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TT Electronics (GB:TTG)
LSE:TTG
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TT Electronics (TTG) AI Stock Analysis

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GB

TT Electronics

(LSE:TTG)

Rating:54Neutral
Price Target:
113.00p
▲(9.71%Upside)
TT Electronics' overall score reflects moderate financial performance with challenges in profitability and growth, counterbalanced by strong cash flows. Technical indicators show positive momentum but suggest potential overbought conditions. Valuation remains a concern due to negative earnings. Corporate events and strategic adjustments aim to improve operational efficiency, offering some positive outlook.
Positive Factors
Financial Performance
FY24F EBITA is expected to be in line with prior guidance, and FCF has been strong.
Market Performance
Trading conditions in Europe are the most healthy across the regions, with A&D markets very robust.
Valuation
There appears to be some valuation support, as the shares have outperformed the sector recently.
Negative Factors
Earnings Guidance
The move in TT's EBITA guidance represents a significant downgrade, which is clearly disappointing.
Leadership Changes
The CEO will be stepping down, with an interim CEO appointed, which may indicate internal instability.
North American Challenges
There is a lack of apparent progress in fixing issues in North America, which is very concerning given the macroeconomic backdrop.

TT Electronics (TTG) vs. iShares MSCI United Kingdom ETF (EWC)

TT Electronics Business Overview & Revenue Model

Company DescriptionTT Electronics (TTG) is a global provider of engineered electronics for performance-critical applications. The company operates across various sectors, including healthcare, aerospace and defense, and industrial markets. TT Electronics specializes in the design and manufacture of a wide range of products, such as sensors, power management devices, and connectivity solutions, aiming to enhance the performance and reliability of its customers' applications.
How the Company Makes MoneyTT Electronics generates revenue primarily through the sale of its engineered electronics products and solutions. The company's revenue streams are diversified across its core sectors, with significant earnings from contracts and partnerships with major companies in healthcare, aerospace, and industrial markets. TT Electronics also invests in research and development to innovate and expand its product offerings, thereby increasing its market share and profitability. Key factors contributing to its earnings include long-term contracts and collaborations with industry leaders, as well as the company's ability to adapt to technological advancements and industry demands.

TT Electronics Financial Statement Overview

Summary
TT Electronics faces challenges with declining revenues and negative profitability, as indicated by a negative net profit margin and declining equity. However, cash flow performance is relatively strong, providing some operational buffer. Overall, financial stability is moderate, but profitability and growth need improvement.
Income Statement
45
Neutral
TT Electronics has shown volatility in its income statement, with fluctuating revenues and margins. The company experienced a significant drop in revenue from 2023 to 2024, decreasing by 15.1%. The gross profit margin for 2024 stands at 21.05%, which is a decline from previous years. Net profit margin is negative for 2024, indicating a net loss. However, the EBIT margin improved to 6.6% in 2024, showing some operational efficiency despite the challenges.
Balance Sheet
50
Neutral
The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.85 in 2024, suggesting a manageable level of leverage. The equity ratio is 38.06%, indicating a fair proportion of equity financing. However, the decrease in stockholders' equity over the years is a concern. Return on equity is negative due to net losses, highlighting profitability challenges.
Cash Flow
60
Neutral
Cash flow analysis shows resilience, with positive operating and free cash flows in 2024. The operating cash flow to net income ratio is significantly positive, indicating strong cash generation relative to net income. Free cash flow to net income ratio is also strong, reflecting effective cash management despite net losses. However, free cash flow has decreased from 2023 to 2024, impacting the growth trajectory.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue521.10M613.90M617.00M476.20M431.80M
Gross Profit109.70M147.00M135.50M115.60M99.10M
EBITDA-5.50M31.40M20.90M41.50M28.30M
Net Income-53.40M-6.80M-13.20M12.80M1.30M
Balance Sheet
Total Assets512.30M655.10M707.20M671.40M572.80M
Cash, Cash Equivalents and Short-Term Investments69.20M74.10M65.00M68.30M70.20M
Total Debt166.60M201.30M203.40M170.80M154.10M
Total Liabilities317.40M384.60M410.20M341.40M274.80M
Stockholders Equity194.90M270.50M297.00M328.00M296.00M
Cash Flow
Free Cash Flow33.70M38.40M-1.60M-2.70M14.80M
Operating Cash Flow40.60M62.90M12.70M14.30M28.20M
Investing Cash Flow3.50M-27.60M-22.30M-8.20M-51.90M
Financing Cash Flow-51.80M-19.60M400.00K-8.90M33.40M

TT Electronics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price103.00
Price Trends
50DMA
100.48
Positive
100DMA
90.29
Positive
200DMA
92.41
Positive
Market Momentum
MACD
1.29
Positive
RSI
46.41
Neutral
STOCH
30.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TTG, the sentiment is Positive. The current price of 103 is below the 20-day moving average (MA) of 107.78, above the 50-day MA of 100.48, and above the 200-day MA of 92.41, indicating a neutral trend. The MACD of 1.29 indicates Positive momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 30.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TTG.

TT Electronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£101.14M198.330.81%208.96%-11.80%-32.11%
GBSDI
72
Outperform
£97.23M28.017.69%-5.19%115.58%
GBSRT
66
Neutral
£202.74M
GBGHH
65
Neutral
£167.57M30.784.79%213.59%1.74%359.50%
GBJDG
65
Neutral
£541.14M51.9312.29%128.38%-1.84%9.56%
63
Neutral
$34.27B4.89-11.70%1.94%5.41%-20.02%
GBTTG
54
Neutral
£186.69M-22.95%498.19%-15.12%-690.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TTG
TT Electronics
103.00
-45.11
-30.46%
GB:JDG
Judges Scientific
8,140.00
-3,019.08
-27.05%
GB:GHH
Gooch & Housego
618.00
159.35
34.74%
GB:SRT
SRT Marine Systems
81.00
50.50
165.57%
GB:SOLI
Solid State
178.50
-91.06
-33.78%
GB:SDI
SDI Group
93.00
28.00
43.08%

TT Electronics Corporate Events

Business Operations and StrategyFinancial Disclosures
TT Electronics Reports Revenue Decline and Strategic Business Adjustments
Negative
Jun 30, 2025

TT Electronics reported a 5.5% decline in group revenue for the first five months of 2025, with strong performance in Europe offset by challenges in Asia and North America. The company is progressing with a strategic review of its Components business, which includes closing its Plano, Texas operations due to previous losses. The Aerospace and Defence sector remains robust, and the company expects adjusted operating profit to align with previous guidance, despite potential leverage exceeding 2x by June 2025. TT Electronics is focused on operational improvements and efficiency to maximize shareholder value.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
TT Electronics Appoints Karina Rigby as Non-Executive Director
Positive
Jun 16, 2025

TT Electronics has announced the appointment of Karina Rigby as a Non-Executive Director, effective October 1, 2025. Rigby brings over 25 years of experience in industrial companies, having held senior roles at Eaton Corporation and Siemens. Her expertise in value creation and business transformation is expected to enhance the board’s strategic and operational capabilities, driving future growth and operational excellence for TT Electronics.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
TT Electronics Announces Change in Major Shareholdings
Positive
Jun 11, 2025

TT Electronics Plc has announced a change in its major holdings, with DBAY Advisors Limited, acting as an investment manager for DouglasBay Capital IV Fund LP, increasing their voting rights to 14.62% from a previous 13.15%. This change reflects a strategic move by DBAY Advisors Limited, potentially impacting TT Electronics’ governance and decision-making processes, and indicating confidence in the company’s future prospects.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Regulatory Filings and Compliance
TT Electronics Announces Total Voting Rights Update
Neutral
Jun 3, 2025

TT Electronics has announced that as of May 31, 2025, the total number of ordinary shares in issue is 178,050,800, each carrying voting rights. This figure is crucial for shareholders and others with notification obligations to determine their interest in the company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Shareholder Meetings
TT Electronics Submits 2025 AGM Notice to National Storage Mechanism
Neutral
May 23, 2025

TT Electronics has announced the submission of its Notice of Annual General Meeting for 2025, scheduled for 30 June 2025, to the National Storage Mechanism. This announcement is part of their ongoing commitment to transparency and accessibility for stakeholders, with further details available on their investor relations website.

The most recent analyst rating on (GB:TTG) stock is a Buy with a £1.70 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
TT Electronics Appoints Richard Webb as Interim CFO
Positive
May 12, 2025

TT Electronics has appointed Richard Webb as Interim Chief Financial Officer and a member of the Board, effective 12 May 2025. Webb, who previously served as Group CFO at Ultra Electronics, brings extensive experience in driving growth and efficiency within the electronics sector. His appointment is expected to enhance TT Electronics’ performance and strategic initiatives in its key markets.

Business Operations and StrategyRegulatory Filings and Compliance
TT Electronics Sees Increase in Major Holdings by DBAY Advisors
Neutral
Apr 30, 2025

TT Electronics, a company listed on the stock exchange, has announced a change in its major holdings. DBAY Advisors Limited, acting as an investment manager for DouglasBay Capital IV Fund LP, has increased its voting rights in TT Electronics to 13.15%, up from a previous 12.76%. This change was officially noted on April 25, 2025, and reported on April 29, 2025. The increase in voting rights signifies a strategic move by DBAY Advisors, potentially impacting TT Electronics’ governance and future strategic decisions.

Shareholder MeetingsFinancial Disclosures
TT Electronics Releases Annual Financial Report and Plans AGM
Neutral
Apr 29, 2025

TT Electronics has submitted its Annual Report and Accounts to the National Storage Mechanism, making it available for public inspection. The company plans to announce the details of its upcoming Annual General Meeting, scheduled for June 30, 2025, in due course. This release ensures transparency and keeps stakeholders informed about the company’s financial health and future plans.

Executive/Board ChangesBusiness Operations and Strategy
TT Electronics Updates Long Term Incentive Plan Details
Positive
Apr 23, 2025

TT Electronics plc announced a correction to its Long Term Incentive Plan, clarifying that the grant date for a conditional award of shares was 22 April 2025. The award, granted to Acting CEO Eric Lakin, is contingent on meeting specific performance targets over three years, including earnings per share growth, shareholder return, and cash conversion. This plan reflects the company’s commitment to aligning executive incentives with shareholder interests and enhancing its competitive positioning.

Executive/Board ChangesBusiness Operations and Strategy
TT Electronics Grants Long Term Incentive Award to Acting CEO
Positive
Apr 23, 2025

TT Electronics plc has announced the granting of a conditional award of ordinary shares under its Long Term Incentive Plan 2024 to Eric Lakin, the Acting Chief Executive Officer. The award, which is subject to performance conditions over a three-year period, aims to align executive incentives with company performance metrics such as earnings per share growth, shareholder return, and operating cash conversion. This move is expected to strengthen TT Electronics’ leadership stability and potentially enhance its market positioning by driving performance improvements.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 30, 2025