Filtronic (FTC) AI Stock Analysis

• Market Cap: £335.07M
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 0.3
• Beta (1Y): 1.29
• Revenue Growth: 159.75%
• EPS Growth: N/A
• Country: UK
• Employees: 133
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 219,002,490
• 10 Day Avg. Volume: 1,055,250
• 30 Day Avg. Volume: 1,824,682
• PEG Ratio: 0.06
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.94
• 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: 81 Outperform
• Price Target: 179.00p ▲(11229.11%Upside)

Filtronic's strong financial performance and strategic corporate developments are major positives. The robust pipeline of contracts and market expansions, combined with solid technical indicators, support a high overall score. However, the high valuation limits the score slightly.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	42.55M	25.43M	16.27M	17.05M	15.56M	17.18M
Gross Profit	29.56M	16.07M	10.28M	11.41M	2.63M	9.10M
EBITDA	12.02M	4.92M	1.33M	3.31M	1.58M	527.00K
Net Income	10.39M	3.14M	464.00K	1.47M	60.00K	-1.96M
Balance Sheet
Total Assets	37.66M	25.27M	18.09M	16.44M	14.61M	17.34M
Cash, Cash Equivalents and Short-Term Investments	7.20M	7.21M	2.61M	4.01M	2.91M	2.03M
Total Debt	2.94M	3.02M	2.31M	1.82M	2.16M	2.85M
Total Liabilities	13.20M	10.45M	6.54M	5.40M	5.25M	7.99M
Stockholders Equity	24.46M	14.81M	11.54M	11.04M	9.36M	9.35M
Cash Flow
Free Cash Flow	4.53M	4.76M	-581.00K	2.04M	1.72M	-3.88M
Operating Cash Flow	6.57M	6.33M	950.00K	2.29M	2.13M	-2.64M
Investing Cash Flow	-3.07M	-1.57M	-1.52M	-250.00K	-392.00K	2.41M
Financing Cash Flow	-404.00K	-228.00K	-840.00K	-964.00K	-704.00K	-353.00K

Filtronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.58
• 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 1.58 is below the 20-day moving average (MA) of 155.30, below the 50-day MA of 133.64, and below the 200-day MA of 98.10, indicating a bullish trend. The MACD of 5.58 indicates Positive momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 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	81 Outperform	£335.07M	0.33	58.61%	―	159.75%	―
MWE	75 Outperform	£41.37M	11.94	15.34%	411.37%	0.12%	9.24%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%
PEB	55 Neutral	£11.21M	5.31	-728.69%	―	-7.41%	-185.37%
NANO	53 Neutral	£25.14M	―	-5780.00%	―	-8.06%	-132.47%
PEN	48 Neutral	£11.89M	―	-28.36%	―	-11.33%	-139.92%
CYAN	45 Neutral	£28.39M	―	-27.63%	―	15.00%	-68.67%

Filtronic Corporate Events

Filtronic Exceeds FY2025 Expectations with Strong Revenue Growth and Strategic Expansion

Filtronic plc announced that its FY2025 results exceeded market expectations, with a 120% increase in revenue to £56.3m and adjusted EBITDA of no less than £16.6m. The company has broadened its customer engagement in the European space and aerospace and defense markets, securing contracts with Viasat, the European Space Agency, and Airbus. Filtronic’s technological advancements, such as the Prometheus V-band Amplifier, position it as an industry leader. The company is optimistic about FY2026, with a strong order book and plans to expand its operational footprint by relocating its manufacturing site.

Filtronic PLC Announces Major Shareholding Change

Filtronic PLC has announced a significant change in its shareholding structure, with Driehaus Capital Management LLC acquiring a substantial stake. This development, marked by the acquisition of 3.224190% of Filtronic’s shares, could impact the company’s market positioning and influence its strategic decisions, potentially affecting stakeholders and future operations.

Filtronic PLC Announces Change in Shareholder Voting Rights

Filtronic PLC has announced a change in the voting rights held by David and Monique Newlands, who have reduced their stake in the company. The total voting rights now stand at 9.992%, down from a previous 10.974%. This adjustment in holdings may impact the company’s shareholder dynamics and influence future decision-making processes.

Filtronic Announces Significant Shareholding Changes

Filtronic plc announced that Mrs. D.M. Dixon now holds 20,000,000 ordinary shares, representing 9.1% of the company’s issued share capital, while Mr. M.H. Dixon has sold his remaining 2,500,000 shares. This change in shareholding could influence the company’s stakeholder dynamics and potentially impact its market positioning.

Filtronic PLC Announces Change in Voting Rights Structure

Filtronic PLC has announced a change in its voting rights structure following an acquisition by Dowgate Wealth Limited, which now holds a 5.0215% stake in the company. This development signifies a notable shift in the ownership dynamics of Filtronic, potentially impacting its strategic decisions and stakeholder interests.

Filtronic Secures Record Contract with SpaceX, Boosting Revenue Prospects

Filtronic has secured its largest contract to date with SpaceX, valued at $32.5 million, for the supply of its E-band Cerus 32 Solid State Power Amplifier. This contract, part of a strategic partnership with SpaceX, is expected to significantly boost Filtronic’s revenue for FY2026 and reinforces its reputation in the high-growth space market. The order also results in the vesting of a substantial number of share warrants, reflecting the company’s ongoing success and investment in its technology roadmap.

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.