TTM Technologies (TTMI) AI Stock Analysis

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TTM Technologies

(NASDAQ:TTMI)

Rating:73Outperform

Price Target:

$33.00

▲(10.44%Upside)

TTM Technologies presents a strong operational performance with considerable revenue and margin growth, particularly in aerospace and defense. Despite the robust financial health, high P/E valuation and overbought technical indicators suggest caution. The decline in the automotive sector and geopolitical risks pose challenges, but strategic initiatives and market strengths provide a solid growth foundation.

Positive Factors

Business Diversification

TTMI shares remain attractively valued, trading at 13x our out-year estimate.

Earnings Performance

Q1 revenues and EPS were both solidly above the high end of guidance.

Market Position

Analyst reaffirms a Buy recommendation, indicating confidence in the company's strategic position and market prospects.

Negative Factors

Automotive Segment

The Automotive segment, representing 13% of revenues, is likely to decline for a third consecutive year.

Penang Facility

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. SPDR S&P 500 ETF (SPY)

Market Cap

$3.04B

Dividend YieldN/A

Average Volume (3M)802.72K

Price to Earnings (P/E)39.9

Beta (1Y)1.88

Revenue Growth11.65%

EPS GrowthN/A

CountryUS

Employees16,400

SectorTechnology

Sector Strength81

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)0.50

Shares Outstanding101,630,330

10 Day Avg. Volume656,347

30 Day Avg. Volume802,723

Financial Highlights & Ratios

PEG Ratio-2.11

Price to Book (P/B)1.36

Price to Sales (P/S)0.00

P/FCF Ratio41.44

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.00

Price Target Upside17.14% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

TTM Technologies Business Overview & Revenue Model

Company DescriptionTTM Technologies, Inc., together with its subsidiaries, engages in the manufacture and sale of printed circuit boards (PCBs) worldwide. The company operates in two segments, PCB and RF&S Components. It offers PCB products, radio frequency (RF) components, conventional PCBs, RF and microwave circuits, high density interconnect PCBs, substrate-like PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration products, IC substrates, passive RF components, advanced ceramic RF components, multi-chip modules, and beamforming and switching networks. The company also produces printed circuits with heavy copper cores, as well as embedded and press-fit coins; PCBs with electrically passive heat sinks; and PCBs with electrically active thermal cores. In addition, it offers value-added services, including RF design to specification capability, design for manufacturability, PCB layout design, simulation and testing, and quick turnaround services. The company serves original equipment manufacturers and electronic manufacturing services companies that primarily serve aerospace and defense, data center computing, automotive components, medical, industrial, and instrumentation related products sectors. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.

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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 49.25%|

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 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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Dec 2024	Mar 2024	Mar 2023	Mar 2022	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price29.88

Price Trends

50DMA

23.23

Positive

100DMA

23.88

Positive

200DMA

22.57

Positive

Market Momentum

MACD

2.02

Positive

RSI

73.54

Negative

STOCH

85.82

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 29.88 is above the 20-day moving average (MA) of 27.96, above the 50-day MA of 23.23, and above the 200-day MA of 22.57, indicating a bullish trend. The MACD of 2.02 indicates Positive momentum. The RSI at 73.54 is Negative, neither overbought nor oversold. The STOCH value of 85.82 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSIS	75 Outperform	$3.70B	26.78	16.73%	―	14.93%	12.89%
ST	74 Outperform	$3.83B	32.00	4.20%	1.82%	-5.61%	―
TTMI	73 Outperform	$3.04B	39.90	5.02%	―	11.65%	―
BHE	68 Neutral	$1.33B	25.50	4.84%	1.83%	-7.36%	-20.46%
ROG	65 Neutral	$1.26B	73.28	1.34%	―	-8.06%	-75.10%
VICR	64 Neutral	$1.93B	83.68	4.16%	―	-5.61%	-18.63%
Sector *	61 Neutral	$11.48B	10.48	-6.95%	2.94%	7.54%	-9.55%

* Technology Sector Average

Performance Comparison

TTMI

TTM Technologies

29.88

11.17

59.70%

BHE

Benchmark Electronics

36.58

-7.28

-16.60%

OSIS

OSI Systems

220.19

82.38

59.78%

ROG

Rogers

67.33

-49.92

-42.58%

Sensata

26.86

-13.00

-32.61%

VICR

Vicor

42.77

7.75

22.13%

TTM Technologies Corporate Events

Executive/Board ChangesShareholder MeetingsStock Buyback

TTM Technologies Announces New Share Repurchase Program

Neutral

May 9, 2025

On May 8, 2025, TTM Technologies announced the retirement of its founder, Kenton K. Alder, from the board due to reaching the mandatory retirement age, marking the end of an era for the company. The same day, TTM held its 2025 Annual Meeting of Stockholders where all proposals passed, and Class I Directors were elected. Additionally, on May 9, 2025, TTM announced a new share repurchase program allowing the company to buy back up to $100 million of its shares through May 2027, following the expiration of its previous program.

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.