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Trio-Tech International (TRT)
:TRT
US Market

Trio-Tech International (TRT) AI Stock Analysis

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Trio-Tech International

(NYSE MKT:TRT)

Rating:63Neutral
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 (TRT) vs. SPDR S&P 500 ETF (SPY)

Trio-Tech International Business Overview & Revenue Model

Company DescriptionTrio-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 MoneyTrio-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
65
Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue35.55M42.31M43.25M44.06M32.46M34.47M
Gross Profit9.20M10.76M11.71M11.73M7.67M7.27M
EBITDA3.35M5.94M7.58M6.25M2.29M4.44M
Net Income19.00K1.05M1.54M2.40M-1.13M878.00K
Balance Sheet
Total Assets39.96M42.54M42.19M43.42M38.31M35.66M
Cash, Cash Equivalents and Short-Term Investments11.02M16.53M14.21M13.12M12.49M10.85M
Total Debt953.00K2.85M4.11M6.06M4.46M4.11M
Total Liabilities7.23M10.96M12.62M15.42M12.25M10.51M
Stockholders Equity32.32M31.33M29.41M27.87M25.63M23.97M
Cash Flow
Free Cash Flow336.00K2.02M3.61M655.00K526.00K1.99M
Operating Cash Flow1.08M2.56M8.11M2.12M1.64M3.01M
Investing Cash Flow-670.00K-113.00K-6.07M-444.00K-567.00K-2.62M
Financing Cash Flow-108.00K-90.00K-1.24M911.00K-2.00K-732.00K

Trio-Tech International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.21
Price Trends
50DMA
5.20
Positive
100DMA
5.55
Negative
200DMA
5.93
Negative
Market Momentum
MACD
0.03
Positive
RSI
47.49
Neutral
STOCH
25.03
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
TRTRT
63
Neutral
$22.47M37.800.06%-14.64%-97.84%
51
Neutral
$71.55M-51.84%-61.52%35.64%
51
Neutral
$5.23M-178.04%5.99%83.47%
47
Neutral
$21.90M-31.27%160.76%74.71%
43
Neutral
$37.88M-2911.20%-47.93%-37.78%
40
Underperform
$4.48M-208.24%854.55%-40.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRT
Trio-Tech International
5.21
-0.88
-14.45%
PRSO
Peraso
1.04
-0.37
-26.24%
PXLW
Pixelworks
7.22
-3.91
-35.13%
LEDS
SemiLEDs
2.67
1.33
99.25%
WKEY
WISeKey International Holding
6.64
4.42
199.10%
SMTK
SmartKem
1.01
-4.24
-80.76%

Trio-Tech International Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Trio-Tech Announces $1 Million Share Buyback Plan
Positive
May 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025