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Focusrite
(LSE:TUNE)
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Rating:63Neutral
Price Target:
234.00 p
▼(-3.51% Downside)
Action:Reiterated
Date:07/01/26
The score is primarily driven by stable financials (low leverage and improved net profitability) tempered by weakening free cash flow growth and modest operating margins. Technically, the trend is positive with price above major moving averages, but elevated RSI/Stoch imply stretched momentum. Valuation is a headwind due to the negative P/E, with only modest support from the dividend yield.
Positive Factors
Low leverage and strong equity base
A low debt-to-equity ratio (0.26) and high equity ratio provide durable financial flexibility, lowering insolvency risk and preserving capacity for targeted capex, product investment or opportunistic M&A. This structural balance-sheet strength supports resilience through industry cycles and funds strategic initiatives without heavy external borrowing.
Negative Factors
Declining free cash flow growth
A 23% decline in free cash flow growth is a durable red flag for internal funding capacity. If sustained, it can constrain capital allocation to R&D, marketing and inventory, pressure dividend coverage, and force reliance on external funding. Addressing margin or working-capital drivers is necessary to reverse this structural trend.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong equity base
A low debt-to-equity ratio (0.26) and high equity ratio provide durable financial flexibility, lowering insolvency risk and preserving capacity for targeted capex, product investment or opportunistic M&A. This structural balance-sheet strength supports resilience through industry cycles and funds strategic initiatives without heavy external borrowing.
Read all positive factors
Focusrite (TUNE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£137.77M
Dividend Yield1.77%
Average Volume (3M)135.30K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth3.83%
EPS Growth-258.92%
CountryUK
Employees585
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-0.07
Shares Outstanding59,211,640
10 Day Avg. Volume139,222
30 Day Avg. Volume135,300
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.83
Price to Sales (P/S)0.58
P/FCF Ratio4.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£355.00Price Target Upside46.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)£171.47M
Focusrite Business Overview & Revenue Model
Company Description
Focusrite plc is a global company specializing in the creation and distribution of hardware and software solutions, catering to both seasoned audio professionals and aspiring musicians alike. Its market presence spans across North America, Europe,...
How the Company Makes Money
Focusrite makes money primarily by selling audio hardware products through a mix of direct and channel-based distribution. Its core revenue stream is product sales of audio interfaces and other recording/production equipment (e.g., mic preamps and...
Focusrite Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 164.60M | 168.91M | 158.52M | 178.47M | 183.73M | 173.94M |
| Gross Profit | 68.67M | 69.66M | 70.49M | 84.85M | 83.28M | 84.13M |
| EBITDA | 24.04M | 24.35M | 19.86M | 36.88M | 40.77M | 45.92M |
| Net Income | -4.14M | 5.37M | 2.61M | 17.80M | 24.78M | 28.28M |
Balance Sheet | ||||||
| Total Assets | 184.42M | 197.44M | 202.94M | 210.79M | 177.53M | 117.21M |
| Cash, Cash Equivalents and Short-Term Investments | 20.62M | 19.48M | 22.04M | 26.79M | 12.76M | 17.34M |
| Total Debt | 29.22M | 30.33M | 42.88M | 37.92M | 23.54M | 1.04M |
| Total Liabilities | 73.39M | 79.52M | 86.99M | 92.34M | 72.22M | 32.87M |
| Stockholders Equity | 111.03M | 117.92M | 115.96M | 118.45M | 105.32M | 84.35M |
Cash Flow | ||||||
| Free Cash Flow | 26.47M | 20.67M | -3.14M | 11.94M | -4.04M | 31.91M |
| Operating Cash Flow | 28.60M | 22.39M | 11.10M | 26.33M | 8.46M | 38.52M |
| Investing Cash Flow | -16.50M | -15.06M | -16.73M | -21.54M | -22.60M | -20.56M |
| Financing Cash Flow | -7.08M | -9.83M | 1.31M | 10.19M | 8.83M | -15.59M |
Focusrite Technical Analysis
Positive
242.50
Price Trends
198.81
Positive
194.78
Positive
206.04
Positive
Market Momentum
11.55
Negative
64.75
Neutral
56.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TUNE, the sentiment is Positive. The current price of 242.5 is above the 20-day moving average (MA) of 214.53, above the 50-day MA of 198.81, and above the 200-day MA of 206.04, indicating a bullish trend. The MACD of 11.55 indicates Negative momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 56.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TUNE.
Focusrite Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £505.07M | 14.31 | 21.65% | ― | 11.35% | 247.54% | |
68 Neutral | £1.67B | 10.41 | 5.88% | 1.18% | 6.29% | 50.85% | |
66 Neutral | £56.64M | 8.02 | 10.10% | ― | 30.00% | 778.34% | |
63 Neutral | £137.77M | -33.62 | 4.61% | 1.77% | 3.83% | -258.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | £560.18M | 7.46 | 12.75% | ― | -1.91% | ― | |
44 Neutral | £598.45M | -3.96 | -90.46% | 4.48% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
GB:TUNE
Focusrite
235.00
72.47
44.59%
GB:G4M
Gear4music (Holdings)
277.50
53.50
23.88%
GB:SMWH
WH Smith
404.20
-612.79
-60.26%
GB:AO
AO World
91.30
-3.41
-3.60%
GB:CURY
Currys plc
161.30
46.06
39.97%
GB:THG
THG
30.58
-2.42
-7.33%
Focusrite Corporate Events
Executive/Board Changes
Focusrite Chair Designate Ian Barkshire Increases Stake with Share Purchase
Positive
Jun 30, 2026
Focusrite plc reported that Chair Designate and Non-Executive Director Ian Barkshire purchased 87,280 ordinary shares in the company on 29 June 2026 at a price of 200 pence per share on the London Stock Exchange. Following the transaction, Barkshi...
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Focusrite lifts margins and cuts debt as new tech platform underpins growth
Positive
Jun 29, 2026
Focusrite reported a resilient performance for the 18 months to 28 February 2026, with pro-forma 12‑month revenue up 1.3% to £164.6 million and adjusted EBITDA rising 5.7% to £24.7 million, driven by disciplined pricing, supply cha...
Business Operations and StrategyFinancial Disclosures
Focusrite Sets Date for Extended Final Results and Investor Briefings
Neutral
May 27, 2026
Focusrite will publish its audited final results for the 18‑month period to 28 February 2026 on 29 June, following a change of financial year‑end to February to align reporting with its operational and strategic planning cycle. Because...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.