tiprankstipranks
Trending News
More News >
ToughBuilt Industries (TBLT)
OTHER OTC:TBLT
US Market

ToughBuilt Industries (TBLT) AI Stock Analysis

Compare
657 Followers

Top Page

TB

ToughBuilt Industries

(OTC:TBLT)

Rating:28Underperform
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.

ToughBuilt Industries (TBLT) vs. SPDR S&P 500 ETF (SPY)

ToughBuilt Industries Business Overview & Revenue Model

Company DescriptionToughBuilt 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 MoneyToughBuilt 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
15
Very Negative
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
5
Very Negative
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
20
Very Negative
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 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
76.27M95.25M70.03M39.43M19.09M
Gross Profit
16.41M25.21M19.11M11.75M5.61M
EBIT
-57.22M-52.28M-39.30M-14.39M-8.58M
EBITDA
-37.56M-32.51M-35.39M-14.39M-8.36M
Net Income Common Stockholders
-46.45M-39.30M-37.24M-18.50M-5.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.15M2.56M7.47M2.19M25.06K
Total Assets
51.79M83.92M78.95M27.49M10.47M
Total Debt
3.19M5.41M0.00590.95K4.34M
Net Debt
2.04M2.85M-7.47M-1.60M4.32M
Total Liabilities
61.51M54.21M21.06M8.14M7.24M
Stockholders Equity
-9.72M29.71M57.90M19.35M3.23M
Cash FlowFree 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-11.30M502.05K-1.03M
Financing Cash Flow
6.19M37.43M82.76M26.73M5.83M

ToughBuilt Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.51
Price Trends
50DMA
1.74
Negative
100DMA
2.03
Negative
200DMA
2.40
Negative
Market Momentum
MACD
-0.07
Positive
RSI
16.99
Positive
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLT, the sentiment is Negative. The current price of 1.51 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.74, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 16.99 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBLT.

ToughBuilt Industries Risk Analysis

ToughBuilt Industries disclosed 40 risk factors in its most recent earnings report. ToughBuilt Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
An investment in our securities is speculative, and there can be no assurance of a return on such an investment. Q4, 2023
2.
Certain provisions of our Articles of Incorporation could allow the concentration of voting power in one individual, which may, among other things, delay or frustrate the removal of incumbent directors or a takeover attempt, even if such events may benefit our stockholders. Q4, 2023
3.
If you purchase shares of our common stock, you may experience immediate and substantial dilution in your shares' net tangible book value. In addition, we may issue shares of common stock under our equity incentive plans and additional equity or convertible debt securities in the future, which may dilute investors further. Q4, 2023

ToughBuilt Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KMKMT
71
Outperform
$1.64B15.558.69%3.72%-2.93%2.74%
66
Neutral
$4.48B12.245.32%248.54%4.09%-12.10%
EMEML
56
Neutral
$135.29M9.409.10%1.93%2.06%47.43%
CVCVR
38
Underperform
$13.37M-19.82%1.88%-14.35%-27.58%
28
Underperform
$2.18M477.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBLT
ToughBuilt Industries
1.51
-1.50
-49.83%
CVR
Chicago Rivet & Machine Co
13.59
-1.88
-12.15%
EML
Eastern Company
22.78
-5.00
-18.00%
KMT
Kennametal
21.65
-2.35
-9.79%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.