NasdaqGM:HEAR

Stock Analysis Report

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Executive Summary

Turtle Beach Corporation operates as an audio technology company.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HEAR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

HEAR

2.5%

US Consumer Durables

4.3%

US Market


1 Year Return

52.8%

HEAR

7.4%

US Consumer Durables

7.4%

US Market

Return vs Industry: HEAR exceeded the US Consumer Durables industry which returned 4.5% over the past year.

Return vs Market: HEAR exceeded the US Market which returned 5% over the past year.


Shareholder returns

HEARIndustryMarket
7 Day8.2%2.5%4.3%
30 Day43.3%-3.0%0.5%
90 Day147.6%48.2%23.0%
1 Year52.8%52.8%8.7%7.4%9.7%7.4%
3 Year410.3%410.3%-3.9%-8.2%38.3%29.2%
5 Year80.9%80.9%10.8%4.2%66.0%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEAR ($15.92) is trading below our estimate of fair value ($36.74)

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


Price To Earnings Ratio

PE vs Industry: HEAR is poor value based on its PE Ratio (20.4x) compared to the Consumer Durables industry average (10.7x).

PE vs Market: HEAR is poor value based on its PE Ratio (20.4x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: HEAR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HEAR is overvalued based on its PB Ratio (3.9x) compared to the US Consumer Durables industry average (1.3x).


Next Steps

Future Growth

How is Turtle Beach forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEAR's forecast earnings growth (23.6% per year) is above the savings rate (2.2%).

Earnings vs Market: HEAR's earnings (23.6% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HEAR's revenue (9.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: HEAR's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HEAR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Turtle Beach performed over the past 5 years?

54.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEAR has a large one-off loss of $2.6M impacting its March 31 2020 financial results.

Growing Profit Margin: HEAR's current net profit margins (5%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: HEAR has become profitable over the past 5 years, growing earnings by 54.3% per year.

Accelerating Growth: HEAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HEAR had negative earnings growth (-71.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (10.2%).


Return on Equity

High ROE: HEAR's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is Turtle Beach's financial position?


Financial Position Analysis

Short Term Liabilities: HEAR's short term assets ($65.6M) exceed its short term liabilities ($32.6M).

Long Term Liabilities: HEAR's short term assets ($65.6M) exceed its long term liabilities ($3.2M).


Debt to Equity History and Analysis

Debt Level: HEAR's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: HEAR's debt to equity ratio has reduced from 31.2% to 0.5% over the past 5 years.

Debt Coverage: HEAR's debt is well covered by operating cash flow (5295%).

Interest Coverage: HEAR's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Turtle Beach current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HEAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HEAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HEAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HEAR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Juergen Stark (53yo)

6.5yrs

Tenure

US$2,197,266

Compensation

Mr. Juergen Stark serves as Venture Partner at Analytics Ventures. He has been the Chief Executive Officer of Turtle Beach Corporation (a/k/a, VTB Holdings Inc) since January 2014 and serves as its Preside ...


CEO Compensation Analysis

Compensation vs Market: Juergen's total compensation ($USD2.20M) is above average for companies of similar size in the US market ($USD1.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Juergen Stark
Chairman6.5yrsUS$2.20m1.11% $2.6m
John Hanson
CFO, Treasurer & Secretary6.5yrsUS$992.04k0.073% $169.1k
Jose Rosado
Senior Vice President of Global Operations3.17yrsno datano data
Joe Stachula
CTO & Senior VP of Product Development2.5yrsno datano data
Megan Wynne
General Counsel3.33yrsno datano data
MacLean Marshall
Sr. Director of PR/Communicationsno datano datano data
Cristopher Keirn
Senior Vice President of Global Sales3.92yrsUS$454.78kno data
Ryan Dell
Senior Vice President of Global Marketing0.50yrno datano data
Chris Auty
Managing Director of EMEA & APAC5.25yrsno datano data
Matt Seymour
Senior Vice President of Product Management0.50yrno datano data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: HEAR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Juergen Stark
Chairman6.5yrsUS$2.20m1.11% $2.6m
Andrew Wolfe
Independent Director8.42yrsUS$131.22k0.43% $994.2k
Lloyd Ballard
Independent Director3.25yrsUS$136.22k0.27% $636.0k
William Keitel
Lead Independent Director0.50yrUS$138.72k0.45% $1.1m
Kelly Thompson
Independent Director0.92yrUS$91.08k0.095% $219.7k

0.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: HEAR's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


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

Turtle Beach Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Turtle Beach Corporation
  • Ticker: HEAR
  • Exchange: NasdaqGM
  • Founded: 1975
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$231.998m
  • Shares outstanding: 14.57m
  • Website: https://corp.turtlebeach.com

Number of Employees


Location

  • Turtle Beach Corporation
  • 11011 Via Frontera
  • Suite A/B
  • San Diego
  • California
  • 92127
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEARNasdaqGM (Nasdaq Global Market)YesNew Common StockUSUSDJan 2014
0P1ADB (Deutsche Boerse AG)YesNew Common StockDEEURJan 2014
0ZNFLSE (London Stock Exchange)YesNew Common StockGBUSDJan 2014

Biography

Turtle Beach Corporation operates as an audio technology company. It develops, commercializes, and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, and mobile and tablet devices under the Turtle Beach brand. The company also offers gaming headsets, keyboards, mice, and other accessories for the personal computer peripherals market under the brand of ROCCAT. It serves retailers, distributors, and other customers in North America, South America, Europe, the Middle East, Africa, Australia, and Asia. Turtle Beach Corporation was founded in 1975 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 00:08
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.