LSE:TTG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

TT Electronics plc provides engineered electronics for performance critical applications in the industrial, medical, aerospace and defense, and transportation markets worldwide. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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: TTG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

TTG

-4.2%

GB Electronic

-3.4%

GB Market


1 Year Return

-11.4%

TTG

20.0%

GB Electronic

-19.7%

GB Market

Return vs Industry: TTG underperformed the UK Electronic industry which returned 20% over the past year.

Return vs Market: TTG exceeded the UK Market which returned -19.7% over the past year.


Shareholder returns

TTGIndustryMarket
7 Day-0.5%-4.2%-3.4%
30 Day1.0%1.6%-4.5%
90 Day18.8%6.5%-5.1%
1 Year-11.4%-11.4%21.0%20.0%-16.6%-19.7%
3 Year-3.4%-8.4%37.3%31.9%-12.8%-23.6%
5 Year75.3%55.4%141.1%124.1%9.9%-14.9%

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

Valuation

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

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTG (£2.02) is trading below our estimate of fair value (£3.06)

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


Price To Earnings Ratio

PE vs Industry: TTG is poor value based on its PE Ratio (78.6x) compared to the GB Electronic industry average (27.3x).

PE vs Market: TTG is poor value based on its PE Ratio (78.6x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TTG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TTG is good value based on its PB Ratio (1.2x) compared to the GB Electronic industry average (2.3x).


Next Steps

Future Growth

How is TT Electronics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

65.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTG's forecast earnings growth (65% per year) is above the savings rate (1.2%).

Earnings vs Market: TTG's earnings (65% per year) are forecast to grow faster than the UK market (23.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TTG's revenue (5.2% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: TTG's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTG's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has TT Electronics performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTG has high quality earnings.

Growing Profit Margin: TTG's current net profit margins (0.9%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: TTG has become profitable over the past 5 years, growing earnings by 10.5% per year.

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

Earnings vs Industry: TTG had negative earnings growth (-62.5%) over the past year, making it difficult to compare to the Electronic industry average (-2.1%).


Return on Equity

High ROE: TTG's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is TT Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: TTG's short term assets (£256.4M) exceed its short term liabilities (£129.8M).

Long Term Liabilities: TTG's short term assets (£256.4M) exceed its long term liabilities (£152.4M).


Debt to Equity History and Analysis

Debt Level: TTG's debt to equity ratio (50.2%) is considered high.

Reducing Debt: TTG's debt to equity ratio has increased from 34.4% to 50.2% over the past 5 years.

Debt Coverage: TTG's debt is well covered by operating cash flow (24.3%).

Interest Coverage: TTG's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.54%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TTG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Richard Tyson (49 yo)

6.25yrs

Tenure

UK£1,534,000

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 ($USD1.99M) is above average for companies of similar size in the UK market ($USD907.46K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Tyson
Group CEO & Executive Director6.25yrsUK£1.53m0.50%
£ 1.8m
Mark Hoad
CFO & Director5.75yrsUK£1.12m0.39%
£ 1.4m
Julian Wais
Head of Investor Relations & Communicationsno datano datano data
Lynton Boardman
Group General Counsel & Corporate Secretary8yrsno datano data
Neil Fleming
Executive Vice President of Corporate Development2.42yrsno datano data
Sarah Hamilton-Hanna
Executive Vice President of Human Resource1.75yrsno datano data
Tom Garvey
Executive Vice President of Power & Connectivity4.75yrsno datano data
Michael Leahan
Executive Vice President of Global Manufacturing Solutions3.17yrsno datano data
Charles St. John Peppiatt
Executive VP of IoT Solutions and Sensors & Specialist Components1.75yrsno datano data

4.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: TTG's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Tyson
Group CEO & Executive Director6.25yrsUK£1.53m0.50%
£ 1.8m
Mark Hoad
CFO & Director5.75yrsUK£1.12m0.39%
£ 1.4m
Jack Boyer
Senior Independent Non- Executive Director0.42yrUK£45.00k0.055%
£ 192.9k
W. L. L. Alison Wood
Independent Non-Executive Director4.25yrsUK£53.00kno data
Anne Thorburn
Independent Non-executive Director1.25yrsUK£23.00k0.035%
£ 121.2k
Warren Tucker
Independent Chairman of the Board0.42yrno data0.035%
£ 121.3k

2.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: TTG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: TTG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: TT Electronics plc
  • Ticker: TTG
  • Exchange: LSE
  • Founded: 1906
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: UK£349.878m
  • Shares outstanding: 173.21m
  • Website: https://www.ttelectronics.com

Number of Employees


Location

  • TT Electronics plc
  • St Andrews House
  • Fourth Floor
  • Woking
  • Surrey
  • GU21 6EB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
TTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
TTGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
7TTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 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 thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 22:17
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.