NasdaqCM:TAIT

Stock Analysis Report

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Executive Summary

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TAIT

3.8%

US Electronic

2.4%

US Market


1 Year Return

-11.2%

TAIT

9.3%

US Electronic

9.2%

US Market

Return vs Industry: TAIT underperformed the US Electronic industry which returned 9.3% over the past year.

Return vs Market: TAIT underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

TAITIndustryMarket
7 Day0%3.8%2.4%
30 Day-0.4%15.8%10.2%
90 Day-0.4%6.9%3.4%
1 Year-6.8%-11.2%10.4%9.3%11.6%9.2%
3 Year95.8%66.9%20.3%17.0%33.7%24.9%
5 Year224.3%147.0%63.8%55.9%59.7%41.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TAIT ($2.47) is trading above our estimate of fair value ($2.18)

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


Price To Earnings Ratio

PE vs Industry: TAIT is poor value based on its PE Ratio (21x) compared to the Electronic industry average (20.3x).

PE vs Market: TAIT is poor value based on its PE Ratio (21x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TAIT is good value based on its PB Ratio (1.1x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

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

33.3%

Forecasted Tech 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 Taitron Components 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 Taitron Components performed over the past 5 years?

48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TAIT has a large one-off loss of $193.0K impacting its March 31 2020 financial results.

Growing Profit Margin: TAIT's current net profit margins (9.9%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: TAIT has become profitable over the past 5 years, growing earnings by 48.7% per year.

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

Earnings vs Industry: TAIT had negative earnings growth (-54.9%) over the past year, making it difficult to compare to the Electronic industry average (-8%).


Return on Equity

High ROE: TAIT's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Taitron Components's financial position?


Financial Position Analysis

Short Term Liabilities: TAIT's short term assets ($10.1M) exceed its short term liabilities ($930.0K).

Long Term Liabilities: TAIT has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TAIT is debt free.

Reducing Debt: TAIT has no debt compared to 5 years ago when its debt to equity ratio was 9.7%.

Debt Coverage: TAIT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TAIT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TAIT's dividend (5.67%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: TAIT's dividend (5.67%) is in the top 25% of dividend payers in the US market (4.39%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TAIT has been paying a dividend for less than 10 years.

Growing Dividend: TAIT's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110.4%), TAIT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

31.4yrs

Average management tenure


CEO

Stewart Wang (69yo)

31.42yrs

Tenure

US$233,300

Compensation

Mr. Stewart Wang co-founded Taitron Components Inc. in 1989 and has been its Chief Executive Officer and President since 1989. Mr. Wang served as Chief Financial Officer of Taitron Components Inc. from Nov ...


CEO Compensation Analysis

Compensation vs Market: Stewart's total compensation ($USD233.30K) is below average for companies of similar size in the US market ($USD589.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stewart Wang
Co-Founder31.42yrsUS$233.30k23.92% $3.4m
David Vanderhorst
CFO & Corporate Secretary12.08yrsUS$167.30k0.64% $91.1k
Tzu Ku
Co-Founder & Chairman31.42yrsno data20.39% $2.9m

31.4yrs

Average Tenure

69yo

Average Age

Experienced Management: TAIT's management team is seasoned and experienced (31.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stewart Wang
Co-Founder31.42yrsUS$233.30k23.92% $3.4m
Tzu Ku
Co-Founder & Chairman31.42yrsno data20.39% $2.9m
Richard Chiang
Independent Director31.42yrsUS$3.90k3.01% $431.5k
Craig Miller
Independent Director20.08yrsUS$3.90kno data
Chi-Lin Chung
Independent Director0.50yrno datano data

31.4yrs

Average Tenure

65yo

Average Age

Experienced Board: TAIT's board of directors are seasoned and experienced ( 31.4 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

Taitron Components Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taitron Components Incorporated
  • Ticker: TAIT
  • Exchange: NasdaqCM
  • Founded: 1989
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$14.321m
  • Shares outstanding: 5.80m
  • Website: https://www.taitroncomponents.com

Number of Employees


Location

  • Taitron Components Incorporated
  • 28040 West Harrison Parkway
  • Valencia
  • California
  • 91355
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TAITNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDApr 1995

Biography

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also provides value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM services for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic alliances with Teamforce Co. Ltd.; Grand Shine Management Limited; and Zowie Technology Corporation. Taitron Components Incorporated was founded in 1989 and is headquartered in Valencia, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:25
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.