Leatt (LEAT) AI Stock Analysis

• Market Cap: $62.18M
• Dividend Yield: N/A
• Average Volume (3M): 4.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 8.94%
• EPS Growth: 72.90%
• Country: US
• Employees: 75
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 0.17
• Shares Outstanding: 6,217,550
• 10 Day Avg. Volume: 3,438
• 30 Day Avg. Volume: 4,623
• PEG Ratio: -2.48
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -90.13
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: -7.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $10.50 ▲(5.00%Upside)

Leatt's strong corporate event performance, highlighted by significant revenue and income growth, is a major strength. Positive technical indicators also support a favorable outlook, though financial performance and valuation concerns, especially regarding profitability and cash flow, weigh down the overall score.

Leatt Business Overview & Revenue Model

Company Description

Leatt Corporation (LEAT) is a global leader in the development and manufacturing of protective equipment and gear for sports enthusiasts, particularly in the motorcycling, mountain biking, and other extreme sports sectors. The company's core products include neck braces, body armor, helmets, knee braces, and other protective clothing designed to enhance safety and performance. Founded on a commitment to innovation and high-quality standards, Leatt has become a trusted name among athletes and recreational users worldwide.

How the Company Makes Money

Leatt Corporation generates revenue primarily through the sale of its protective gear and equipment. The company's revenue model is centered around direct sales to consumers via its online platform, as well as through a network of authorized dealers and distributors globally. Key revenue streams include the sale of neck braces, helmets, and other protective apparel. Additionally, Leatt benefits from partnerships with sports teams and athletes who endorse its products, enhancing brand visibility and sales. The company invests in research and development to continually innovate and expand its product offerings, which contributes to its earnings by attracting a broader customer base and meeting the evolving safety needs of sports participants.

Leatt Financial Statement Overview

Summary

Leatt faces profitability challenges with fluctuating revenues and recent net losses. While the balance sheet is strong with low leverage, cash flow sustainability is concerning due to negative free cash flow. Operational efficiency and strategic cost management are crucial for future stability.

Income Statement

Leatt has seen fluctuating revenue trends with a notable decline in revenue from 2022 to 2023. The company posted a negative net income and EBIT in the most recent TTM period, indicating challenges in profitability. However, the gross profit margin remains relatively stable, suggesting some control over production costs.

Balance Sheet

Leatt maintains a strong equity position with a low debt-to-equity ratio, reflecting financial stability. Despite a dip in total assets, the company's equity ratio is healthy, indicating a well-capitalized balance sheet. Return on equity has been negatively impacted due to recent net losses.

Cash Flow

The company experienced negative free cash flow in the TTM period, with significant capital expenditures impacting cash reserves. However, operating cash flow remains positive, albeit reduced, pointing to some operational efficiency. The ratio of operating cash flow to net income is unfavorable due to recent losses.

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

Leatt Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEAT, the sentiment is Positive. The current price of 10 is above the 20-day moving average (MA) of 9.39, above the 50-day MA of 8.74, and above the 200-day MA of 7.50, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 96.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEAT.

Leatt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPEL	74 Outperform	$986.25M	20.79	22.48%	―	8.37%	-1.37%
THRM	73 Outperform	$1.01B	32.42	4.72%	―	-0.78%	-51.80%
LEAT	65 Neutral	$62.18M	―	-0.68%	―	8.94%	72.90%
INVZ	64 Neutral	$387.98M	―	-65.19%	―	28.52%	41.32%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
SYPR	55 Neutral	$47.34M	―	-1.87%	―	-3.83%	89.89%
HYLN	47 Neutral	$306.66M	―	-21.13%	―	451.93%	49.23%

Leatt Corporate Events

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.

Leatt Reports Strong Q1 2025 Financial Performance

Leatt Corporation reported a strong financial performance for the first quarter of 2025, with global revenues increasing by 45% and net income rising by 237% compared to the same period in 2024. The company saw significant growth in helmet revenues, which increased by 101%, and overall gross profit rose by 68%. Despite a contraction in U.S. dealer direct sales, international distributor sales surged by 79%, contributing to the company’s positive outlook. Leatt’s investments in innovation and a robust product pipeline, alongside improved liquidity and working capital management, position it well for future growth amid industry challenges.