MUN:FTI

Stock Analysis Report

Executive Summary

Filtronic plc designs and manufactures customized radio frequency, microwave, and millimeter wave components and subsystems in the United Kingdom, rest of Europe, the Americas, and internationally.


Snowflake Analysis

Very undervalued with moderate growth potential.

Share Price & News

How has Filtronic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FTI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

FTI

10.1%

DE Communications

7.1%

DE Market


1 Year Return

-2.5%

FTI

-37.9%

DE Communications

-17.5%

DE Market

Return vs Industry: FTI exceeded the German Communications industry which returned -37.9% over the past year.

Return vs Market: FTI exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

FTIIndustryMarket
7 Day-2.5%10.1%7.1%
30 Day-39.7%-17.0%-20.0%
90 Day-19.0%-33.2%-26.1%
1 Year-2.5%-2.5%-37.6%-37.9%-15.0%-17.5%
3 Year-16.0%-16.0%-39.2%-39.4%-18.8%-25.8%
5 Year-68.9%-68.9%13.0%12.8%-17.9%-29.2%

Price Volatility Vs. Market

How volatile is Filtronic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Filtronic undervalued compared to its fair value and its price relative to the market?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTI (€0.08) is trading below our estimate of fair value (€0.15)

Significantly Below Fair Value: FTI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FTI is good value based on its PE Ratio (10.7x) compared to the Communications industry average (15x).

PE vs Market: FTI is good value based on its PE Ratio (10.7x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: FTI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: FTI is good value based on its PB Ratio (1.3x) compared to the DE Communications industry average (2.3x).


Next Steps

Future Growth

How is Filtronic forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTI's forecast earnings growth (14.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: FTI's earnings (14.7% per year) are forecast to grow faster than the German market (14.2% per year).

High Growth Earnings: FTI's earnings are forecast to grow, but not significantly.

Revenue vs Market: FTI's revenue (13.5% per year) is forecast to grow faster than the German market (4.2% per year).

High Growth Revenue: FTI's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Filtronic performed over the past 5 years?

65.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTI has a high level of non-cash earnings.

Growing Profit Margin: FTI's current net profit margins (7.7%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: FTI has become profitable over the past 5 years, growing earnings by 65.6% per year.

Accelerating Growth: FTI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FTI had negative earnings growth (-49.8%) over the past year, making it difficult to compare to the Communications industry average (21.9%).


Return on Equity

High ROE: FTI's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Filtronic's financial position?


Financial Position Analysis

Short Term Liabilities: FTI's short term assets (£12.7M) exceed its short term liabilities (£8.3M).

Long Term Liabilities: FTI's short term assets (£12.7M) exceed its long term liabilities (£2.0M).


Debt to Equity History and Analysis

Debt Level: FTI's debt to equity ratio (12%) is considered satisfactory.

Reducing Debt: FTI's debt to equity ratio has increased from 4.1% to 12% over the past 5 years.


Balance Sheet

Inventory Level: FTI has a high level of physical assets or inventory.

Debt Coverage by Assets: FTI's debt is covered by short term assets (assets are 11.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FTI is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: FTI is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Filtronic's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FTI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FTI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FTI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FTI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FTI is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FTI's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average board tenure


CEO

Filtronic has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Reginald Gott
Executive Chairman4.33yrsUK£60.00k0.21% £29.3k
Michael Tyerman
Finance Director & Executive Director3.92yrsUK£123.00k0.16% £21.8k
Michael Roy Roller
Senior Independent Non-Executive Directorno dataUK£40.00k0.048% £6.6k
Peter Magowan
Independent Non-Executive Director1.33yrsUK£20.00k0.35% £48.3k

3.9yrs

Average Tenure

52yo

Average Age

Experienced Board: FTI's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FTI 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

Filtronic plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Filtronic plc
  • Ticker: FTI
  • Exchange: MUN
  • Founded: 1977
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£12.230m
  • Listing Market Cap: UK£13.691m
  • Shares outstanding: 212.70m
  • Website: https://www.filtronic.com

Number of Employees


Location

  • Filtronic plc
  • Filtronic House
  • 3 Airport West
  • Leeds
  • West Yorkshire
  • LS19 7ZA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLTC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1994
FTIMUN (Boerse Muenchen)YesOrdinary SharesDEEUROct 1994
FTCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 1994

Biography

Filtronic plc designs and manufactures customized radio frequency, microwave, and millimeter wave components and subsystems in the United Kingdom, rest of Europe, the Americas, and internationally. The company operates in two segments, Filtronic Wireless and Filtronic Broadband. It offers E-band and V-band transceiver modules; GaN amplifiers, including point-to-point backhaul radio links and power amplifiers; microwave and millimeter-wave filters and diplexers; E-band power amplifiers; and ultra-high capacity data links. The company also provides base station antenna line equipment, such as antenna sharing combiners enables multiple signals at the same frequency bands to be fed to different polarity ports of an antenna; cross-band combiners combines signals from multiple base stations of different frequency bands to a single feeder cable or antenna; in-band combiners combines multiple continuous or in-continuous channels within the same frequency band; tower mounted amplifiers (TMAs); and custom filters and combiners comprising filters, combiners, TMAs, and radio head subsystems. In addition, it offers base station antennas; interference mitigation filters; and small cell filters. Further, the company provides contract manufacturing, microelectronic assembly, module and device performance testing, business systems and program management, supply chain, and design services. Its products are used in mobile wireless communication equipment, point-to-point communication systems, and defense/security sectors. The company serves original equipment manufacturers, as well as a range of mobile phone network operators. The company was formerly known as Filtronic Comtek plc and changed its name to Filtronic plc in March 1998. Filtronic plc was founded in 1977 and is headquartered in Leeds, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 20:39
End of Day Share Price2020/03/27 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.