Education
About Us
Working with TipRanks
Follow Us
Leatt Corp (LEAT)
:LEAT
Top Page
Leatt
(OTC:LEAT)
Rating:63Neutral
Price Target:
$9.50
▲(5.32%Upside)
Leatt (LEAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.08M
Dividend YieldN/A
Average Volume (3M)4.01K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth8.94%
EPS Growth72.90%
CountryUS
Employees75
SectorConsumer Cyclical
Sector Strength59
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.17
Shares Outstanding6,217,550
10 Day Avg. Volume7,785
30 Day Avg. Volume4,008
Financial Highlights & Ratios
PEG Ratio-2.12
Price to Book (P/B)1.25
Price to Sales (P/S)0.00
P/FCF Ratio-76.99
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda-5.94
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 Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q3-2024)
| % Change Since: 44.32%|
Next Earnings Date:Aug 07, 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.Q3-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview
Summary
Leatt faces profitability challenges amid fluctuating revenues and recent net losses. While the balance sheet remains strong with low leverage, cash flow sustainability is a concern due to negative free cash flow. Continued focus on operational efficiency and strategic cost management is 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.45
Neutral
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.65
Positive
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.78M | 44.03M | 47.24M | 76.34M | 72.48M | 38.60M |
| Gross Profit | 18.52M | 17.71M | 19.81M | 31.13M | 31.45M | 17.39M |
| EBITDA | 90.12K | -1.83M | 2.58M | 14.12M | 17.64M | 6.67M |
| Net Income | -266.86K | -2.20M | 803.16K | 9.96M | 12.57M | 4.42M |
Balance Sheet | ||||||
| Total Assets | 45.34M | 46.49M | 47.61M | 51.93M | 49.17M | 26.24M |
| Cash, Cash Equivalents and Short-Term Investments | 12.70M | 12.37M | 11.35M | 7.10M | 5.08M | 3.03M |
| Total Debt | 987.05K | 1.32M | 2.12M | 2.37M | 2.64M | 963.53K |
| Total Liabilities | 5.77M | 8.22M | 7.33M | 12.23M | 20.55M | 10.87M |
| Stockholders Equity | 39.57M | 38.26M | 40.28M | 39.69M | 28.62M | 15.37M |
Cash Flow | ||||||
| Free Cash Flow | -643.61K | 1.56M | 4.66M | 1.94M | 1.64M | 869.78K |
| Operating Cash Flow | 732.93K | 2.79M | 6.66M | 3.09M | 2.78M | 2.35M |
| Investing Cash Flow | -1.36M | -1.23M | -2.00M | -1.04M | -1.14M | -1.45M |
| Financing Cash Flow | -320.66K | -514.95K | -1.29K | 288.82K | 595.94K | 11.86K |
Leatt Technical Analysis
Positive
9.02
Price Trends
7.44
Positive
7.17
Positive
7.41
Positive
Market Momentum
0.34
Negative
71.19
Negative
67.56
Neutral
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 9.02 is above the 20-day moving average (MA) of 8.36, above the 50-day MA of 7.44, and above the 200-day MA of 7.41, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 71.19 is Negative, neither overbought nor oversold. The STOCH value of 67.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $41.66M | ― | -1.33% | 6.12% | 24.43% | 57.78% | |
63 Neutral | $56.08M | ― | -0.68% | ― | 8.94% | 72.90% | |
62 Neutral | $16.72B | 10.85 | -7.48% | 3.11% | 1.66% | -24.52% | |
54 Neutral | $135.26M | ― | -15.67% | ― | -4.92% | -13.73% | |
51 Neutral | $29.59M | 13.58 | -20.51% | 11.43% | -0.44% | -287.81% | |
42 Neutral | $3.33M | ― | -80.07% | ― | -3.63% | 36.19% |
* Consumer Cyclical Sector Average
Performance Comparison
LEAT
Leatt
9.02
2.77
44.32%
CRWS
Crown Crafts
2.80
-1.82
-39.39%
SSUP
Superior Industries International
0.11
-3.15
-96.63%
SPWH
Sportsman's Warehouse
3.53
1.30
58.30%
JRSH
Jerash Holdings (US)
3.28
0.52
18.84%
Leatt Corporate Events
Business Operations and StrategyFinancial Disclosures
Leatt Reports Strong Q1 2025 Financial Performance
Positive
May 14, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.