19.02	-24.02
Times Interest Earned	-19.02	-24.02

Profitability

Metric	Value	Industry
EBITDA Margin %	-16.00	-156.03
EBIT Margin %	-17.56	395.52
EBT Margin %	-18.48	-168.00
Gross Margin %	34.50	19.60
Net Profit Margin %	-18.70	-169.24

GoPro, Inc. (NASDAQ: GPRO)