Turtle Beach (TBCH) AI Stock Analysis

• Market Cap: $292.93M
• Dividend Yield: N/A
• Average Volume (3M): 241.55K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 2.11
• Revenue Growth: 44.41%
• EPS Growth: N/A
• Country: US
• Employees: 262
• Sector: Technology
• Sector Strength: 90
• Industry: Consumer Electronics
• EPS (TTM): 0.00
• Shares Outstanding: 20,146,400
• 10 Day Avg. Volume: 190,573
• 30 Day Avg. Volume: 241,551
• PEG Ratio: -3.53
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.45
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.31
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: $17.70
• Price Target Upside: 21.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: ―

Turtle Beach's stock score reflects its strong financial recovery and positive earnings outlook. The company has demonstrated robust revenue and profitability growth, supported by strategic initiatives and market positioning. However, technical indicators suggest caution, and potential tariff impacts present risks. Valuation remains attractive, indicating potential for stock appreciation.

Positive Factors

Financial Performance

TBCH reported strong results with revenue up 14% year-over-year, beating estimates and demonstrating solid growth driven by incremental PDP sales.

Market Position

TBCH maintained its leadership in the gaming headset market, outpacing the gaming controller/gamepad market growth.

Operations Strategy

TBCH has significantly transitioned production out of China to Vietnam, reducing exposure to tariff impacts and having mitigation plans in place.

Negative Factors

Guidance

Management lowered 2025 guidance for revenue and adjusted EBITDA due to industry headwinds and uncertainty around tariffs, indicating challenges in the upcoming year.

Sales Forecast

The GTA 6 release date delays a significant uptick of sales from this coming holiday period to Q2 – Q4 next year.

Tariffs Impact

Tariffs in China create a material impact on Turtle Beach, given that over 75% of its revenue is from domestic sales, while roughly 50% of its manufacturing is from China.

Turtle Beach Business Overview & Revenue Model

Company Description

Turtle Beach Corporation operates as an audio technology company in North America, Europe, the Middle East, and the Asia Pacific. It develops, commercializes, and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets, and mobile devices under the Turtle Beach brand. The company also offers gaming headsets, keyboards, mice, and other accessories for the personal computer peripherals market under the ROCCAT brand. In addition, it provides game controllers, and gaming flight simulation and racing simulation accessories, as well as USB and analog microphones for gamers, streamers, professionals, and students. The company serves retailers and distributors. Turtle Beach Corporation was founded in 1975 and is headquartered in White Plains, New York.

How the Company Makes Money

Turtle Beach generates revenue primarily through the sale of its gaming headsets and related audio accessories. The company markets and sells its products through various channels, including direct-to-consumer sales via its website, as well as through major retailers and online platforms. Key revenue streams include sales from its flagship Turtle Beach gaming headsets and its ROCCAT brand of PC gaming accessories. Strategic partnerships with gaming console manufacturers and collaborations with esports organizations further bolster sales. The company also benefits from the growing popularity of gaming and esports, which drives demand for high-performance audio equipment.

Turtle Beach Financial Statement Overview

Summary

Turtle Beach demonstrates a commendable financial recovery with robust revenue growth and improved profitability. Its balance sheet is stable, supported by a solid equity base and reasonable debt levels. Cash flow improvements indicate a positive shift in operational efficiency, though consistency in free cash flow is needed. Overall, the financial health is strong with positive trends in key financial metrics.

Income Statement

Turtle Beach shows a strong recovery in revenue with a substantial growth rate from the previous year. The company has improved its gross and net profit margins significantly, turning a previous net loss into a profit. However, the EBIT and EBITDA margins show room for improvement, indicating potential efficiency gains. The revenue growth trajectory is positive, contributing to a robust income statement performance.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a satisfactory debt-to-equity ratio. The return on equity has improved with the return to profitability, but the equity ratio indicates a moderate reliance on liabilities. Overall, the balance sheet demonstrates stability with a balanced asset structure, though there are opportunities to optimize leverage.

Cash Flow

While free cash flow growth has been inconsistent, the company has managed to reverse previous negative operating cash flows to positive figures, showcasing improved cash generation capabilities. The operating and free cash flow to net income ratios are favorable, indicating effective cash conversion, but further consistency in free cash flow growth could enhance performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	380.82M	372.77M	258.12M	240.17M	366.35M	360.09M
Gross Profit	134.56M	128.98M	75.50M	49.19M	128.38M	133.79M
EBITDA	40.84M	30.13M	-12.00M	-47.42M	25.84M	58.17M
Net Income	15.36M	16.18M	-17.68M	-59.55M	17.72M	38.75M
Balance Sheet
Total Assets	247.02M	298.86M	149.97M	163.39M	230.50M	203.45M
Cash, Cash Equivalents and Short-Term Investments	11.68M	12.99M	18.73M	11.40M	37.72M	46.68M
Total Debt	53.39M	96.28M	0.00	19.05M	0.00	0.00
Total Liabilities	126.15M	178.26M	64.89M	74.45M	89.14M	87.05M
Stockholders Equity	120.87M	120.60M	85.08M	88.94M	141.37M	116.40M
Cash Flow
Free Cash Flow	14.61M	847.00K	24.89M	-45.40M	-5.95M	45.39M
Operating Cash Flow	18.96M	5.76M	27.04M	-41.85M	-327.00K	51.05M
Investing Cash Flow	-3.63M	-82.21M	-2.16M	-3.55M	-8.12M	-5.66M
Financing Cash Flow	-21.81M	71.05M	-17.85M	19.71M	-56.00K	-7.41M

Turtle Beach Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBCH, the sentiment is Positive. The current price of 14.54 is above the 20-day moving average (MA) of 13.80, above the 50-day MA of 13.03, and below the 200-day MA of 14.87, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 94.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TBCH.

Turtle Beach Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	68 Neutral	$292.93M	20.05	12.49%	―	44.41%	―
SONO	64 Neutral	$1.35B	―	-15.80%	―	-5.24%	-67.92%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
KOSS	55 Neutral	$53.25M	―	-2.44%	―	-0.34%	32.41%
GPRO	53 Neutral	$235.48M	―	-83.57%	―	-20.88%	62.21%
UEIC	48 Neutral	$84.02M	―	-13.55%	―	-2.15%	52.80%
VUZI	43 Neutral	$177.64M	―	-136.11%	―	-46.37%	-34.50%

Turtle Beach Corporate Events

Turtle Beach Appoints New CFO for Growth Strategy

On January 27, 2025, Turtle Beach Corporation announced the retirement of John Hanson as Chief Financial Officer and the appointment of Mark Weinswig as his successor, effective February 3, 2025. Hanson will serve as a senior advisor during a six-month transition period. Weinswig, with over 25 years of financial leadership experience, previously served as CFO at Ouster and Velodyne Lidar, and his strategic expertise is expected to support Turtle Beach’s growth strategy and enhance shareholder value.