Focusrite (TUNE) AI Stock Analysis

• Market Cap: £82.12M
• Dividend Yield: 4.71%
• Average Volume (3M): 143.28K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.14
• Revenue Growth: -11.17%
• EPS Growth: -85.43%
• Country: UK
• Employees: 565
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Leisure
• EPS (TTM): 0.04
• Shares Outstanding: 59,211,640
• 10 Day Avg. Volume: 124,500
• 30 Day Avg. Volume: 143,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.53
• Price to Cash Flow (P/CF): 2.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 355.00p
• Price Target Upside: 140.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Focusrite's overall stock score is impacted by several key factors. The declining financial performance, highlighted by reduced revenue and profitability, is a significant concern. Technical analysis indicates a bearish trend, suggesting ongoing market pressure. While the dividend yield provides some investor relief, the high P/E ratio points to potential overvaluation. To improve the outlook, Focusrite needs to enhance revenue growth and address operational inefficiencies.

Focusrite Business Overview & Revenue Model

Company Description

Focusrite (TUNE) is a leading manufacturer and distributor of high-quality audio equipment, primarily serving musicians, producers, and audio engineers around the world. The company operates in the music technology sector, offering a broad range of products including audio interfaces, microphone preamps, and digital audio converters under brands such as Focusrite, Focusrite Pro, Novation, and ADAM Audio. Focusrite is renowned for its innovation and commitment to enhancing the creative process for recording professionals and hobbyists alike.

How the Company Makes Money

Focusrite generates revenue through the sale of its audio products, which include both hardware and software solutions. The company's core revenue stream comes from its audio interface products, which are widely used by musicians and producers for recording and mixing music. Additionally, sales from other product lines such as synthesizers and studio monitors contribute significantly to the company's earnings. Focusrite also benefits from strategic partnerships with retailers and distributors globally, enhancing its market reach. By maintaining a focus on research and development, the company continues to innovate and capture new market segments, which supports ongoing revenue growth.

Focusrite Financial Statement Overview

Summary

Focusrite faces financial challenges with declining revenue and profitability. While the balance sheet remains stable with moderate leverage, the cash flow statement raises concerns with negative free cash flow. The company needs to address revenue growth and operational cost efficiency to improve financial health.

Income Statement

Focusrite's income statement shows declining revenues from 2022 to 2023, with a significant drop in net income and EBIT margins. The gross profit margin stood at 44.5% for 2023, which indicates adequate cost management. However, the net profit margin decreased to 1.6%, reflecting challenges in maintaining profitability amidst decreasing revenue.

Balance Sheet

The balance sheet is relatively stable with a debt-to-equity ratio of 0.37, indicating moderate leverage. The equity ratio is 57.1%, suggesting a solid equity base. Return on equity has declined due to lower net income, posing a challenge in maximizing shareholder value.

Cash Flow

Cash flow from operations decreased notably, and free cash flow turned negative in 2023, impacting liquidity. The operating cash flow to net income ratio is 4.25, indicating cash generation efficiency, but the free cash flow to net income ratio is negative, reflecting operational cash challenges.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
169.11M	158.52M	178.47M	183.73M	173.94M	130.14M
	Gross Profit
76.48M	70.49M	84.85M	83.28M	84.13M	59.89M
	EBIT
18.00M	5.70M	24.34M	28.66M	35.77M	7.93M
	EBITDA
29.61M	16.77M	36.88M	40.77M	45.92M	16.01M
	Net Income Common Stockholders
11.82M	2.61M	17.80M	24.78M	28.28M	4.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.79M	22.04M	26.79M	12.76M	17.34M	14.97M
	Total Assets
104.09M	202.94M	210.79M	177.53M	117.21M	104.70M
	Total Debt
-303.00K	42.88M	37.92M	21.90M	-248.00K	11.64M
	Net Debt
-19.09M	20.84M	11.14M	9.14M	-17.59M	-3.33M
	Total Liabilities
28.74M	86.99M	92.34M	72.22M	32.87M	47.80M
	Stockholders Equity
75.34M	115.96M	118.45M	105.32M	84.35M	56.90M
Cash Flow		Free Cash Flow
2.33M	-3.14M	11.94M	-4.04M	31.91M	27.00M
	Operating Cash Flow
10.66M	11.10M	26.33M	8.46M	38.52M	36.61M
	Investing Cash Flow
-18.23M	-16.73M	-21.54M	-22.60M	-20.56M	-44.92M
	Financing Cash Flow
4.20M	1.31M	10.19M	8.83M	-15.59M	8.41M

Focusrite Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 147.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TUNE, the sentiment is Negative. The current price of 147.5 is below the 20-day moving average (MA) of 157.53, below the 50-day MA of 175.45, and below the 200-day MA of 257.20, indicating a bearish trend. The MACD of -8.93 indicates Positive momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TUNE.

Focusrite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHG	71 Outperform	£949.78M	24.34	11.62%	2.21%	8.00%	674.47%
TRCS	63 Neutral	£94.99M	192.90	0.72%	0.77%	-1.22%	-92.99%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
SAGA	57 Neutral	£195.53M	―	-127.10%	―	-20.62%	-44.64%
TUNE	49 Neutral	£82.12M	31.46	2.23%	4.71%	-11.17%	-85.43%

Focusrite Corporate Events

Focusrite PLC Announces Change in Major Holdings

Focusrite PLC has announced a change in its major holdings, with Charles Stanley & Co. Limited acquiring a 4.99% voting rights stake in the company. This acquisition could potentially influence Focusrite’s strategic decisions and market positioning, impacting stakeholders and possibly affecting the company’s future operations.

Spark’s Take on GB:TUNE Stock

According to Spark, TipRanks’ AI Analyst, GB:TUNE is a Neutral.

Focusrite’s overall stock score is impacted by several key factors. The declining financial performance, highlighted by reduced revenue and profitability, is a significant concern. Technical analysis indicates a bearish trend, suggesting ongoing market pressure. While the dividend yield provides some investor relief, the high P/E ratio points to potential overvaluation. To improve the outlook, Focusrite needs to enhance revenue growth and address operational inefficiencies.

To see Spark’s full report on GB:TUNE stock, click here.

Liontrust Increases Stake in Focusrite PLC

Focusrite PLC has announced a change in the voting rights held by Liontrust Investment Partners LLP, with the latter increasing its stake to 15.0697% of the total voting rights. This acquisition of voting rights indicates a strengthened position for Liontrust within Focusrite, potentially impacting the company’s governance and strategic decisions.

Spark’s Take on GB:TUNE Stock

According to Spark, TipRanks’ AI Analyst, GB:TUNE is a Neutral.

Focusrite’s overall stock score is impacted by several key factors. The declining financial performance, highlighted by reduced revenue and profitability, is a significant concern. Technical analysis indicates a bearish trend, suggesting ongoing market pressure. While the dividend yield provides some investor relief, the high P/E ratio points to potential overvaluation. To improve the outlook, Focusrite needs to enhance revenue growth and address operational inefficiencies.

To see Spark’s full report on GB:TUNE stock, click here.

Liontrust Increases Stake in Focusrite PLC

Focusrite PLC, a UK-based company, has experienced a change in its shareholder structure as Liontrust Investment Partners LLP has adjusted its voting rights in the company. The notification indicates that Liontrust now holds 15.0697% of the voting rights, a slight increase from their previous position. This adjustment in voting rights could impact Focusrite’s governance and strategic decisions, reflecting Liontrust’s continued interest and influence in the company’s operations.

Spark’s Take on GB:TUNE Stock

According to Spark, TipRanks’ AI Analyst, GB:TUNE is a Neutral.

Focusrite’s overall stock score is impacted by several key factors. The declining financial performance, highlighted by reduced revenue and profitability, is a significant concern. Technical analysis indicates a bearish trend, suggesting ongoing market pressure. While the dividend yield provides some investor relief, the high P/E ratio points to potential overvaluation. To improve the outlook, Focusrite needs to enhance revenue growth and address operational inefficiencies.

To see Spark’s full report on GB:TUNE stock, click here.

Focusrite Announces Change in Major Shareholder Holdings

Focusrite Plc has announced a change in its major holdings, with Sanford DeLand Asset Management Ltd reducing its voting rights from 5.04% to 4.98%. This change, effective from April 1, 2025, reflects a slight adjustment in the ownership structure of Focusrite, potentially impacting the company’s decision-making processes and shareholder dynamics.

Spark’s Take on GB:TUNE Stock

According to Spark, TipRanks’ AI Analyst, GB:TUNE is a Neutral.

Focusrite’s overall stock score is impacted by several key factors. The declining financial performance, highlighted by reduced revenue and profitability, is a significant concern. Technical analysis indicates a bearish trend, suggesting ongoing market pressure. While the dividend yield provides some investor relief, the high P/E ratio points to potential overvaluation. To improve the outlook, Focusrite needs to enhance revenue growth and address operational inefficiencies.

To see Spark’s full report on GB:TUNE stock, click here.

Focusrite to Announce Interim Results and Host Stakeholder Briefings

Focusrite plc is set to announce its Interim Results for the six months ended 28 February 2025 on 29 April 2025. The company will host a live online briefing for analysts and a separate presentation for investors, indicating a proactive approach to engaging with stakeholders and maintaining transparency in its financial communications.

Focusrite Reports Steady Growth Amid Market Realignment

Focusrite plc reported that its performance for the first half of the fiscal year 2025 was in line with expectations, with revenue expected to be at least £80 million, up from £76.9 million in the same period last year. The Content Creation division saw a growth of approximately 5%, while the Audio Reproduction division experienced a 6% decline due to market realignment. Despite compressed gross margins due to elevated freight costs and product mix, the company anticipates improvements through pricing adjustments and new product introductions. Net debt increased to £18 million, reflecting dividend payments and increased stock in anticipation of US tariffs, but is expected to improve in the latter half of the year. Focusrite maintains a strong market position in a normalizing Content Creation market and plans to navigate potential economic challenges, with expectations for the full year remaining unchanged.

Focusrite PLC Announces Change in Major Holdings

Focusrite PLC, a company involved in the audio technology industry, has announced a change in its major holdings. Stancroft Trust Ltd, based in London, has crossed a threshold by acquiring 3.22% of voting rights in Focusrite PLC. This acquisition could potentially impact Focusrite’s shareholder dynamics and influence future corporate decisions.

Focusrite PLC Announces Change in Major Holdings

Focusrite PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP increasing its voting rights in the company to 15.0697%. This adjustment in ownership reflects a slight increase from their previous position, indicating a strategic move by Liontrust to strengthen its influence within Focusrite. This change may impact Focusrite’s strategic decisions and could have implications for its stakeholders, as it suggests increased confidence from a significant investor.

Focusrite plc Reports Steady Trading and Strategic Focus Amid Market Challenges

Focusrite plc announced that its trading performance for the first six months of the current period is in line with expectations. The Content Creation division experienced strong demand across its product range, despite planned de-stocking in the US. The Audio Reproduction division faces challenges in a softening market, but maintains a strong order pipeline supported by a broader product portfolio. The company continues to focus on cost management, maximizing margins, and strategic investments to support future growth.