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Leatt Corporation (LEAT)
OTHER OTC:LEAT
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Leatt
(OTC:LEAT)
52Neutral
Leatt (LEAT) vs. S&P 500 (SPY)
Market Cap
$44.07M
Dividend YieldN/A
Average Volume (3M)2.24K
Price to Earnings (P/E)―
Beta (1Y)-0.46
Revenue Growth-11.82%
EPS Growth-361.21%
CountryUS
Employees93
SectorConsumer Cyclical
Sector Strength51
IndustryVehicles
Share Statistics
EPS (TTM)-0.52
Shares Outstanding6,215,440
10 Day Avg. Volume1,554
30 Day Avg. Volume2,236
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.03
Price to Cash Flow (P/CF)-627.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Leatt Business Overview & Revenue Model
Company DescriptionLeatt Corporation (LEAT) is a leading developer and marketer of protective gear and ancillary products for sports enthusiasts and professionals. The company primarily operates in the sports and recreational equipment sector, with a focus on the development of cutting-edge protective apparel and gear. Leatt is renowned for its advanced neck braces, helmets, and body armor designed to provide maximum safety and comfort for athletes in high-risk sports such as motocross, mountain biking, and cycling.
How the Company Makes MoneyLeatt Corporation generates its revenue through the sale of protective gear and apparel in the sports industry. The company offers a diverse range of products, including neck braces, helmets, body armor, gloves, and riding gear, catering to both professional athletes and recreational sports enthusiasts. Key revenue streams include direct sales through their e-commerce platforms, distribution agreements with retailers and sports outlets, and partnerships with sports teams and events. Leatt's reputation for innovation and quality in sports safety gear significantly contributes to its earnings, along with its strategic marketing efforts and presence in major sports events, which enhance brand visibility and customer reach.
Leatt Financial Statement Overview
Summary
Leatt faces significant financial challenges with declining revenues and profitability, evidenced by negative margins and reduced cash flows in the TTM. However, a strong balance sheet with low leverage provides a buffer against the downturn. The cautious outlook necessitates strategic intervention to reverse negative trends and enhance profitability.Income Statement
Leatt's income statement reflects significant challenges in recent periods, with a notable decline in revenue and profitability. The company experienced a negative gross profit margin and net profit margin in the TTM, indicating struggles in maintaining cost efficiency and profitability. The revenue growth rate has also been negative, suggesting a contraction in business activity. However, past performance shows the company had achieved profitability, which indicates potential for recovery if the issues are addressed.45
Neutral
Balance Sheet
The balance sheet presents a relatively strong equity position with a high equity ratio, indicating financial stability and low leverage. The debt-to-equity ratio is low, suggesting prudent management of debt. However, the return on equity has turned negative in the TTM, reflecting recent profitability issues. Overall, the company's healthy equity position and low debt offer a solid foundation to navigate current challenges.70
Positive
Cash Flow
The cash flow analysis shows reduced operating cash flow compared to previous periods, but the company has managed to maintain positive free cash flow. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. Nonetheless, the decline in free cash flow growth rate suggests potential strain on liquidity if the downward trend persists.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 42.63M | 47.24M | 76.34M | 72.48M | 38.60M | 28.32M | Gross Profit |
| 10.90M | 19.81M | 31.13M | 31.45M | 17.39M | 13.01M | EBIT |
| -4.00M | 1.42M | 13.02M | 16.62M | 5.84M | 1.98M | EBITDA |
| -2.62M | 2.58M | 14.12M | 17.64M | 6.67M | 2.74M | Net Income Common Stockholders |
| -3.21M | 803.16K | 9.96M | 12.57M | 4.42M | 1.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.35M | 11.35M | 7.10M | 5.08M | 3.03M | 2.13M | Total Assets |
| 47.61M | 47.61M | 51.93M | 49.17M | 26.24M | 18.19M | Total Debt |
| 2.12M | 2.12M | 2.37M | 2.64M | 963.53K | 1.29M | Net Debt |
| -9.22M | -9.22M | -4.73M | -2.38M | -2.00M | -784.43K | Total Liabilities |
| 7.33M | 7.33M | 12.23M | 20.55M | 10.87M | 7.47M | Stockholders Equity |
| 40.28M | 40.28M | 39.69M | 28.62M | 15.37M | 10.72M |
| Cash Flow | Free Cash Flow | ||||
| 1.60M | 4.66M | 1.94M | 1.64M | 869.78K | -28.50K | Operating Cash Flow |
| 3.05M | 6.66M | 3.09M | 2.78M | 2.35M | 845.61K | Investing Cash Flow |
| -1.45M | -2.00M | -1.04M | -1.14M | -1.45M | -863.02K | Financing Cash Flow |
| -111.24K | -1.29K | 288.82K | 595.94K | 11.86K | 309.35K |
Leatt Technical Analysis
Negative
7.09
Price Trends
7.18
Negative
7.37
Negative
7.42
Negative
Market Momentum
-0.02
Positive
42.19
Neutral
0.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEAT, the sentiment is Negative. The current price of 7.09 is below the 20-day moving average (MA) of 7.28, below the 50-day MA of 7.18, and below the 200-day MA of 7.42, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 0.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEAT.
Leatt Risk Analysis
Leatt disclosed 30 risk factors in its most recent earnings report. Leatt reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leatt Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.06B | 7.03 | 14.19% | 2.88% | -11.13% | -31.78% | |
65 Neutral | $1.03B | 158.06 | 0.54% | ― | -4.80% | -94.50% | |
63 Neutral | $4.34B | 20.43 | 12.01% | 1.54% | -3.35% | -6.09% | |
59 Neutral | $12.43B | 10.56 | 2.81% | 3.69% | 1.58% | -17.58% | |
52 Neutral | $44.07M | ― | -8.01% | ― | -11.82% | -361.21% | |
39 Underperform | $112.26M | ― | -122.20% | ― | -20.29% | -729.53% |
* Consumer Cyclical Sector Average
Performance Comparison
LEAT
Leatt
7.09
-2.29
-24.41%
COLM
Columbia Sportswear
78.42
2.70
3.57%
GPRO
GoPro
0.71
-1.46
-67.28%
HOG
Harley-Davidson
24.56
-15.30
-38.38%
FOXF
Fox Factory Holding
24.80
-22.80
-47.90%
Leatt Earnings Call Summary
Earnings Call Date: Oct 29, 2024 | % Change Since: -10.25% | Next Earnings Date: Apr 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautiously optimistic outlook with a return to revenue growth and improvements in inventory management and international sales, particularly in Europe. However, these positive aspects are offset by significant declines in net income and challenges in the footwear and apparel segments, as well as difficulties in U.S. brick-and-mortar sales.Highlights
Return to Revenue Growth
Total global revenues for Q3 2024 were $12.14 million, marking a 1% increase year-over-year. International sales were up by 5% to $8.58 million.
Improvement in Inventory Management
Inventory levels decreased by $4.62 million or 23% over the last 9 months, reflecting better inventory management and preparation for stronger ordering.
Direct-to-Consumer Growth
The direct-to-consumer sales channel grew by 12% during the quarter, with strong performance in South Africa exceeding expectations.
Increase in Cash and Cash Flow
Cash increased by $1.1 million to $12.7 million, with cash flows from operations of $2.98 million for the 9 months ended September 30, 2024.
Positive Outlook in Europe
Improvement in consumer sentiment and ordering patterns in Europe, with inventory being digested and interest rates decreasing.
Lowlights
Significant Decline in Net Income
Net income for Q3 2024 was $116,000, down by 75% from $460,000 in Q3 2023.
Challenges in Footwear and Apparel
Global revenues for footwear and apparel contracted, with a 55% decrease in sales of footwear and a 37% decrease in MTB apparel sales.
U.S. Brick-and-Mortar Sales Struggles
Constrained sales in U.S. brick-and-mortar dealers, particularly in certain regions, due to aggressive competitive pricing and high inventory levels.
Company Guidance
During the third quarter of 2024, Leatt Corporation reported a modest 1% increase in global revenues, reaching $12.14 million, as the company navigated economic headwinds and inventory challenges. International sales grew by 5% to $8.58 million, contributing to a gross profit of $5.17 million. Inventory levels decreased by 23% over the last nine months, signaling improved stock management. Direct-to-consumer sales surged by 12%, and cash holdings rose by $1.1 million to $12.7 million, supported by $2.98 million in operating cash flows. Despite declines in certain segments, like footwear, the company saw gains in body armor and direct sales. Net income for the quarter was $116,000, down 75% from the previous year. Leatt remains optimistic about future growth, bolstered by strategic investments in talent, marketing, and distribution partnerships, particularly in Europe and emerging markets.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.