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TTM Technologies (TTMI)
NASDAQ:TTMI
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TTM Technologies
(NASDAQ:TTMI)
70Outperform
Positive Factors
Earnings
Q1 revenues and EPS were both solidly above the high end of guidance.
Market Expansion
TTMI's new manufacturing site in Malaysia is viewed as a longer-term positive catalyst as China-based PCBs designed for hyperscalers migrate to Penang.
Strategic Position
Analyst reaffirms a Buy recommendation, indicating confidence in the company's strategic position and market prospects.
Negative Factors
Automotive Industry Challenges
There are concerns about macro pressures in the automotive and Medical Industry & Instrumentation sectors, including negative data in the semiconductor test market.
Automotive Segment Decline
The Automotive segment, representing 13% of revenues, is likely to decline for a third consecutive year.
Margin Pressures
Weaker margins were attributed to headwinds related to the ramp of its new Penang facility, which is expected to reach breakeven later in the year.
TTM Technologies (TTMI) vs. S&P 500 (SPY)
Market Cap
$2.55B
Dividend YieldN/A
Average Volume (3M)740.35K
Price to Earnings (P/E)33.6
Beta (1Y)1.92
Revenue Growth11.65%
EPS GrowthN/A
CountryUS
Employees16,400
SectorTechnology
Sector Strength65
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.50
Shares Outstanding101,621,160
10 Day Avg. Volume867,418
30 Day Avg. Volume740,346
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.08
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.77
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside34.98% 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 presents a mixed financial picture. The income statement indicates growth in revenue and gross profit, with a solid revenue increase of 9.4% and improved gross profit margin at 19.5%. However, the net profit margin is low at 2.3% and EBIT margin at 4.8%, indicating challenges in operational efficiency. The balance sheet is stable with low leverage and a strong equity position but a low ROE of 3.6%. Cash flow analysis reveals concerns, with volatility and absence of operating cash flow data for 2024, highlighting the need for better cash 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
Positive
25.93
Price Trends
21.37
Positive
23.33
Positive
21.90
Positive
Market Momentum
1.31
Negative
75.27
Negative
96.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTMI, the sentiment is Positive. The current price of 25.93 is above the 20-day moving average (MA) of 20.99, above the 50-day MA of 21.37, and above the 200-day MA of 21.90, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 75.27 is Negative, neither overbought nor oversold. The STOCH value of 96.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.70B | 26.84 | 16.73% | ― | 14.93% | 12.89% | |
70 Outperform | $2.55B | 33.56 | 5.02% | ― | 11.65% | ― | |
66 Neutral | $1.26B | 24.09 | 4.84% | 1.96% | -7.36% | -20.46% | |
65 Neutral | $1.87B | 80.92 | 4.16% | ― | -14.92% | -91.72% | |
64 Neutral | $1.17B | 69.28 | 1.34% | ― | -8.06% | -75.10% | |
60 Neutral | $10.77B | 10.41 | -6.71% | 2.99% | 7.69% | -13.12% | |
59 Neutral | $3.16B | 25.73 | 4.36% | 2.18% | -3.34% | ― |
* Technology Sector Average
Performance Comparison
TTMI
TTM Technologies
25.93
8.10
45.43%
BHE
Benchmark Electronics
34.66
-4.52
-11.54%
OSIS
OSI Systems
221.39
85.87
63.36%
ROG
Rogers
65.38
-55.26
-45.81%
ST
Sensata
22.46
-19.69
-46.71%
VICR
Vicor
41.11
7.74
23.19%
TTM Technologies Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 29.52%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive performance with significant revenue growth and margin improvements across key markets. While there are concerns about automotive sales decline and potential geopolitical impacts, the company's strategic initiatives and current market strengths provide a robust foundation for continued growth.Q1-2025 Updates
Positive Updates
Record Revenue Growth
TTM Technologies achieved a 14% year-over-year revenue growth, reaching $648.7 million in Q1 2025, driven by aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation end markets.
Strong Non-GAAP Operating Margins
The company reported a non-GAAP operating margin of 10.5%, up 340 basis points year-over-year, achieving record high non-GAAP operating margin and EPS for a first quarter.
Aerospace and Defense Market Performance
The aerospace and defense market, comprising 47% of total sales, grew 15% year-on-year, supported by a solid program backlog of $1.55 billion.
Data Center and Networking Growth
Data center computing and networking markets saw significant year-on-year growth of 15% and 53% respectively, driven by demand for generative AI applications and increased switch-related demand.
Positive Outlook for New Facilities
TTM continues progress on customer qualifications in Penang and construction in Syracuse, with expectations for Penang to reach breakeven revenue levels by Q3 2025.
Sustainable Practices
TTM published its second corporate sustainability report on Earth Day, reflecting a commitment to minimizing environmental impact.
Negative Updates
Automotive Revenue Decline
Automotive sales represented 11% of total sales, down from 13% in the previous year, due to inventory adjustments and soft demand.
Geopolitical and Tariff Concerns
Potential impacts from geopolitical tensions and tariffs were noted, with concerns about revenue from imports and costs associated with equipment and materials, though no significant customer behavior changes have been observed yet.
Company Guidance
During the TTM Technologies, Inc. first quarter 2025 earnings call, the company reported impressive financial metrics, exceeding their own guidance expectations. The revenue grew by 14% year-over-year, reaching $648.7 million, driven primarily by strong performance in the aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation sectors, although there was a slight decline in the automotive sector. The book-to-bill ratio stood at 1.10, indicating robust demand. Non-GAAP operating margins rose to 10.5%, up 340 basis points from the previous year, marking a record high for a first quarter. The company also achieved a non-GAAP EPS of $0.50 per diluted share, showing significant improvement from $0.28 in the previous year. TTM's strategic focus on reducing seasonality and diversifying their manufacturing footprint has positioned them well against potential geopolitical challenges, including tariffs, with minimal expected direct revenue impact. The aerospace and defense sector, accounting for 47% of sales, showed a 15% increase in revenue, while data center computing also showed a 15% growth. The company is also making progress with new facilities in Penang and Syracuse, aiming for break-even levels in Penang by the end of the third quarter.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.