Leon's avatar
$10.8m follower assets
Leatt Corporation - The science of Thrill $LEAT
#3 of my substack Under-Followed-Stocks is about $LEAT:
Investment summary:
  • designer and developer of award winning protection gear
  • cutting edge development with 98 patents granted or in process
  • global industry leader in neck brace market
  • Management with skin in the game
  • 3Y Revenue CAGR of 37 % and net income CAGR of 108 %
  • LTM EV/EBIT of 6.2 and P/E of 8.8
You can read the full write-up here:

Simon Handrahan's avatar
good writeup! one thing i’d consider is their neckbrace sales may have peaked and are going to be smaller portion of sales going forward. mips comparison for now is wishful thinking and not sure there is any indication they will go the licensing route although they likely should? very interesting to see how long they can sustain growth. if they continue to gain share and tackle new segments they may end up doing very well from this still small base. hopefully the nevada warehouse allows them to grow us sales in a meaningful way. cheers!
Leon's avatar
Thanks, Simon! Yep, neck braces decreased in the last quarters. In the last surveys i‘ve read i think they had a market share of >60% there. So i think it‘s normal that competitors enter this market and as long as the other segment continue to grow i think that’s fine as beck braces just account for ~12 % now.
Mgmt never saig anything about licensing, so it will not happen soon, but it could be an option once gross-margins continue to decline maybe. Still many options for them for growth imo & and as you said, they are still at a small base 👌🏻