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M-tron Industries Inc (MPTI)
:MPTI
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M-tron Industries Inc
(NYSE MKT:MPTI)
77Outperform
M-tron Industries Inc (MPTI) vs. S&P 500 (SPY)
Market Cap
$117.38M
Dividend YieldN/A
Average Volume (3M)66.70K
Price to Earnings (P/E)15.7
Beta (1Y)1.58
Revenue Growth19.05%
EPS Growth114.23%
CountryUS
Employees226
SectorTechnology
Sector Strength40
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.70
Shares Outstanding2,911,165
10 Day Avg. Volume97,551
30 Day Avg. Volume66,699
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)2.78
Price to Cash Flow (P/CF)14.50
P/FCF Ratio17.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.00Price Target Upside64.86% Upside
Rating ConsensusHold
Number of Analyst Covering1
M-tron Industries Inc Business Overview & Revenue Model
Company DescriptionM-tron Industries Inc (MPTI) is a technology company that specializes in the design, manufacture, and marketing of frequency control and timing devices. These products are critical components in a range of applications including telecommunications, military, instrumentation, and industrial markets. The company is known for its high-performance solutions that meet the stringent requirements of its clients.
How the Company Makes MoneyM-tron Industries Inc generates revenue primarily through the sale of its frequency control and timing devices. The company's products are tailored to meet the specific needs of industries that demand precision and reliability. MPTI's revenue streams include direct sales to end-users, as well as partnerships with distributors and OEMs (Original Equipment Manufacturers) who integrate MPTI's products into their own systems. Additionally, the company may engage in custom design and development contracts, providing bespoke solutions for unique industry requirements. MPTI's financial performance is influenced by factors such as technological advancements, the demand in sectors like telecommunications and defense, and their ability to maintain competitive pricing and high-quality standards.
M-tron Industries Inc Financial Statement Overview
Summary
M-tron Industries Inc presents a strong financial position with robust revenue growth, high profitability margins, stable capital structure, and excellent cash flow generation. The company's low leverage and high equity ratio enhance its financial stability, positioning it well for future growth and resilience against potential risks.Income Statement
M-tron Industries Inc has shown strong revenue growth with a TTM increase of 14.1% compared to the previous year. The Gross Profit Margin for TTM is robust at 45.3%, indicating effective cost management. Net Profit Margin has improved to 11.9% TTM, signifying enhanced profitability. EBIT and EBITDA margins for TTM are strong at 14.4% and 15.8%, respectively, demonstrating operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet indicates stability with a low debt-to-equity ratio of 0.0003, reflecting minimal leverage risk. The Return on Equity (ROE) is strong at 21.2% TTM, showing effective use of equity to generate profits. The equity ratio remains high at 83.2% TTM, indicating a solid capital structure with significant shareholder equity backing.78
Positive
Cash Flow
M-tron Industries Inc exhibits strong cash flow performance with a significant TTM Free Cash Flow growth of 80.9%. The Operating Cash Flow to Net Income ratio is healthy at 1.41, demonstrating efficient cash generation relative to net earnings. The Free Cash Flow to Net Income ratio is also favorable at 1.01, suggesting good conversion of earnings to cash.80
Positive
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 46.98M | 41.17M | 31.84M | 26.69M | 29.98M | Gross Profit |
| 21.28M | 16.77M | 11.35M | 9.34M | 10.30M | EBIT |
| 6.76M | 4.30M | 2.88M | 2.11M | 3.03M | EBITDA |
| 7.43M | 5.25M | 3.60M | 2.67M | 3.47M | Net Income Common Stockholders |
| 5.57M | 3.49M | 1.80M | 1.58M | 2.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.41M | 3.91M | 926.00K | 2.63M | 2.46M | Total Assets |
| 26.78M | 24.30M | 19.27M | 20.01M | 17.92M | Total Debt |
| 10.00K | 26.00K | 76.00K | 145.00K | 132.00K | Net Debt |
| -5.40M | -3.89M | -850.00K | -2.49M | -2.32M | Total Liabilities |
| 5.07M | 4.41M | 4.93M | 3.16M | 2.94M | Stockholders Equity |
| 21.71M | 19.89M | 14.34M | 16.85M | 14.97M |
| Cash Flow | Free Cash Flow | |||
| 5.65M | 3.12M | 1.11M | 1.86M | 3.50M | Operating Cash Flow |
| 7.84M | 4.41M | 2.04M | 2.96M | 3.91M | Investing Cash Flow |
| -2.19M | -1.28M | -936.00K | -1.10M | -407.00K | Financing Cash Flow |
| 288.00K | -137.00K | -2.81M | -1.68M | -3.91M |
M-tron Industries Inc Technical Analysis
Negative
42.46
Price Trends
45.33
Negative
51.45
Negative
45.14
Negative
Market Momentum
-0.18
Negative
57.68
Neutral
75.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPTI, the sentiment is Negative. The current price of 42.46 is above the 20-day moving average (MA) of 41.00, below the 50-day MA of 45.33, and below the 200-day MA of 45.14, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPTI.
M-tron Industries Inc Risk Analysis
M-tron Industries Inc disclosed 30 risk factors in its most recent earnings report. M-tron Industries Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
M-tron Industries Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $117.38M | 15.72 | 29.85% | ― | 19.05% | 114.23% | |
75 Outperform | $2.93B | 22.99 | 16.85% | ― | 20.69% | 17.89% | |
67 Neutral | $1.08B | 19.05 | 10.99% | 0.44% | -6.36% | -0.89% | |
63 Neutral | $270.98M | 27.73 | 3.04% | ― | -13.67% | -60.88% | |
61 Neutral | $1.81B | 33.19 | 3.66% | ― | 9.41% | ― | |
57 Neutral | $18.52B | 9.81 | -13.96% | 2.71% | 5.07% | -23.65% | |
46 Neutral | $622.71M | ― | -7.73% | ― | -36.86% | -351.11% |
* Technology Sector Average
Performance Comparison
MPTI
M-tron Industries Inc
42.46
15.39
56.85%
COHU
Cohu
13.92
-19.13
-57.88%
CTS
CTS
35.90
-10.44
-22.53%
OSIS
OSI Systems
178.77
36.74
25.87%
TTMI
TTM Technologies
17.97
3.28
22.33%
VPG
Vishay Precision Group
20.41
-14.35
-41.28%
M-tron Industries Inc Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 2.24% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, significant contract wins, and strategic plans for further growth through partnerships and acquisitions. However, there are concerns about potential defense spending cuts and the need to revise capital distribution strategies due to stock volatility. The positive aspects and growth opportunities outweigh the concerns, indicating a strong strategic direction.Highlights
Increase in Revenue
Preliminary revenues for Q4 show a year-on-year increase between 17.9% and 20.7%. The fiscal year revenues are expected to be between $48.9 million and $49.2 million compared to $41.168 million in 2023, representing an annual growth rate of between 18.8% to 19.5%.
Strong Gross Margins
Quarterly gross margin is expected to be in the range of just shy of 46% to 48.5%, up 200 basis points from the fourth quarter of 2023.
Significant Contract Wins
Two big $10 million-plus contract wins were announced at the end of 2024 and the beginning of 2025, strengthening the pipeline and potentially leading to more contracts in the coming quarters.
Strategic M&A and Partnership Plans
Plans for inorganic growth through partnerships and acquisitions to enhance market position and expand product offerings, with a focus on acquiring companies with positive cash flow and moderate to strong revenue growth.
Connectivity Partnership
Investment in the Connectivity Partnership to explore new market opportunities and potential acquisitions, with anticipated significant investment returns.
Employee Ownership and Incentives
At the end of 2023, 183,000 options were distributed to employees based on tenure, promoting strong employee ownership and motivation.
Lowlights
Concerns Over Defense Spending Cuts
Despite no slow-down in customer engagement, there are discussions in Washington about potential defense cuts which could pose a risk.
Volatility and Revision of Capital Strategy
The company had to cancel a rights offering due to stock volatility and stakeholder feedback, opting instead for a warrant dividend to distribute value to shareholders.
Company Guidance
During the investor update call, Cameron Pforr, the Interim CEO of M-tron, detailed a comprehensive overview of the company's recent financial performance and strategic direction. The preliminary earnings release for Q4 and the annual results for 2024 showed a significant year-on-year revenue increase between 17.9% and 20.7% for the quarter, and an annual growth rate ranging from 18.8% to 19.5%. Gross margins for the quarter stood around 40%, with the annual figure exceeding 46%, marking a 1,000 basis point improvement over three years. The company remains debt-free, with around 2.9 million shares outstanding, and expects cash to accumulate significantly throughout the fiscal year. Recent contract wins and a robust pipeline suggest continued strong revenue growth, with defense contracts being a major contributor. M-tron is also exploring inorganic growth opportunities through partnerships and acquisitions, aiming for accretive transactions that contribute to EBITDA. The company has transitioned from a planned rights offering to a warrant dividend to distribute value to shareholders, with the warrants set to trade on the New York Stock Exchange.M-tron Industries Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
M-tron Industries Reports Record 2024 Financial Results
Positive
Mar 27, 2025
M-tron Industries, Inc. reported robust financial results for the fourth quarter and full fiscal year 2024, with record revenues, gross margins, and earnings. The company achieved an 18.9% increase in quarterly revenues and a 19.1% rise in annual revenues, driven by strong defense program shipments. Net income per diluted share surged significantly, reflecting improved manufacturing efficiencies and a higher margin product mix. The company’s performance highlights its strategic focus on growth, particularly in the Aerospace and Defense sector, which saw over 40% growth year-over-year. Despite a slight decrease in backlog, Mtron’s financial position was strengthened, ending the year with $12.6 million in cash and cash equivalents.
Executive/Board ChangesPrivate Placements and Financing
M-tron Industries Announces Rights Offering Post CEO Resignation
Neutral
Feb 21, 2025
On February 17, 2025, Michael J. Ferrantino, Jr. resigned as CEO and director of M-tron Industries to pursue opportunities with the Connectivity Partnership, with Cameron Pforr stepping in as the interim CEO. Concurrently, M-tron announced a rights offering on February 20, 2025, allowing shareholders to purchase additional common stock, which may influence their market positioning and shareholder value.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
M-tron Industries Announces Leadership Change Amid Strategic Moves
Neutral
Feb 20, 2025
On February 20, 2025, M-tron Industries announced several strategic initiatives, including leadership changes with Cameron Pforr taking on the role of Interim CEO, succeeding Michael J. Ferrantino, Jr. The company plans to announce its preliminary financial results for the fourth quarter and full fiscal year 2024 on February 26, 2025, and will hold an investor call the following day. M-tron is also offering subscription rights to its shareholders, which they believe will distribute value and accelerate growth. The company is strategically positioning itself for growth through organic business lines and potential mergers and acquisitions, leveraging its defense sector expertise.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.