AMEX:TRT

Stock Analysis Report

Executive Summary

Trio-Tech International, together with its subsidiaries, provides manufacturing, testing, and distribution services to the semiconductor industry.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

How has Trio-Tech International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

TRT

3.0%

US Semiconductor

1.8%

US Market


1 Year Return

-21.2%

TRT

20.6%

US Semiconductor

7.3%

US Market

Return vs Industry: TRT underperformed the US Semiconductor industry which returned 20.6% over the past year.

Return vs Market: TRT underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

TRTIndustryMarket
7 Day-2.8%3.0%1.8%
30 Day0%-0.02%-0.7%
90 Day21.1%4.7%0.06%
1 Year-21.2%-21.2%22.9%20.6%9.7%7.3%
3 Year2.9%2.9%82.2%71.5%46.3%36.9%
5 Year-4.4%-4.4%137.4%112.9%64.5%46.5%

Price Volatility Vs. Market

How volatile is Trio-Tech International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trio-Tech International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TRT ($3.5) is trading below our estimate of fair value ($8)

Significantly Undervalued: TRT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRT is good value based on its PE Ratio (8.3x) compared to the Semiconductor industry average (27.6x).

PE vs Market: TRT is good value based on its PE Ratio (8.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TRT is good value based on its PB Ratio (0.5x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is Trio-Tech International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRT's forecast earnings growth (21% per year) is above the savings rate (2.7%).

Earnings vs Market: TRT's earnings (21% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: Insufficient data to determine if TRT's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if TRT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TRT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Trio-Tech International performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRT's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: TRT's earnings growth over the past year (29.3%) exceeds its 5-year average (24.6% per year).

Earnings vs Industry: TRT earnings growth over the past year (29.3%) exceeded the Semiconductor industry -6.2%.


Return on Equity

High ROE: TRT's Return on Equity (5.8%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: TRT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Trio-Tech International's financial position?


Financial Position Analysis

Short Term Liabilities: TRT's short term assets ($19.7M) exceeds its short term liabilities ($8.1M)

Long Term Liabilities: TRT's short term assets (19.7M) exceeds its long term liabilities (3.5M)


Debt to Equity History and Analysis

Debt Level: TRT's debt to equity ratio (11.9%) is considered satisfactory

Reducing Debt: TRT's debt to equity ratio has reduced from 32.7% to 11.9% over the past 5 years.

Debt Coverage: TRT's debt is well covered by operating cash flow (150.1%).

Interest Coverage: TRT's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: TRT's debt is covered by short term assets (assets are 6.653180x debt).


Next Steps

Dividend

What is Trio-Tech International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if TRT'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 TRT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Trio-Tech International's salary, the management and board of directors tenure and is there insider trading?

26.9yrs

Average management tenure


CEO

Siew Yong (66yo)

29.8yrs

Tenure

US$460,305

Compensation

Mr. Siew Wai Yong has been the Chief Executive Officer and President at Trio-Tech International since 1990. Mr. Yong has been associated with Trio-Tech International Pte. Ltd. in Singapore since 1976 and h ...


CEO Compensation Analysis

Compensation vs. Market: Siew's total compensation ($USD460.31K) is about average for companies of similar size in the US market ($USD491.38K).

Compensation vs Earnings: Siew's compensation has increased by more than 20% in the past year.


Management Age and Tenure

26.9yrs

Average Tenure

65yo

Average Age

Experienced Management: TRT's management team is seasoned and experienced (26.9 years average tenure).


Board Age and Tenure

29.8yrs

Average Tenure

66yo

Average Age

Experienced Board: TRT's board of directors are seasoned and experienced ( 29.8 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.


Ownership Breakdown


Management Team

  • Siew Yong (66yo)

    President

    • Tenure: 29.8yrs
    • Compensation: US$460.31k
  • Victor Ting (65yo)

    CFO, VP & Director

    • Tenure: 9.1yrs
    • Compensation: US$264.47k
  • Richard Lim (60yo)

    Corporate Vice-President of Testing

    • Tenure: 21.3yrs
    • Compensation: US$151.08k

Board Members

  • A. Wilson (95yo)

    Chairman

    • Tenure: 30.8yrs
    • Compensation: US$145.50k
  • Siew Yong (66yo)

    President

    • Tenure: 29.8yrs
    • Compensation: US$460.31k
  • Victor Ting (65yo)

    CFO, VP & Director

    • Tenure: 9.1yrs
    • Compensation: US$264.47k
  • Jason Adelman (50yo)

    Director

    • Tenure: 22.5yrs
    • Compensation: US$71.25k
  • Richard Horowitz (78yo)

    Director

    • Tenure: 29.8yrs
    • Compensation: US$71.25k

Company Information

Trio-Tech International's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trio-Tech International
  • Ticker: TRT
  • Exchange: AMEX
  • Founded: 1958
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$12.856m
  • Shares outstanding: 3.67m
  • Website: https://www.triotech.com

Number of Employees


Location

  • Trio-Tech International
  • 16139 Wyandotte Street
  • Van Nuys
  • California
  • 91406
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRTAMEX (NYSE MKT LLC)YesCommon StockUSUSDDec 1984

Biography

Trio-Tech International, together with its subsidiaries, provides manufacturing, testing, and distribution services to the semiconductor industry. The company’s Testing Services segment offers stabilizatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:45
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.