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1. Company Snapshot

1.a. Company Description

Focusrite plc develops and markets hardware and software products primarily for audio professionals and amateur musicians in North America, Europe, the Middle East, Africa, and internationally.It operates through Focusrite, Focusrite Pro, Novation, ADAM Audio, Martin Audio, and Sequential segments.The company provides audio interface and other products for musicians under the Focusrite and Focusrite Pro brands; and products that are used in the creation of electronic music using synthesisers, grooveboxes, controllers, and software and apps under the Novation and Ampify brands.


It also manufactures and distributes professional monitoring and loudspeaker technology under the ADAM Audio brand; performance ready systems for auditoriums under the Martin Audio brand; and analogue synthesizers under the Sequential brand.The company sells its products through distributors, retailers, and system integrators, as well as directly to end users through its e-commerce platform and in-app software.Focusrite plc was founded in 1985 and is headquartered in High Wycombe, the United Kingdom.

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1.b. Last Insights on TUNE

Negative drivers behind Focusrite plc's recent performance include a decline in investor sentiment, with estimated fair value at UK£1.39 based on 2 Stage Free Cash Flow to Equity, suggesting potential overvaluation. Additionally, the company's growth prospects may be overshadowed by global economic uncertainties, as highlighted by weak trade data from China. Furthermore, the UK stock market's recent challenges, including a decline in the FTSE 100 index, may have negatively impacted investor confidence in Focusrite.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Are Investors Undervaluing Focusrite plc (LON:TUNE) By 28%?

Nov -23

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UK Penny Stocks To Watch In November 2025

Nov -06

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At UK£2.25, Is Focusrite plc (LON:TUNE) Worth Looking At Closely?

Nov -05

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Spotlight On 3 UK Penny Stocks With Market Caps Over £40M

Sep -17

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Focusrite's (LON:TUNE) earnings have declined over five years, contributing to shareholders 76% loss

Sep -17

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Stocks end down as Fed policy meeting begins

Sep -16

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3 Promising UK Penny Stocks With Under £2B Market Cap

Aug -07

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3 UK Penny Stocks With Market Caps Over £100M To Watch

Jul -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.04%)

6. Segments

Focusrite

Expected Growth: 9.27%

Focusrite's 9.27% growth driven by increasing demand for high-quality audio equipment, expansion into new markets, and strategic partnerships. The company's strong brand reputation, innovative products, and growing e-commerce presence also contribute to its growth. Additionally, the rise of remote work and virtual events has boosted demand for Focusrite's audio interfaces and other music-making equipment.

Martin Audio

Expected Growth: 9.27%

Martin Audio's 9.27% growth is driven by increasing demand for live sound equipment, expansion into new markets, and strategic partnerships. Focusrite's strong brand reputation and investment in R&D have also contributed to the growth. Additionally, the rise of live events and concerts has fueled demand for high-quality audio equipment, further boosting Martin Audio's sales.

ADAM Audio

Expected Growth: 7.3%

ADAM Audio's 7.3% growth is driven by increasing demand for high-quality monitoring solutions in the music production and post-production industries. Focusrite's strategic expansion into new markets, innovative product offerings, and strong brand reputation contribute to the segment's growth. Additionally, the rise of remote work and virtual collaboration fuels demand for professional audio equipment, further boosting ADAM Audio's sales.

Novation

Expected Growth: 8.5%

Novation's 8.5% growth from Focusrite plc is driven by increasing demand for electronic music production, rising popularity of digital audio workstations, and growing adoption of MIDI controllers. Additionally, Novation's innovative products, such as the Launchkey and Launchpad, have resonated with musicians and producers, contributing to the segment's growth.

Sequential

Expected Growth: 9.95%

Focusrite plc's 9.95% sequential growth is driven by increasing demand for high-quality audio equipment, expansion into new markets, and strategic partnerships. The company's strong brand reputation, innovative products, and efficient supply chain management also contribute to its growth. Additionally, the rise of remote work and virtual events has boosted demand for Focusrite's audio interfaces and other music-making equipment.

Sonnox

Expected Growth: 8.2%

Sonnox's 8.2% growth is driven by increasing demand for high-quality audio plugins, Focusrite's strong brand reputation, and strategic partnerships. The rise of remote music production and post-production also fuels growth, as professionals seek efficient and reliable audio processing solutions. Additionally, Sonnox's continuous innovation and expansion of its product portfolio cater to the evolving needs of the audio industry.

7. Detailed Products

Audio Interfaces

High-quality audio interfaces for recording and playback, connecting microphones and instruments to computers

MIDI Interfaces

MIDI interfaces for connecting MIDI devices to computers, enabling control and communication

Thunderbolt Interfaces

High-speed Thunderbolt interfaces for low-latency audio recording and playback

Studio Monitors

Accurate and reliable studio monitors for mixing and mastering

Headphones

High-quality headphones for monitoring and mixing

Plug-ins and Software

Audio processing plug-ins and software for music production and post-production

Live Sound Solutions

Live sound solutions for concerts, events, and installations

8. Focusrite plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Focusrite plc is medium due to the presence of alternative products in the market, but the company's strong brand reputation and high-quality products reduce the likelihood of customers switching to substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the market, with many small and medium-sized customers, reducing their negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of components, but the company's strong relationships with suppliers and its ability to negotiate prices reduce the suppliers' bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant investment in research and development, manufacturing, and marketing.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.25%
Debt Cost 6.94%
Equity Weight 75.75%
Equity Cost 9.17%
WACC 8.63%
Leverage 32.02%

11. Quality Control: Focusrite plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Profoto

A-Score: 4.5/10

Value: 9.0

Growth: 2.1

Quality: 6.9

Yield: 8.8

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Tivoli

A-Score: 4.3/10

Value: 2.4

Growth: 5.7

Quality: 5.4

Yield: 0.6

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

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Basic-Fit

A-Score: 4.1/10

Value: 5.3

Growth: 7.8

Quality: 2.8

Yield: 0.0

Momentum: 5.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
The Gym Group

A-Score: 3.8/10

Value: 5.5

Growth: 6.6

Quality: 3.4

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Harvia

A-Score: 3.8/10

Value: 1.8

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Focusrite

A-Score: 3.2/10

Value: 6.1

Growth: 3.1

Quality: 4.5

Yield: 3.1

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.25$

Current Price

2.25$

Potential

-0.00%

Expected Cash-Flows