NasdaqGS:TESS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.

Risks

  • TESSCO Technologies is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has TESSCO Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

NasdaqGS:TESS

2.4%

US Communications

1.2%

US Market


1 Year Return

-8.0%

NasdaqGS:TESS

0.8%

US Communications

1.7%

US Market

TESS underperformed the Communications industry which returned 0.8% over the past year.

TESS underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TESSIndustryMarket
7 Day0.8%2.4%1.2%
30 Day10.8%7.5%4.9%
90 Day-14.0%-6.0%3.7%
1 Year-2.7%-8.0%3.0%0.8%3.9%1.7%
3 Year47.4%25.3%57.7%47.8%47.2%37.7%
5 Year-34.1%-48.5%87.1%67.7%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TESSCO Technologies undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

TESSCO Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).

TESSCO Technologies's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

TESSCO Technologies is overvalued based on earnings compared to the US Communications industry average.

TESSCO Technologies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

TESSCO Technologies is good value based on expected growth next year.


Price Based on Value of Assets

TESSCO Technologies is good value based on assets compared to the US Communications industry average.


Next Steps

Future Growth

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

72.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TESSCO Technologies's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

TESSCO Technologies's earnings are expected to grow significantly at over 20% yearly.

TESSCO Technologies's revenue growth is positive but not above the United States of America market average.

TESSCO Technologies's earnings growth is expected to exceed the United States of America market average.

TESSCO Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if TESSCO Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has TESSCO Technologies performed over the past 5 years?

-29.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TESSCO Technologies's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

TESSCO Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.

TESSCO Technologies's 1-year earnings growth is negative, it can't be compared to the US Communications industry average.


Return on Equity

TESSCO Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TESSCO Technologies used its assets less efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

TESSCO Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TESSCO Technologies's financial position?


Financial Position Analysis

TESSCO Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

TESSCO Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

TESSCO Technologies's level of debt (19.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (2% vs 19.2% today).

Debt is well covered by operating cash flow (39.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 9.5x debt.


Next Steps

Dividend

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

5.15%

Current Dividend Yield


Dividend Yield and Payments Analysis

TESSCO Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

TESSCO Technologies's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of TESSCO Technologies's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Sandip Mukerjee (56yo)

0.08yrs

Tenure

0

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 ...


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

The tenure for the TESSCO Technologies management team is about average.


Board Age and Tenure

19.3yrs

Average Tenure

69.5yo

Average Age

The average tenure for the TESSCO Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

TESSCO Technologies individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$94,01512 Sep 19
Charles Kriete
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Commercial Sales
Shares6,027
Max PriceUS$15.85

Ownership Breakdown


Management Team

  • Bob Barnhill (75yo)

    Founder & Executive Chairman

    • Tenure: 25.8yrs
    • Compensation: US$258.70k
  • Douglas Rein (59yo)

    Senior Vice President of Performance Systems & Operations

    • Tenure: 20.2yrs
    • Compensation: US$545.75k
  • Aric Spitulnik (48yo)

    CFO, Senior VP & Corporate Secretary

    • Tenure: 5.9yrs
    • Compensation: US$477.96k
  • Murray Wright (62yo)

    Executive Officer

    • Tenure: 0.08yrs
    • Compensation: US$932.88k
  • Charles Kriete (41yo)

    Senior Vice President of Commercial Sales

    • Tenure: 2.7yrs
    • Compensation: US$551.85k
  • Ted Perez (45yo)

    Controller

    • Tenure: 5.9yrs
  • Liz Robinson (52yo)

    Senior Vice President of Retail Sales & Product Marketing

    • Tenure: 2.5yrs
    • Compensation: US$508.04k
  • Mary Smith

    VP of Sales & GM of Ventev

    • Tenure: 0yrs
  • Joe Cawley

    CIO & CTO

    • Tenure: 0yrs
  • Sandip Mukerjee (56yo)

    President

    • Tenure: 0.08yrs

Board Members

  • Paul Gaffney (52yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$69.81k
  • Bob Barnhill (75yo)

    Founder & Executive Chairman

    • Tenure: 25.8yrs
    • Compensation: US$258.70k
  • John Beletic (67yo)

    Lead Director

    • Tenure: 11.1yrs
    • Compensation: US$103.73k
  • Benn Konsynski (68yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$87.73k
  • Mort Zifferer (71yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$94.73k
  • Dennis Shaughnessy (72yo)

    Independent Director

    • Tenure: 30.7yrs
    • Compensation: US$92.73k
  • Jay Baitler (72yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$97.73k
  • Sandip Mukerjee (56yo)

    President

    • Tenure: 0.08yrs

Company Information

TESSCO Technologies Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TESSCO Technologies Incorporated
  • Ticker: TESS
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$132.418m
  • Shares outstanding: 8.52m
  • Website: https://www.tessco.com

Number of Employees


Location

  • TESSCO Technologies Incorporated
  • 11126 McCormick Road
  • Hunt Valley
  • Maryland
  • 21031
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TESSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1994

Biography

TESSCO Technologies Incorporated architects and delivers products and value chain solutions to support wireless systems in the United States. The company offers base station infrastructure products, includ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:44
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.