Techtronic Industries (TTNDY) AI Stock Analysis

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Techtronic Industries

(OTC:TTNDY)

75Outperform

Techtronic Industries' overall stock score reflects its strong financial performance and positive earnings call, offset by current bearish technical indicators. Valuation metrics suggest fair pricing, making it an attractive proposition for investors. The company's strategic initiatives and market leadership provide a solid foundation for future growth, although current market momentum poses short-term challenges.

Techtronic Industries (TTNDY) vs. S&P 500 (SPY)

Market Cap

$21.93B

Dividend Yield2.15%

Average Volume (3M)160.92K

Price to Earnings (P/E)19.6

Beta (1Y)1.03

Revenue Growth6.44%

EPS Growth15.21%

CountryUS

Employees46,580

SectorIndustrials

Sector Strength89

IndustryManufacturing - Tools & Accessories

Share Statistics

EPS (TTM)1.55

Shares Outstanding366,315,000

10 Day Avg. Volume88,082

30 Day Avg. Volume160,922

Financial Highlights & Ratios

PEG Ratio2.97

Price to Book (P/B)3.77

Price to Sales (P/S)0.00

P/FCF Ratio13.16

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Techtronic Industries Business Overview & Revenue Model

Company DescriptionTechtronic Industries Co. Ltd. (TTNDY) is a leading global manufacturer and supplier of power tools, hand tools, outdoor power equipment, and floor care products. The company operates in the industrial, consumer, and construction markets, offering innovative solutions under well-known brands such as Milwaukee, AEG, Ryobi, and Hoover. With a strong focus on research and development, Techtronic Industries is committed to advancing technology and sustainability in its product offerings, serving both professional and DIY customers worldwide.

How the Company Makes MoneyTechtronic Industries generates revenue primarily through the sale of its diverse portfolio of power tools, outdoor power equipment, and floor care products. The company's products are distributed through major retail channels, including home improvement stores, online platforms, and direct sales to professionals and contractors. Key revenue streams include its flagship brands like Milwaukee and Ryobi, which are highly regarded in the construction and home improvement sectors. The company also benefits from strategic partnerships and licensing agreements that enhance its market reach and brand visibility. Continuous investment in innovation and product development further drives sales and maintains competitive advantage, contributing significantly to its earnings.

Techtronic Industries Financial Statement Overview

Summary

Techtronic Industries shows solid financial performance with consistent margins and strong cash flow dynamics. While there is a slight dip in EBIT and equity trends, the company's conservative leverage and effective cash management provide a stable foundation.

Income Statement

Positive

Techtronic Industries shows a solid performance with gross profit and net profit margins at 39.46% and 7.11% respectively for the latest year. The revenue growth rate is modest at 3.60% from the previous year. Consistent EBIT and EBITDA margins at 8.26% and 12.95% demonstrate stable operational efficiency. However, the slight dip in EBIT compared to the previous year indicates potential challenges in cost management.

Balance Sheet

Positive

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.49, indicating conservative leverage. The equity ratio stands robust at 46.33%, reflecting strong financial health. Return on Equity (ROE) is solid at 16.98%, showing effective utilization of shareholder capital. However, the declining trend in stockholders' equity over the years suggests a need for strategic equity management.

Cash Flow

Very Positive

Techtronic Industries demonstrates strong cash flow dynamics with a remarkable free cash flow growth rate of 88.63% year-over-year. The operating cash flow to net income ratio of 2.15 signifies strong cash-generating capabilities relative to net earnings. The free cash flow to net income ratio of 1.26 further supports efficient cash management. This robust cash flow performance adds significant financial flexibility.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
13.84B	13.73B	13.25B	13.20B	9.81B	7.67B
	Gross Profit
5.40B	5.42B	5.21B	5.12B	3.75B	2.89B
	EBIT
1.24B	1.13B	1.19B	1.18B	857.09M	662.73M
	EBITDA
1.47B	1.78B	1.44B	1.38B	1.03B	818.12M
	Net Income Common Stockholders
1.15B	976.34M	1.08B	1.10B	800.76M	614.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	979.35M	1.67B	2.04B	1.69B	1.61B
	Total Assets
6.35B	12.40B	13.32B	13.01B	9.39B	7.70B
	Total Debt
796.46M	2.84B	3.86B	3.84B	1.70B	1.73B
	Net Debt
-307.43M	1.89B	2.43B	1.96B	165.97M	313.56M
	Total Liabilities
3.29B	6.65B	8.11B	8.29B	5.49B	4.30B
	Stockholders Equity
3.06B	5.75B	5.21B	4.72B	3.90B	3.39B
Cash Flow		Free Cash Flow
-450.05M	1.23B	652.11M	-847.48M	700.14M	267.67M
	Operating Cash Flow
280.81M	2.10B	1.23B	-100.94M	1.16B	724.27M
	Investing Cash Flow
-1.10B	-778.78M	-919.23M	-1.02B	-580.27M	-568.49M
	Financing Cash Flow
-127.81M	-1.80B	-712.74M	1.47B	-498.09M	162.76M

Techtronic Industries Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price59.47

Price Trends

50DMA

55.85

Positive

100DMA

61.34

Negative

200DMA

65.43

Negative

Market Momentum

MACD

1.38

Negative

RSI

66.78

Neutral

STOCH

92.21

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTNDY, the sentiment is Neutral. The current price of 59.47 is above the 20-day moving average (MA) of 53.05, above the 50-day MA of 55.85, and below the 200-day MA of 65.43, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 66.78 is Neutral, neither overbought nor oversold. The STOCH value of 92.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TTNDY.

Techtronic Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LECO	76 Outperform	$10.93B	24.16	34.83%	1.49%	-2.29%	-14.49%
TTNDY	75 Outperform	$21.93B	19.64	18.50%	2.15%	6.44%	15.21%
RBC	73 Outperform	$11.46B	50.39	8.51%	―	4.62%	21.58%
SNA	71 Outperform	$17.00B	17.01	19.15%	2.44%	-0.88%	0.04%
TKR	69 Neutral	$5.15B	15.64	11.85%	1.88%	-3.69%	-11.76%
SWK	68 Neutral	$11.12B	30.52	4.03%	4.63%	-3.04%	―
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%

* Industrials Sector Average

Performance Comparison

TTNDY

Techtronic Industries

59.07

-8.11

-12.07%

LECO

Lincoln Electric Holdings

203.01

-20.49

-9.17%

RBC

RBC Bearings

368.17

78.89

27.27%

SNA

Snap-on

331.73

58.04

21.21%

SWK

Stanley Black & Decker

71.46

-15.44

-17.77%

TKR

Timken Company

73.68

-15.36

-17.25%

Techtronic Industries Earnings Call Summary

Earnings Call Date:Mar 04, 2025

(Q4-2024)

% Change Since: -15.37%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

The earnings call presented a strongly positive outlook with significant revenue and profit growth, major debt reduction, and strategic investments in innovation and market leadership, particularly in the Milwaukee brand. However, challenges remain in the Floorcare & Cleaning division and in managing inventory and tax rates.

Q4-2024 Updates

Positive Updates

Record Revenue and Profit Growth

Revenue increased by 6.5% to $14.6 billion with net profit up 14.9% to $1.12 billion. Gross profits also rose by $476 million to $5.9 billion.

Strong Free Cash Flow

Generated $1.6 billion in free cash flow, a 23% increase from 2023, with a conversion of 142% of net profits.

Milwaukee's Market Leadership

Milwaukee sales grew by 11.6% in local currencies, further extending its market leadership.

Dividend Increase

Final dividend recommended at HK$1.18 per share, a 20.4% increase from 2023, with total dividend for 2024 increasing by 17.1%.

Strategic Focus on Innovation

Continued significant investment in R&D, increasing by over 40 basis points to 4.4% of sales.

Geographic Growth

All regions delivered growth, with Europe up over 10% and the rest of the world, led by Australia, up 12.5% in local currencies.

Reduction in Net Debt

Total net debt reduced by over 95% to $45 million at year-end.

Negative Updates

Floorcare & Cleaning Division Revenue Decline

Revenue for the Floorcare & Cleaning division was down 4.5% in local currency due to a focus on improving profitability and exiting non-performing SKUs.

Increased Effective Tax Rates

Effective tax rates increased by 30 basis points to 7.8%.

Inventory and Receivables Management

Trade receivables increased by 2 days due to higher Q4 sales, with inventory levels remaining comparable to 2023 despite sales growth.

Company Guidance

In the TTI Group's 2024 Annual Result Announcement, the company reported impressive financial metrics, showcasing a robust performance. Revenue increased by 6.5% to $14.6 billion, with Milwaukee Power Tools achieving a sales growth of 11.6% in local currencies, while RYOBI Power Tools grew by 6.7%. The company's net profit rose by 14.9% to $1.12 billion, with a net profit margin of 7.7%. Gross profits reached $5.9 billion, reflecting an increase in gross margin to 40.3%. The company's free cash flow surged to $1.6 billion, a 23% increase over the previous year, representing a 142% conversion of net profits. TTI's earnings per share rose by 15.1% to $0.6143, and the board recommended a final dividend of HK$1.18 per share, marking a 20.4% increase. The Power Equipment division accounted for 94% of total revenue, growing 7.3% to $13.7 billion. Despite challenges in the Floorcare & Cleaning division, operating profits increased by 4.73%, with margins improving to 3.2%. The company maintained a strong balance sheet with shareholders' equity at $6.4 billion, and a significant reduction in net debt by over 95% to $45 million. TTI's global expansion and strategic investments have positioned it well for future growth, with plans for continued innovation and market leadership.

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.