Techtronic Industries (0669) AI Stock Analysis

• Market Cap: $161.13B
• Dividend Yield: 2.68%
• Average Volume (3M): 5.27M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.72
• Revenue Growth: 6.13%
• EPS Growth: 14.88%
• Country: HK
• Employees: 46,580
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.43
• Shares Outstanding: 1,831,095,000
• 10 Day Avg. Volume: 5,036,762
• 30 Day Avg. Volume: 5,273,752
• PEG Ratio: -11.37
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.29
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $105.82
• Price Target Upside: 21.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 82 Outperform
• Price Target: HK$102.00 ▲(17.24%Upside)

Techtronic Industries scores highly due to its strong financial performance and positive earnings call, which highlight significant revenue and profit growth. The valuation is attractive, providing a good balance of growth and income potential. Technical analysis indicators are neutral, with no strong trend detected.

Positive Factors

Earnings Forecast

There is upside risk to consensus' earnings forecasts for TTI in 2024 and 2025, given unchanged projections in the past three months.

Market Position

Techtronic Industries remains well positioned to capitalize on the continued shift to cordless tools.

Revenue Growth

Stronger 2H24 revenue growth helped by resilient pro demand and better OPM expansion and lower commodity inflation/shipping cost burden.

Negative Factors

CEO Transition Volatility

Overall, the report is viewed positively for shares, given continued solid growth/margin improvement and recent volatility associated with CEO transition.

Market Estimate Comparison

Power Equipment revenue was +7% yoy, just above the +6% yoy estimate.

Price Target Risk

Up/downside to price target is 9%.

Techtronic Industries Business Overview & Revenue Model

Company Description

Techtronic Industries Company Limited engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floorcare and cleaning products worldwide. It offers power tools, power tool accessories, outdoor products, and outdoor product accessories for consumer, trade, professional, and industrial users under the MILWAUKEE, EMPIRE, AEG, RYOBI, HOMELITE, and HART brands, as well as to original equipment manufacturer (OEM) customers. The company provides floorcare products and accessories under the HOOVER, DIRT DEVIL, VAX, and ORECK brands, as well as to OEM customers. It serves Do-It-Yourself, professional, and industrial users in the home improvement, repair, maintenance, construction, and infrastructure industries. The company was founded in 1985 and is based in Kwai Chung, Hong Kong.

How the Company Makes Money

Techtronic Industries generates revenue through the sale of its diverse range of power tools, hand tools, outdoor power equipment, and floorcare products under its various brands. The company's revenue model is primarily based on manufacturing and distributing these products globally through major retailers, distributors, and direct sales channels. Key revenue streams include the professional market segment, which demands durable and high-performance tools, and the consumer market segment, which seeks more affordable, user-friendly solutions. TTI's partnerships with major retailers, such as Home Depot and Lowe's, as well as its strategic focus on product innovation and brand development, play a significant role in driving its earnings. Additionally, the company invests heavily in research and development to maintain its competitive edge and expand its market share.

Techtronic Industries Financial Statement Overview

Summary

Techtronic Industries shows strong revenue growth and efficient cost management with a healthy gross profit margin. The balance sheet is stable with decreased leverage and improved cash flow performance. However, the absence of the EBIT margin and a need for better return on equity suggest some room for improvement.

Income Statement

Techtronic Industries has demonstrated robust revenue growth over the years, with a solid revenue growth rate of approximately 6.5% in 2024. The company maintains a healthy gross profit margin of 40.3% in 2024, reflecting efficient cost management. However, the EBIT margin is notably absent in the latest report, which is a concern for assessing operational profitability. The EBITDA margin remains strong at 13.7%, indicating good earnings before depreciation and amortization.

Balance Sheet

The company's balance sheet is stable with an improving equity position, as stockholders' equity increases to $6.36 billion in 2024. The debt-to-equity ratio decreased to 0.33, indicating prudent leverage management. The equity ratio is 49.4%, reflecting a solid capital structure. However, the return on equity (ROE) of 17.6% suggests room for improvement in generating returns from shareholders' investments.

Cash Flow

Techtronic demonstrates strong cash flow performance with a significant increase in free cash flow by 28.6% in 2024. The operating cash flow to net income ratio is 2.02, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.41, showcasing efficient capital allocation and capacity to reinvest in the business or return value to shareholders.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.62B	13.73B	13.25B	13.20B	9.81B
Gross Profit	5.90B	5.42B	5.21B	5.12B	3.75B
EBITDA	2.01B	1.78B	1.44B	1.38B	1.03B
Net Income	1.12B	976.34M	1.08B	1.10B	800.76M
Balance Sheet
Total Assets	12.89B	12.40B	13.32B	13.01B	9.39B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.17B	1.67B	2.04B	1.69B
Total Debt	2.11B	2.84B	3.86B	3.84B	1.70B
Total Liabilities	6.53B	6.65B	8.11B	8.29B	5.49B
Stockholders Equity	6.36B	5.75B	5.21B	4.72B	3.90B
Cash Flow
Free Cash Flow	1.58B	1.23B	652.11M	-847.48M	700.14M
Operating Cash Flow	2.27B	2.10B	1.23B	-100.94M	1.16B
Investing Cash Flow	-606.24M	-778.78M	-919.23M	-1.02B	-580.27M
Financing Cash Flow	-1.33B	-1.80B	-712.74M	1.47B	-498.09M

Techtronic Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0669, the sentiment is Neutral. The current price of 87 is above the 20-day moving average (MA) of 86.67, below the 50-day MA of 88.44, and below the 200-day MA of 98.51, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 53.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0669.

Techtronic Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0669	82 Outperform	$161.13B	18.39	18.52%	2.68%	6.13%	14.88%
Sector *	67 Neutral	€8.26B	20.65	6.46%	2.85%	1.85%	-38.87%
HAIIF	―	$4.14B	12.04	15.54%	2.90%	―	―
ZLIOF	―	$8.45B	11.63	6.96%	5.62%	―	―
6198	83 Outperform	HK$59.19B	7.34	12.46%	6.77%	5.80%	5.59%
2618	77 Outperform	HK$87.62B	12.68	12.01%	―	7.77%	1079.57%
2285	69 Neutral	HK$8.43B	9.60	11.29%	3.79%	28.57%	―

Techtronic Industries Corporate Events

Techtronic Industries Schedules Board Meeting for Interim Results and Dividend Consideration

Techtronic Industries has announced that its board of directors will meet on August 5, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to growth and value creation.

The most recent analyst rating on (HK:0669) stock is a Buy with a HK$140.00 price target. To see the full list of analyst forecasts on Techtronic Industries stock, see the HK:0669 Stock Forecast page.

Techtronic Industries Unveils New Employee Equity Incentive Plan

Techtronic Industries has announced the adoption of an Employee Equity Incentive Plan effective from May 8, 2025. This plan aims to attract and retain employees by aligning their interests with shareholders through share awards, enhancing the company’s long-term success. The plan involves purchasing existing shares from the secondary market, without issuing new shares, and includes provisions for Restricted Stock Units and Performance Share Units. This strategic move is expected to strengthen employee engagement and contribute to the company’s growth.

The most recent analyst rating on (HK:0669) stock is a Buy with a HK$140.00 price target. To see the full list of analyst forecasts on Techtronic Industries stock, see the HK:0669 Stock Forecast page.

Techtronic Industries Secures Shareholder Approval at AGM

Techtronic Industries held its Annual General Meeting on May 9, 2025, where all proposed resolutions were passed, including the approval of the audited financial statements and the declaration of a final dividend. The re-election of several executive and non-executive directors was confirmed, and mandates were granted for share allotment and buyback. The amendments to the Articles of Association were also approved, reflecting strong shareholder support and potentially enhancing the company’s governance framework.

Techtronic Industries Grants Share Options and Awards to Employee

Techtronic Industries has announced the grant of 150,000 share options and 250,000 share awards to an employee, effective April 24, 2025. These grants are part of the company’s incentive schemes to align employee interests with company goals, with options vesting over three years and subject to clawback provisions in cases of financial misstatements or misconduct.

Techtronic Industries Grants Share Options to Directors

Techtronic Industries announced the grant of 1,375,000 share options to certain directors, including executive and independent non-executive directors, as part of its Share Option Scheme. The options, which are time-vesting and subject to a clawback mechanism, aim to align the interests of the grantees with the company’s long-term growth objectives. This move is expected to strengthen the company’s management and operational capabilities by recognizing the contributions and potential of its key personnel.