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Leatt Corp (LEAT)
:LEAT
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Leatt
(OTC:LEAT)
48Neutral
Leatt (LEAT) vs. S&P 500 (SPY)
Market Cap
$37.31M
Dividend YieldN/A
Average Volume (3M)3.12K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-6.80%
EPS Growth-346.15%
CountryUS
Employees75
SectorConsumer Cyclical
Sector Strength61
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.35
Shares Outstanding6,217,550
10 Day Avg. Volume4,735
30 Day Avg. Volume3,120
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)-619.70
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 global developer and marketer of protective gear and related products designed for high-impact sports. The company's core products include neck braces, helmets, body armor, and other protective wear aimed primarily at motocross and mountain biking. Leatt leverages advanced technology and innovation to enhance the safety and performance of sports enthusiasts and professionals worldwide.
How the Company Makes MoneyLeatt Corporation generates revenue through the sale of its safety gear and protective equipment. The company primarily sells its products through a network of distributors and dealers in various regions, as well as directly to consumers through its online platform. Key revenue streams include sales of neck braces, helmets, body armor, and other protective accessories. Leatt's earnings are also supported by ongoing product innovation and development, which help maintain its competitive edge in the market. The company's partnerships with professional athletes and sports teams further enhance its brand visibility and influence consumer purchasing decisions, contributing to its overall revenue.
Leatt Financial Statement Overview
Summary
Leatt faces significant challenges with revenue contraction and profitability pressures, as shown by declining margins and net losses. Despite a strong balance sheet with low leverage, the decline in stockholders' equity is concerning. Cash flow management shows some strengths, but the drop in free cash flow highlights potential liquidity concerns. The company needs to address revenue and profitability issues to stabilize its financial position.Income Statement
Leatt's revenue has been declining, with a significant drop from 2022 to 2023 and a further decrease in 2024. The gross profit margin decreased from 40.75% in 2022 to 39.67% in 2023, and further to 40.22% in 2024. Net profit margin faced a downturn, with net losses in 2024. EBIT and EBITDA margins turned negative in 2024, indicating operational challenges.45
Neutral
Balance Sheet
The company maintains a low debt-to-equity ratio, reflecting conservative leverage. However, stockholders' equity has been declining, indicating potential issues in asset growth or profitability. The equity ratio remains strong, suggesting a stable financial structure despite recent losses.55
Neutral
Cash Flow
Free cash flow declined in 2024, but the company maintains a positive operating cash flow to net income ratio, indicating operational efficiency. However, free cash flow to net income ratio showed volatility, reflecting cash management challenges.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 42.63M | 44.03M | 47.24M | 76.34M | 72.48M | 38.60M | Gross Profit |
| 10.90M | 17.71M | 19.81M | 31.13M | 31.45M | 17.39M | EBIT |
| -4.00M | -2.98M | 1.42M | 13.02M | 16.62M | 5.84M | EBITDA |
| -2.62M | -2.98M | 2.58M | 14.12M | 17.64M | 6.67M | Net Income Common Stockholders |
| -3.21M | -2.20M | 803.16K | 9.96M | 12.57M | 4.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.40M | 12.37M | 11.35M | 7.10M | 5.08M | 3.03M | Total Assets |
| 10.64M | 46.49M | 47.61M | 51.93M | 49.17M | 26.24M | Total Debt |
| 617.01K | 1.32M | 2.12M | 2.37M | 2.64M | 963.53K | Net Debt |
| -467.80K | -11.05M | -9.22M | -4.73M | -2.38M | -2.00M | Total Liabilities |
| 3.04M | 8.22M | 7.33M | 12.23M | 20.55M | 10.87M | Stockholders Equity |
| 7.61M | 38.26M | 40.28M | 39.69M | 28.62M | 15.37M |
| Cash Flow | Free Cash Flow | ||||
| 1.60M | 2.79M | 4.66M | 1.94M | 1.64M | 869.78K | Operating Cash Flow |
| 3.05M | 2.79M | 6.66M | 3.09M | 2.78M | 2.35M | Investing Cash Flow |
| -1.45M | -1.23M | -2.00M | -1.04M | -1.14M | -1.45M | Financing Cash Flow |
| -111.24K | -514.95K | -1.29K | 288.82K | 595.94K | 11.86K |
Leatt Technical Analysis
Negative
6.00
Price Trends
6.90
Negative
7.06
Negative
7.38
Negative
Market Momentum
-0.32
Positive
36.18
Neutral
52.38
Neutral
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 6 is below the 20-day moving average (MA) of 6.40, below the 50-day MA of 6.90, and below the 200-day MA of 7.38, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $30.77M | 12.56 | 4.76% | 10.96% | -0.07% | -49.06% | |
61 Neutral | $36.21M | ― | -5.77% | 6.80% | 15.70% | -337.22% | |
60 Neutral | $7.23B | 11.55 | 3.67% | 4.04% | 2.96% | -13.54% | |
51 Neutral | $53.75M | ― | -13.22% | ― | -7.02% | -13.44% | |
48 Neutral | $37.31M | ― | -5.61% | ― | -6.80% | -346.15% | |
48 Neutral | $68.73M | ― | -89.61% | ― | -8.51% | 9.63% |
* Consumer Cyclical Sector Average
Performance Comparison
LEAT
Leatt
6.00
-2.01
-25.09%
CRWS
Crown Crafts
2.98
-1.92
-39.18%
SUP
Superior Industries International
2.34
-1.30
-35.71%
SPWH
Sportsman's Warehouse
1.49
-1.67
-52.85%
JRSH
Jerash Holdings (US)
2.93
0.12
4.27%
Leatt Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: -10.45% | Next Earnings Date: May 8, 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.Leatt Corporate Events
Business Operations and StrategyFinancial Disclosures
Leatt Sees Q4 Revenue Growth Amid Full-Year Decline
Neutral
Mar 28, 2025
Leatt Corporation reported a 14% increase in fourth-quarter 2024 revenues compared to 2023, despite a 7% decline in full-year revenues. The company saw growth in body armor and helmet sales, and improved gross profit margins, while also enhancing liquidity and operational cash flow. Challenges included decreased neck brace sales and constrained U.S. MOTO dealer sales. The company remains optimistic about future growth, supported by new distributor partnerships and a strong product pipeline.
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.