SEHK:669

Stock Analysis Report

Techtronic Industries

Executive Summary

Techtronic Industries Company Limited, an investment holding company, engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floor care and appliances in Hong Kong, North America, Europe, and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 669 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

669

0.7%

HK Machinery

0.6%

HK Market


1 Year Return

46.6%

669

19.5%

HK Machinery

-5.7%

HK Market

Return vs Industry: 669 exceeded the Hong Kong Machinery industry which returned 19.5% over the past year.

Return vs Market: 669 exceeded the Hong Kong Market which returned -5.7% over the past year.


Shareholder returns

669IndustryMarket
7 Day-1.6%0.7%0.6%
30 Day4.8%1.7%-0.8%
90 Day17.9%12.8%4.1%
1 Year49.4%46.6%23.0%19.5%-2.2%-5.7%
3 Year158.4%145.8%56.2%46.3%13.8%2.3%
5 Year180.7%160.0%60.8%47.0%14.8%-4.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 669 (HK$69.8) is trading above our estimate of fair value (HK$49.8)

Significantly Below Fair Value: 669 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 669 is poor value based on its PE Ratio (28.1x) compared to the Machinery industry average (10.3x).

PE vs Market: 669 is poor value based on its PE Ratio (28.1x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 669 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 669 is overvalued based on its PB Ratio (5.2x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is Techtronic Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 669's forecast earnings growth (17.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 669's earnings (17.4% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: 669's earnings are forecast to grow, but not significantly.

Revenue vs Market: 669's revenue (11.3% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 669's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 669's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has Techtronic Industries performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 669 has high quality earnings.

Growing Profit Margin: 669's current net profit margins (8%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 669's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: 669's earnings growth over the past year (11.9%) is below its 5-year average (15.1% per year).

Earnings vs Industry: 669 earnings growth over the past year (11.9%) exceeded the Machinery industry 7.3%.


Return on Equity

High ROE: 669's Return on Equity (18.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Techtronic Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 669's short term assets ($4.8B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: 669's short term assets ($4.8B) exceed its long term liabilities ($970.5M).


Debt to Equity History and Analysis

Debt Level: 669's debt to equity ratio (52.9%) is considered high.

Reducing Debt: 669's debt to equity ratio has reduced from 62.6% to 52.9% over the past 5 years.

Debt Coverage: 669's debt is well covered by operating cash flow (31.5%).

Interest Coverage: 669's interest payments on its debt are well covered by EBIT (42.5x coverage).


Balance Sheet

Inventory Level: 669 has a high level of physical assets or inventory.

Debt Coverage by Assets: 669's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

1.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 669's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 669's dividend (1.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 669's dividend payments have been volatile in the past 10 years.

Growing Dividend: 669's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.4%), 669's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 669's dividends in 3 years are forecast to be well covered by earnings (39.1% payout ratio).


Next Steps

Management

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

17.1yrs

Average management tenure


CEO

Joe Galli (60yo)

12yrs

Tenure

US$16,803,000

Compensation

Mr. Joseph Galli, Jr., also known as Joe, BSBA, MBA, has been the Chief Executive Officer of Techtronic Industries Co. Ltd. (a/k/a, TTI) since February 1, 2008. Mr. Galli is responsible for integrating acq ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD16.80M) is above average for companies of similar size in the Hong Kong market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Horst Pudwill
Founder & Executive Chairman35.1yrsUS$13.16m20.09% $25.7b
Joseph Galli
CEO & Executive Director12yrsUS$16.80m0.24% $309.4m
Stephan Pudwill
Vice Chairman3.3yrsUS$2.83m2.13% $2.7b
Chi Chan
Group CFO & Executive Director28yrsUS$3.71m0.025% $31.5m
Kin Chan
Operations Director & Executive Director30.1yrsUS$3.37m0.0021% $2.6m
Dyann Kostello
Vice-President and General Counsel0yrsno datano data
Philippe Buisson
Chief Financial Officer of Europe Middle East Africa0yrsno datano data
Alexandre Duarte
President of Europe0yrsno datano data
Michael Brendle
Managing Director of TTI Australia & New Zealand0yrsno datano data
Scott Hetherington
Senior Vice President of Tax & Treasury0yrsno datano data

17.1yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 669's management team is seasoned and experienced (17.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Horst Pudwill
Founder & Executive Chairman35.1yrsUS$13.16m20.09% $25.7b
Joseph Galli
CEO & Executive Director12yrsUS$16.80m0.24% $309.4m
Stephan Pudwill
Vice Chairman3.3yrsUS$2.83m2.13% $2.7b
Chi Chan
Group CFO & Executive Director28yrsUS$3.71m0.025% $31.5m
Kin Chan
Operations Director & Executive Director30.1yrsUS$3.37m0.0021% $2.6m
Chi-Ping Chung
Non-Executive Director12.8yrsUS$201.00k2.68% $3.4b
Ting Kau Cheung
Independent Non-Executive Director29.1yrsUS$243.00k0.23% $296.8m
Christopher Patrick Langley
Independent Non-Executive Director18.8yrsUS$214.00k0.011% $14.0m
Peter Sullivan
Independent Non-Executive Director12yrsUS$242.00kno data
Camille Jojo
Non-Executive Director4.3yrsUS$289.00k0.0024% $3.1m

15.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 669's board of directors are seasoned and experienced ( 15.8 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

Techtronic Industries Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Techtronic Industries Company Limited
  • Ticker: 669
  • Exchange: SEHK
  • Founded: 1985
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$128.100b
  • Shares outstanding: 1.83b
  • Website: https://www.ttigroup.com

Number of Employees


Location

  • Techtronic Industries Company Limited
  • Tower 2
  • 29th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTND.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
669SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
TIB1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
669SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
669SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
TTND.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 1994

Biography

Techtronic Industries Company Limited, an investment holding company, engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floor care and appliances in Hong Kong, North America, Europe, and internationally. The company offers industrial power tools, industrial power equipment, power tool accessories, hand tools and storage products, layout and measuring tools, accessories, professional tools, do-it-yourselfer (DIY) power tools, and outdoor products under the Milwaukee, AEG, RYOBI, HOMELITE, Empire, Imperial Blades, STILETTO, and HART brands. It also provides cleaning solutions, including uprights, stick vacuums, and hard-floor cleaners under the HOOVER brand; vacuums, steam mops, floor machines, air purifiers, and other cleaning products under the ORECK brand; cleaning products across various floor care categories under the VAX brand; and uprights, sticks, and hand vacuums under the DIRT DEVIL brand. In addition, the company trades in outdoor power equipment products, household electronic and electrical products, and floor care products; manufactures plastic parts, metallic parts, and electronic products; holds investment and intellectual properties; and offers inspection services. Further, it is involved in the research and development activities; and design, manufacture, and supply of products under a contract manufacturing basis for other brands, distributors, and retailers. The company serves DIY, professional, and industrial users in the home improvement, repair, maintenance, construction, and infrastructure industries. Techtronic Industries Company Limited was founded in 1985 and is headquartered in Kwai Chung, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:52
End of Day Share Price2020/02/21 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.