OTCPK:TTND.F

Stock Analysis Report

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

Fundamentals

Excellent balance sheet with reasonable growth potential and pays a dividend.


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


Market Performance


7 Day Return

0.7%

TTND.F

3.3%

US Machinery

1.0%

US Market


1 Year Return

30.1%

TTND.F

10.0%

US Machinery

8.0%

US Market

Return vs Industry: TTND.F exceeded the US Machinery industry which returned 10% over the past year.

Return vs Market: TTND.F exceeded the US Market which returned 8% over the past year.


Shareholder returns

TTND.FIndustryMarket
7 Day0.7%3.3%1.0%
30 Day7.3%2.3%-0.07%
90 Day-4.9%-2.0%-1.0%
1 Year30.1%30.1%12.4%10.0%10.4%8.0%
3 Year90.9%90.9%51.4%41.6%46.2%36.7%
5 Yearn/a58.9%39.6%64.3%46.2%

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

No news available

Valuation

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

23.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTND.F ($7.35) is trading above our estimate of fair value ($6.41)

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


Price To Earnings Ratio

PE vs Industry: TTND.F is poor value based on its PE Ratio (23.2x) compared to the Machinery industry average (20.3x).

PE vs Market: TTND.F is poor value based on its PE Ratio (23.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TTND.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: TTND.F is overvalued based on its PB Ratio (4.3x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

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

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTND.F's forecast earnings growth (16.4% per year) is above the savings rate (2.7%).

Earnings vs Market: TTND.F's earnings (16.4% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: TTND.F's revenue (10.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: TTND.F's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTND.F's Return on Equity is forecast to be high in 3 years time (20.4%)


Next Steps

Past Performance

How has Techtronic Industries performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TTND.F earnings growth over the past year (11.9%) underperformed the Machinery industry 16.7%.


Return on Equity

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


Return on Assets

ROA vs Industry: TTND.F has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TTND.F has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Techtronic Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TTND.F's short term assets ($4.8B) exceeds its short term liabilities ($3.1B)

Long Term Liabilities: TTND.F's short term assets (4.8B) exceeds its long term liabilities (970.5M)


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: TTND.F's debt is covered by short term assets (assets are 2.834290x debt).


Next Steps

Dividend

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

1.52%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TTND.F's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TTND.F's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: TTND.F's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).


Next Steps

Management

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

16.8yrs

Average management tenure


CEO

Joe Galli (60yo)

11.7yrs

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 ($USD16.80M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

16.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: TTND.F's management team is seasoned and experienced (16.8 years average tenure).


Board Age and Tenure

15.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TTND.F's board of directors are seasoned and experienced ( 15.5 years average tenure).


Insider Trading

Insider Buying: TTND.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$10,013,04429 Aug 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares1,500,588
Max PriceUS$6.67
SellUS$6,749,81520 Aug 19
Joseph Galli
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,000,000
Max PriceUS$6.75
SellUS$4,067,42615 Jul 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares541,000
Max PriceUS$7.52
SellUS$864,16403 Jul 19
Kin Chan
EntityIndividual
Role
Member of the Board of Directors
Operations Director & Executive Director
Shares112,500
Max PriceUS$7.68
SellUS$4,957,57103 Jul 19
Peter Sullivan
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares650,000
Max PriceUS$7.63
BuyUS$105,022,03517 May 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares16,376,722
Max PriceUS$6.41
SellUS$2,191,35323 Apr 19
Stephan Pudwill
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares300,000
Max PriceUS$7.30
SellUS$5,657,59906 Mar 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares838,000
Max PriceUS$6.75
SellUS$271,12320 Nov 18
Manfred Kuhlmann
EntityIndividual
Shares50,000
Max PriceUS$5.42
BuyUS$460,73401 Nov 18
Horst Pudwill
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares100,000
Max PriceUS$4.61

Ownership Breakdown


Management Team

  • Horst Pudwill (74yo)

    Founder & Executive Chairman

    • Tenure: 34.8yrs
    • Compensation: US$13.16m
  • Joe Galli (60yo)

    CEO & Executive Director

    • Tenure: 11.7yrs
    • Compensation: US$16.80m
  • Philippe Buisson (59yo)

    Chief Financial Officer of Europe Middle East Africa

    • Tenure: 0yrs
  • Patrick Chan (59yo)

    Operations Director & Executive Director

    • Tenure: 29.8yrs
    • Compensation: US$3.37m
  • Frank Chan (65yo)

    Group CFO & Executive Director

    • Tenure: 27.7yrs
    • Compensation: US$3.71m
  • Stephan Pudwill (42yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: US$2.83m
  • Alexandre Duarte

    President of Europe

    • Tenure: 0yrs
  • Mike Brendle

    Managing Director of TTI Australia & New Zealand

    • Tenure: 0yrs
  • Dyann Kostello

    Vice-President and General Counsel

    • Tenure: 0yrs
  • Scott Hetherington

    Senior Vice President of Tax & Treasury

    • Tenure: 0yrs

Board Members

  • Horst Pudwill (74yo)

    Founder & Executive Chairman

    • Tenure: 34.8yrs
    • Compensation: US$13.16m
  • Roy Chung (66yo)

    Non-Executive Director

    • Tenure: 12.5yrs
    • Compensation: US$201.00k
  • Joe Galli (60yo)

    CEO & Executive Director

    • Tenure: 11.7yrs
    • Compensation: US$16.80m
  • Patrick Chan (59yo)

    Operations Director & Executive Director

    • Tenure: 29.8yrs
    • Compensation: US$3.37m
  • Vincent Cheung (77yo)

    Independent Non-Executive Director

    • Tenure: 28.8yrs
    • Compensation: US$243.00k
  • Christopher Patrick Langley (74yo)

    Independent Non-Executive Director

    • Tenure: 18.4yrs
    • Compensation: US$214.00k
  • Peter Sullivan (70yo)

    Independent Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: US$242.00k
  • Frank Chan (65yo)

    Group CFO & Executive Director

    • Tenure: 27.7yrs
    • Compensation: US$3.71m
  • Stephan Pudwill (42yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: US$2.83m
  • Camille Jojo (63yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: US$289.00k

Company Information

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


Key Information

  • Name: Techtronic Industries Company Limited
  • Ticker: TTND.F
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$106.129b
  • Listing Market Cap: HK$13.532b
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:45
End of Day Share Price2019/10/21 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.