OTCPK:TNLX

Stock Analysis Report

Executive Summary

Trans-Lux Corporation designs, manufactures, and supplies digital signage display solutions and fixed digit scoreboards.

Risk Analysis

Earnings have declined by -2.17% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Shareholders have been substantially diluted in the past year

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.


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Share Price & News

How has Trans-Lux's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

13.5%

TNLX

1.8%

US Electronic

0.8%

US Market


1 Year Return

-8.7%

TNLX

23.7%

US Electronic

17.8%

US Market

Return vs Industry: TNLX underperformed the US Electronic industry which returned 23.7% over the past year.

Return vs Market: TNLX underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TNLXIndustryMarket
7 Day13.5%1.8%0.8%
30 Day13.5%0.9%1.8%
90 Day90.9%6.2%4.1%
1 Year-8.7%-8.7%25.0%23.7%20.4%17.8%
3 Year-79.3%-79.3%47.0%42.9%45.9%36.4%
5 Year-93.0%-93.0%83.2%74.2%68.1%49.6%

Price Volatility Vs. Market

How volatile is Trans-Lux's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Trans-Lux undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Trans-Lux is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Trans-Lux has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of TNLX’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Trans-Lux regulatory filings here.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

How is Trans-Lux forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.8%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Trans-Lux has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of TNLX’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Trans-Lux's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Trans-Lux performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNLX is currently unprofitable.

Growing Profit Margin: TNLX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TNLX is unprofitable, and losses have increased over the past 5 years at a rate of -2.2% per year.

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

Earnings vs Industry: TNLX is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (53.7%).


Return on Equity

High ROE: TNLX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trans-Lux's financial position?


Financial Position Analysis

Short Term Liabilities: TNLX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TNLX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TNLX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TNLX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: TNLX has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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

Forecast Cash Runway: TNLX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -24.7% each year


Next Steps

Dividend

What is Trans-Lux'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 TNLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if TNLX'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 TNLX'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 Trans-Lux's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Alberto Shaio (71yo)

1.3yrs

Tenure

US$274,337

Compensation

Mr. Alberto Shaio has been President and CEO of Trans-Lux Corporation since August 9, 2018. Mr. Shaio served as the Chief Operating Officer of Trans-Lux Corporation since October 6, 2014 until August 9, 20 ...


CEO Compensation Analysis

Compensation vs Market: Alberto's total compensation ($USD274.34K) is below average for companies of similar size in the US market ($USD530.45K).

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


Management Age and Tenure

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: TNLX's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.1yrs

Average Tenure

51.5yo

Average Age

Experienced Board: TNLX's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


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

BuyUS$1,551,84112 Apr 19
GAMCO Investors, Inc.
EntityCompany
Shares1,552,141
Max PriceUS$1.00
BuyUS$100,00012 Apr 19
Teton Advisors, Inc
EntityCompany
Shares100,000
Max PriceUS$1.00
BuyUS$1,45511 Mar 19
GAMCO Investors, Inc.
EntityCompany
Shares1,476,200
Max PriceUS$0.97
BuyUS$3,46521 Feb 19
GAMCO Investors, Inc.
EntityCompany
Shares5,300
Max PriceUS$0.99

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 323.6%.


Management Team

  • Alberto Shaio (71yo)

    President & CEO

    • Tenure: 1.3yrs
    • Compensation: US$274.34k
  • John Hammock (56yo)

    Senior VP & Chief Sales & Marketing Officer

    • Tenure: 3.9yrs
    • Compensation: US$198.83k
  • Alex Gomez (49yo)

    Senior VP & Chief Relationship Officer

    • Tenure: 1.3yrs
    • Compensation: US$169.77k
  • Todd Dupee (47yo)

    Senior VP

    • Tenure: 1.7yrs
    • Compensation: US$113.17k
  • Jay Forlenzo

    Vice President

    • Tenure: 0yrs
  • Jane Bauer

    Vice President of Human Resources

    • Tenure: 2.8yrs
  • David Pavlik

    President of Trans-Lux Energy Corporation

    • Tenure: 5.6yrs

Board Members

  • Salvatore Zizza (74yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: US$58.40k
  • Marco Elser (60yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$12.40k
  • George Schiele (87yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$54.00k
  • Yang Liu (29yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$1.67k
  • Nicholas Fazio (39yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$1.67k
  • Yantao Yu (43yo)

    Director

    • Tenure: 0.4yrs

Company Information

Trans-Lux Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trans-Lux Corporation
  • Ticker: TNLX
  • Exchange: OTCPK
  • Founded: 1920
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$4.975m
  • Shares outstanding: 13.45m
  • Website: https://www.trans-lux.com

Number of Employees


Location

  • Trans-Lux Corporation
  • 135 East 57th Street
  • 14th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNLXOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1968

Biography

Trans-Lux Corporation designs, manufactures, and supplies digital signage display solutions and fixed digit scoreboards. The company operates in two segments, Digital Product Sales; and Digital Product Lea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:42
End of Day Share Price2019/12/11 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.