Filtronic (FTC) AI Stock Analysis

• Market Cap: £274.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.26
• Revenue Growth: 159.75%
• EPS Growth: N/A
• Country: UK
• Employees: 133
• Sector: Technology
• Sector Strength: 80
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 219,002,490
• 10 Day Avg. Volume: 793,398
• 30 Day Avg. Volume: 1,053,907
• PEG Ratio: 0.11
• Price to Book (P/B): 15.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: 142.00p ▲(13.37%Upside)

Filtronic's strong financial performance and strategic corporate events, including key contracts, are the major drivers of its favorable stock score. Technical indicators support a positive trend, though potential overvaluation and lack of dividend yield are considerations.

Filtronic Business Overview & Revenue Model

Company Description

Filtronic plc designs, develops, manufactures, and sells advanced radio frequency (RF) communications equipment for telecommunications infrastructure, aerospace and defense, and critical communications market sectors in the United Kingdom, Europe, the Americas, and internationally. It provides Morpheus II, an e-band transceiver module; Cerus, a power amplifier for long range e-band communications; tower top amplifiers; Orpheus, an ultra-high-capacity turn-key solution for backhaul, fronthaul, and mid haul; switched filter banks; GaN amplifiers; custom filters products, including metal cavity, ceramic, combline, interdigital, lumped element, suspended substrate, waveguide, and thin-film filters; and custom combiner products. The company also offers interference mitigation filters; transmit and receive modules; microwave and mmWave transceivers; front end modules, such as power amplifiers, low noise amplifiers, switches, filters, power detectors, baluns, and other products; ceramic, combline, lumped element, metal cavity, suspended substrate, thin film, and small cell filters; waveguide diplexers; and cross-band and in band combiners. In addition, it provides contract design and microelectronic manufacturing services, RF design and testing, and process engineering services. The company was formerly known as Filtronic Comtek plc and changed its name to Filtronic plc in March 1998. Filtronic plc was founded in 1977 and is based in Sedgefield, the United Kingdom.

How the Company Makes Money

Filtronic makes money primarily through the sale of its RF communications products and solutions. Key revenue streams include contracts and sales to telecommunications companies, defense organizations, and government agencies seeking reliable and high-performance RF components. The company also engages in strategic partnerships and collaborative projects to enhance its product offerings and reach new markets. Filtronic's earnings are significantly influenced by its ability to innovate and meet the evolving technology demands of its clients across various sectors.

Filtronic Financial Statement Overview

Summary

Filtronic exhibits strong financial health with substantial revenue growth, high profitability, and efficient cash flow management. The company maintains a low level of debt, which reduces financial risk. While the balance sheet is strong, continuous investment in capital expenditures should be monitored to ensure sustained cash flow efficiency.

Income Statement

Filtronic has shown strong revenue growth with a significant increase from £16.3M to £25.4M over the last year, representing a growth rate of approximately 56%. The company has also improved its profitability with a gross profit margin of 63.2% and a net profit margin of 12.3%. The EBIT and EBITDA margins are strong at 14.2% and 19%, respectively, indicating efficient operational management and profitability.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.2, indicating low leverage. The equity ratio stands at 58.6%, showcasing a solid equity base. With a return on equity of 21.2%, Filtronic effectively generates profit from its equity. However, the total liabilities are 41.4% of total assets, which is a point to monitor.

Cash Flow

The cash flow statement reflects strong cash generation with an impressive free cash flow growth rate. The operating cash flow to net income ratio of 2.01 and the free cash flow to net income ratio of 1.51 suggest that the company converts its earnings into cash efficiently. However, the capital expenditure has been increasing, which may impact future cash flows.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
25.43M	16.27M	17.05M	15.56M	17.18M
	Gross Profit
16.07M	10.28M	11.41M	2.63M	9.10M
	EBIT
3.61M	237.00K	1.98M	828.00K	-188.00K
	EBITDA
4.84M	1.33M	3.31M	1.58M	527.00K
	Net Income Common Stockholders
3.14M	464.00K	1.47M	60.00K	-1.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.21M	2.61M	4.01M	2.91M	2.03M
	Total Assets
25.27M	18.09M	16.44M	14.61M	17.34M
	Total Debt
3.02M	2.31M	1.82M	2.16M	2.85M
	Net Debt
-4.20M	-295.00K	-2.19M	-747.00K	822.00K
	Total Liabilities
10.45M	6.54M	5.40M	5.25M	7.99M
	Stockholders Equity
14.81M	11.54M	11.04M	9.36M	9.35M
Cash Flow		Free Cash Flow
4.76M	-581.00K	2.04M	1.72M	-3.88M
	Operating Cash Flow
6.33M	950.00K	2.29M	2.13M	-2.64M
	Investing Cash Flow
-1.57M	-1.52M	-250.00K	-392.00K	2.41M
	Financing Cash Flow
-228.00K	-840.00K	-964.00K	-704.00K	-353.00K

Filtronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FTC, the sentiment is Positive. The current price of 125.25 is above the 20-day moving average (MA) of 116.94, above the 50-day MA of 106.08, and above the 200-day MA of 87.87, indicating a bullish trend. The MACD of 5.95 indicates Negative momentum. The RSI at 68.54 is Neutral, neither overbought nor oversold. The STOCH value of 75.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FTC.

Filtronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTC	77 Outperform	£274.30M	26.31	58.61%	―	159.75%	―
MWE	73 Outperform	£39.65M	11.76	15.26%	5.53%	-2.86%	6.52%
Sector *	61 Neutral	$11.50B	10.46	-6.94%	2.92%	7.57%	-9.01%
PEB	52 Neutral	£9.35M	5.31	-728.69%	―	-7.41%	-185.37%
PEN	46 Neutral	£12.54M	―	-28.36%	―	-11.33%	-139.92%
CYAN	45 Neutral	£26.64M	―	-27.63%	―	15.00%	-68.67%
NANO	45 Neutral	£22.28M	―	-5780.00%	―	-8.06%	-132.47%

Filtronic Corporate Events

Filtronic Secures £0.8 Million Contract with Leonardo for Radar Modules

Filtronic has secured a new £0.8 million contract with defense prime Leonardo to supply high-performance modules for an airborne radar application. This order will enhance Filtronic’s product offerings for Leonardo’s AESA radar system and will be fulfilled in the second half of the next financial year. The modules will be manufactured at Filtronic’s advanced facility in Sedgefield, reflecting the company’s commitment to innovation and technological leadership. This contract win underscores Filtronic’s strong relationship with Leonardo and its strategic focus on the defense market, which is crucial for its growth plans.

Filtronic PLC Announces Change in Shareholder Voting Rights

Filtronic PLC has announced a change in its shareholder structure, with Harwood Capital LLP reducing its voting rights from 4.7058% to 3.4018%. This adjustment in holdings reflects a significant shift in the company’s ownership dynamics, potentially impacting its strategic decision-making and stakeholder relations.

Filtronic Wins Major Contract with Airbus for Satellite Expansion

Filtronic has secured a significant contract to develop and supply advanced filter and diplexer assemblies for Airbus Defence and Space, supporting the expansion of the Eutelsat OneWeb Low Earth Orbit satellite constellation. This contract aligns with Filtronic’s strategy to enhance its presence in the space sector, potentially leading to further orders as the constellation rollout continues, thus strengthening its market position and broadening its customer base.

Filtronic Secures Major Contract with Airbus for Satellite Expansion

Filtronic plc has secured a significant contract to develop and supply advanced filter and diplexer assemblies for Airbus Defence and Space, supporting the expansion of the Eutelsat OneWeb Low Earth Orbit satellite constellation. This contract aligns with Filtronic’s strategy to expand its capabilities in the space sector and enhances its role within this high-growth market.

Filtronic Expects to Surpass Market Expectations for FY2025 and FY2026

Filtronic plc announced that it expects to exceed market expectations for FY2025 and FY2026 due to increased manufacturing capacity and strong customer demand. The company has made substantial progress in its financial performance, driven by new programs in the defence and space markets, and is confident in its growth trajectory.

Filtronic Secures Contract for ESA and Viasat’s 5G Satellite Network

Filtronic has secured a new contract to develop feeder link technology for the European Space Agency and Viasat’s Direct-to-Device initiative, aimed at delivering 5G non-terrestrial services directly to handheld devices. This collaboration, part of ESA’s ARTES 4.0 program, will see Filtronic working on high-throughput satellite communications, enhancing both uplink and downlink transmissions. The project builds on previous collaborations and is supported by the UK Space Agency, positioning Filtronic as a key player in the future of global connectivity and space-based communications.

Filtronic CFO Transfers Shares into ISA

Filtronic plc announced that its Chief Financial Officer, Michael Tyerman, has transferred shares into his ISA by selling 4,163 Ordinary Shares at 82.4 pence and purchasing 4,131 Ordinary Shares at 82.9 pence. This transaction results in Mr. Tyerman holding 398,631 Ordinary Shares, which constitutes 0.18% of the company’s total issued share capital.

Filtronic Announces Share Transfer by CFO’s Spouse

Filtronic plc announced a transaction involving the transfer of shares by the wife of its Chief Financial Officer, Michael Tyerman. The transaction involved the sale and purchase of 4,500 Ordinary Shares at 77 pence each, transferred into an ISA, with no change to Michael Tyerman’s beneficial interest in the company.

Filtronic CEO Increases Stake with Share Purchase

Filtronic plc announced that its CEO, Nat Edington, has purchased 26,334 ordinary shares in the company, increasing his total beneficial interest to 113,734 shares. This transaction, conducted on the London Stock Exchange, reflects the CEO’s confidence in the company’s future prospects and could positively influence stakeholder perception and market positioning.

Filtronic Executives Adjust Share Holdings

Filtronic plc announced recent transactions involving its top executives. CEO Nat Edington purchased 87,400 ordinary shares, while CFO Michael Tyerman sold 336,000 shares. These transactions reflect changes in the personal investments of the company’s leadership, potentially impacting perceptions of the company’s market position and stakeholder interests.

Filtronic Strengthens Partnership with SpaceX for Starlink Expansion

Filtronic has expanded its strategic agreement with SpaceX, enhancing its role in supplying advanced E-band SSPA modules for the Starlink constellation. This development signifies SpaceX’s confidence in Filtronic’s technology, potentially boosting Filtronic’s market expectations and strengthening its industry positioning.

Filtronic PLC Announces Change in Major Shareholdings

Filtronic PLC announced a change in major holdings as David and Monique Newlands have adjusted their voting rights in the company. The notification reveals a decrease in their total voting rights from 11.956% to 10.974%, impacting the company’s shareholder structure and potentially influencing future corporate decisions.