Titon Holdings (TON) AI Stock Analysis

• Market Cap: £10.41M
• Dividend Yield: N/A
• Average Volume (3M): 6.17K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: -27.62%
• EPS Growth: -228.90%
• Country: UK
• Employees: 134
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.01
• Shares Outstanding: 11,248,750
• 10 Day Avg. Volume: 8,933
• 30 Day Avg. Volume: 6,167
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 25.30
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: 93.00p ▲(0.54% Upside)

The overall stock score for Titon Holdings is primarily impacted by its financial performance, which shows significant challenges due to declining revenues and profitability. Technical analysis provides a slightly positive outlook with mild upward trends, but bearish momentum is present. Valuation is a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Low Leverage

Titon Holdings' low leverage provides financial flexibility and reduces the risk of financial distress, allowing the company to potentially weather downturns better and invest in growth opportunities without the burden of high debt costs.

Strong Equity Base

A strong equity base indicates that Titon Holdings is well-capitalized, providing a buffer against financial volatility and enabling the company to sustain operations and invest in long-term strategic initiatives.

Positive Operating Cash Flow

Positive operating cash flow suggests that Titon Holdings is generating sufficient cash from its core operations, which is crucial for maintaining liquidity, funding day-to-day operations, and supporting future growth initiatives.

Negative Factors

Declining Revenue

A substantial decline in revenue indicates challenges in market demand or competitive positioning, which can affect the company's ability to sustain operations and invest in growth, potentially impacting long-term viability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and cost challenges, which can erode shareholder value and limit the company's ability to reinvest in its business, posing a risk to long-term financial health.

Decreasing Free Cash Flow

A decrease in free cash flow suggests reduced financial flexibility to invest in growth opportunities, pay down debt, or return capital to shareholders, potentially hindering the company's strategic initiatives and long-term growth prospects.

Titon Holdings Business Overview & Revenue Model

Company Description

Titon Holdings Plc, together with its subsidiaries, designs, manufactures, and markets ventilation products, and door and window fittings in the United Kingdom, South Korea, the United States, and Europe. It offers a range of passive and powered ventilation products for house builders, electrical contractors, window and door manufacturers, and construction companies; and supplies window and door hardware material. It sells its products through distributors under the Titon brand name. It also exports its products. Titon Holdings Plc was founded in 1972 and is headquartered in Colchester, the United Kingdom.

How the Company Makes Money

Titon Holdings generates revenue through multiple streams, primarily from the sale of its ventilation products and hardware solutions. The company earns money by supplying these products to construction firms, contractors, and distributors who require high-quality, compliant building materials. Key revenue streams include direct sales to customers, as well as sales through strategic partnerships with building material suppliers and distributors. Additionally, Titon may benefit from ongoing maintenance contracts and product upgrades, providing a continuous revenue flow. The company's focus on energy efficiency and sustainable building practices positions it well in a market increasingly driven by regulatory standards and consumer demand for greener solutions.

Titon Holdings Financial Statement Overview

Summary

Titon Holdings faces significant financial challenges with declining revenues and profitability, impacting income and cash flow statements. Despite a strong equity position and low leverage, the company must address operational inefficiencies and return to profitability to improve its financial health.

Income Statement

The income statement shows a concerning decline in both revenue and profitability. The company's gross profit margin has decreased to 28.0%, and net profit margin is negative at -23.9%, indicating losses. There is a significant decline in revenue growth, with a 30.7% drop from the previous year. EBIT and EBITDA margins are also negative, at -5.8% and -9.3% respectively, highlighting operational inefficiencies and cost challenges.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.04, indicating low leverage. However, the return on equity is negative at -33.8%, due to net losses impacting shareholder returns. The equity ratio stands at 76.6%, suggesting a strong equity base relative to total assets. Overall, while leverage is low, profitability issues present a risk.

Cash Flow

Cash flow results show a mixed picture. While operating cash flow is positive at $602,000, free cash flow has decreased by 43.8% year-over-year. The operating cash flow to net income ratio is negative due to losses, indicating reliance on cash reserves rather than income. The free cash flow to net income ratio is also negative, reflecting cash flow challenges amid operational losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.02M	15.48M	22.33M	22.09M	23.41M	20.65M
Gross Profit	4.24M	4.33M	5.92M	5.52M	7.10M	5.22M
EBITDA	-1.08M	-1.51M	694.00K	-62.00K	2.00M	1.02M
Net Income	-3.23M	-3.70M	-686.00K	-436.00K	1.03M	58.00K
Balance Sheet
Total Assets	13.95M	14.28M	19.36M	21.61M	21.97M	21.92M
Cash, Cash Equivalents and Short-Term Investments	2.85M	2.28M	2.24M	1.73M	4.79M	5.57M
Total Debt	378.00K	479.00K	632.00K	610.00K	595.00K	808.00K
Total Liabilities	3.14M	3.38M	4.60M	5.66M	5.15M	5.11M
Stockholders Equity	10.81M	10.94M	14.70M	15.65M	16.41M	15.94M
Cash Flow
Free Cash Flow	247.00K	289.00K	719.00K	-2.48M	215.00K	2.17M
Operating Cash Flow	405.00K	602.00K	1.15M	-1.80M	1.13M	2.69M
Investing Cash Flow	357.00K	-278.00K	-285.00K	-630.00K	-889.00K	-471.00K
Financing Cash Flow	-141.00K	-241.00K	-377.00K	-684.00K	-945.00K	-1.26M

Titon Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TON, the sentiment is Positive. The current price of 92.5 is above the 20-day moving average (MA) of 91.00, above the 50-day MA of 90.39, and above the 200-day MA of 83.89, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 77.80 is Negative, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TON.

Titon Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTBR	84 Outperform	£17.67M	4.25	18.10%	1.95%	29.61%	174.25%
EPWN	77 Outperform	―	―	16.23%	4.27%	4.67%	93.06%
HSM	74 Outperform	£8.62M	8.46	8.12%	3.84%	-0.57%	32.71%
ALU	66 Neutral	£82.99M	8.73	―	4.78%	19.86%	19.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TON	52 Neutral	£10.41M	-3.23	-11.61%	―	-27.62%	-228.90%

Titon Holdings Corporate Events

Titon Holdings Reports Revenue Growth and Strategic Improvements for FY25

Titon Holdings Plc reported a 2.1% increase in group revenue for the fiscal year ending September 2025, driven by a strong performance in its mechanical ventilation systems segment, which saw a 19.4% revenue increase. Despite a decline in the window and door hardware segment, the company has implemented strategic improvements to return to growth in FY26. The company maintains a healthy balance sheet with no debt and a cash reserve of £3.5m. The board remains cautiously optimistic for FY26, focusing on market share gains amidst challenging market conditions.

The most recent analyst rating on (GB:TON) stock is a Hold with a £93.00 price target. To see the full list of analyst forecasts on Titon Holdings stock, see the GB:TON Stock Forecast page.