Trio-Tech International (TRT) AI Stock Analysis

• Market Cap: $22.47M
• Dividend Yield: N/A
• Average Volume (3M): 21.10K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.03
• Revenue Growth: -14.64%
• EPS Growth: -97.84%
• Country: US
• Employees: 673
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 0.12
• Shares Outstanding: 4,312,805
• 10 Day Avg. Volume: 54,971
• 30 Day Avg. Volume: 21,097
• PEG Ratio: -0.35
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.44
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 0.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $5.50 ▲(5.57%Upside)

Trio-Tech International's overall stock score of 62.8 is primarily influenced by its strong balance sheet and positive corporate actions, such as the share buyback plan. However, the score is tempered by challenges in profitability, revenue growth, and a concerning valuation with a negative P/E ratio. While the technical analysis indicates a neutral outlook, the company's long-term prospects depend on reversing revenue declines and improving profitability metrics.

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 its revenue through multiple streams. The primary source of income is its semiconductor testing services, where the company offers testing and burn-in services to ensure the functionality and reliability of semiconductor devices for its clients. Additionally, Trio-Tech earns revenue from the manufacturing and sale of its proprietary semiconductor testing equipment and systems. The company may also engage in distribution activities, where it partners with other manufacturers to offer a broader range of products to its customers. Key factors contributing to its earnings include its technological expertise, global operational footprint, and strong relationships with semiconductor manufacturers and distributors.

Trio-Tech International Financial Statement Overview

Summary

Trio-Tech International has a strong balance sheet with low leverage, but faces challenges with profitability and revenue growth. The cash flow is solid from operations but weakened by a declining free cash flow. The company is financially stable yet needs strategic efforts to enhance growth and profitability.

Income Statement

Trio-Tech International's income statement shows moderate performance with a gross profit margin of 25.9% and a net profit margin of 0.05% in the TTM (Trailing-Twelve-Months). The EBIT and EBITDA margins are 0.41% and 9.43%, respectively, indicating operational efficiency challenges. Revenue has declined from $43.2 million to $35.5 million in the TTM, reflecting a negative growth trend. Overall, while profitability margins are low, there is potential for improvement if the company can reverse its revenue decline.

Balance Sheet

The balance sheet of Trio-Tech International is strong, with a low debt-to-equity ratio of 0.03, signifying minimal financial leverage. The equity ratio is robust at 80.87%, indicating a stable capital structure with high equity financing. However, the return on equity is very low at 0.06% in the TTM, suggesting limited profitability relative to shareholder equity. While the company maintains a solid balance sheet, improving ROE would enhance financial performance.

Cash Flow

The company's cash flow statement reflects a mixed scenario. The operating cash flow to net income ratio is favorable, highlighting efficient cash generation from operations. However, the free cash flow growth rate is negative, declining from $2.016 million to $336,000 in the TTM, indicating reduced liquidity. Despite strong operational cash flow, the decline in free cash flow is a concern that needs addressing for sustained financial health.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	35.55M	42.31M	43.25M	44.06M	32.46M	34.47M
Gross Profit	9.20M	10.76M	11.71M	11.73M	7.67M	7.27M
EBITDA	3.35M	5.94M	7.58M	6.25M	2.29M	4.44M
Net Income	19.00K	1.05M	1.54M	2.40M	-1.13M	878.00K
Balance Sheet
Total Assets	39.96M	42.54M	42.19M	43.42M	38.31M	35.66M
Cash, Cash Equivalents and Short-Term Investments	11.02M	16.53M	14.21M	13.12M	12.49M	10.85M
Total Debt	953.00K	2.85M	4.11M	6.06M	4.46M	4.11M
Total Liabilities	7.23M	10.96M	12.62M	15.42M	12.25M	10.51M
Stockholders Equity	32.32M	31.33M	29.41M	27.87M	25.63M	23.97M
Cash Flow
Free Cash Flow	336.00K	2.02M	3.61M	655.00K	526.00K	1.99M
Operating Cash Flow	1.08M	2.56M	8.11M	2.12M	1.64M	3.01M
Investing Cash Flow	-670.00K	-113.00K	-6.07M	-444.00K	-567.00K	-2.62M
Financing Cash Flow	-108.00K	-90.00K	-1.24M	911.00K	-2.00K	-732.00K

Trio-Tech International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRT, the sentiment is Negative. The current price of 5.21 is below the 20-day moving average (MA) of 5.32, above the 50-day MA of 5.20, and below the 200-day MA of 5.93, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRT.

Trio-Tech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
TRT	63 Neutral	$22.47M	37.80	0.06%	―	-14.64%	-97.84%
WKEY	51 Neutral	$71.55M	―	-51.84%	―	-61.52%	35.64%
PRSO	51 Neutral	$5.23M	―	-178.04%	―	5.99%	83.47%
LEDS	47 Neutral	$21.90M	―	-31.27%	―	160.76%	74.71%
PXLW	43 Neutral	$37.88M	―	-2911.20%	―	-47.93%	-37.78%
SMTK	40 Underperform	$4.48M	―	-208.24%	―	854.55%	-40.89%

Trio-Tech International Corporate Events

Trio-Tech Announces $1 Million Share Buyback Plan

On May 8, 2025, Trio-Tech International‘s Board of Directors approved a share repurchase program authorizing the buyback of up to $1.0 million of its common stock over two years, reflecting confidence in its long-term growth strategy. Despite a decline in third-quarter revenue due to market pressures and supply chain delays, the company remains optimistic about future growth, particularly in Southeast Asia, and continues to focus on financial flexibility and operational efficiency.