Executive Summary
TT Electronics plc provides engineered electronics for performance critical applications in the industrial, medical, aerospace and defense, and transportation markets worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has TT Electronics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 7TT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.5%
7TT
-6.6%
DE Electronic
-5.7%
DE Market
1 Year Return
21.0%
7TT
-0.6%
DE Electronic
6.1%
DE Market
Return vs Industry: 7TT exceeded the German Electronic industry which returned -0.6% over the past year.
Return vs Market: 7TT exceeded the German Market which returned 6.1% over the past year.
Shareholder returns
| 7TT | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.5% | -6.6% | -5.7% |
| 30 Day | -11.8% | 1.2% | -5.7% |
| 90 Day | 1.1% | -0.2% | -3.6% |
| 1 Year | 24.3%21.0% | 1.5%-0.6% | 9.3%6.1% |
| 3 Year | n/a | 36.1%31.6% | 8.9%-0.7% |
| 5 Year | n/a | 103.1%88.5% | 13.6%-2.0% |
Price Volatility Vs. Market
How volatile is TT Electronics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is TT Electronics undervalued compared to its fair value and its price relative to the market?
5.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 7TT (€2.7) is trading below our estimate of fair value (€2.86)
Significantly Below Fair Value: 7TT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 7TT is poor value based on its PE Ratio (31.3x) compared to the Electronic industry average (26x).
PE vs Market: 7TT is poor value based on its PE Ratio (31.3x) compared to the German market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: 7TT is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 7TT is good value based on its PB Ratio (1.3x) compared to the DE Electronic industry average (1.8x).
Next Steps
Future Growth
How is TT Electronics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
30.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7TT's forecast earnings growth (30.9% per year) is above the savings rate (-0.4%).
Earnings vs Market: 7TT's earnings (30.9% per year) are forecast to grow faster than the German market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 7TT's revenue (4% per year) is forecast to grow slower than the German market (5.1% per year).
High Growth Revenue: 7TT's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 7TT's Return on Equity is forecast to be low in 3 years time (11.8%).
Next Steps
Past Performance
How has TT Electronics performed over the past 5 years?
40.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7TT has high quality earnings.
Growing Profit Margin: 7TT's current net profit margins (2.4%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: 7TT's earnings have grown significantly by 40.2% per year over the past 5 years.
Accelerating Growth: 7TT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 7TT had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).
Return on Equity
High ROE: 7TT's Return on Equity (4.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is TT Electronics's financial position?
Financial Position Analysis
Short Term Liabilities: 7TT's short term assets (£240.6M) exceed its short term liabilities (£117.5M).
Long Term Liabilities: 7TT's short term assets (£240.6M) exceed its long term liabilities (£140.8M).
Debt to Equity History and Analysis
Debt Level: 7TT's debt to equity ratio (41.5%) is considered high.
Reducing Debt: 7TT's debt to equity ratio has increased from 22.3% to 41.5% over the past 5 years.
Debt Coverage: 7TT's debt is not well covered by operating cash flow (15.6%).
Interest Coverage: 7TT's interest payments on its debt are well covered by EBIT (4.8x coverage).
Balance Sheet
Inventory Level: 7TT has a high level of physical assets or inventory.
Debt Coverage by Assets: 7TT's debt is covered by short term assets (assets are 2.1x debt).
Next Steps
Dividend
What is TT Electronics's current dividend yield, its reliability and sustainability?
3.01%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 7TT's dividend (3.01%) is higher than the bottom 25% of dividend payers in the German market (1.43%).
High Dividend: 7TT's dividend (3.01%) is low compared to the top 25% of dividend payers in the German market (3.8%).
Stability and Growth of Payments
Stable Dividend: 7TT's dividend payments have been volatile in the past 10 years.
Growing Dividend: 7TT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (96.5%), 7TT's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 7TT's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Richard Tyson (48yo)
5.6yrs
Tenure
UK£2,189,000
Compensation
Mr. Richard Tyson has been Independent Non-Executive Director at The Vitec Group plc since April 02, 2018. He has been the Group Chief Executive Officer at TT Electronics plc since July 1, 2014. Mr. Tyson ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD2.85M) is above average for companies of similar size in the German market ($USD806.68K).
Compensation vs Earnings: Richard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 5.6yrs | UK£2.19m | 0.44% £1.9m | |
| CFO & Director | 5.1yrs | UK£1.46m | 0.34% £1.4m | |
| Head of Investor Relations & Communications | 0yrs | no data | no data | |
| Group General Counsel & Company Secretary | 7.3yrs | no data | no data | |
| Executive Vice President of Corporate Development | 1.8yrs | no data | no data | |
| Executive Vice President of Human Resource | 1.1yrs | no data | no data | |
| Executive Vice President of Power & Connectivity | 4.1yrs | no data | no data | |
| Executive Vice President of Global Manufacturing Solutions | 2.5yrs | no data | no data | |
| Executive VP of IoT Solutions and Sensors & Specialist Components | 1.1yrs | no data | no data |
3.3yrs
Average Tenure
48.5yo
Average Age
Experienced Management: 7TT's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 5.6yrs | UK£2.19m | 0.44% £1.9m | |
| CFO & Director | 5.1yrs | UK£1.46m | 0.34% £1.4m | |
| Independent Non-Executive Director | 3.7yrs | UK£44.00k | 0.051% £213.3k | |
| Non-Executive Chairman | 4.8yrs | UK£184.00k | 0.12% £490.8k | |
| Independent Non-Executive Director | 3.6yrs | UK£52.00k | no data | |
| Independent Non-executive Director | 0.6yrs | no data | 0.028% £116.3k | |
| Senior Independent Non-Executive Director | 3.6yrs | UK£58.00k | 0.076% £317.7k |
3.7yrs
Average Tenure
58yo
Average Age
Experienced Board: 7TT's board of directors are considered experienced (3.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
TT Electronics plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: TT Electronics plc
- Ticker: 7TT
- Exchange: DB
- Founded: 1906
- Industry: Electronic Components
- Sector: Tech
- Market Cap: UK£351.850m
- Listing Market Cap: UK£420.764m
- Shares outstanding: 162.89m
- Website: https://www.ttelectronics.com
Number of Employees
Location
- TT Electronics plc
- St Andrews House
- Fourth Floor
- Woking
- Surrey
- GU21 6EB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TTGP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| TTG | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| 7TT | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
Biography
TT Electronics plc provides engineered electronics for performance critical applications in the industrial, medical, aerospace and defense, and transportation markets worldwide. The company operates in three divisions: Sensors and Specialist Components, Power and Connectivity, and Global Manufacturing Solutions. The Sensors and Specialist Components division works with customers to develop standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers’ applications. The Power and Connectivity division designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data. It collaborates with customers to develop innovative solutions to optimize their electronic systems. The Global Manufacturing Solutions division provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of different products. It manufactures integrated product assemblies, as well as provides designing testing solutions and value-engineering services. The company offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, IRC, OPTEK Technology, Semelab, Welwyn, and Roxspur Measurement & Control brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. TT Electronics plc was incorporated in 1906 and is headquartered in Woking, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 23:35 |
| End of Day Share Price | 2020/02/25 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.