Tel-Instrument Electronics (TIKK) AI Stock Analysis

• Market Cap: $5.08M
• Dividend Yield: N/A
• Average Volume (3M): 90.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 7.82%
• EPS Growth: -203.85%
• Country: US
• Employees: 38
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 3,255,887
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 90
• PEG Ratio: -0.18
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -0.92
• Enterprise Value/Market Cap: 2.29
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: -16.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 34 Underperform
• Price Target: ―

TIKK's overall score is driven by significant financial and operational challenges, with negative income and cash flow metrics weighing heavily on its performance. Technical indicators align with this, showing limited upward momentum. The valuation is problematic, with a negative P/E ratio and no dividend yield. The company must address these issues to improve its financial health and investor appeal.

Positive Factors

Market Position

The company's strong market position in the aerospace and defense sectors provides a durable competitive advantage, enabling it to secure long-term contracts with military and commercial aviation customers.

Revenue Streams

Diverse revenue streams from military and commercial contracts provide stability and potential for sustained growth, as these sectors require ongoing maintenance and certification of aircraft systems.

Partnerships

Strong partnerships with defense agencies and manufacturers enhance the company's market reach and credibility, fostering repeat business and long-term revenue opportunities.

Negative Factors

Financial Challenges

Declining revenues and negative income metrics indicate operational difficulties, potentially impacting the company's ability to invest in growth and maintain competitive positioning.

Cash Flow Issues

Negative cash flows limit the company's ability to reinvest in its business and manage its capital structure, posing a risk to long-term sustainability and operational resilience.

Debt Levels

Rising debt levels, coupled with declining equity, may strain the company's financial health, reducing its ability to withstand economic downturns or invest in strategic initiatives.

Tel-Instrument Electronics Business Overview & Revenue Model

Company Description

Tel-Instrument Electronics Corp. designs, manufactures, and sells avionics test and measurement instruments for the commercial air transport, general aviation, and government/military aerospace and defense markets in the United States and internationally. It operates through two segments, Avionics Government and Avionics Commercial. The company provides instruments to test, measure, calibrate, and repair a range of airborne navigation and communication equipment. Its products also include TS-4530A and T-4530i, an identification friend or foe test sets; and T-47/M5, a dual crypto test set. The company also offers AN/USM-708 and AN/USM-719 communications/navigation radio frequency avionics flight line testers; SDR-OMNI, an avionics test set; and Lockheed Martin MADL test set, a secure communications radio for the F-35. It serves customers directly or through distributors. The company was incorporated in 1947 and is headquartered in East Rutherford, New Jersey.

How the Company Makes Money

Tel-Instrument Electronics makes money primarily through the sale of its avionic test equipment products. The company's revenue streams are largely derived from contracts with military and commercial aviation customers who require precise and reliable testing equipment to maintain and certify aircraft systems. Additionally, TIKK generates revenue from ongoing service and maintenance agreements, providing calibration and repair services for its products. Significant partnerships with defense agencies and aircraft manufacturers contribute to sustained revenue, as these relationships often result in repeat business and long-term contracts.

Tel-Instrument Electronics Financial Statement Overview

Summary

Tel-Instrument Electronics is facing significant financial challenges. The income statement reveals declining revenues, negative net income, and EBIT, indicating operational difficulties. The balance sheet shows moderate leverage but with increasing debt levels and declining equity, posing financial stability risks. Cash flow issues are prominent, with negative free and operating cash flows affecting financial flexibility.

Income Statement

The company's income statement highlights significant challenges, with a negative net income and EBIT in the TTM period indicating operational difficulties. Revenue growth has been inconsistent, with a notable decline in recent years. Margins are under pressure, as evidenced by a negative EBIT and EBITDA margin in the TTM period. Historically, there has been a sharp decline in both gross profit and net income from 2020 to 2024, indicating a deteriorating financial performance.

Balance Sheet

The balance sheet shows a moderate level of leverage with a debt-to-equity ratio of 0.38, which is reasonable for the industry. However, total liabilities have increased over time, and the equity ratio stands at a moderate 58.87%. The return on equity has been volatile, with a negative ROE in the most recent TTM period, signaling profitability challenges. The company's financial stability is at risk due to the increasing debt levels and declining equity base.

Cash Flow

The cash flow statement reveals significant cash flow challenges, with negative free cash flow and operating cash flow in the TTM period. The company is struggling to generate positive cash flow from operations, which is critical for sustainability. Despite some periods of positive operating cash flow in the past, the recent trend shows a concerning decline, affecting the company's ability to reinvest and manage its capital structure effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.81M	8.63M	12.93M	11.58M	15.77M
Gross Profit	4.02M	3.05M	5.77M	4.78M	7.41M
EBITDA	834.28K	-2.43K	1.99M	1.17M	2.79M
Net Income	341.89K	-388.55K	1.31M	600.06K	4.74M
Balance Sheet
Total Assets	10.75M	15.43M	15.45M	15.96M	13.34M
Cash, Cash Equivalents and Short-Term Investments	132.01K	3.84M	4.95M	3.49M	3.13M
Total Debt	2.01M	2.22M	1.72M	2.65M	986.79K
Total Liabilities	3.90M	9.65M	9.22M	10.75M	8.66M
Stockholders Equity	6.85M	5.78M	6.23M	5.22M	4.68M
Cash Flow
Free Cash Flow	-6.44M	-1.72M	1.78M	-323.52K	2.79M
Operating Cash Flow	-6.41M	-1.69M	1.80M	-255.62K	2.92M
Investing Cash Flow	-33.85K	-26.13K	-16.07K	-67.90K	-133.68K
Financing Cash Flow	721.00K	610.00K	-320.00K	685.10K	-243.34K

Tel-Instrument Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIKK, the sentiment is Negative. The current price of 1.56 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 2.98, and below the 200-day MA of 3.16, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 25.94 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TIKK.

Tel-Instrument Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVU	50 Neutral	$59.07M	-97.60	-2.26%	―	-13.52%	-103.42%
AIRI	48 Neutral	$15.86M	-5.99	-11.98%	―	-6.77%	-192.82%
SIF	44 Neutral	$34.76M	-48.12	-2.77%	―	-13.90%	87.70%
MNTS	41 Neutral	$17.97M	-0.09	―	―	-63.81%	81.84%
ASTC	39 Underperform	$6.42M	-0.44	-54.89%	―	3.06%	-14.62%
TIKK	34 Underperform	$5.08M	-4.04	―	―	7.82%	-203.85%