Turtle Beach Corp (TBCH) Stock Analysis and Metrics

Sector: Technology Industry: Consumer Electronics CIK: 0001493761

P/B 2.63

P/E 15.92

P/S 0.84

Market Cap 290.80 Mn

ROIC (Qtr) 13.83

Div Yield % 0.00

Rev 1y % (Qtr) -14.74

Total Debt (Qtr) 90.46 Mn

Debt/Equity (Qtr) 0.82

About

Turtle Beach Corporation, also known as HEAR on the stock market, is a dominant player in the gaming accessories industry, with a rich history of nearly five decades in audio technology. The company is renowned for its mission to provide gamers with an unparalleled gaming experience through high-quality, high-performance gaming accessories. Turtle Beach's operations span the global gaming industry, estimated to be worth $190 billion. Their product range is designed to cater to a diverse group of gamers, from beginners to professionals, and are...

Turtle Beach Corporation, also known as HEAR on the stock market, is a dominant player in the gaming accessories industry, with a rich history of nearly five decades in audio technology. The company is renowned for its mission to provide gamers with an unparalleled gaming experience through high-quality, high-performance gaming accessories.

Turtle Beach's operations span the global gaming industry, estimated to be worth $190 billion. Their product range is designed to cater to a diverse group of gamers, from beginners to professionals, and are compatible with various gaming platforms such as consoles, PCs, and mobile devices.

The company's revenue is primarily generated through its gaming headset business, which holds the largest share and accounts for the majority of its earnings. Turtle Beach has maintained its market leadership in console gaming headsets for 14 years, holding approximately 30% of the global market share. Their headsets are designed to deliver superior game and chat audio, premium comfort, and advanced features that augment the gaming experience.

Beyond headsets, Turtle Beach offers a variety of gaming peripherals, including keyboards, mice, and game controllers. Their PC gaming accessories, such as keyboards and mice, are engineered to provide high-end performance and an enhanced gaming experience. Turtle Beach's game controllers, including its wireless controllers, offer a range of features and customization options tailored to different gaming styles.

Turtle Beach's gaming simulation accessories, such as flight and racing simulation hardware, are designed to provide a realistic and immersive gaming experience. Their VelocityOne flight control system and VelocityOne racing simulation wheel and pedals are popular among gamers seeking the thrill of flight and racing simulation.

The company's business strategy revolves around advancing its Turtle Beach brand, expanding its product lines, and increasing its presence in key retailers. Turtle Beach also invests in its ecommerce platforms to drive profitable growth and expand its customer reach.

In a highly competitive industry, Turtle Beach faces key competitors such as Razer, SteelSeries, and HyperX. However, the company's strong brand recognition, innovative products, and extensive global distribution network have enabled it to maintain its market leadership position.

Turtle Beach's customers are primarily large retailers and distributors, including Amazon, Best Buy, GameStop, Target, and Walmart. Their products are available in over 40 countries and are sold through a variety of channels, such as online retailers, brick-and-mortar stores, and the company's own ecommerce platform.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 36.44M provides robust 0.40x coverage of total debt 90.46M, indicating excellent debt servicing capability and financial flexibility.
Robust free cash flow of 33.74M exceeds capital expenditure of 2.69M by 12.54x, indicating strong organic growth funding capability.
Tangible assets of 191.43M provide robust 8.48x coverage of other current liabilities 22.58M, indicating strong asset backing.
Cash reserves of 12.26M provide ample 4.87x coverage of acquisition spending 2.52M, enabling strategic growth opportunities.
Operating cash flow of 36.44M fully covers other non-current liabilities 7.60M by 4.80x, showing strong long-term stability.

Cons

Operating cash flow of 36.44M barely covers its investment activities of (176000), with a coverage ratio of -207.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
With cash reserves of 12.26M against inventory of 94.96M, the 0.13 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
Investment activities of (176000) provide weak support for R&D spending of 17.13M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of 36.44M provides minimal -328.24x coverage of tax expenses of (111000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
Operating earnings of 28.91M show weak coverage of depreciation charges of 12.60M, with a 2.29 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	1.22	1.62
EV to Cash from Ops.	9.31	6.45
EV to Debt	3.75	200.47
EV to EBIT	11.73	-28.79
EV to EBITDA	7.96	6.30
EV to Free Cash Flow [EV/FCF]	10.05	44.66
EV to Market Cap	1.17	1.96
EV to Revenue	0.98	3.73
Price to Book Value [P/B]	2.63	4.94
Price to Earnings [P/E]	15.92	-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	2.69	-24.02

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	25.81	-25,923.54
Cash and Equivalents Growth (1y) %	-11.20	21.58
Dividend Growth (1y) %	0.00	-3.99
EBIAT Growth (1y) %	236.12	-636.78
EBITDA Growth (1y) %	199.42	-136.04
EBIT Growth (1y) %	558.67	392.34
EBT Growth (1y) %	2,022.67	-2.62
EPS Growth (1y) %	173.53	-36.64
FCF Growth (1y) %	387.63	-2,257.13
Gross Profit Growth (1y) %	17.68	63.03

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.25	0.77
Cash Payout Ratio	0.00	0.01
Cash Ratio	0.11	0.79
Current Ratio	1.60	3.15
Debt to Equity Ratio	0.82	3.74
Interest Cover Ratio	2.69	-24.02
Times Interest Earned	2.69	-24.02

Profitability

Metric	Value	Industry
EBITDA Margin %	12.00	-156.03
EBIT Margin %	8.33	395.52
EBT Margin %	5.23	-168.00
Gross Margin %	36.20	19.60
Net Profit Margin %	5.30	-169.24

Turtle Beach Corp (NASDAQ: TBCH)