Leatt (LEAT) AI Stock Analysis

• Market Cap: $74.42M
• Dividend Yield: N/A
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.85
• Revenue Growth: 29.11%
• EPS Growth: N/A
• Country: US
• Employees: 75
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.18
• Shares Outstanding: 6,217,550
• 10 Day Avg. Volume: 884
• 30 Day Avg. Volume: 2,004
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 14.29
• 1Y Price Target: $14.00
• Price Target Upside: 16.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $14.00 ▲(16.96% Upside)

Leatt's overall stock score is driven by strong technical analysis and positive corporate events, reflecting robust market momentum and significant financial performance improvements. However, the high P/E ratio and declining free cash flow growth present valuation and financial risks that temper the overall score.

Leatt Business Overview & Revenue Model

Company Description

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor range, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, impact shorts and cooling vests, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet, and hydration bags; casual clothing and caps; hats; and apparels that comprises jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for neck braces sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs, as well as motor racing cars and other helmeted sports. It sells its products to customers through a network of distributors and retailers; and through its online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.

How the Company Makes Money

Leatt generates revenue primarily through the sale of its protective gear and accessories through various channels, including direct-to-consumer sales via its online store, as well as through wholesale distribution to retailers and specialty shops worldwide. Key revenue streams include sales of neck braces, helmets, and body armor, which are essential products for riders concerned about safety. Additionally, Leatt benefits from partnerships with professional athletes and sponsorship of events, which enhance brand visibility and drive consumer demand. The company also engages in marketing initiatives and collaborations that help to promote its products within the action sports community, contributing to overall sales growth.

Leatt Financial Statement Overview

Summary

Leatt demonstrates a solid financial position with strong revenue growth and improved profitability in the TTM period. The balance sheet is stable with low leverage, and the company is effectively managing its equity. However, the significant decline in free cash flow growth poses a potential risk that needs to be addressed.

Income Statement

Leatt's income statement shows a strong recovery in the TTM period with a revenue growth rate of 12.5% after a decline in previous years. The gross profit margin improved to 42.6%, indicating efficient cost management. However, the net profit margin remains modest at 3.5%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial stability. The return on equity (ROE) has improved to 4.9% in the TTM, showing better utilization of equity. The equity ratio stands at a healthy level, underscoring the company's strong financial foundation.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth, which is down significantly in the TTM. However, the operating cash flow to net income ratio is healthy at 0.69, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.66, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.88M	44.03M	47.24M	76.34M	72.48M	38.60M
Gross Profit	23.39M	17.71M	19.81M	31.13M	31.45M	17.39M
EBITDA	3.03M	-1.83M	2.58M	14.12M	17.64M	6.67M
Net Income	1.93M	-2.20M	803.16K	9.96M	12.57M	4.42M
Balance Sheet
Total Assets	46.80M	46.49M	47.61M	51.93M	49.17M	26.24M
Cash, Cash Equivalents and Short-Term Investments	15.73M	12.37M	11.35M	7.10M	5.08M	3.03M
Total Debt	651.93K	1.32M	2.12M	2.37M	2.64M	963.53K
Total Liabilities	5.83M	8.22M	7.33M	12.23M	20.55M	10.87M
Stockholders Equity	40.97M	38.26M	40.28M	39.69M	28.62M	15.37M
Cash Flow
Free Cash Flow	2.57M	1.56M	4.66M	1.94M	1.64M	869.78K
Operating Cash Flow	3.91M	2.79M	6.66M	3.09M	2.78M	2.35M
Investing Cash Flow	-1.32M	-1.23M	-2.00M	-1.04M	-1.14M	-1.45M
Financing Cash Flow	-290.30K	-514.95K	-1.29K	288.82K	595.94K	11.86K

Leatt Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEAT, the sentiment is Neutral. The current price of 11.97 is below the 20-day moving average (MA) of 12.83, above the 50-day MA of 11.82, and above the 200-day MA of 8.46, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 2.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LEAT.

Leatt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPEL	78 Outperform	$895.21M	18.42	19.04%	―	9.96%	2.74%
THRM	77 Outperform	$1.07B	34.74	10.53%	―	-0.78%	-51.80%
LEAT	76 Outperform	$74.42M	40.45	4.86%	―	29.11%	―
INVZ	55 Neutral	$341.32M	-4.06	-80.08%	―	17.32%	37.70%
SYPR	51 Neutral	$49.28M	-19.47	-12.98%	―	-6.71%	37.34%
HYLN	51 Neutral	$364.91M	-6.44	-21.30%	―	3559.38%	32.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Leatt Corporate Events

Leatt Reports Strong Q2 2025 Financial Performance

Leatt Corporation announced a significant financial performance for the second quarter of 2025, with global revenues increasing by 61% to $16.18 million and net income rising by 208% compared to the same period in 2024. The company attributes this growth to strong sales across all product categories, including a 117% increase in helmet revenues and a 48% rise in body armor sales. Leatt’s liquidity improved, with cash and cash equivalents increasing by 27% to $15.73 million. The company also received accolades at Eurobike 2025, with its 5.0 Gravity Helmet and 6.0 HydraDri® Jacket winning awards. Despite some geopolitical and economic challenges, Leatt remains optimistic about future growth, driven by international demand and strategic investments in product development and brand expansion.

Leatt Corporation Re-elects Directors at Annual Meeting

Leatt Corporation held its 2024 Annual Stockholders’ Meeting on July 1, 2025, where stockholders considered two proposals. The election of directors resulted in the re-election of Dr. Christopher J. Leatt, Mr. Sean Macdonald, and Mr. Jeffrey J. Guzy. Additionally, stockholders approved the ratification of M&K CPAS, PLLC as the independent auditors for the year ending December 31, 2025.