94.61 USD
-0.02 (-0.02%)
96.96 USD
+2.35 (+2.48%)
We assign a fundamental rating of 5 out of 10 to TTMI. TTMI was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While TTMI has a great profitability rating, there are some minor concerns on its financial health. TTMI shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- TTMI had positive earnings in the past year.
- TTMI had a positive operating cash flow in the past year.
- TTMI had positive earnings in 4 of the past 5 years.
- In the past 5 years TTMI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TTMI (3.55%) is better than 65.04% of its industry peers.
- TTMI's Return On Equity of 7.75% is fine compared to the rest of the industry. TTMI outperforms 66.67% of its industry peers.
- With a decent Return On Invested Capital value of 6.54%, TTMI is doing good in the industry, outperforming 69.11% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TTMI is below the industry average of 8.87%.
- The last Return On Invested Capital (6.54%) for TTMI is above the 3 year average (4.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 7.75% | ||
| ROIC | 6.54% |
ROA(3y)1.3%
ROA(5y)2.37%
ROE(3y)2.84%
ROE(5y)4.91%
ROIC(3y)4.37%
ROIC(5y)4.21%
1.3 Margins
- Looking at the Profit Margin, with a value of 4.74%, TTMI is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
- TTMI's Profit Margin has improved in the last couple of years.
- TTMI has a Operating Margin of 8.37%. This is in the better half of the industry: TTMI outperforms 74.80% of its industry peers.
- TTMI's Operating Margin has improved in the last couple of years.
- The Gross Margin of TTMI (20.21%) is worse than 65.85% of its industry peers.
- TTMI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.37% | ||
| PM (TTM) | 4.74% | ||
| GM | 20.21% |
OM growth 3Y4.14%
OM growth 5Y3.95%
PM growth 3Y-1.6%
PM growth 5Y3.55%
GM growth 3Y5.71%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TTMI is destroying value.
- TTMI has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for TTMI has been reduced compared to 5 years ago.
- The debt/assets ratio for TTMI has been reduced compared to a year ago.
2.2 Solvency
- TTMI has an Altman-Z score of 4.50. This indicates that TTMI is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.50, TTMI is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
- The Debt to FCF ratio of TTMI is 26.05, which is on the high side as it means it would take TTMI, 26.05 years of fcf income to pay off all of its debts.
- TTMI has a Debt to FCF ratio (26.05) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.55 indicates that TTMI is somewhat dependend on debt financing.
- TTMI has a worse Debt to Equity ratio (0.55) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 26.05 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.77
WACC8.45%
2.3 Liquidity
- TTMI has a Current Ratio of 1.94. This is a normal value and indicates that TTMI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.94, TTMI is doing worse than 61.79% of the companies in the same industry.
- TTMI has a Quick Ratio of 1.66. This is a normal value and indicates that TTMI is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.66, TTMI perfoms like the industry average, outperforming 50.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
- TTMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.61%, which is quite impressive.
- Measured over the past 5 years, TTMI shows a small growth in Earnings Per Share. The EPS has been growing by 7.89% on average per year.
- The Revenue has grown by 17.88% in the past year. This is quite good.
- Measured over the past years, TTMI shows a small growth in Revenue. The Revenue has been growing by 2.75% on average per year.
EPS 1Y (TTM)54.61%
EPS 3Y10.42%
EPS 5Y7.89%
EPS Q2Q%63.41%
Revenue 1Y (TTM)17.88%
Revenue growth 3Y2.8%
Revenue growth 5Y2.75%
Sales Q2Q%22.09%
3.2 Future
- The Earnings Per Share is expected to grow by 29.29% on average over the next years. This is a very strong growth
- TTMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.68% yearly.
EPS Next Y45.41%
EPS Next 2Y32.34%
EPS Next 3Y29.29%
EPS Next 5YN/A
Revenue Next Year19.15%
Revenue Next 2Y15.52%
Revenue Next 3Y15.68%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 40.26, which means the current valuation is very expensive for TTMI.
- TTMI's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.82. TTMI is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 31.59, the valuation of TTMI can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as TTMI.
- TTMI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.26 | ||
| Fwd PE | 31.59 |
4.2 Price Multiples
- TTMI's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 273.07 | ||
| EV/EBITDA | 26.99 |
4.3 Compensation for Growth
- TTMI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of TTMI may justify a higher PE ratio.
- TTMI's earnings are expected to grow with 29.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)5.11
EPS Next 2Y32.34%
EPS Next 3Y29.29%
5. Dividend
5.1 Amount
- TTMI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TTM TECHNOLOGIES / TTMI FAQ
Can you provide the ChartMill fundamental rating for TTM TECHNOLOGIES?
ChartMill assigns a fundamental rating of 5 / 10 to TTMI.
Can you provide the valuation status for TTM TECHNOLOGIES?
ChartMill assigns a valuation rating of 3 / 10 to TTM TECHNOLOGIES (TTMI). This can be considered as Overvalued.
How profitable is TTM TECHNOLOGIES (TTMI) stock?
TTM TECHNOLOGIES (TTMI) has a profitability rating of 7 / 10.
What is the financial health of TTM TECHNOLOGIES (TTMI) stock?
The financial health rating of TTM TECHNOLOGIES (TTMI) is 4 / 10.
What is the expected EPS growth for TTM TECHNOLOGIES (TTMI) stock?
The Earnings per Share (EPS) of TTM TECHNOLOGIES (TTMI) is expected to grow by 45.41% in the next year.