Turtle Beach Corporation (HEAR) | Investment Case

1. Company Snapshot

1.a. Company Description

Turtle Beach Corporation operates as an audio technology company.It develops, commercializes, and markets gaming headset solutions for various platforms, including video game and entertainment consoles, personal computers, handheld consoles, tablets, and mobile devices under the Turtle Beach brand.The company also offers gaming headsets, keyboards, mice, mousepads, and other accessories for the personal computer peripherals market under the brand of ROCCAT, as well as digital USB and analog microphones under the Neat Microphones brand.

It serves retailers, distributors, and other customers in North America, the United Kingdom, Europe, and internationally.The company was founded in 1975 and is headquartered in White Plains, New York.

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1.b. Last Insights on HEAR

Turtle Beach's evolution as a gaming accessories provider is reflected in its updated ticker symbol to "TBCH". The acquisition of PDP boosted sales and improved financials, with 2024 sales rising spectacularly and the company becoming profitable again. Despite industry challenges, Turtle Beach appears undervalued at $13 per share, with strong earnings potential and manageable debt, making it an attractive investment, according to recent analysis.

1.c. Company Highlights

Last Price	17.8
Change Percentage	2.48%
Open	17.58
Previous Close	17.37
Market Cap ( Millions)	357
Volume	29518
Year High	19.3
Year Low	9.85
M A 50	17.55
M A 200	15.77

FCF Yield	9.44%
Dividend Yield	0.00%
ROE	15.58%
Debt / Equity	7.75%
Net Debt / EBIDTA	-9.40%
Price To Book	3.23
Price Earnings Ratio	19.57
Price To FCF	10.59
Price To sales	1.03
EV / EBITDA	9.02

2. Transcript Summary

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3. NewsRoom

Turtle Beach Corporation, Together With The Donerail Group, Announces $20 Million Share Repurchase From Shareholder

Aug -15

Source: globenewswire.com

Turtle Beach Corporation Completes Debt Refinancing

Aug -04

Source: globenewswire.com

Turtle Beach Corporation (TBCH) Q1 2025 Earnings Call Transcript

May -09

Source: seekingalpha.com

Turtle Beach: Looking Cheap As It Delivers On Promises

Mar -14

Source: seekingalpha.com

Turtle Beach Corporation Announces Ticker Symbol Update to “TBCH”

Jan -06

Source: globenewswire.com

Turtle Beach Corporation (HEAR) Q3 2024 Earnings Call Transcript

Nov -08

Source: seekingalpha.com

Turtle Beach (HEAR) Lags Q3 Earnings Estimates

Nov -08

Source: zacks.com

Turtle Beach Corporation Announces Third Quarter 2024 Results and Raises Full Year Outlook

Nov -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.95%)

6. Segments

Gaming Accessories

Expected Growth: 9.95%

Turtle Beach Corporation's 9.95% growth in gaming accessories is driven by increasing demand for immersive gaming experiences, rising popularity of esports, and growing adoption of next-generation consoles. Additionally, the company's focus on innovation, quality, and affordability has enabled it to capture market share and expand its customer base.

7. Detailed Products

Gaming Headsets

Turtle Beach's gaming headsets provide immersive audio and crystal-clear communication for gamers of all levels.

Recon Series

The Recon Series offers affordable, high-quality gaming headsets with advanced features like flip-up mics and surround sound.

Stealth Series

The Stealth Series provides premium gaming headsets with advanced features like wireless connectivity and long-lasting battery life.

Atlas Series

The Atlas Series offers professional-grade gaming headsets with advanced features like 3D audio and customizable audio presets.

Stream Mic

The Stream Mic is a professional-grade USB microphone designed for streaming and online content creation.

RODECaster Pro

The RODECaster Pro is a professional-grade audio mixer and interface designed for podcasting and online content creation.

8. Turtle Beach Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Turtle Beach Corporation faces moderate threat from substitutes, as gamers can opt for alternative gaming headsets from competitors or choose to use speakers or TV audio instead.

Bargaining Power Of Customers

Turtle Beach Corporation has a diverse customer base, and no single customer has significant bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Turtle Beach Corporation relies on a few key suppliers for components, giving them some bargaining power, but the company's size and diversification mitigate this threat.

Threat Of New Entrants

Entering the gaming headset market requires significant investment in R&D, manufacturing, and marketing, making it difficult for new entrants to compete with established players like Turtle Beach Corporation.

Intensity Of Rivalry

The gaming headset market is highly competitive, with several established players, including HyperX, SteelSeries, and Razer, leading to intense rivalry and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.33%
Debt Cost	6.39%
Equity Weight	91.67%
Equity Cost	15.01%
WACC	14.29%
Leverage	9.09%

11. Quality Control: Turtle Beach Corporation passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Emerson Radio

A-Score: 4.4/10

Value: 9.4

Growth: 2.9

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

Sonos

A-Score: 4.0/10

Value: 4.0

Growth: 3.6

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

Turtle Beach

A-Score: 3.9/10

Value: 5.6

Growth: 4.2

Quality: 6.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

Koss

A-Score: 3.3/10

Value: 5.9

Growth: 2.1

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

Universal Electronics

A-Score: 2.9/10

Value: 10.0

Growth: 0.9

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

VIZIO

A-Score: 2.6/10

Value: 3.2

Growth: 1.9

Quality: 2.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.08%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

14.29%

Turtle Beach Corporation - US9004502061

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on HEAR

1.c. Company Highlights

Lower Growth

Stable Momentum

Fairly Valued

Earnings Beats

Revenues Beats

Earnings Miss

Lower Quality

Strong Momentum

Revenues Miss

Expensive

Average Quality

Average Yield

Medium Volatility

Average Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.95%)

6. Segments

Gaming Accessories

Expected Growth: 9.95%

7. Detailed Products

Gaming Headsets

Recon Series

Stealth Series

Atlas Series

Stream Mic

RODECaster Pro

8. Turtle Beach Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Turtle Beach Corporation passed 3 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.8$

Current Price

17.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA