NasdaqCM:TCCO

Stock Analysis Report

Technical Communications

Executive Summary

Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communications security devices, systems, and services worldwide.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.7%

TCCO

0.9%

US Communications

0.5%

US Market


1 Year Return

-37.7%

TCCO

1.5%

US Communications

6.8%

US Market

Return vs Industry: TCCO underperformed the US Communications industry which returned 1.5% over the past year.

Return vs Market: TCCO underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

TCCOIndustryMarket
7 Day10.7%0.9%0.5%
30 Day-2.1%-4.3%-0.8%
90 Day-3.1%-15.5%-0.9%
1 Year-37.7%-37.7%3.7%1.5%9.2%6.8%
3 Year3.7%3.7%51.7%42.3%45.6%36.2%
5 Year-34.5%-34.5%91.1%71.1%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TCCO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TCCO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TCCO is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: TCCO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCCO is overvalued based on its PB Ratio (4.2x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

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

16.0%

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 Technical Communications 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 Technical Communications performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCCO is unprofitable, but has reduced losses over the past 5 years at a rate of 10.8% per year.

Accelerating Growth: Unable to compare TCCO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TCCO is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).


Return on Equity

High ROE: TCCO has a negative Return on Equity (-56.15%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TCCO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TCCO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Technical Communications's financial position?


Financial Position Analysis

Short Term Liabilities: TCCO's short term assets ($2.0M) exceeds its short term liabilities ($883.0K)

Long Term Liabilities: TCCO has no long term liabilities


Debt to Equity History and Analysis

Debt Level: TCCO is debt free.

Reducing Debt: TCCO has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TCCO's debt is covered by short term assets.


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: TCCO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: TCCO has less than a year of cash runway if free cash flow continues to grow at historical rates of 65.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

Dividend Coverage: TCCO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TCCO'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 Technical Communications's salary, the management and board of directors tenure and is there insider trading?

13.3yrs

Average board tenure


CEO

Carl Guild (74yo)

20.9yrs

Tenure

US$310,440

Compensation

Mr. Carl H. Guild, Jr. has been the President and Chief Executive Officer at Technical Communications Corporation since 1998 and has been its Chairman since February 12, 2001. From November 19, 1998, to F ...


CEO Compensation Analysis

Compensation vs. Market: Carl's total compensation ($USD310.44K) is about average for companies of similar size in the US market ($USD503.30K).

Compensation vs Earnings: Carl's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

13.3yrs

Average Tenure

74.5yo

Average Age

Experienced Board: TCCO's board of directors are seasoned and experienced ( 13.3 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

  • Carl Guild (74yo)

    Chairman

    • Tenure: 20.9yrs
    • Compensation: US$310.44k
  • Mike Malone (59yo)

    CFO, Treasurer & Assistant Secretary

    • Tenure: 19.7yrs
    • Compensation: US$166.12k
  • David White

    General Counsel & Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Tom Peoples (70yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$44.42k
  • Carl Guild (74yo)

    Chairman

    • Tenure: 20.9yrs
    • Compensation: US$310.44k
  • Ralph Norwood (75yo)

    Director

    • Tenure: 0.4yrs
  • Francisco Blanco (76yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$43.02k

Company Information

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


Key Information

  • Name: Technical Communications Corporation
  • Ticker: TCCO
  • Exchange: NasdaqCM
  • Founded: 1961
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$4.894m
  • Shares outstanding: 1.85m
  • Website: https://www.tccsecure.com

Number of Employees


Location

  • Technical Communications Corporation
  • 100 Domino Drive
  • Concord
  • Massachusetts
  • 1742
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCCONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 1983
59TDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1983

Biography

Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communications security devices, systems, and services worldwide. The company primarily provides voice, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:46
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.