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Focusrite PLC (GB:TUNE)
LSE:TUNE

Focusrite (TUNE) AI Stock Analysis

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GB

Focusrite

(LSE:TUNE)

Rating:64Neutral
Price Target:
195.00p
▲(2.63%Upside)
Focusrite's stock score is primarily influenced by its financial performance challenges and high valuation concerns. However, positive corporate events and strong technical momentum provide a more optimistic outlook, compensating for some financial weaknesses.

Focusrite (TUNE) vs. iShares MSCI United Kingdom ETF (EWC)

Focusrite Business Overview & Revenue Model

Company DescriptionFocusrite plc (TUNE) is a leading British audio equipment company specializing in the design, manufacture, and distribution of professional audio products. The company operates primarily in the music and audio technology sectors, offering a wide range of products including audio interfaces, studio monitors, and professional audio software. Focusrite's brands, such as Focusrite, Focusrite Pro, Novation, and ADAM Audio, are well-regarded within the industry for their quality and innovation, catering to both amateur musicians and professional audio engineers.
How the Company Makes MoneyFocusrite makes money through the sale of its audio equipment and related software products. Its primary revenue streams include the sales of audio interfaces, studio monitors, and music production hardware and software. The company's products are distributed globally through a network of retailers, distributors, and direct online sales. Focusrite also generates income from its professional audio solutions, which are used in recording studios, live sound environments, and broadcast industries. Significant partnerships with retailers and e-commerce platforms, as well as its strong brand reputation, contribute to its earnings. Additionally, the acquisition of related companies and expansion into new markets have been strategies to enhance revenue growth.

Focusrite Financial Statement Overview

Summary
Focusrite faces financial challenges with declining revenue and profitability. While the balance sheet remains stable with moderate leverage, the cash flow statement raises concerns with negative free cash flow. The company needs to address revenue growth and operational cost efficiency to improve financial health.
Income Statement
60
Neutral
Focusrite's income statement shows declining revenues from 2022 to 2023, with a significant drop in net income and EBIT margins. The gross profit margin stood at 44.5% for 2023, which indicates adequate cost management. However, the net profit margin decreased to 1.6%, reflecting challenges in maintaining profitability amidst decreasing revenue.
Balance Sheet
70
Positive
The balance sheet is relatively stable with a debt-to-equity ratio of 0.37, indicating moderate leverage. The equity ratio is 57.1%, suggesting a solid equity base. Return on equity has declined due to lower net income, posing a challenge in maximizing shareholder value.
Cash Flow
50
Neutral
Cash flow from operations decreased notably, and free cash flow turned negative in 2023, impacting liquidity. The operating cash flow to net income ratio is 4.25, indicating cash generation efficiency, but the free cash flow to net income ratio is negative, reflecting operational cash challenges.
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
158.52M178.47M183.73M173.94M130.14M
Gross Profit
70.49M84.85M83.28M84.13M59.89M
EBIT
5.70M24.34M28.66M35.77M7.93M
EBITDA
19.64M36.88M40.77M45.92M16.01M
Net Income Common Stockholders
2.61M17.80M24.78M28.28M4.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.04M26.79M12.76M17.34M14.97M
Total Assets
202.94M210.79M177.53M117.21M104.70M
Total Debt
42.88M37.92M21.90M-248.00K11.64M
Net Debt
20.84M11.14M9.14M-17.59M-3.33M
Total Liabilities
86.99M92.34M72.22M32.87M47.80M
Stockholders Equity
115.96M118.45M105.32M84.35M56.90M
Cash FlowFree Cash Flow
-3.14M11.94M-4.04M31.91M27.00M
Operating Cash Flow
11.10M26.33M8.46M38.52M36.61M
Investing Cash Flow
-16.73M-21.54M-22.60M-20.56M-44.92M
Financing Cash Flow
1.31M10.19M8.83M-15.59M8.41M

Focusrite Technical Analysis

Technical Analysis Sentiment
Positive
Last Price190.00
Price Trends
50DMA
152.36
Positive
100DMA
171.79
Positive
200DMA
215.20
Negative
Market Momentum
MACD
6.73
Negative
RSI
65.64
Neutral
STOCH
79.37
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 190 is above the 20-day moving average (MA) of 161.38, above the 50-day MA of 152.36, and below the 200-day MA of 215.20, indicating a neutral trend. The MACD of 6.73 indicates Negative momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBIGR
67
Neutral
£86.48M6.744.42%-10.76%
64
Neutral
£111.38M56.381.70%3.47%-3.88%-83.28%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
GBG4M
62
Neutral
£31.47M32.052.68%-3.30%
GBWJG
54
Neutral
£73.79M48.31-0.29%-27.17%98.73%
GBTPT
53
Neutral
£73.10M-93.27%6.45%6.55%-1914.81%
GBVCP
41
Neutral
£74.52M486.49%-11.73%-62.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TUNE
Focusrite
190.00
-185.33
-49.38%
GB:VCP
Victoria
65.20
-111.20
-63.04%
GB:WJG
Watkin Jones
28.75
-19.30
-40.17%
GB:IGR
IG Design
88.00
-114.00
-56.44%
GB:G4M
Gear4music (Holdings)
150.00
20.00
15.38%
GB:TPT
Topps Tiles
37.20
-5.57
-13.02%

Focusrite Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Focusrite PLC Announces Change in Major Holdings
Neutral
May 7, 2025

Focusrite PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP acquiring or disposing of voting rights. As of May 6, 2025, Liontrust holds a total of 15.0697% voting rights in Focusrite, indicating a slight increase from previous holdings. This adjustment in voting rights could influence Focusrite’s strategic decisions and impact stakeholders, reflecting Liontrust’s continued interest in the company’s governance.

Dividends
Focusrite Issues Correction to Interim Dividend Timetable
Neutral
Apr 30, 2025

Focusrite plc has issued a correction to its interim dividend timetable initially announced on 29 April 2025. The corrected dates state that the interim dividend of 2.1p will be paid on 9 June 2025, with the ex-dividend date set for 8 May 2025, and the record date on 9 May 2025. This correction ensures that shareholders have accurate information regarding the dividend schedule, maintaining transparency and trust with its stakeholders.

Business Operations and StrategyFinancial Disclosures
Focusrite Reports Revenue Growth Amidst Volatile Market Conditions
Positive
Apr 29, 2025

Focusrite plc reported a 5.2% increase in revenue for the six months ending February 2025, driven by a 9.9% rise in Content Creation revenue, despite a 5.8% decline in Audio Reproduction revenue. The company attributes its growth to successful new product launches, normalizing inventory levels, and strategic measures to mitigate US tariff impacts. Despite macroeconomic uncertainties, particularly in the US, Focusrite remains confident in meeting its full-year expectations, supported by a strong product pipeline and strategic pricing and manufacturing adjustments.

Executive/Board ChangesBusiness Operations and Strategy
Focusrite Grants Share Options to Key Managers
Neutral
Apr 16, 2025

Focusrite plc has announced the grant of nominal cost option awards to certain key managerial personnel under its Performance Share Plan. These awards, which include performance and restricted share awards, are set to vest in April 2028, contingent on the company’s adjusted earnings per share growth and the ongoing employment of the individuals. This move is likely to align the interests of management with those of shareholders, potentially impacting the company’s operational focus and market positioning.

Business Operations and Strategy
Focusrite PLC Announces Change in Major Holdings
Neutral
Apr 11, 2025

Focusrite PLC has announced a change in its major holdings, with Charles Stanley & Co. Limited acquiring a 4.99% voting rights stake in the company. This acquisition could potentially influence Focusrite’s strategic decisions and market positioning, impacting stakeholders and possibly affecting the company’s future operations.

Business Operations and Strategy
Liontrust Increases Stake in Focusrite PLC
Neutral
Apr 8, 2025

Focusrite PLC has announced a change in the voting rights held by Liontrust Investment Partners LLP, with the latter increasing its stake to 15.0697% of the total voting rights. This acquisition of voting rights indicates a strengthened position for Liontrust within Focusrite, potentially impacting the company’s governance and strategic decisions.

Business Operations and StrategyRegulatory Filings and Compliance
Liontrust Increases Stake in Focusrite PLC
Neutral
Apr 8, 2025

Focusrite PLC, a UK-based company, has experienced a change in its shareholder structure as Liontrust Investment Partners LLP has adjusted its voting rights in the company. The notification indicates that Liontrust now holds 15.0697% of the voting rights, a slight increase from their previous position. This adjustment in voting rights could impact Focusrite’s governance and strategic decisions, reflecting Liontrust’s continued interest and influence in the company’s operations.

Other
Focusrite Announces Change in Major Shareholder Holdings
Neutral
Apr 8, 2025

Focusrite Plc has announced a change in its major holdings, with Sanford DeLand Asset Management Ltd reducing its voting rights from 5.04% to 4.98%. This change, effective from April 1, 2025, reflects a slight adjustment in the ownership structure of Focusrite, potentially impacting the company’s decision-making processes and shareholder dynamics.

Financial Disclosures
Focusrite to Announce Interim Results and Host Stakeholder Briefings
Neutral
Apr 3, 2025

Focusrite plc is set to announce its Interim Results for the six months ended 28 February 2025 on 29 April 2025. The company will host a live online briefing for analysts and a separate presentation for investors, indicating a proactive approach to engaging with stakeholders and maintaining transparency in its financial communications.

Business Operations and StrategyFinancial Disclosures
Focusrite Reports Steady Growth Amid Market Realignment
Neutral
Mar 20, 2025

Focusrite plc reported that its performance for the first half of the fiscal year 2025 was in line with expectations, with revenue expected to be at least £80 million, up from £76.9 million in the same period last year. The Content Creation division saw a growth of approximately 5%, while the Audio Reproduction division experienced a 6% decline due to market realignment. Despite compressed gross margins due to elevated freight costs and product mix, the company anticipates improvements through pricing adjustments and new product introductions. Net debt increased to £18 million, reflecting dividend payments and increased stock in anticipation of US tariffs, but is expected to improve in the latter half of the year. Focusrite maintains a strong market position in a normalizing Content Creation market and plans to navigate potential economic challenges, with expectations for the full year remaining unchanged.

Business Operations and StrategyRegulatory Filings and Compliance
Focusrite PLC Announces Change in Major Holdings
Neutral
Mar 19, 2025

Focusrite PLC, a company involved in the audio technology industry, has announced a change in its major holdings. Stancroft Trust Ltd, based in London, has crossed a threshold by acquiring 3.22% of voting rights in Focusrite PLC. This acquisition could potentially impact Focusrite’s shareholder dynamics and influence future corporate decisions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.