OTCPK:TPCS

Stock Analysis Report

Executive Summary

TechPrecision Corporation, together with its subsidiaries, manufactures and sells precision, large-scale fabricated, and machined metal components and systems primarily in the United States.

Risk Analysis

Does not have a meaningful market cap ($46M)



Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

TPCS

1.0%

US Machinery

0.9%

US Market


1 Year Return

51.0%

TPCS

11.5%

US Machinery

20.0%

US Market

Return vs Industry: TPCS exceeded the US Machinery industry which returned 11.4% over the past year.

Return vs Market: TPCS exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

TPCSIndustryMarket
7 Day-3.1%1.0%0.9%
30 Day-4.8%-2.1%1.4%
90 Day4.0%2.4%8.8%
1 Year51.0%51.0%13.6%11.5%22.5%20.0%
3 Year121.1%121.1%37.0%28.3%49.9%40.3%
5 Year1328.6%1328.6%63.5%44.3%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

310.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TPCS ($1.57) is trading above our estimate of fair value ($0.26)

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


Price To Earnings Ratio

PE vs Industry: TPCS is poor value based on its PE Ratio (310.6x) compared to the Machinery industry average (21.4x).

PE vs Market: TPCS is poor value based on its PE Ratio (310.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TPCS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TPCS is overvalued based on its PB Ratio (4.9x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is TechPrecision forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as TechPrecision has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has TechPrecision performed over the past 5 years?

31.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPCS has high quality earnings.

Growing Profit Margin: TPCS's current net profit margins (0.9%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: TPCS has become profitable over the past 5 years, growing earnings by 31.5% per year.

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

Earnings vs Industry: TPCS had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Machinery industry average (0.9%).


Return on Equity

High ROE: TPCS's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TechPrecision's financial position?


Financial Position Analysis

Short Term Liabilities: TPCS's short term assets ($8.8M) exceed its short term liabilities ($3.4M).

Long Term Liabilities: TPCS's short term assets ($8.8M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: TPCS's debt to equity ratio (38.5%) is considered satisfactory.

Reducing Debt: TPCS's debt to equity ratio has reduced from 638% to 38.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TPCS's debt is covered by short term assets (assets are 2.4x 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: TPCS is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate TPCS'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 TPCS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Alex Shen (57yo)

5.3yrs

Tenure

US$346,943

Compensation

Mr. Alexander Shen, also known as Alex, has been the President and Chief Executive Officer of TechPrecision Corporation since November 17, 2014. Mr. Shen serves as the President of Ranor, Inc. at TechPreci ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD346.94K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Shen
CEO & President5.3yrsUS$346.94k0.043% $19.6k
Thomas Sammons
Chief Financial Officer4.3yrsUS$237.99k0.043% $19.6k
Christopher Poplaski
President of WCMC Division8.6yrsno datano data
Michael Holly
Consultant2.9yrsUS$10.09kno data
Philip Dur
Consultant2.9yrsUS$10.09kno data
Leonard Anthony
Consultant2.9yrsUS$10.09kno data
Robert Isaman
Consultant2.9yrsUS$10.09kno data

2.9yrs

Average Tenure

64.5yo

Average Age

Experienced Management: TPCS's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Crisafulli
Independent Director3.2yrsUS$65.97k0.085% $39.3k
Andrew Levy
Independent Director10.9yrsUS$60.97k6.11% $2.8m
Walter Schenker
Independent Director3.2yrsUS$60.97k0.28% $130.3k
Richard McGowan
Chairman of the Board2.9yrsUS$72.97k1.43% $654.8k

3.2yrs

Average Tenure

68yo

Average Age

Experienced Board: TPCS's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TPCS insiders have only sold shares 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

TechPrecision Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TechPrecision Corporation
  • Ticker: TPCS
  • Exchange: OTCPK
  • Founded: 1956
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$45.930m
  • Shares outstanding: 29.25m
  • Website: https://www.techprecision.com

Number of Employees


Location

  • TechPrecision Corporation
  • 1 Bella Drive
  • Westminster
  • Massachusetts
  • 1473
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPCSOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2007

Biography

TechPrecision Corporation, together with its subsidiaries, manufactures and sells precision, large-scale fabricated, and machined metal components and systems primarily in the United States. It offers custom components for ships and submarines, aerospace equipment, nuclear power plants, and large scale medical systems. The company also provides manufacturing engineering services to assist customers. It serves customers in defense, aerospace, nuclear, energy, medical, and precision industrial markets. The company was founded in 1956 and is headquartered in Westminster, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:18
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.