TechPrecision (TPCS) AI Stock Analysis

• Market Cap: $34.74M
• Dividend Yield: N/A
• Average Volume (3M): 29.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 1.15%
• EPS Growth: 94.58%
• Country: US
• Employees: 162
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.15
• Shares Outstanding: 10,011,332
• 10 Day Avg. Volume: 28,454
• 30 Day Avg. Volume: 29,066
• PEG Ratio: 0.12
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -4.61
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 7.59
• Enterprise Value/Ebitda: 30.71
• 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: 42 Neutral
• Price Target: $3.50 ▼(-34.21% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held down primarily by weak financial performance—ongoing losses, elevated leverage, and especially negative free cash flow. Technicals remain bearish with the stock below key moving averages, while valuation metrics provide limited support due to the negative P/E and no dividend yield. The earnings call adds some offsetting strength (funded backlog/grants and improving margins), but near-term liquidity and Stadco execution risks remain prominent.

Positive Factors

Funded backlog & grants

A $46M funded backlog plus over $24M of funded grants provides multi-year revenue visibility and reduces near-term sales risk. This funded work supports planning, steady factory utilization and a clearer path to convert backlog into predictable cash flows over 1–3 years.

Ranor segment profitability

A profitable Ranor subsidiary delivers structural earnings and operational stability within the consolidated business. Its positive operating margin generates internal cash, underpins customer programs (submarine/defense), and provides a foundation to offset loss-making units while management scales repeatable program work.

Margin recovery & cost discipline

Sustained gross‑margin recovery and tighter SG&A control indicate improving unit economics and better cost absorption. If maintained, higher margins boost operating leverage on incremental revenue, shorten the path to sustained profitability and improve free cash flow potential over coming quarters.

Negative Factors

Weak cash generation

Deep negative free cash flow and essentially zero cash on hand create ongoing liquidity pressure, forcing reliance on financing or working‑capital fixes. Persistent cash burn constrains investment, raises refinancing risk, and limits ability to fund growth or absorb execution setbacks without external support.

Elevated leverage

Leverage materially above parity restricts financial flexibility and increases sensitivity to interest costs and covenant constraints. Until consistent profitability and cash generation return, elevated debt limits strategic options, raises refinancing risk and can amplify losses from operational slippage.

Stadco contract & execution risks

Legacy contract provisions, customer‑furnished delays and rework at Stadco create recurring margin volatility and unpredictable costs. Combined with customer concentration, these structural execution issues hinder scaling to repeatable programs and risk ongoing hit to consolidated profitability and cash conversion.

TechPrecision Business Overview & Revenue Model

Company Description

TechPrecision Corporation, together with its subsidiaries, manufactures and sells precision, fabricated, and machined metal structural components and systems in the United States. The company operates through two segments, Ranor and Stadco. It provides custom components for ships, submarines, military helicopters, aerospace equipment, components for nuclear power plants, and components for medical systems. The company also provides support services to its manufacturing capabilities comprising manufacturing engineering, quality control, materials procurement, production control, and final assembly. Its finished products are used various markets, including defense, aerospace, nuclear, medical, and precision industrial. TechPrecision Corporation was founded in 1956 and is headquartered in Westminster, Massachusetts.

How the Company Makes Money

TechPrecision makes money primarily by fulfilling customer purchase orders and contracts for manufactured components and assemblies. Revenue is generated from (1) machining and fabrication services—pricing is typically based on the scope and complexity of work such as engineering requirements, materials, machining time, labor, and any required welding/finishing; (2) assembly and integration work where TechPrecision produces higher-level subassemblies or complete assemblies rather than single parts, generally increasing value per order; and (3) repeat production and program work for customers that order the same or similar parts over time, which can create more consistent throughput once parts are qualified. Where applicable, earnings are influenced by customer program schedules and acceptance/testing milestones, as revenue is recognized as products/services are delivered and accepted under the underlying contract terms. Information on specific significant partnerships is null.

TechPrecision Financial Statement Overview

Summary

Operationally improving but still weak overall: revenue is slightly down (TTM -1.57%) and the company remains unprofitable (net margin ~-3.4%). Leverage is elevated (TTM D/E ~1.32) and cash generation is the main concern, with deeply negative TTM free cash flow (~-$4.44M), implying ongoing cash burn despite smaller losses and improved gross margin (~18%).

Income Statement

TTM (Trailing-Twelve-Months) revenue is roughly flat to down (revenue growth -1.57%) and profitability remains weak, with a net loss (net margin about -3.4%). The company is showing improvement versus the deeper losses in FY2024 and FY2025 annual results, and gross margin has rebounded in TTM (~18.0%) from FY2025 (~12.7%), but earnings power is still not consistently positive (negative net income and near-breakeven operating results). Overall: recovering margins and smaller losses, but not yet sustainably profitable.

Balance Sheet

Leverage is elevated with debt higher than equity (TTM debt-to-equity ~1.32), though it has improved from FY2024 (~1.63). Equity remains positive, but returns to shareholders are still negative (TTM return on equity about -5.4%), reflecting ongoing losses. The balance sheet is not distressed on equity, but the debt load limits flexibility until profitability and cash generation improve.

Cash Flow

Cash generation is the key weak spot: TTM operating cash flow is only about $0.14M versus a net loss of ~$1.13M, and free cash flow is deeply negative (TTM about -$4.44M) with a sharp deterioration in the provided growth figure (TTM free cash flow growth -17.12). While prior years included periods of positive free cash flow (FY2023), the current profile suggests meaningful cash burn and likely reliance on financing or working-capital improvements to stabilize.

Breakdown	TTM	Jun 2025	Jun 2024	Mar 2023	Jun 2022	Mar 2021
Income Statement
Total Revenue	33.04M	34.03M	31.59M	31.43M	22.28M	15.60M
Gross Profit	5.95M	4.33M	4.12M	4.90M	3.38M	3.46M
EBITDA	1.47M	587.00K	-2.16M	1.79M	-144.30K	1.33M
Net Income	-1.13M	-2.75M	-7.04M	-979.01K	-349.83K	320.63K
Balance Sheet
Total Assets	32.80M	33.53M	34.75M	36.21M	37.85M	16.72M
Cash, Cash Equivalents and Short-Term Investments	50.00K	195.00K	138.40K	534.47K	1.05M	2.13M
Total Debt	10.51M	11.76M	12.70M	11.82M	13.66M	3.82M
Total Liabilities	24.82M	24.79M	26.94M	21.61M	22.59M	6.78M
Stockholders Equity	7.98M	8.74M	7.80M	14.59M	15.26M	9.94M
Cash Flow
Free Cash Flow	-4.44M	-4.72M	-1.93M	812.54K	-681.16K	18.34K
Operating Cash Flow	143.00K	-599.00K	1.30M	3.14M	257.84K	635.85K
Investing Cash Flow	27.00K	-1.08M	-3.17M	-2.32M	-8.73M	-607.93K
Financing Cash Flow	-285.00K	1.74M	1.47M	-1.34M	7.40M	1.17M

TechPrecision Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.32 is above the 20-day moving average (MA) of 3.96, above the 50-day MA of 4.50, and above the 200-day MA of 4.55, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 31.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPCS.

TechPrecision 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%
HIHO	52 Neutral	$3.79M	-15.91	-8.38%	9.60%	-19.68%	-2.61%
MTEN	47 Neutral	$1.98M	-13.20	-81.84%	―	―	―
AP	46 Neutral	$178.67M	-5.24	-8.73%	―	0.20%	88.39%
TPCS	42 Neutral	$34.74M	-8.20	-5.10%	―	1.15%	94.58%

TechPrecision Corporate Events

TechPrecision Extends Revolving Credit Line Maturity Date

On January 12, 2026, TechPrecision subsidiary Ranor, Inc. and other affiliated borrowers amended their existing loan arrangements by entering into a new agreement with Beacon Bank & Trust, the successor by merger to Berkshire Bank, to extend the maturity date of their $4.5 million revolving line of credit from January 16, 2026 to May 15, 2026. The extension provides the company with additional short-term liquidity and financing flexibility, and management emphasized that, aside from the lending arrangements and prior borrowing relationship, there is no other material relationship between TechPrecision’s affiliates and Beacon.

The most recent analyst rating on (TPCS) stock is a Sell with a $4.00 price target. To see the full list of analyst forecasts on TechPrecision stock, see the TPCS Stock Forecast page.