ToughBuilt Industries (TBLT) AI Stock Analysis

• Market Cap: $1.14M
• Dividend Yield: N/A
• Average Volume (3M): 559.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 165
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -121.75
• Shares Outstanding: 1,443,125
• 10 Day Avg. Volume: 566
• 30 Day Avg. Volume: 559
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 28 Underperform
• Price Target: ―

ToughBuilt Industries presents a high-risk investment profile primarily due to its severe financial challenges, including declining revenues, negative margins, and negative equity. While technical analysis indicates possible short-term stabilization, the absence of earnings guidance and negative valuation metrics further weigh down the stock's attractiveness. The overall stock score is notably low, reflecting the significant risks and uncertainties facing the company.

Positive Factors

Product Innovation

ToughBuilt's commitment to innovation and patented designs strengthens its competitive position, potentially driving long-term revenue growth and market differentiation.

Strategic Partnerships

Partnerships with major retailers and distributors enhance ToughBuilt's market penetration, supporting sustained sales growth and broadening its customer base.

Market Presence

Wide distribution through major retail and online channels increases ToughBuilt's accessibility and brand visibility, crucial for long-term market presence.

Negative Factors

Negative Equity

Negative equity poses a severe financial risk, limiting ToughBuilt's ability to secure financing and invest in growth, threatening long-term viability.

Declining Revenue

A significant revenue decline indicates weakening demand or competitive pressures, challenging ToughBuilt's ability to sustain operations and invest in future growth.

Negative Margins

Persistently negative margins highlight operational inefficiencies, reducing profitability and cash flow, which are critical for long-term sustainability.

ToughBuilt Industries Business Overview & Revenue Model

Company Description

ToughBuilt Industries, Inc. designs, develops, manufactures, and distributes home improvement and construction products for the building industry in the United States and internationally. It offers tool pouches, tool rigs, tool belts and accessories, tools bags, totes, various storage solutions, and office organizers/bags for laptop/tablet/cellphones, etc.; and kneepads. The company also provides sawhorses, miter saws, table saws, roller stands, and workbenches; sawhorse/jobsite tables; and digital measure and levels. It offers its products under the TOUGHBUILT brand through various home improvement big box stores, professional outlets, and direct marketing to construction companies and trade/wholesale outlets. The company was formerly known as Phalanx, Inc. and changed its name to ToughBuilt Industries, Inc. in December 2015. ToughBuilt Industries, Inc. was incorporated in 2012 and is based in Lake Forest, California.

How the Company Makes Money

ToughBuilt Industries generates revenue primarily through the sale of its products to retailers, distributors, and directly to consumers. The company has established key revenue streams through its extensive product lines, which include tool organization and storage solutions, safety equipment, and various construction-related accessories. ToughBuilt's products are sold in major home improvement stores and online platforms, contributing significantly to its earnings. A critical factor in the company's revenue model is its focus on innovation and patented designs, which differentiate its products in a competitive market. Additionally, strategic partnerships with retailers and distributors help expand its market reach and drive sales growth.

ToughBuilt Industries Financial Statement Overview

Summary

ToughBuilt Industries faces significant financial challenges across all verticals. The income statement highlights declining revenues and worsening margins. The balance sheet is particularly concerning with negative equity, indicating potential solvency issues. Although there is some improvement in cash flow, the company's cash generation remains insufficient. Immediate strategic financial restructuring is essential to stabilize the company.

Income Statement

The company's income statement reveals significant challenges. Over the recent annual period, total revenue declined by 19.91% from $95.25M to $76.27M, indicating negative revenue growth. Gross profit margin decreased to 21.51% from 26.46%, and net profit margin worsened to -60.89%, reflecting deeper operational losses. EBIT and EBITDA margins are both negative, highlighting persistent operating inefficiencies.

Balance Sheet

The balance sheet is a major concern. The company's stockholders' equity turned negative, indicating more liabilities than assets, which is a severe financial risk. The debt-to-equity ratio is not meaningful due to negative equity, and return on equity is also negative, reflecting poor returns to shareholders. The equity ratio has deteriorated to a negative value, emphasizing an unsustainable financial structure.

Cash Flow

Cash flow analysis shows some improvement, yet remains weak. Operating cash flow improved but was still negative at -$5.09M. Free cash flow remains negative, though the deficit has decreased. The operating cash flow to net income and free cash flow to net income ratios are not favorable, indicating ongoing cash flow challenges.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	76.27M	95.25M	70.03M	39.43M	19.09M
Gross Profit	16.41M	25.21M	19.11M	11.75M	5.61M
EBITDA	-37.56M	-32.51M	-35.39M	-14.39M	-8.36M
Net Income	-46.45M	-39.30M	-37.24M	-18.50M	-5.27M
Balance Sheet
Total Assets	51.79M	83.92M	78.95M	27.49M	10.47M
Cash, Cash Equivalents and Short-Term Investments	1.15M	2.56M	7.47M	2.19M	25.06K
Total Debt	3.19M	5.41M	0.00	590.95K	4.34M
Total Liabilities	61.51M	54.21M	21.06M	8.14M	7.24M
Stockholders Equity	-9.72M	29.71M	57.90M	19.35M	3.23M
Cash Flow
Free Cash Flow	-7.60M	-42.39M	-77.49M	-27.56M	-11.26M
Operating Cash Flow	-5.09M	-37.29M	-66.18M	-25.06M	-10.23M
Investing Cash Flow	-2.60M	-5.05M	-11.30M	502.05K	-1.03M
Financing Cash Flow	6.19M	37.43M	82.76M	26.73M	5.83M

ToughBuilt Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLT, the sentiment is Positive. The current price of 0.79 is above the 20-day moving average (MA) of 0.68, above the 50-day MA of 0.67, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 75.93 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TBLT.

ToughBuilt Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
KMT	63 Neutral	$1.60B	17.52	7.35%	3.80%	-3.91%	-12.49%
EML	60 Neutral	$153.98M	12.00	7.78%	1.74%	-0.83%	4.51%
CVR	38 Underperform	$9.59M	―	-22.36%	1.19%	-16.39%	-65.00%
TBLT	28 Underperform	$1.14M	―	477.82%	―	―	―