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Saturday Night RORC: GoPro

|Includes: AMBA, CAJ, GoPro (GPRO), NINOY, SNE

It appears that the camera giants such as Canon, Inc. (NYSE: CAJ) and Sony Corporation (NYSE: SNE) fell asleep on the action camera segment. Nikon (OTCPK:NINOY) is just now releasing its action camera, the KeyMission 360.

Research and Development (R&D) comes with cap levels and it's difficult to drive innovation in all directions. GoPro, Inc (NASDAQ: GPRO) has definitely taken a mile where the industry leaders gave an inch.

As a tech IPO, GoPro had captured the histeria of a classic momentum and brand power gadget. The market thought everyone would need it, buy it, buy two, etc. The stock cruized from the $20s PPS to the $80s PPS before it crashed.

In the $10 PPS range this seemed a bit oversold. The excitement had died down and parts maker, Ambarella, Inc. (NASDAQ: AMBA) had showed some declining numbers for the system-on-a-chip (SoC) designs. However, couldn't the stock rise like a phoenix once more?

GoPro chart with close March 4, 2015

The following is a look at 2015 Return on Research Capital (RORC) for GoPro, Inc:

Saturday Night RORC: GPRO

Per the RORC metric for GoPro, one R&D dollar spent in 2014 resulted in $10.67 in gross revenue for 2015. Sony outperformed and is more of a dynasty with the myriads of business outlets it has. Canon and Ambarella ranked second and fourth, respectively.


Saturday Night RORC and other stock analysis by Travis Brown can be viewed at Seeking Alpha. Click the follow button at the top of the page to receive alerts to the author's new work.

Disclosure: I am/we are long GPRO.