Techtronic Industries (0669) AI Stock Analysis

• Market Cap: $175.28B
• Dividend Yield: 2.53%
• Average Volume (3M): 4.35M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.70
• Revenue Growth: 6.51%
• EPS Growth: 13.97%
• Country: HK
• Employees: 46,580
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.68
• Shares Outstanding: 1,830,845,000
• 10 Day Avg. Volume: 4,959,086
• 30 Day Avg. Volume: 4,354,168
• PEG Ratio: 1.43
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 15.31
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 10.79
• Enterprise Value/Gross Profit: 26.65
• Enterprise Value/Ebitda: 76.74
• 1Y Price Target: $116.47
• Price Target Upside: 21.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 80 Outperform
• Price Target: HK$111.00 ▲(15.38% Upside)

Techtronic Industries demonstrates strong financial performance and positive earnings call sentiment, driving the overall score. While technical indicators suggest some caution, the company's strategic focus and fair valuation support a solid investment case.

Positive Factors

Revenue Growth

Consistent revenue growth, driven by strong sales in key brands like MILWAUKEE and RYOBI, indicates robust market demand and effective sales strategies.

Cash Flow Generation

Strong free cash flow generation reflects efficient capital management, providing resources for reinvestment and shareholder returns.

R&D Investment

Increased investment in R&D underscores a commitment to innovation, supporting long-term competitive advantage through new product development.

Negative Factors

Tariff Uncertainty

Tariff uncertainties can disrupt production and sourcing strategies, potentially impacting cost structures and growth rates.

ANZ Market Challenges

Challenges in the ANZ market could hinder regional growth, affecting overall performance if not addressed effectively.

Absence of EBIT Margin

Lack of EBIT margin data limits insight into operational efficiency, which is crucial for assessing profitability and cost management.

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 primarily through the sale of its power tools and outdoor equipment. The company has a diverse revenue model that includes direct sales to consumers, distribution through third-party retailers, and partnerships with major hardware and home improvement stores. Key revenue streams include sales from its well-established brands, which are recognized for quality and innovation. Additionally, the company benefits from seasonal demand for outdoor equipment and ongoing renovations in the construction sector. Strategic partnerships with retailers and a strong online presence further contribute to its earnings, allowing for a broad market reach and increased sales volumes.

Techtronic Industries Financial Statement Overview

Summary

Techtronic Industries shows strong financial performance with robust revenue growth, efficient cost management, and excellent cash flow generation. The balance sheet is stable with prudent leverage management. However, the absence of EBIT in the latest report and a moderate ROE indicate areas 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.14B	14.62B	13.73B	13.25B	13.20B	9.81B
Gross Profit	6.13B	5.90B	5.42B	5.21B	5.12B	3.75B
EBITDA	2.13B	2.01B	1.78B	1.44B	1.38B	1.03B
Net Income	1.20B	1.12B	976.34M	1.08B	1.10B	800.76M
Balance Sheet
Total Assets	13.89B	12.89B	12.40B	13.32B	13.01B	9.39B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.25B	979.35M	1.69B	2.04B	1.69B
Total Debt	2.25B	2.11B	2.84B	3.86B	3.84B	1.70B
Total Liabilities	7.24B	6.53B	6.65B	8.11B	8.29B	5.49B
Stockholders Equity	6.66B	6.36B	5.75B	5.21B	4.72B	3.90B
Cash Flow
Free Cash Flow	1.53B	1.58B	1.23B	652.11M	-847.48M	700.14M
Operating Cash Flow	2.21B	2.27B	2.10B	1.23B	-100.94M	1.16B
Investing Cash Flow	-589.73M	-606.24M	-778.78M	-919.23M	-1.02B	-580.27M
Financing Cash Flow	-1.26B	-1.33B	-1.80B	-712.74M	1.47B	-498.09M

Techtronic Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0669, the sentiment is Positive. The current price of 96.2 is above the 20-day moving average (MA) of 95.05, below the 50-day MA of 97.52, and above the 200-day MA of 93.15, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 88.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0669.

Techtronic Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0669	80 Outperform	$175.28B	18.80	18.59%	2.53%	6.51%	13.97%
6198	79 Outperform	HK$58.81B	7.97	12.71%	4.69%	6.73%	8.38%
1882	76 Outperform	$34.09B	9.61	15.98%	3.42%	16.15%	17.32%
1157	74 Outperform	HK$73.40B	14.79	7.06%	4.44%	-3.92%	2.33%
2285	74 Outperform	HK$10.20B	8.94	14.64%	8.90%	28.34%	―
2618	68 Neutral	HK$80.33B	11.11	12.40%	―	11.05%	81.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Techtronic Industries Corporate Events

Techtronic Industries Reports Strong 2025 First Half Results

Techtronic Industries Company Limited (TTI) is a global leader in cordless technology, specializing in power tools, outdoor power equipment, and floorcare and cleaning products, serving professional, industrial, DIY, and consumer markets worldwide.

Techtronic Industries Declares Interim Dividend for 2025

Techtronic Industries announced an interim dividend of HKD 1.25 per share for the six months ending June 30, 2025. The dividend will be paid on September 19, 2025, with the ex-dividend date set for September 2, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and indicates a stable financial performance during the reporting period.

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 Reports Strong First Half 2025 Performance

Techtronic Industries reported a robust performance for the first half of 2025, with sales increasing by 7.5% in local currency to $7.8 billion and net profit rising by 14.2% to $628 million. The company’s flagship brands, MILWAUKEE and RYOBI, contributed significantly to this growth with impressive sales increases. Operational efficiencies and strategic focus on high-margin products led to improved gross profit margins and reduced SG&A expenses. TTI’s strong financial position, highlighted by a net cash status and positive free cash flow of $468 million, positions it well for future investments and growth amidst a changing macro-economic environment.

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.