Leatt (LEAT) AI Stock Analysis

• Market Cap: $59.70M
• Dividend Yield: N/A
• Average Volume (3M): 2.46K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.05
• Revenue Growth: 33.89%
• EPS Growth: N/A
• Country: US
• Employees: 75
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.08
• Shares Outstanding: 6,199,164
• 10 Day Avg. Volume: 3,538
• 30 Day Avg. Volume: 2,459
• PEG Ratio: 0.05
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 27.83
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 12.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $11.00 ▲(18.92% Upside)
• Action: Reiterated Date: 12/09/25
• Date: Action: Reiterated 12/09/25

Leatt's strong earnings performance and solid financial health are the primary drivers of its stock score. The company's strategic market expansion and product growth contribute positively. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate attractiveness. Concerns about inflation and tariffs are potential risks, but the company's proactive strategies and robust financials provide a solid foundation for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Product Innovation

Ongoing investment in R&D ensures a competitive edge through innovative products, attracting a loyal customer base and driving future sales.

Balance Sheet Health

A strong balance sheet with minimal leverage provides financial stability and flexibility, enabling strategic investments and growth opportunities.

Negative Factors

Inflation and Tariff Impact

Rising costs from inflation and tariffs could pressure margins, potentially impacting profitability and pricing strategies in the long term.

Marketing Investment Concerns

Reduced marketing spend could hinder brand visibility and market penetration, affecting long-term growth if not strategically managed.

Operational Efficiency

Low operational margins suggest inefficiencies that could limit profitability. Improving these metrics is crucial for sustaining financial health.

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 through the sale of its protective gear and accessories, which are distributed through various channels, including direct-to-consumer sales via its online platform, retail partnerships, and international distributors. The company also benefits from licensing agreements and collaborations with professional athletes and sports teams, enhancing its brand visibility and credibility. Key revenue streams include direct product sales, seasonal collections, and limited edition collaborations. Leatt continuously invests in research and development to innovate and expand its product line, which helps attract a loyal customer base and drives sales growth.

Leatt Financial Statement Overview

Summary

Leatt demonstrates a solid financial position with improving profitability and strong cash flow generation. The income statement shows recovery with positive growth and margins, while the balance sheet remains stable with low leverage. Cash flow improvements highlight effective cash management. Continued focus on operational efficiency and maintaining growth will be key to sustaining this positive trend.

Income Statement

Leatt's income statement shows a mixed performance. The TTM data indicates a recovery with a positive revenue growth rate of 4.02% and improved margins compared to the previous year. The gross profit margin is strong at 42.63%, and the net profit margin has turned positive at 3.52%. However, the EBIT and EBITDA margins remain relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. The return on equity has improved to 4.90% in the TTM, reflecting better profitability. The equity ratio is solid, showcasing a strong capital structure. Overall, the balance sheet reflects stability and financial health.

Cash Flow

Leatt's cash flow statement shows significant improvement in free cash flow growth at 76.91% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.69, and the free cash flow to net income ratio is 0.66, suggesting efficient cash conversion. However, the company should focus on maintaining this positive trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.08M	44.03M	47.24M	76.34M	72.48M	38.60M
Gross Profit	24.54M	17.71M	19.81M	31.13M	31.45M	17.39M
EBITDA	3.84M	-1.83M	2.58M	14.59M	17.86M	6.74M
Net Income	2.35M	-2.20M	803.16K	9.96M	12.57M	4.42M
Balance Sheet
Total Assets	50.91M	46.49M	47.61M	51.93M	49.17M	26.24M
Cash, Cash Equivalents and Short-Term Investments	12.28M	12.37M	11.35M	7.10M	5.08M	3.03M
Total Debt	430.75K	1.32M	2.12M	2.37M	2.64M	963.53K
Total Liabilities	9.31M	8.22M	7.33M	12.23M	20.55M	10.87M
Stockholders Equity	41.61M	38.26M	40.28M	39.69M	28.62M	15.37M
Cash Flow
Free Cash Flow	4.55M	1.56M	4.66M	1.94M	1.64M	869.78K
Operating Cash Flow	5.23M	2.79M	6.66M	3.09M	2.78M	2.35M
Investing Cash Flow	-1.12M	-1.23M	-2.00M	-1.04M	-1.14M	-1.45M
Financing Cash Flow	-188.82K	-514.95K	-1.29K	288.82K	595.94K	11.86K

Leatt Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.25 is above the 20-day moving average (MA) of 9.20, above the 50-day MA of 9.24, and below the 200-day MA of 10.16, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 62.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.32 is Neutral, 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	71 Outperform	$1.18B	23.12	20.26%	―	10.29%	-3.90%
LEAT	69 Neutral	$59.70M	26.71	4.86%	―	33.89%	―
THRM	62 Neutral	$1.00B	55.16	4.44%	―	-0.10%	-53.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SYPR	52 Neutral	$68.17M	-28.27	-12.14%	―	-13.01%	21.49%
HYLN	49 Neutral	$364.52M	-6.28	-26.21%	―	―	10.52%
INVZ	47 Neutral	$177.87M	-2.53	-86.56%	―	46.09%	46.01%

Leatt Corporate Events

Leatt Reports Strong Q3 2025 Financial Growth

Leatt Corporation reported significant financial growth for the third quarter of 2025, with revenues increasing by 18% to $14.34 million and net income soaring by 366% to $539,256 compared to the same period in 2024. The company attributes this success to improved market conditions, increased demand, and strategic expansion into the ADV market. All product categories experienced double-digit growth, and direct-to-consumer sales rose by 61%. Leatt’s leadership remains optimistic about future growth, supported by a strong balance sheet and ongoing investments in innovative product development and global brand expansion.

The most recent analyst rating on (LEAT) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Leatt stock, see the LEAT Stock Forecast page.