Trio-Tech International (TRT) AI Stock Analysis

• Market Cap: $28.78M
• Dividend Yield: N/A
• Average Volume (3M): 24.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 0.10%
• EPS Growth: -54.98%
• Country: US
• Employees: 673
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 4,327,555
• 10 Day Avg. Volume: 49,918
• 30 Day Avg. Volume: 24,607
• PEG Ratio: -0.65
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -38.84
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.82
• Enterprise Value/Ebitda: 2.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $9.00 ▲(5.88% Upside)

Trio-Tech International's stock score is primarily influenced by its strong technical momentum and solid financial stability. However, the high P/E ratio and challenges in profitability and cash flow generation weigh down the overall score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion potential.

Gross Profit Margin

Improved gross profit margins reflect effective cost management, enhancing profitability and providing a buffer against market fluctuations.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and low leverage, reducing financial risk and increasing flexibility for future investments.

Negative Factors

Net Profit Margin

Low net profit margins suggest challenges in converting revenue into profit, potentially limiting reinvestment and growth opportunities.

Cash Flow Generation

Declining free cash flow growth raises concerns about cash generation, which is crucial for funding operations and strategic initiatives.

Profitability Challenges

Low EBIT and EBITDA margins indicate operational inefficiencies, which could hinder profitability and competitiveness in the long term.

Trio-Tech International Business Overview & Revenue Model

Company Description

Trio-Tech International, together with its subsidiaries, provides manufacturing, testing, and distribution services to the semiconductor industry. The company's Testing Services segment offers stabilization bake, thermal shock, temperature cycling, mechanical shock, constant acceleration, gross and fine leak, electrical, static and dynamic burn-in, and vibration testing, as well as reliability lab and microprocessor equipment contract cleaning services. This segment also provides qualification testing services that test small samples of output from manufacturers for qualification of their processes and devices. Its Manufacturing segment manufactures front-end semiconductor test equipment, such as artic temperature-controlled wafer chucks used for test, characterization, and failure analysis of semiconductor wafers and other components; and wet process stations for cleaning, rinsing, and drying semiconductor wafers, flat panel display magnetic disks, and other microelectronic substrates. This segment also manufactures back-end products comprising autoclaves and highly accelerated stress test equipment; burn-in equipment and boards; and component centrifuges and leak detection equipment. The company's Distribution segment distributes complementary products, including environmental chambers, handlers, interface systems, vibration systems, shaker systems, solderability testers, and other semiconductor equipment, as well as components, such as connectors, sockets, LCD display panels, and touch-screen panels. Its Real Estate segment invests in and rents real estate properties. The company primarily serves semiconductor chip manufacturers or testing facilities that purchase testing equipment. The company operates in the United States, Singapore, Malaysia, Thailand, and China. Trio-Tech International was incorporated in 1958 and is headquartered in Van Nuys, California.

How the Company Makes Money

Trio-Tech International generates revenue through several key streams. Primarily, the company earns income from its semiconductor test services, where clients pay for the testing and validation of their semiconductor products. Additionally, TRT's burn-in services, which involve stressing semiconductor devices to identify potential issues before market release, contribute significantly to its earnings. The sale of advanced packaging solutions and test equipment also forms a crucial part of their revenue model. Strategic partnerships with major semiconductor manufacturers and technology firms enhance TRT's market presence and drive consistent business growth. Furthermore, the company may benefit from long-term contracts with clients, providing a steady stream of income and increasing operational stability.

Trio-Tech International Financial Statement Overview

Summary

Trio-Tech International shows strong revenue growth and improved gross profit margins, indicating effective cost management. However, low net profit margins and inconsistent cash flow generation highlight challenges in profitability and cash efficiency. The company's low leverage and strong equity position provide financial stability.

Income Statement

Trio-Tech International shows a positive revenue growth rate of 15.67% in the TTM period, indicating a strong recovery from previous declines. The gross profit margin improved significantly to 35.27%, reflecting better cost management. However, the net profit margin remains low at 1.82%, suggesting challenges in converting revenue into net income. The EBIT and EBITDA margins are also relatively low, indicating room for improvement in operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.023, indicating minimal leverage and financial risk. The return on equity is modest at 1.47%, suggesting limited profitability relative to shareholder equity. The equity ratio is healthy, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth (-471.98%) in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is 0.26, indicating moderate cash flow efficiency. The free cash flow to net income ratio is relatively strong at 0.70, suggesting that a good portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.19M	36.47M	42.31M	43.25M	44.06M	32.46M
Gross Profit	9.41M	9.14M	10.76M	11.71M	11.73M	7.67M
EBITDA	3.18M	2.96M	5.94M	7.58M	6.25M	2.29M
Net Income	272.00K	-41.00K	1.05M	1.54M	2.40M	-591.00K
Balance Sheet
Total Assets	47.38M	41.07M	42.54M	42.19M	43.42M	38.31M
Cash, Cash Equivalents and Short-Term Investments	18.18M	16.71M	16.53M	14.21M	13.12M	12.49M
Total Debt	2.06M	1.73M	2.85M	4.11M	6.06M	4.46M
Total Liabilities	13.23M	7.08M	10.96M	12.62M	15.42M	12.25M
Stockholders Equity	34.06M	34.03M	31.33M	29.41M	27.87M	25.63M
Cash Flow
Free Cash Flow	2.22M	-596.00K	2.17M	3.61M	655.00K	526.00K
Operating Cash Flow	3.16M	371.00K	2.72M	8.11M	2.12M	1.64M
Investing Cash Flow	738.00K	167.00K	-113.00K	-6.07M	-444.00K	-567.00K
Financing Cash Flow	-166.00K	-40.00K	-90.00K	-1.24M	911.00K	-2.00K

Trio-Tech International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRT, the sentiment is Positive. The current price of 8.5 is above the 20-day moving average (MA) of 7.73, above the 50-day MA of 7.24, and above the 200-day MA of 5.93, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 63.69 is Neutral, neither overbought nor oversold. The STOCH value of 37.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRT.

Trio-Tech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRT	62 Neutral	$28.78M	-471.63	0.84%	―	0.10%	-54.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTT	56 Neutral	$91.50M	―	-2.24%	―	-2.20%	-204.45%
ASYS	48 Neutral	$112.36M	―	-47.86%	―	-20.20%	-58.57%
PXLW	45 Neutral	$38.77M	-1.11	―	―	-38.72%	16.01%
LEDS	45 Neutral	$24.42M	-43.04	-45.37%	―	729.81%	61.92%
SQNS	43 Neutral	$94.49M	―	-18.19%	―	2.80%	―