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TUNE

Focusrite AIM:TUNE Stock Report

Last Price

UK£9.00

Market Cap

UK£525.4m

7D

-12.6%

1Y

-42.5%

Updated

18 Aug, 2022

Data

Company Financials +
TUNE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

TUNE Stock Overview

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.

Focusrite Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Focusrite
Historical stock prices
Current Share PriceUK£9.00
52 Week HighUK£18.30
52 Week LowUK£8.02
Beta0.92
1 Month Change-9.64%
3 Month Change1.12%
1 Year Change-42.49%
3 Year Change101.12%
5 Year Change181.25%
Change since IPO559.34%

Recent News & Updates

Aug 10
At UK£10.65, Is It Time To Put Focusrite plc (LON:TUNE) On Your Watch List?

At UK£10.65, Is It Time To Put Focusrite plc (LON:TUNE) On Your Watch List?

Focusrite plc ( LON:TUNE ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Jun 21
Focusrite (LON:TUNE) Knows How To Allocate Capital

Focusrite (LON:TUNE) Knows How To Allocate Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Apr 28
Is There Now An Opportunity In Focusrite plc (LON:TUNE)?

Is There Now An Opportunity In Focusrite plc (LON:TUNE)?

Focusrite plc ( LON:TUNE ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Shareholder Returns

TUNEGB Consumer DurablesGB Market
7D-12.6%-3.3%0.6%
1Y-42.5%-33.0%-7.0%

Return vs Industry: TUNE underperformed the UK Consumer Durables industry which returned -34.9% over the past year.

Return vs Market: TUNE underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is TUNE's price volatile compared to industry and market?
TUNE volatility
TUNE Average Weekly Movement6.6%
Consumer Durables Industry Average Movement4.6%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.9%
10% least volatile stocks in GB Market2.7%

Stable Share Price: TUNE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TUNE's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985475Tim Carrollhttps://www.focusriteplc.com

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 through Focusrite, Focusrite Pro, Novation, ADAM Audio, Martin Audio, and Sequential segments. The company provides audio interface and other products for musicians under the Focusrite and Focusrite Pro brands; and products that are used in the creation of electronic music using synthesisers, grooveboxes, controllers, and software and apps under the Novation and Ampify brands.

Focusrite Fundamentals Summary

How do Focusrite's earnings and revenue compare to its market cap?
TUNE fundamental statistics
Market CapUK£525.41m
Earnings (TTM)UK£22.47m
Revenue (TTM)UK£171.54m

23.4x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TUNE income statement (TTM)
RevenueUK£171.54m
Cost of RevenueUK£91.34m
Gross ProfitUK£80.20m
Other ExpensesUK£57.74m
EarningsUK£22.47m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.38
Gross Margin46.75%
Net Profit Margin13.10%
Debt/Equity Ratio-0.2%

How did TUNE perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

14%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TUNE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TUNE?

Other financial metrics that can be useful for relative valuation.

TUNE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA17.1x
PEG Ratio4.2x

Price to Earnings Ratio vs Peers

How does TUNE's PE Ratio compare to its peers?

TUNE PE Ratio vs Peers
The above table shows the PE ratio for TUNE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15x
VID Videndum
26.9x15.4%UK£695.5m
CRN Cairn Homes
17.6x35.9%UK£641.5m
GLE MJ Gleeson
8.2x9.8%UK£304.3m
VTY Vistry Group
7.5x6.3%UK£1.9b
TUNE Focusrite
23.4x5.5%UK£525.4m

Price-To-Earnings vs Peers: TUNE is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (15x).


Price to Earnings Ratio vs Industry

How does TUNE's PE Ratio compare vs other companies in the GB Consumer Durables Industry?

Price-To-Earnings vs Industry: TUNE is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the UK Consumer Durables industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is TUNE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TUNE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.4x
Fair PE Ratio12.9x

Price-To-Earnings vs Fair Ratio: TUNE is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).


Share Price vs Fair Value

What is the Fair Price of TUNE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TUNE (£9) is trading below our estimate of fair value (£11.72)

Significantly Below Fair Value: TUNE is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TUNE's forecast earnings growth (5.5% per year) is above the savings rate (0.9%).

Earnings vs Market: TUNE's earnings (5.5% per year) are forecast to grow slower than the UK market (9.8% per year).

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

Revenue vs Market: TUNE's revenue (5.8% per year) is forecast to grow faster than the UK market (4.6% per year).

High Growth Revenue: TUNE's revenue (5.8% per year) is forecast to grow slower than 20% 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 (24.8%)


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Past Performance

How has Focusrite performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TUNE has high quality earnings.

Growing Profit Margin: TUNE's current net profit margins (13.1%) are higher than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: TUNE's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: TUNE's earnings growth over the past year (5.4%) is below its 5-year average (23.8% per year).

Earnings vs Industry: TUNE earnings growth over the past year (5.4%) underperformed the Consumer Durables industry 107.7%.


Return on Equity

High ROE: TUNE's Return on Equity (23.9%) is considered high.


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Financial Health

How is Focusrite's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TUNE's short term assets (£67.2M) exceed its short term liabilities (£29.9M).

Long Term Liabilities: TUNE's short term assets (£67.2M) exceed its long term liabilities (£9.4M).


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


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TUNE's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: TUNE's dividend (0.62%) is low compared to the top 25% of dividend payers in the UK market (5.23%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

5.7yrs

Average management tenure


CEO

Tim Carroll (59 yo)

5.58yrs

Tenure

UK£695,000

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 ($USD834.20K) is below average for companies of similar size in the UK market ($USD1.36M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TUNE's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: TUNE's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Focusrite plc
  • Ticker: TUNE
  • Exchange: AIM
  • Founded: 1985
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Implied Market Cap: UK£525.407m
  • Shares outstanding: 58.38m
  • Website: https://www.focusriteplc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/02/28
Annual Earnings2021/08/31


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.