LSE:TTG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.0%

TTG

-0.6%

GB Electronic

0.08%

GB Market


1 Year Return

2.8%

TTG

13.1%

GB Electronic

3.5%

GB Market

Return vs Industry: TTG underperformed the UK Electronic industry which returned 13.1% over the past year.

Return vs Market: TTG matched the UK Market which returned 3.5% over the past year.


Shareholder returns

TTGIndustryMarket
7 Day-2.0%-0.6%0.08%
30 Day-14.3%-4.6%-1.3%
90 Day-2.2%-7.4%-2.2%
1 Year5.6%2.8%15.0%13.1%9.0%3.5%
3 Year74.1%60.7%49.5%42.7%18.1%3.1%
5 Year57.1%33.9%121.7%102.5%36.2%5.3%

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?

32.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTG (£2.21) is trading above our estimate of fair value (£2.03)

Significantly Below Fair Value: TTG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TTG is poor value based on its PE Ratio (32.1x) compared to the Electronic industry average (20.6x).

PE vs Market: TTG is poor value based on its PE Ratio (32.1x) compared to the UK market (16.7x).


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 (1.3x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

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

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTG's forecast earnings growth (27.3% per year) is above the savings rate (1.2%).

Earnings vs Market: TTG's earnings (27.3% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: TTG's revenue (3.6% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: TTG's revenue (3.6% 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 (12.1%).


Next Steps

Past Performance

How has TT Electronics performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TTG's earnings have grown significantly by 40.2% per year over the past 5 years.

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 (-40.7%) over the past year, making it difficult to compare to the Electronic industry average (-14.4%).


Return on Equity

High ROE: TTG's Return on Equity (4.1%) is considered low.


Return on Assets

ROA vs Industry: TTG's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: TTG has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TT Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: TTG's short term assets (£240.6M) exceeds its short term liabilities (£117.5M)

Long Term Liabilities: TTG's short term assets (240.6M) exceeds its long term liabilities (140.8M)


Debt to Equity History and Analysis

Debt Level: TTG's debt to equity ratio (41.5%) is considered high

Reducing Debt: TTG's debt to equity ratio has increased from 22.3% to 41.5% over the past 5 years.

Debt Coverage: TTG's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: TTG's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: TTG's debt is covered by short term assets (assets are 2.114230x debt).


Next Steps

Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TTG's dividend (2.94%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: TTG's dividend (2.94%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: TTG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TTG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.5%), TTG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TTG's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

Management

What is the CEO of TT Electronics's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Richard Tyson (48yo)

5.3yrs

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 ($USD2.82M) is about average for companies of similar size in the UK market ($USD886.64K).

Compensation vs Earnings: Richard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: TTG's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: TTG's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£50,80702 Apr 19
Stephen King
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares23,000
Max PriceUK£2.21
BuyUK£25,30021 Mar 19
Jack Boyer
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares11,000
Max PriceUK£2.30
BuyUK£9,90004 Jan 19
Michael Baunton
EntityIndividual
Shares5,000
Max PriceUK£1.98
BuyUK£24,76307 Dec 18
Jack Boyer
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares11,792
Max PriceUK£2.10

Ownership Breakdown


Management Team

  • Lynton Boardman (52yo)

    Group General Counsel & Company Secretary

    • Tenure: 7yrs
  • Richard Tyson (48yo)

    Group CEO & Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£2.19m
  • Mike Leahan

    Executive Vice President of Global Manufacturing Solutions

    • Tenure: 2.2yrs
  • Mark Hoad (48yo)

    CFO & Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.46m
  • Charlie Peppiatt (49yo)

    Executive VP of IoT Solutions and Sensors & Specialist Components

    • Tenure: 0.8yrs
  • Neil Fleming

    Executive Vice President of Corporate Development

    • Tenure: 1.4yrs
  • Tom Garvey

    Executive Vice President of Power & Connectivity

    • Tenure: 3.8yrs
  • Sarah Hamilton-Hanna

    Executive Vice President of Human Resource

    • Tenure: 0.8yrs

Board Members

  • Jack Boyer (59yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£44.00k
  • Neil Andrew Carson (62yo)

    Non-Executive Chairman

    • Tenure: 4.4yrs
    • Compensation: UK£184.00k
  • W. L. L. Alison Wood (56yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£52.00k
  • Anne Thorburn (59yo)

    Non-executive Director

    • Tenure: 0.3yrs
  • Stephen King (58yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£58.00k
  • Richard Tyson (48yo)

    Group CEO & Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£2.19m
  • Mark Hoad (48yo)

    CFO & Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.46m

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£358.822m
  • Shares outstanding: 162.36m
  • 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
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 Analysis2019/10/23 20:35
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.