Filtronic (FTC) AI Stock Analysis

• Market Cap: £444.28M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 44.4
• Beta (1Y): 1.80
• Revenue Growth: 121.45%
• EPS Growth: 345.83%
• Country: UK
• Employees: 133
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.01
• Shares Outstanding: 219,942,720
• 10 Day Avg. Volume: 981,293
• 30 Day Avg. Volume: 1,290,637
• PEG Ratio: 0.06
• Price to Book (P/B): 7.75
• Price to Sales (P/S): 4.87
• P/FCF Ratio: 34.02
• 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: £213.00
• Price Target Upside: 17.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): £55.45M

• Rating: 75 Outperform
• Price Target: 227.00p ▲(25.41% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is primarily driven by strong financial performance (rapid revenue growth, high margins, low leverage, and solid cash flow). Technicals are supportive but stretched with overbought signals that raise near-term risk. Valuation is a moderate headwind due to a higher P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained ~32% revenue growth indicates durable demand and successful design wins for RF/mmWave products and subsystems. Given Filtronic's mix of standard product sales and long-life contract manufacturing, consistent top-line expansion supports scale, repeat orders and longer production programs that underpin medium-term revenue visibility.

High Profitability

Very strong gross (61%) and healthy net (~25%) margins reflect structural pricing power from specialised RF engineering and higher-value subsystem sales. These margins provide durable ability to fund R&D, absorb input cost swings and maintain profitability as volumes scale, signaling differentiated technology and operational efficiency.

Balance Sheet & Cash Generation

Conservative leverage (debt/equity 0.10) combined with very strong free cash flow growth and OCF>net income indicates robust cash conversion and financial flexibility. This durable financial strength supports investment in capacity and R&D, reduces refinancing risk, and enables the company to fund multi-year programs without heavy external financing.

Negative Factors

Earnings Conversion

Negative EPS growth (~-4.4%) despite strong revenue implies profit conversion issues, potential one-offs, rising operating costs, or dilution from investment. This persistent gap between top-line growth and reported earnings raises the risk that net income and per-share earnings may be volatile or lag revenue gains over the medium term.

Cyclical End Markets

Concentration in telecom infrastructure, aerospace/defence and space markets exposes Filtronic to structural capex cycles and defense procurement timing. These industries produce lumpy orders and multi-year program dependencies, creating durable revenue volatility and planning challenges versus more diversified industrial businesses.

Limited Scale / Workforce

A relatively small headcount (133) suggests limited operational scale and potential constraints on rapidly ramping serial production or supporting multiple large programs concurrently. As the business grows, staffing and capacity limitations could strain execution, increase reliance on key personnel, and pressure margins if expansion requires rapid hiring or outsourcing.

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 generates revenue through the sale of its RF and microwave components and systems to telecommunications equipment manufacturers and service providers. The company has established key revenue streams from long-term contracts and partnerships with major players in the wireless industry, enabling it to capitalize on the growing market for 5G infrastructure. Additionally, Filtronic's focus on research and development allows it to introduce new products that meet emerging market needs, providing a competitive edge and driving sales. Its strategy also includes expanding into international markets, which contributes to its overall earnings potential.

Filtronic Financial Statement Overview

Summary

Strong fundamentals supported by 32.37% revenue growth, high gross and net margins (61.19% and 24.95%), conservative leverage (debt-to-equity 0.10), and robust cash generation (free cash flow growth 77.92% and operating cash flow to net income 1.19).

Income Statement

Filtronic has demonstrated strong revenue growth of 32.37% in the latest year, with robust gross and net profit margins of 61.19% and 24.95%, respectively. The EBIT and EBITDA margins are also healthy at 24.25% and 27.53%, indicating efficient operational management. The consistent improvement in profitability metrics over the years highlights a positive trajectory.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.10, indicating conservative leverage. The return on equity is impressive at 39.71%, reflecting strong profitability relative to shareholder equity. The equity ratio is not explicitly provided, but the overall financial health appears stable with increasing equity over time.

Cash Flow

Filtronic's cash flow performance is strong, with a significant free cash flow growth rate of 77.92%. The operating cash flow to net income ratio of 1.19 suggests efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.58 indicates a solid conversion of earnings into cash, supporting future growth and investment.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	55.98M	56.32M	25.43M	16.27M	17.05M	15.56M
Gross Profit	23.86M	34.46M	16.07M	10.28M	11.41M	2.63M
EBITDA	13.38M	15.51M	4.92M	1.33M	3.31M	1.58M
Net Income	9.96M	14.05M	3.14M	464.00K	1.47M	60.00K
Balance Sheet
Total Assets	55.02M	49.79M	25.27M	18.09M	16.44M	14.61M
Cash, Cash Equivalents and Short-Term Investments	10.51M	14.49M	7.21M	2.61M	4.01M	2.91M
Total Debt	6.18M	3.69M	3.02M	2.31M	1.82M	2.16M
Total Liabilities	16.41M	14.42M	10.45M	6.54M	5.40M	5.25M
Stockholders Equity	38.61M	35.38M	14.81M	11.54M	11.04M	9.36M
Cash Flow
Free Cash Flow	6.70M	8.06M	4.76M	-581.00K	2.04M	1.72M
Operating Cash Flow	15.13M	13.84M	6.33M	950.00K	2.29M	2.13M
Investing Cash Flow	-11.13M	-5.62M	-1.49M	-1.52M	-250.00K	-392.00K
Financing Cash Flow	-610.00K	-903.00K	-228.00K	-840.00K	-964.00K	-704.00K

Filtronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 181.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 181 is below the 20-day moving average (MA) of 198.28, below the 50-day MA of 184.59, and above the 200-day MA of 150.95, indicating a bullish trend. The MACD of 4.76 indicates Positive momentum. The RSI at 58.82 is Neutral, neither overbought nor oversold. The STOCH value of 46.97 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	75 Outperform	£444.28M	44.40	55.98%	―	121.45%	345.83%
MWE	75 Outperform	£50.42M	13.39	17.79%	4.20%	5.46%	12.34%
CML	66 Neutral	£39.02M	33.05	2.28%	3.67%	-21.33%	-11.35%
GHH	65 Neutral	£229.91M	61.54	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLX	58 Neutral	£49.72M	79.58	2.36%	2.02%	20.83%	―
TTG	54 Neutral	£213.67M	-3.05	-31.42%	―	-16.33%	-448.12%

Filtronic Corporate Events

Filtronic Discloses 5.91% Shareholding Acquired by Investor Dixon

Filtronic plc has disclosed that investor Mrs D.M. Dixon now holds 13,000,000 ordinary shares in the company, representing 5.91% of its issued share capital. The stake positions Dixon as a significant shareholder, a development that may influence the company’s ownership dynamics and be of interest to investors tracking shifts in Filtronic’s register.

The most recent analyst rating on (GB:FTC) stock is a Buy with a £224.00 price target. To see the full list of analyst forecasts on Filtronic stock, see the GB:FTC Stock Forecast page.

Filtronic Balances Profit Dip With Record Order Book After Heavy Growth Investment

Filtronic reported half-year 2026 results broadly in line with expectations, with revenue steady at £25.3m but profit and EBITDA down year-on-year as the company deliberately increased investment in people, facilities and product development and absorbed currency headwinds from a weaker US dollar. Despite the margin impact, the group generated strong operating cash, self-funded a move to a larger headquarters and manufacturing site that expands capacity, and secured substantial new long-term contracts, including its largest-ever $62.5m deal with SpaceX and multi-year space and defence awards in Europe, driving a record order book that now covers about 90% of forecast FY2026 revenue and underpins management’s confidence in sustained growth and its five-year strategy focused on GaN-based high-frequency systems across space, defence and related markets.

The most recent analyst rating on (GB:FTC) stock is a Buy with a £213.00 price target. To see the full list of analyst forecasts on Filtronic stock, see the GB:FTC Stock Forecast page.

Filtronic Adds Berenberg as Joint Corporate Broker to Bolster Market Support

Filtronic plc has appointed Joh. Berenberg, Gossler & Co. KG, London Branch, as a Joint Corporate Broker alongside its existing Nominated Adviser and broker Cavendish Capital Markets Limited. The move strengthens Filtronic’s capital markets support as it targets high-growth strategic sectors such as LEO space, aerospace and defence, and is likely aimed at enhancing its investor engagement and access to equity markets to support continued product development, scalable manufacturing and long-term value creation for shareholders.

The most recent analyst rating on (GB:FTC) stock is a Buy with a £213.00 price target. To see the full list of analyst forecasts on Filtronic stock, see the GB:FTC Stock Forecast page.

Filtronic Secures Major Defense Contract for Electronic Sensor Program

Filtronic has been selected by a major European defense prime for the next phase of an electronic sensor program, receiving an Authorisation to Proceed worth approximately £7 million. This contract, expected to total £11 million over two years, will be executed at Filtronic’s new microelectronics facility in Sedgefield, reinforcing the company’s position in the growing defense market and showcasing its capability to meet long-term demand for advanced RF solutions.

The most recent analyst rating on (GB:FTC) stock is a Buy with a £157.00 price target. To see the full list of analyst forecasts on Filtronic stock, see the GB:FTC Stock Forecast page.

Filtronic Secures Landmark Contracts and Strengthens Market Position

Filtronic has made significant strategic progress in the first half of FY2026, securing its largest-ever contract with SpaceX for its E-band GaN product, marking a major commercial deployment in the space market. The company also expanded its customer base with contracts in the aerospace and defense sectors, enhancing its order book and pipeline. Filtronic’s innovation strategy is advancing with new product launches planned for 2026 and funding for a Ka-Band power amplifier, positioning the company for growth in the global space ecosystem. The company remains financially strong, with a robust order book and confidence in meeting full-year market expectations.

The most recent analyst rating on (GB:FTC) stock is a Buy with a £157.00 price target. To see the full list of analyst forecasts on Filtronic stock, see the GB:FTC Stock Forecast page.

Filtronic Secures £1.2m for Next-Gen Satellite Amplifier Development

Filtronic has been awarded £1.2 million by the UK Space Agency’s National Space Innovation Programme to develop a high-power 550W Ka-Band Solid-State Power Amplifier (SSPA). This new amplifier is designed to integrate easily into existing satellite ground stations, facilitating a transition from older technologies and supporting the expansion of non-geostationary constellations. The project is part of a government initiative to advance UK space technology, aiming to enhance the commercial viability of innovative solutions and strengthen the UK’s position in the global space economy. The development is expected to reduce operating expenses and improve the reliability of satellite networks, contributing to more sustainable and future-ready satellite systems.

The most recent analyst rating on (GB:FTC) stock is a Buy with a £196.00 price target. To see the full list of analyst forecasts on Filtronic stock, see the GB:FTC Stock Forecast page.