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TTM Technologies (TTMI)
NASDAQ:TTMI
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TTM Technologies
(NASDAQ:TTMI)69Neutral
Positive Factors
Revenue Growth
Q4 revenues increased 14% year over year, above consensus estimates and the high end of guidance.
Strategic Expansion
TTM's new manufacturing site in Malaysia is viewed as a positive catalyst as China-based PCBs designed for hyperscalers migrate to Penang.
Negative Factors
Margins and Facility Ramp-Up
Weaker margins were attributed to headwinds related to the ramp of its new Penang facility, which is expected to reach breakeven later.
TTM Technologies (TTMI) vs. S&P 500 (SPY)
Market Cap
$2.36B
Dividend YieldN/A
Average Volume (3M)821.09K
Price to Earnings (P/E)41.9
Beta (1Y)1.86
Revenue Growth9.41%
EPS GrowthN/A
CountryUS
Employees15,800
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)0.54
Shares Outstanding102,108,640
10 Day Avg. Volume664,069
30 Day Avg. Volume821,094
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.97
Price to Cash Flow (P/CF)6.90
P/FCF Ratio15.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.75Price Target Upside51.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
TTM Technologies Business Overview & Revenue Model
Company DescriptionTTM Technologies, Inc. (TTMI) is a leading global printed circuit board (PCB) manufacturer and provider of electronics manufacturing services. The company operates in the technology and electronics sectors, offering a wide range of products and services that cater to aerospace, defense, automotive, industrial, medical, and telecommunications markets. TTM Technologies is known for its advanced capabilities in producing complex, high-tech circuit board solutions and providing engineering and manufacturing support to meet the needs of its diverse clientele.
How the Company Makes MoneyTTM Technologies generates revenue primarily through the design, manufacture, and sale of printed circuit boards and related products. The company's key revenue streams include sales of advanced technology PCBs, standard PCBs, and backplane assemblies. TTM also offers electronics manufacturing services, which include prototyping, testing, and assembly services. These services are crucial for customers looking to develop and produce electronic systems efficiently. TTM's significant partnerships with major players in the aerospace, automotive, and telecommunications industries contribute to its earnings by ensuring a steady demand for its products and services. Additionally, TTM benefits from long-term contracts and relationships with customers in defense and industrial sectors, providing a stable revenue base.
TTM Technologies Financial Statement Overview
Summary
TTM Technologies shows a solid revenue growth but faces challenges with low net profit margins and return on equity. The balance sheet is strong with low leverage, but cash flow uncertainties exist due to missing data for 2024. Overall, the company is on a growth path but needs to enhance profitability and cash flow management.Income Statement
TTM Technologies shows a solid performance in its income statement, with a revenue growth rate of 9.4% from 2023 to 2024, indicating a positive trajectory. However, the net profit margin as of 2024 was relatively low at 2.3%, which suggests room for improvement in profitability. The gross profit margin improved to 19.5% in 2024, reflecting better cost management. Despite these strengths, the EBIT margin remained moderate at 4.8%, indicating some challenges in operational efficiency.75
Positive
Balance Sheet
The balance sheet of TTM Technologies is stable, with a debt-to-equity ratio of 0.05 in 2024, showing low financial leverage, which is a positive indicator of financial health. The equity ratio stands at a strong 45.0%, suggesting a solid capital structure. However, the return on equity (ROE) was relatively low at 3.6% in 2024, indicating that the company could enhance its efficiency in generating returns for shareholders.70
Positive
Cash Flow
Cash flow analysis reveals certain areas of concern, with free cash flow showing volatility and an absence of operating cash flow data for 2024. Previously, free cash flow grew by 59.1% from 2022 to 2023, but the lack of data for 2024 raises uncertainties about cash flow sustainability. Additionally, the absence of operating cash flow to net income ratios makes it challenging to assess cash generation efficiency.60
Neutral
| Breakdown | ||||
| Dec 2024 | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.44B | 2.23B | 2.50B | 2.25B | 2.11B | Gross Profit |
| 477.38M | 413.27M | 457.96M | 372.01M | 359.02M | EBIT |
| 116.04M | 42.32M | 210.41M | 125.99M | 112.84M | EBITDA |
| 281.59M | 205.91M | 308.13M | 231.59M | 161.88M | Net Income Common Stockholders |
| 56.30M | -18.72M | 94.58M | 54.41M | -16.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 503.93M | 450.21M | 402.75M | 537.68M | 451.56M | Total Assets |
| 3.47B | 3.32B | 3.32B | 3.03B | 2.90B | Total Debt |
| 81.30M | 1.02B | 962.60M | 964.45M | 842.85M | Net Debt |
| -422.63M | 569.65M | 559.85M | 426.77M | 391.29M | Total Liabilities |
| 1.91B | 1.81B | 1.79B | 1.57B | 1.45B | Stockholders Equity |
| 1.56B | 1.51B | 1.54B | 1.46B | 1.44B |
| Cash Flow | Free Cash Flow | |||
| 51.16M | 27.04M | 169.99M | 94.68M | 183.89M | Operating Cash Flow |
| 236.89M | 187.28M | 272.87M | 176.63M | 287.18M | Investing Cash Flow |
| -146.21M | -92.03M | -395.46M | -84.14M | 404.29M | Financing Cash Flow |
| -36.82M | -47.67M | -11.31M | -7.23M | -642.31M |
TTM Technologies Technical Analysis
Negative
22.96
Price Trends
24.97
Negative
24.01
Negative
21.54
Positive
Market Momentum
-0.63
Positive
38.12
Neutral
26.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTMI, the sentiment is Negative. The current price of 22.96 is below the 20-day moving average (MA) of 24.80, below the 50-day MA of 24.97, and above the 200-day MA of 21.54, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTMI.
TTM Technologies Risk Analysis
TTM Technologies disclosed 41 risk factors in its most recent earnings report. TTM Technologies 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
TTM Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $15.14B | 13.26 | 62.69% | 0.23% | -17.83% | 76.43% | |
74 Outperform | $4.19B | 18.49 | 10.55% | ― | -8.92% | -12.11% | |
73 Outperform | $3.36B | 28.93 | 9.27% | ― | -3.53% | -3.90% | |
71 Outperform | $13.79B | 13.95 | 18.45% | ― | -12.94% | 47.70% | |
69 Neutral | $2.36B | 41.92 | 3.66% | ― | 9.41% | ― | |
68 Neutral | $32.08B | 105.17 | 4.71% | 3.12% | -44.31% | -86.74% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
TTMI
TTM Technologies
22.96
8.25
56.08%
FLEX
Flex
34.70
5.92
20.57%
JBL
Jabil
139.95
-7.53
-5.11%
MCHP
Microchip
59.77
-28.60
-32.36%
PLXS
Plexus
124.76
31.26
33.43%
SANM
Sanmina-Sci
76.28
11.58
17.90%
TTM Technologies Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -7.34% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue growth in key markets such as Aerospace and Defense and Data Center Computing. However, challenges were noted in the form of a significant goodwill impairment charge and declines in Automotive and Medical, Industrial, and Instrumentation markets.Highlights
Record Revenue Growth
TTM Technologies achieved a 14% year-on-year revenue growth in Q4 2024, driven by strong demand in Aerospace and Defense, Data Center Computing, and Networking end markets.
Aerospace and Defense Market Performance
Revenues in the Aerospace and Defense market grew 16% year-on-year to an all-time high, with a book-to-bill ratio of 1.14 and a record program backlog of $1.56 billion.
Data Center Growth
Data Center Computing sales represented 22% of total Q4 sales, a 44% year-on-year increase due to demand for Generative AI applications.
Strong Cash Flow and Reduced Debt
Cash flow from operations was $86.1 million, representing over 13% of net sales, and net debt-to-EBITDA leverage was reduced to 1.2 times.
Lowlights
Goodwill Impairment Charge
A $32.6 million goodwill impairment charge related to the RF&S Components segment impacted GAAP operating income.
Declining Automotive Sales
Automotive sales declined 12% year-on-year due to inventory corrections and weak demand, particularly as EV demand stalled and Chinese OEMs gained market share.
Medical, Industrial, and Instrumentation Decline
Sales in the Medical, Industrial, and Instrumentation end market declined 9% year-on-year due to ongoing inventory normalization and lower demand.
Company Guidance
During the fourth quarter of 2024, TTM Technologies Inc. achieved notable financial results, with revenue reaching $651 million, marking a 14% year-over-year increase. This growth was primarily driven by strong performances in the Aerospace and Defense, Data Center Computing, and Networking end markets, although it was partially offset by declines in the Automotive, Medical Industrial, and Instrumentation sectors. The company reported a non-GAAP operating margin of 10.1%, a slight decrease from the previous year's 10.7%, mainly due to startup costs in Penang and increased employee-related expenses. TTM's book-to-bill ratio stood at 1.09, with Aerospace and Defense achieving a ratio of 1.14. A&D accounted for 47% of total fourth-quarter sales, reaching an all-time high with a 16% year-on-year growth. The Data Center Computing sector also saw a significant 44% year-on-year increase, representing 22% of total sales, fueled by demand for Generative AI applications. Meanwhile, the company’s overall EBITDA for the quarter was $108.7 million, or 16.7% of net sales, and it ended the quarter with $503.9 million in cash and cash equivalents. Looking ahead to Q1 2025, TTM projects net sales between $600 million and $640 million and non-GAAP earnings per share between $0.37 and $0.43.TTM Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
TTM Technologies Announces New COO Appointment
Neutral
Feb 18, 2025
On February 17, 2025, TTM Technologies announced a planned succession change in which James P. Walsh will assume the role of Chief Operating Officer on July 1, 2025. Philip Titterton, the current COO, will transition to an advisory position, assisting with special operations projects. Mr. Walsh, who has been with TTM since 2019, brings over 25 years of operations management experience and will receive a comprehensive compensation package. This transition reflects the company’s commitment to maintaining operational leadership and excellence in its industry, ensuring continuity in its strategic initiatives.
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.