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 Analysis

Flawless balance sheet with proven track record.


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

Stable Share Price: TCCO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.7%

TCCO

12.8%

US Communications

12.5%

US Market


1 Year Return

-35.4%

TCCO

-28.7%

US Communications

-12.7%

US Market

Return vs Industry: TCCO underperformed the US Communications industry which returned -28.7% over the past year.

Return vs Market: TCCO underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

TCCOIndustryMarket
7 Day18.7%12.8%12.5%
30 Day-27.5%-4.5%-14.7%
90 Day-56.6%-18.9%-21.5%
1 Year-35.4%-35.4%-27.2%-28.7%-10.9%-12.7%
3 Year-17.4%-17.4%9.6%2.7%12.6%5.4%
5 Year-47.4%-47.4%40.1%25.0%31.9%17.5%

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?

10.17x

Price to Earnings (PE) 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 good value based on its PE Ratio (10.2x) compared to the Communications industry average (21.6x).

PE vs Market: TCCO is good value based on its PE Ratio (10.2x) compared to the US market (13x).


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 (2.3x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

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

13.2%

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?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCCO has high quality earnings.

Growing Profit Margin: TCCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TCCO has become profitable over the past 5 years, growing earnings by 23.6% per year.

Accelerating Growth: TCCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TCCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-13.2%).


Return on Equity

High ROE: TCCO's Return on Equity (22.7%) is considered high.


Next Steps

Financial Health

How is Technical Communications's financial position?


Financial Position Analysis

Short Term Liabilities: TCCO's short term assets ($2.1M) exceed its short term liabilities ($574.4K).

Long Term Liabilities: TCCO's short term assets ($2.1M) exceed its long term liabilities ($521.2K).


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: TCCO's debt is covered by short term assets (assets are 1.9334628740245E+16x 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: TCCO is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

13.7yrs

Average board tenure


CEO

Carl Guild (74yo)

21.33s

Tenure

US$302,188

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 ($USD302.19K) is below average for companies of similar size in the US market ($USD605.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Carl Guild
Chairman21.33yrsUS$302.19k16.1% $652.6k
Thomas Peoples
Independent Director22.17yrsUS$39.47k0.26% $10.5k
Ralph Norwood
Independent Director0.83yrUS$6.00kno data
Francisco Blanco
Independent Director8.33yrsUS$33.87kno data

13.7yrs

Average Tenure

74.5yo

Average Age

Experienced Board: TCCO's board of directors are seasoned and experienced ( 13.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$4.053m
  • Shares outstanding: 1.85m
  • Website: https://www.tccsecure.com

Number of Employees


Location

  • Technical Communications Corporation
  • 100 Domino Drive
  • Concord
  • Massachusetts
  • 01742-2892
  • 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 video, data, fax, and voice networks. Its products include government systems, such as CSD 3324 SE secure telephone, fax and data system; CSD 3324 SP telephone and fax system; DSD 72A-SP military bulk ciphering system; and DSP 9000 radio encryption system, as well as the HSE 6000 squad radio headset and telephone encryptor for public safety special operations, land mobile radio applications, and for military applications. The company also provides network security systems comprising network encryption systems with centralized key and device management for IP, SONET/SDH, and frame relay networks to secure data in transit from local area network to local area network and across wide area networks. In addition, it offers secure office systems, such as CSD 4100 executive secure telephone and CipherTalk 8500 Internet protocol (IP)-based secure wireless phone. The company’s products are used to protect confidentiality in communications between radios, landline telephones, mobile phones, facsimile machines, data network equipment over wires, fiber optic cables, radio waves, and microwave and satellite links. Further, it offers funded research and development, and technology development services. The company serves various markets, including foreign and domestic governmental agencies, law enforcement and military agencies, telecommunications carriers, financial institutions, and multinational companies requiring protection of mission-critical information. It sells directly to customers, original equipment manufacturers, and value-added resellers using its in-house sales force, as well as domestic and international representatives, consultants, and distributors. Technical Communications Corporation was founded in 1961 and is based in Concord, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:24
End of Day Share Price2020/03/27 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


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.