ToughBuilt Industries (TBLT) AI Stock Analysis

• Market Cap: $2.18M
• Dividend Yield: N/A
• Average Volume (3M): 191.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 165
• Sector: Industrials
• Sector Strength: 94
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -121.75
• Shares Outstanding: 1,443,125
• 10 Day Avg. Volume: 248
• 30 Day Avg. Volume: 191
• PEG Ratio: >-0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.39
• 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.

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
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15M	2.56M	7.47M	2.19M	25.06K
	Total Assets
51.79M	83.92M	78.95M	27.49M	10.47M
	Total Debt
3.19M	5.41M	0.00	590.95K	4.34M
	Net Debt
2.04M	2.85M	-7.47M	-1.60M	4.32M
	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: Negative
• Last Price: 1.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMT	71 Outperform	$1.64B	15.55	8.69%	3.72%	-2.93%	2.74%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%
EML	56 Neutral	$135.29M	9.40	9.10%	1.93%	2.06%	47.43%
CVR	38 Underperform	$13.37M	―	-19.82%	1.88%	-14.35%	-27.58%
TBLT	28 Underperform	$2.18M	―	477.82%	―	―	―