Discounted Cash Flow Calculation for NasdaqGS:TTMI using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NasdaqGS:TTMI DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
TTM Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
TTM Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
TTM Technologies's earnings available for a low price, and how does
this compare to other companies in the same industry?
TTM Technologies's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
TTM Technologies's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
TTM Technologies's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
TTM Technologies's finances.
The net worth of a company is the difference between its assets and liabilities.
TTM Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
TTM Technologies's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
TTM Technologies's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.8x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Thomas T. Edman, also known as Tom, served as Chief Executive Officer of SmartWorks at Techstep ASA. Mr. Edman has been the Chief Executive Officer of TTM Technologies Inc. since January 1, 2014 and its President since January 7, 2013. Mr. Edman served as President at Viasystems Group, Inc. since May 31, 2015. Mr. Edman served as Group Vice President of Applied Materials, Inc. from June 2006 to December 2012, Vice President of Corporate Business Development from June 2006 to June 2011 and served as its General Manager of Display Business Group from February 2011 to December 2012. He served as a Vice President of Applied Materials, Inc. He served as the Chief Executive Officer and President of Applied Films Corp. from May 1998 to July 2006. He was employed by Applied Films Corp. since June 1996. He served as the General Manager of Emerging Business Group at Applied Materials, Inc. From June 1996 to May 1998, Mr. Edman served as the Chief Operating Officer and Executive Vice President of Applied Films. From 1993 to June 1996, he served as the General Manager of the High Performance Materials Division of Marubeni Specialty Chemicals Inc. He has been a Director at Viasystems Group, Inc. since May 31, 2015. He has been a Director at TTM Technologies Inc. since September 2004 and Ultra Clean Holdings Inc. since June 2015. He served as a Director of Applied Films Corp. since July 1998. He serves on the National Board of Directors of the American Electronics Association, a professional trade organization. He served on the Governing Board of the USDC (United States Display Consortium). Mr. Edman serves on the board of directors of the c, an electronic industry association. Mr. Edman holds a Bachelor of Arts degree in East Asian studies (Japan) from Yale University and a Master’s degree in Business Administration from The Wharton School at the University of Pennsylvania.
Tom's compensation has been consistent with company performance over the past year.
Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the TTM Technologies management team is about average.
COO & Executive VP
Executive VP & President of Commercial Sector
Executive Vice President of Asia Pacific Business Development
Senior Director of Corporate Development & Investor Relations
Senior Vice President of Marketing
Senior Vice President of Global Sales & E-MS
Senior Vice President of Human Resources
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the TTM Technologies board of directors is about average.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by TTM Technologies insiders in the past 3 months.
Should You Be Worried About Insider Transactions At TTM Technologies, Inc. (NASDAQ:TTMI)?
So shareholders might well want to know whether insiders have been buying or selling shares in TTM Technologies, Inc. … Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. … TTM Technologies Insider Transactions Over The Last Year.
Shareholders Should Look Hard At TTM Technologies, Inc.’s (NASDAQ:TTMI) 7.2% Return On Capital
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
An Intrinsic Calculation For TTM Technologies, Inc. (NASDAQ:TTMI) Shows It's 47.34% Undervalued
by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Boasting A 15% Return On Equity, Is TTM Technologies Inc (NASDAQ:TTMI) A Top Quality Stock?
TTM Technologies has a ROE of 15%, based on the last twelve months. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.15. … Return on Equity = Net Profit ÷ Shareholders' Equity
Here's How P/E Ratios Can Help Us Understand TTM Technologies Inc (NASDAQ:TTMI)
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
What Did TTM Technologies Inc's (NASDAQ:TTMI) CEO Take Home Last Year?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Tom Edman's Compensation Compare With Similar Sized Companies. … We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$4m
What Should You Know About TTM Technologies Inc's (NASDAQ:TTMI) Return On Capital?
and want a simplistic look at the return on TTM Technologies Inc (NASDAQ:TTMI) stock. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in TTM Technologies, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
What’s Ahead For TTM Technologies Inc (NASDAQ:TTMI)?
tech hardware … Whether it’s the next big thing in tech such as artificial intelligence and robotics, or an alliance with a partner in another industry, for example healthcare or manufacturing, tech companies have plenty of opportunities for their companies to thrive … Tech analysts are forecasting for the entire hardware tech industry,
Does The Hype Around TTM Technologies Inc's (NASDAQ:TTMI) Growth Justify Its August Share Price?
TTM Technologies Inc (NASDAQ:TTMI) closed yesterday at $17.36, which left some investors asking whether the high earnings potential can still be justified at this price. … What can we expect from TTM Technologies in the future. … TTM Technologies's growth potential is very attractive
TTM Technologies, Inc., together with its subsidiaries, manufactures printed circuit boards (PCBs) worldwide. It operates through two segments, PCB and E-M Solutions. The company offers a range of PCBs and electro-mechanical solutions, including conventional PCBs, high density interconnect PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration products, and IC substrates. It also produces test specialized circuits that are used in radio-frequency or microwave emission and collection applications; printed circuits with heavy copper cores, and embedded and press-fit coins; PCBs with electrically passive heat sinks; and PCBs with electrically active thermal cores. In addition, it offers various services, including design for manufacturability, PCB layout design, simulation and testing, and quick turnaround services. The company serves original equipment manufacturers and electronic manufacturing services companies that primarily serve the aerospace and defense, automotive, cellular phone, computing, medical/industrial/instrumentation, and networking/communications end markets of the electronics industry; and the U.S. government. TTM Technologies, Inc. was founded in 1978 and is headquartered in Costa Mesa, California.
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