OTCPK:TTGP.F

Stock Analysis Report

Executive Summary

TT Electronics plc provides engineered electronics for performance critical applications in the industrial, medical, aerospace and defense, and transportation markets worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has TT Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-18.5%

TTGP.F

-10.2%

US Electronic

-10.6%

US Market


1 Year Return

n/a

TTGP.F

-4.4%

US Electronic

5.2%

US Market

Return vs Industry: Insufficient data to determine how TTGP.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how TTGP.F performed against the US Market.


Shareholder returns

TTGP.FIndustryMarket
7 Day-18.5%-10.2%-10.6%
30 Day-18.5%-11.8%-8.5%
90 Dayn/a-10.8%-4.6%
1 Yearn/a-3.4%-4.4%7.4%5.2%
3 Year34.2%34.2%21.2%17.8%31.7%23.2%
5 Yearn/a50.8%43.3%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is TT Electronics undervalued compared to its fair value and its price relative to the market?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTGP.F ($2.55) is trading below our estimate of fair value ($2.68)

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


Price To Earnings Ratio

PE vs Industry: TTGP.F is poor value based on its PE Ratio (29.6x) compared to the Electronic industry average (17.3x).

PE vs Market: TTGP.F is poor value based on its PE Ratio (29.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: TTGP.F is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: TTGP.F is good value based on its PB Ratio (1.2x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is TT Electronics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTGP.F's forecast earnings growth (30.9% per year) is above the savings rate (1.7%).

Earnings vs Market: TTGP.F's earnings (30.9% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: TTGP.F's revenue (4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TTGP.F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTGP.F's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has TT Electronics performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTGP.F has high quality earnings.

Growing Profit Margin: TTGP.F's current net profit margins (2.4%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: TTGP.F's earnings have grown significantly by 40.2% per year over the past 5 years.

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

Earnings vs Industry: TTGP.F had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Electronic industry average (13.1%).


Return on Equity

High ROE: TTGP.F's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is TT Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: TTGP.F's short term assets (£240.6M) exceed its short term liabilities (£117.5M).

Long Term Liabilities: TTGP.F's short term assets (£240.6M) exceed its long term liabilities (£140.8M).


Debt to Equity History and Analysis

Debt Level: TTGP.F's debt to equity ratio (41.5%) is considered high.

Reducing Debt: TTGP.F's debt to equity ratio has increased from 22.3% to 41.5% over the past 5 years.

Debt Coverage: TTGP.F's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: TTGP.F's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: TTGP.F's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is TT Electronics's current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TTGP.F's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: TTGP.F's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: TTGP.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: TTGP.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.5%), TTGP.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TTGP.F's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Richard Tyson (48yo)

5.6yrs

Tenure

UK£2,189,000

Compensation

Mr. Richard Tyson has been Independent Non-Executive Director at The Vitec Group plc since April 02, 2018. He has been the Group Chief Executive Officer at TT Electronics plc since July 1, 2014. Mr. Tyson  ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD2.82M) is above average for companies of similar size in the US market ($USD1.76M).

Compensation vs Earnings: Richard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Tyson
Group CEO & Executive Director5.6yrsUK£2.19m0.44% £1.9m
Mark Hoad
CFO & Director5.1yrsUK£1.46m0.34% £1.4m
Emma Darke
Head of Investor Relations & Communications0yrsno datano data
Lynton Boardman
Group General Counsel & Company Secretary7.3yrsno datano data
Neil Fleming
Executive Vice President of Corporate Development1.8yrsno datano data
Sarah Hamilton-Hanna
Executive Vice President of Human Resource1.1yrsno datano data
Tom Garvey
Executive Vice President of Power & Connectivity4.1yrsno datano data
Michael Leahan
Executive Vice President of Global Manufacturing Solutions2.5yrsno datano data
Charles St. John Peppiatt
Executive VP of IoT Solutions and Sensors & Specialist Components1.1yrsno datano data

3.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: TTGP.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Tyson
Group CEO & Executive Director5.6yrsUK£2.19m0.44% £1.9m
Mark Hoad
CFO & Director5.1yrsUK£1.46m0.34% £1.4m
Jack Boyer
Independent Non-Executive Director3.7yrsUK£44.00k0.051% £216.9k
Neil Andrew Carson
Non-Executive Chairman4.8yrsUK£184.00k0.12% £499.0k
W. L. L. Alison Wood
Independent Non-Executive Director3.6yrsUK£52.00kno data
Anne Thorburn
Independent Non-executive Director0.6yrsno data0.028% £118.2k
Stephen King
Senior Independent Non-Executive Director3.6yrsUK£58.00k0.076% £323.0k

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: TTGP.F's board of directors are considered experienced (3.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TT Electronics plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TT Electronics plc
  • Ticker: TTGP.F
  • Exchange: OTCPK
  • Founded: 1906
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: UK£332.302m
  • Listing Market Cap: UK£427.822m
  • Shares outstanding: 162.89m
  • Website: https://www.ttelectronics.com

Number of Employees


Location

  • TT Electronics plc
  • St Andrews House
  • Fourth Floor
  • Woking
  • Surrey
  • GU21 6EB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
TTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
7TTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

TT Electronics plc provides engineered electronics for performance critical applications in the industrial, medical, aerospace and defense, and transportation markets worldwide. The company operates in three divisions: Sensors and Specialist Components, Power and Connectivity, and Global Manufacturing Solutions. The Sensors and Specialist Components division works with customers to develop standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers’ applications. The Power and Connectivity division designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data. It collaborates with customers to develop innovative solutions to optimize their electronic systems. The Global Manufacturing Solutions division provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of different products. It manufactures integrated product assemblies, as well as provides designing testing solutions and value-engineering services. The company offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, IRC, OPTEK Technology, Semelab, Welwyn, and Roxspur Measurement & Control brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. TT Electronics plc was incorporated in 1906 and is headquartered in Woking, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:24
End of Day Share Price2020/02/27 00:00
Earnings2019/06/30
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.