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TechPrecision (TPCS)
NASDAQ:TPCS
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TechPrecision
(NASDAQ:TPCS)
36Underperform
TechPrecision (TPCS) vs. S&P 500 (SPY)
Market Cap
$22.22M
Dividend YieldN/A
Average Volume (3M)47.93K
Price to Earnings (P/E)―
Beta (1Y)0.11
Revenue Growth6.44%
EPS Growth-307.54%
CountryUS
Employees162
SectorIndustrials
Sector Strength66
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.91
Shares Outstanding9,662,525
10 Day Avg. Volume42,166
30 Day Avg. Volume47,927
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.72
Price to Cash Flow (P/CF)-11.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TechPrecision Business Overview & Revenue Model
Company DescriptionTechPrecision Corporation (TPCS) is a leading manufacturer of precision, large-scale fabricated and machined components and equipment. Serving sectors such as aerospace, defense, medical, nuclear, and industrial, the company specializes in producing high-quality products that meet stringent industry standards. Their core services include complex manufacturing processes, assembly, and testing, catering to clients who require precision engineering and reliable performance.
How the Company Makes MoneyTechPrecision makes money primarily through the manufacturing and sale of custom-engineered components and assemblies. The company's revenue streams depend on long-term contracts and project-based work with major clients in the aerospace, defense, nuclear, and medical industries. These contracts often require specific expertise in precision machining and fabrication, which TechPrecision provides. Their business model is heavily reliant on maintaining strong relationships with key clients and ensuring the quality and reliability of their products, which can lead to repeat business and long-term partnerships.
TechPrecision Financial Statement Overview
Summary
TechPrecision exhibits significant financial challenges. Despite revenue growth, the company is dealing with net losses, negative margins, high leverage, and struggling cash flows.Income Statement
TechPrecision's income statement reflects some challenges in profitability and growth. The company has experienced consistent net losses, with the latest TTM (Trailing-Twelve-Months) showing a significant net loss of $8.05 million. Revenue growth has been positive over recent years, with a 5.03% increase from 2023 to 2024. However, margins remain negative, with a negative EBIT and EBITDA, indicating operational inefficiencies.35
Negative
Balance Sheet
The balance sheet presents a mixed picture. While the company has a reasonable equity ratio of 25.37% in the TTM, indicating some financial stability, the debt-to-equity ratio is relatively high at 1.33. This suggests a reliance on debt financing, which could pose risks if cash flows do not improve. The decline in stockholders' equity over recent periods is also a concern.50
Neutral
Cash Flow
Cash flow analysis shows that TechPrecision is facing challenges in generating positive free cash flow, with a negative free cash flow of $2.57 million in the TTM. The operating cash flow has turned negative, reflecting operational difficulties. The company exhibits a negative free cash flow to net income ratio, indicating inefficiencies in converting income into cash flow.40
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 33.18M | 31.59M | 31.43M | 22.28M | 15.60M | 16.01M | Gross Profit |
| 3.64M | 4.12M | 4.90M | 3.38M | 3.46M | 3.14M | EBIT |
| -5.28M | -4.63M | -1.06M | -1.56M | 623.25K | 376.47K | EBITDA |
| -3.27M | -2.16M | 1.79M | 1.19M | 1.33M | 599.04K | Net Income Common Stockholders |
| -8.05M | -7.04M | -979.01K | -349.83K | 320.63K | -341.57K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.77M | 138.40K | 534.47K | 1.05M | 2.13M | 930.86K | Total Assets |
| 19.42M | 34.75M | 36.21M | 37.85M | 16.00M | 14.58M | Total Debt |
| 6.22M | 12.70M | 11.82M | 13.66M | 3.82M | 2.57M | Net Debt |
| -2.55M | 12.56M | 11.29M | 12.60M | 1.69M | 1.64M | Total Liabilities |
| 7.35M | 26.94M | 21.61M | 22.59M | 6.06M | 5.11M | Stockholders Equity |
| 12.08M | 7.80M | 14.59M | 15.26M | 9.94M | 9.47M |
| Cash Flow | Free Cash Flow | ||||
| -2.57M | -1.93M | 812.54K | -681.16K | 18.34K | 636.95K | Operating Cash Flow |
| -377.79K | 1.30M | 3.14M | 257.84K | 635.85K | 676.78K | Investing Cash Flow |
| -1.19M | -3.17M | -2.32M | -8.73M | -607.93K | -39.83K | Financing Cash Flow |
| 1.57M | 1.47M | -1.34M | 7.40M | 1.17M | -1.74M |
TechPrecision Technical Analysis
Negative
2.34
Price Trends
2.87
Negative
3.17
Negative
3.34
Negative
Market Momentum
-0.17
Positive
36.09
Neutral
29.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPCS, the sentiment is Negative. The current price of 2.34 is below the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.87, and below the 200-day MA of 3.34, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 29.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPCS.
TechPrecision Risk Analysis
TechPrecision disclosed 38 risk factors in its most recent earnings report. TechPrecision 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 0 New Risks
TechPrecision Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $15.30B | 18.39 | 11.71% | 1.52% | -6.56% | -31.89% | |
75 Outperform | $11.95B | 30.06 | 16.95% | 0.26% | 9.69% | 14.65% | |
70 Outperform | $7.40B | 20.60 | 22.82% | ― | 4.51% | -2.90% | |
69 Neutral | $17.30B | 14.63 | 29.12% | 1.14% | 7.93% | 541.97% | |
65 Neutral | $4.40B | 34.41 | 8.14% | 1.13% | 6.31% | 28.25% | |
62 Neutral | $8.07B | 13.60 | 3.76% | 3.13% | 3.60% | -14.67% | |
36 Underperform | $22.22M | ― | -71.86% | ― | 6.44% | -307.54% |
* Industrials Sector Average
Performance Comparison
TPCS
TechPrecision
2.34
-1.15
-32.95%
ATI
ATI
52.60
1.95
3.85%
CW
Curtiss-Wright
322.46
68.14
26.79%
HXL
Hexcel
54.74
-15.55
-22.12%
RS
Reliance Steel
289.01
-39.03
-11.90%
LDOS
Leidos Holdings
134.96
7.39
5.79%
TechPrecision Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -24.27% | Next Earnings Date: Jun 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for TechPrecision Corp. with notable revenue growth and strong customer confidence but was hampered by significant challenges at Stadco, including operating losses and increased costs. While there are positive developments, such as reduced interest expense and supplier development funding, the financial difficulties and net loss indicate ongoing struggles.Highlights
Revenue Growth
Consolidated revenue for the second quarter of fiscal year 2025 was $8.9 million, a 12% increase compared to $8 million in the same quarter a year ago.
Ranor's Strong Performance
Ranor's revenue increased to $4.8 million from $4.5 million the previous year, and it achieved an operating profit of $1 million in the second quarter.
High Customer Confidence
Consolidated backlog was $48.6 million as of September 30, 2024, indicating strong customer confidence and expected gross margin expansion.
Reduced Interest Expense
Interest expense decreased by approximately $38,000 due to lower borrowing levels under the revolver loan.
Supplier Development Funding
Secured three tranches of supplier development funding to increase capacity and add redundant capabilities at Ranor.
Lowlights
Decreased Gross Profit
Consolidated gross profit was $1 million, 2% lower compared to the same quarter a year ago, due to higher production costs at Stadco.
Stadco's Operating Loss
Stadco reported an operating loss of $0.8 million due to unexpected higher manufacturing costs, legacy pricing problems, machine breakdowns, and under-absorbed overhead costs.
Increased Cost of Revenue
Consolidated cost of revenue was $7.9 million, a 14% increase over the prior year period.
Negative Working Capital
Working capital was negative $1.5 million as of September 30, 2024, due to debt covenant violations.
Net Loss
Net loss for the quarter was $0.6 million compared to $0.5 million in the same period a year ago.
Company Guidance
During the Q2 2025 earnings call for TechPrecision Corp (TPCS), the management provided financial guidance and discussed several key metrics. The consolidated revenue for the quarter was reported at $8.9 million, representing a 12% increase compared to $8 million in the same period the previous year. Stadco's revenue rose by 17% to $4.2 million, while Ranor's revenue increased to $4.8 million from $4.5 million. Despite this revenue growth, the consolidated gross profit saw a slight decline of 2% compared to the same quarter last year. The operating loss for the quarter was $0.5 million, an improvement from the prior year, largely due to Ranor's strong performance. However, Stadco reported an operating loss of $0.8 million, attributed to unexpected manufacturing costs, pricing issues, machine breakdowns, and under-absorbed overhead costs. The company's backlog was robust at $48.6 million as of September 30, 2024. TechPrecision's management emphasized a focus on cash management, expense control, and gross margin expansion over the next 1 to 3 fiscal years.TechPrecision Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
TechPrecision Appoints Phillip Podgorski as New CFO
Positive
Apr 1, 2025
On March 31, 2025, TechPrecision Corporation announced the appointment of Phillip E. Podgorski as the new Chief Financial Officer, succeeding Barbara M. Lilley who will continue as the principal financial officer and principal accounting officer during a transition period. Mr. Podgorski brings extensive experience from his previous role at RTX Corporation, which is expected to enhance TechPrecision’s financial strategy and operational effectiveness, potentially impacting the company’s market positioning positively.
Executive/Board Changes
TechPrecision Appoints Barbara Lilley as Interim CFO
Neutral
Mar 13, 2025
On February 14, 2025, TechPrecision Corporation’s Chief Financial Officer, Richard D. Roomberg, resigned, leading to the appointment of Alexander Shen, the company’s CEO, as interim principal financial officer. Subsequently, on March 7, 2025, Barbara M. Lilley was appointed as Interim Chief Financial Officer, taking over the responsibilities from Mr. Shen while the company searches for a permanent CFO. Ms. Lilley, who has a history with the company and its subsidiary Ranor, Inc., will not receive additional compensation for her interim role.
Delistings and Listing ChangesRegulatory Filings and Compliance
TechPrecision Faces Nasdaq Compliance Deadline in 2025
Negative
Feb 27, 2025
On February 21, 2025, TechPrecision Corporation received a notice from Nasdaq indicating non-compliance with a listing rule due to a delayed filing of its Quarterly Report for the fiscal quarter ended December 31, 2024. The notice does not immediately affect the company’s stock listing, and TechPrecision has until April 22, 2025, to submit a compliance plan. The company is working to file the report promptly to avoid further action, which could include delisting if compliance is not regained.
Executive/Board ChangesFinancial DisclosuresRegulatory Filings and Compliance
TechPrecision CFO Resignation Amidst Reporting Delays
Negative
Feb 14, 2025
On February 14, 2025, TechPrecision Corporation announced the resignation of Richard Roomberg as Chief Financial Officer, with CEO Alexander Shen stepping in as interim principal financial officer. Additionally, the company reported delays in filing its Quarterly Report for the quarter ended December 31, 2024, attributing the lateness to resource strains from acquisition activities.
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.