AIM:TUNE

Stock Analysis Report

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Market Cap

UK£825.5m

Last Updated

2021/07/29 21:45 UTC

Data Sources

Company Financials +

Executive Summary

Focusrite plc develops and markets hardware and software products primarily for audio professionals and amateur musicians in North America, Europe, the Middle East, Africa, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Focusrite's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TUNE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TUNE's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

TUNE

0.2%

GB Consumer Durables

1.6%

GB Market


1 Year Return

97.2%

TUNE

35.4%

GB Consumer Durables

21.7%

GB Market

Return vs Industry: TUNE exceeded the UK Consumer Durables industry which returned 32.4% over the past year.

Return vs Market: TUNE exceeded the UK Market which returned 18.5% over the past year.


Shareholder returns

TUNEIndustryMarket
7 Day2.3%0.2%1.6%
30 Day10.9%0.7%0.4%
90 Day14.5%-4.1%2.0%
1 Year98.4%97.2%40.9%35.4%27.2%21.7%
3 Year221.6%216.3%35.6%19.0%14.3%1.3%
5 Year961.0%925.3%102.1%58.4%40.9%13.8%

Long-Term Price Volatility Vs. Market

How volatile is Focusrite's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Focusrite undervalued compared to its fair value and its price relative to the market?

38.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TUNE (£14.2) is trading above our estimate of fair value (£4.32)

Significantly Below Fair Value: TUNE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TUNE is poor value based on its PE Ratio (38.6x) compared to the UK Consumer Durables industry average (28.6x).

PE vs Market: TUNE is poor value based on its PE Ratio (38.6x) compared to the UK market (23.9x).


Price to Earnings Growth Ratio

PEG Ratio: TUNE is poor value based on its PEG Ratio (10.1x)


Price to Book Ratio

PB vs Industry: TUNE is overvalued based on its PB Ratio (11x) compared to the GB Consumer Durables industry average (1.5x).


Future Growth

How is Focusrite forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TUNE's forecast earnings growth (3.8% per year) is above the savings rate (0.9%).

Earnings vs Market: TUNE's earnings (3.8% per year) are forecast to grow slower than the UK market (16.8% per year).

High Growth Earnings: TUNE's earnings are forecast to grow, but not significantly.

Revenue vs Market: TUNE's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: TUNE's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TUNE's Return on Equity is forecast to be high in 3 years time (28.1%)


Past Performance

How has Focusrite performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TUNE has a large one-off loss of £10.1M impacting its February 28 2021 financial results.

Growing Profit Margin: TUNE's current net profit margins (12.1%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: TUNE's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: TUNE's earnings growth over the past year (189.7%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: TUNE earnings growth over the past year (189.7%) exceeded the Consumer Durables industry -48%.


Return on Equity

High ROE: TUNE's Return on Equity (28.3%) is considered high.


Financial Health

How is Focusrite's financial position?


Financial Position Analysis

Short Term Liabilities: TUNE's short term assets (£52.9M) exceed its short term liabilities (£20.5M).

Long Term Liabilities: TUNE's short term assets (£52.9M) exceed its long term liabilities (£8.2M).


Debt to Equity History and Analysis

Debt Level: TUNE is debt free.

Reducing Debt: TUNE had no debt 5 years ago.

Debt Coverage: TUNE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TUNE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Focusrite current dividend yield, its reliability and sustainability?

0.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TUNE's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: TUNE's dividend (0.31%) is low compared to the top 25% of dividend payers in the UK market (3.92%).


Stability and Growth of Payments

Stable Dividend: TUNE is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: TUNE is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TUNE is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TUNE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Tim Carroll (58 yo)

4.5yrs

Tenure

UK£667,000

Compensation

Mr. Timothy Paul Carroll, also known as Tim, has been Group Chief Executive Officer and Executive Director at Focusrite Plc since January 3, 2017 and January 1, 2017 respectively. Mr. Carroll has enjoyed a...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD931.73K) is about average for companies of similar size in the UK market ($USD970.45K).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TUNE's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: TUNE's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TUNE insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Focusrite plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Focusrite plc
  • Ticker: TUNE
  • Exchange: AIM
  • Founded: 1985
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: UK£825.485m
  • Shares outstanding: 58.13m
  • Website: https://www.focusriteplc.com

Number of Employees


Location

  • Focusrite plc
  • Windsor House
  • Turnpike Road
  • High Wycombe
  • Buckinghamshire
  • HP12 3FX
  • United Kingdom

Listings


Biography

Focusrite plc develops and markets hardware and software products primarily for audio professionals and amateur musicians in North America, Europe, the Middle East, Africa, and internationally. It operates...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 21:45
End of Day Share Price2021/07/29 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.