TESSCO Technologies (NasdaqGS:TESS) - Share price, News & Analysis

TESS fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

TESS Stock Overview

TESSCO Technologies Incorporated architects and delivers product and value chain solutions to support wireless systems in the United States and internationally.

Risk Analysis

Earnings are forecast to decline by an average of 12.1% per year for the next 3 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap ($52M)

TESSCO Technologies Competitors

ScanSource

NasdaqGS:SCSC

US$948.2m

Price History & Performance

Summary of all time highs, changes and price drops for TESSCO Technologies
Historical stock prices
Current Share Price	US$5.80
52 Week High	US$8.32
52 Week Low	US$5.08
Beta	0.98
1 Month Change	-5.07%
3 Month Change	-9.94%
1 Year Change	-20.22%
3 Year Change	-66.65%
5 Year Change	-58.27%
Change since IPO	-19.69%

Shareholder Returns

	TESS	US Communications	US Market
7D	-4.3%	-6.6%	1.0%
1Y	-20.2%	-13.0%	-15.1%

Return vs Industry: TESS underperformed the US Communications industry which returned -13.9% over the past year.

Return vs Market: TESS underperformed the US Market which returned -13.2% over the past year.

Price Volatility

Is TESS's price volatile compared to industry and market?
TESS volatility
TESS Average Weekly Movement	5.9%
Communications Industry Average Movement	7.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: TESS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TESS's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	589	Sandip Mukerjee	https://www.tessco.com

TESSCO Technologies Incorporated architects and delivers product and value chain solutions to support wireless systems in the United States and internationally. The company offers base station infrastructure products, including base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, enclosures, grounding products, jumpers, miscellaneous hardware products, and mobile antennas to build, repair, and upgrade wireless broadband systems. It also provides network systems products, such as fixed and mobile broadband radio equipment, wireless networking filtering and distributed antenna systems, two-way radios, and security and surveillance products.

TESSCO Technologies Fundamentals Summary

How do TESSCO Technologies's earnings and revenue compare to its market cap?
TESS fundamental statistics
Market Cap	US$52.10m
Earnings (TTM)	-US$3.31m
Revenue (TTM)	US$417.54m

0.1x

P/S Ratio

-15.7x

P/E Ratio

Is TESS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TESS income statement (TTM)
Revenue	US$417.54m
Cost of Revenue	US$339.51m
Gross Profit	US$78.04m
Other Expenses	US$81.35m
Earnings	-US$3.31m

Last Reported Earnings

Mar 27, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.37
Gross Margin	18.69%
Net Profit Margin	-0.79%
Debt/Equity Ratio	57.2%

How did TESS perform over the long term?

See historical performance and comparison

Valuation

Is TESSCO Technologies undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.69x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TESS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TESS's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: TESS is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Communications industry average.

PE vs Market: TESS is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: TESS is good value based on its Price-To-Book Ratio (0.7x) compared to the US Communications industry average (1.6x).

Future Growth

How is TESSCO Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-12.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TESS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TESS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TESS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TESS's revenue (7% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: TESS's revenue (7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has TESSCO Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TESS is currently unprofitable.

Growing Profit Margin: TESS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TESS is unprofitable, and losses have increased over the past 5 years at a rate of 48.3% per year.

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

Earnings vs Industry: TESS is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (38.2%).

Return on Equity

High ROE: TESS has a negative Return on Equity (-4.36%), as it is currently unprofitable.

Financial Health

How is TESSCO Technologies's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: TESS's short term assets ($143.6M) exceed its short term liabilities ($76.0M).

Long Term Liabilities: TESS's short term assets ($143.6M) exceed its long term liabilities ($50.6M).

Debt to Equity History and Analysis

Debt Level: TESS's net debt to equity ratio (54.9%) is considered high.

Reducing Debt: TESS's debt to equity ratio has increased from 0.2% to 57.2% over the past 5 years.

Balance Sheet

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: TESS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TESS has less than a year of cash runway if free cash flow continues to reduce at historical rates of 39.6% each year

Dividend

What is TESSCO Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: TESS is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TESS has not reported any payouts.

Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure

CEO

Sandip Mukerjee (58 yo)

2.75yrs

Tenure

US$891,729

Compensation

Mr. Sandip Mukerjee serves as President, Chief Executive Officer and Director of TESSCO Technologies Incorporated since August 20, 2019. Mr. Mukerjee served as President of Global Professional and Consulti...

CEO Compensation Analysis

Compensation vs Market: Sandip's total compensation ($USD891.73K) is about average for companies of similar size in the US market ($USD772.05K).

Compensation vs Earnings: Insufficient data to compare Sandip's compensation with company performance.

Leadership Team

Experienced Management: TESS's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: TESS's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/27
Annual Earnings	2022/03/27