NasdaqGS:TTMI

Stock Analysis Report

Executive Summary

TTM Technologies, Inc., together with its subsidiaries, manufactures printed circuit boards (PCBs) worldwide.

Rewards

Trading at 16.1% below its fair value

Earnings are forecast to grow 37.56% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.6%) are lower than last year (5.9%)



Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TTMI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

TTMI

-0.2%

US Electronic

0.03%

US Market


1 Year Return

32.2%

TTMI

24.2%

US Electronic

18.6%

US Market

Return vs Industry: TTMI exceeded the US Electronic industry which returned 24.2% over the past year.

Return vs Market: TTMI exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

TTMIIndustryMarket
7 Day2.9%-0.2%0.03%
30 Day9.2%-0.008%1.7%
90 Day20.3%9.7%5.7%
1 Year32.2%32.2%25.5%24.2%21.1%18.6%
3 Year1.0%1.0%45.3%41.3%45.6%36.2%
5 Year96.6%96.6%84.4%75.4%71.1%52.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTMI ($13.8) is trading below our estimate of fair value ($16.45)

Significantly Below Fair Value: TTMI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TTMI is good value based on its PE Ratio (21.1x) compared to the Electronic industry average (21.1x).

PE vs Market: TTMI is poor value based on its PE Ratio (21.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TTMI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TTMI is good value based on its PB Ratio (1.2x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is TTM Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

37.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTMI's forecast earnings growth (37.6% per year) is above the savings rate (1.7%).

Earnings vs Market: TTMI's earnings (37.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TTMI's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TTMI's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTMI's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has TTM Technologies performed over the past 5 years?

47.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTMI has a large one-off loss of $28.1M impacting its September 30 2019 financial results.

Growing Profit Margin: TTMI's current net profit margins (2.6%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: TTMI's earnings have grown significantly by 47.7% per year over the past 5 years.

Accelerating Growth: TTMI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TTMI had negative earnings growth (-59.8%) over the past year, making it difficult to compare to the Electronic industry average (53.7%).


Return on Equity

High ROE: TTMI's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TTM Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TTMI's short term assets ($1.3B) exceed its short term liabilities ($666.7M).

Long Term Liabilities: TTMI's short term assets ($1.3B) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: TTMI's debt to equity ratio (119.2%) is considered high.

Reducing Debt: TTMI's debt to equity ratio has increased from 70.5% to 119.2% over the past 5 years.

Debt Coverage: TTMI's debt is well covered by operating cash flow (22.4%).

Interest Coverage: TTMI's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: TTMI has a high level of physical assets or inventory.

Debt Coverage by Assets: TTMI's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate TTMI'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 TTMI's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TTMI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Tom Edman (57yo)

5.9yrs

Tenure

US$2,035,978

Compensation

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 it ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.04M) is below average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

3.9yrs

Average Tenure

58yo

Average Age

Experienced Management: TTMI's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

64yo

Average Age

Experienced Board: TTMI's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$214,00003 Sep 19
Daniel Weber
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares20,000
Max PriceUS$10.70
SellUS$234,34529 Aug 19
Anthony Princiotta
EntityIndividual
Shares23,222
Max PriceUS$10.09
SellUS$315,73821 Aug 19
Tai Chung
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Asia Pacific Business Development
Shares29,839
Max PriceUS$10.58
SellUS$20,00114 Aug 19
William Hardwick
EntityIndividual
Role
Head of Sales
Senior Vice President of Global Sales & E-MS
Shares1,878
Max PriceUS$10.65

Ownership Breakdown

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


Management Team

  • Tom Edman (57yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$2.04m
  • O. Swain (55yo)

    Senior Vice President of Marketing

    • Tenure: 0yrs
    • Compensation: US$578.87k
  • Canice Chung (63yo)

    Executive Vice President of Asia Pacific Business Development

    • Tenure: 7.7yrs
    • Compensation: US$2.02m
  • Todd Schull (60yo)

    Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$1.19m
  • Dan Weber (47yo)

    Senior VP

    • Tenure: 3.8yrs
    • Compensation: US$943.03k
  • Brian Barber (63yo)

    Executive VP & COO

    • Tenure: 3.9yrs
    • Compensation: US$1.39m
  • Doug Soder (58yo)

    Executive VP & President of Commercial Sector

    • Tenure: 1.9yrs
    • Compensation: US$1.88m
  • Shawn Powers

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • William Hardwick

    Senior Vice President of Global Sales & E-MS

    • Tenure: 3.8yrs
  • Sameer Desai

    Senior Director of Corporate Development & Investor Relations

    • Tenure: 0yrs

Board Members

  • Kent Alder (69yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$191.10k
  • Rob Klatell (73yo)

    Independent Chairman of the Board

    • Tenure: 14.6yrs
    • Compensation: US$309.79k
  • Phil Franklin (67yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$220.60k
  • Tom Edman (57yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$2.04m
  • Julie England (61yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$204.10k
  • John Mayer (68yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$205.60k
  • Dov Zakheim (70yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$210.10k
  • Rex Geveden (57yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$357.56k
  • Tom Tang (58yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$174.60k
  • Chantel Lenard (49yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$231.87k

Company Information

TTM Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TTM Technologies, Inc.
  • Ticker: TTMI
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$1.416b
  • Shares outstanding: 105.49m
  • Website: https://www.ttm.com

Number of Employees


Location

  • TTM Technologies, Inc.
  • 200 East Sandpointe
  • Suite 400
  • Santa Ana
  • California
  • 92707
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTMINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2000
TT1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2000

Biography

TTM Technologies, Inc., together with its subsidiaries, manufactures printed circuit boards (PCBs) worldwide. The company operates through two segments, PCB and E-M Solutions. The company offers a range of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:41
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.