NasdaqGS:TESS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.7%

TESS

-1.1%

US Communications

-1.5%

US Market


1 Year Return

-55.2%

TESS

-17.0%

US Communications

12.9%

US Market

Return vs Industry: TESS underperformed the US Communications industry which returned -17% over the past year.

Return vs Market: TESS underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

TESSIndustryMarket
7 Day-2.7%-1.1%-1.5%
30 Day-9.6%-7.1%-1.8%
90 Day27.1%-10.5%6.6%
1 Year-54.3%-55.2%-14.7%-17.0%15.4%12.9%
3 Year-46.5%-52.5%16.9%8.8%39.6%30.2%
5 Year-63.0%-70.7%53.8%36.8%93.4%71.7%

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 compared to its fair value and its price relative to the market?

0.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TESS ($6.05) is trading above our estimate of fair value ($0.2)

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


Price To Earnings Ratio

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

PE vs Market: TESS 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 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 PB Ratio (0.7x) compared to the US Communications industry average (1.7x).


Next Steps

Future Growth

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

108.9%

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 is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: TESS's revenue is forecast to decline over the next 3 years (-0.3% 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


Next Steps

Past Performance

How has TESSCO Technologies performed over the past 5 years?

-56.9%

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 56.9% 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 (-28.9%).


Return on Equity

High ROE: TESS has a negative Return on Equity (-29.84%), as it is currently unprofitable.


Next Steps

Financial Health

How is TESSCO Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TESS's short term assets ($157.9M) exceed its short term liabilities ($113.8M).

Long Term Liabilities: TESS's short term assets ($157.9M) exceed its long term liabilities ($11.7M).


Debt to Equity History and Analysis

Debt Level: TESS's debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: TESS's debt to equity ratio has increased from 1.9% to 31.9% over the past 5 years.

Debt Coverage: TESS's debt is well covered by operating cash flow (25%).

Interest Coverage: Insufficient data to determine if TESS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TESS'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?

6.9yrs

Average management tenure


CEO

Sandip Mukerjee (57 yo)

1.08yrs

Tenure

US$1,588,236

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 ($USD1.59M) is above average for companies of similar size in the US market ($USD589.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sandip Mukerjee
President1.08yrsUS$1.59m0.0059%
$ 3.1k
Robert Barnhill
Founder & Director38.67yrsUS$250.75k18.6%
$ 9.8m
Aric Spitulnik
CFO, Senior VP & Corporate Secretary6.92yrsUS$427.34k0.29%
$ 153.9k
Douglas Rein
Senior Vice President of Performance Systems & Operations21.17yrsUS$469.09k0.84%
$ 440.5k
Joseph Cawley
Senior VP & Chief Information Officerno dataUS$386.46k0.080%
$ 42.4k
Elizabeth Robinson
Senior Vice President of Retail Sales & Product Marketing3.5yrsUS$396.12k0.13%
$ 66.0k
Eddie Franklin
Senior Vice President of Sales0.42yrno datano data
Thomas Perez
Controller6.92yrsno datano data
Cynthia King
VP & Treasurerno datano datano data

6.9yrs

Average Tenure

56yo

Average Age

Experienced Management: TESS's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sandip Mukerjee
President1.08yrsUS$1.59m0.0059%
$ 3.1k
Robert Barnhill
Founder & Director38.67yrsUS$250.75k18.6%
$ 9.8m
Paul Gaffney
Independent Director2.25yrsUS$131.17k0.21%
$ 111.3k
John Beletic
Independent Chairman & Independent Lead Director0.083yrUS$148.17k0.31%
$ 164.0k
Morton Zifferer
Independent Director26.83yrsUS$136.17k1.07%
$ 564.1k
Dennis Shaughnessy
Independent Director31.67yrsUS$132.17k0.56%
$ 295.3k
Jay Baitler
Independent Director13.67yrsUS$134.67k0.42%
$ 219.6k
Stephanie Dismore
Director0.17yrno data0.11%
$ 56.8k

8.0yrs

Average Tenure

70yo

Average Age

Experienced Board: TESS's board of directors are considered experienced (8 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

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$52.712m
  • Shares outstanding: 8.71m
  • 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
TT5BST (Boerse-Stuttgart)YesCommon StockDEEURSep 1994

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 05:43
End of Day Share Price2020/09/21 00:00
Earnings2020/06/28
Annual Earnings2020/03/29


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.