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Trio-Tech International (TRT)
:TRT
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Trio-Tech International (TRT) AI Stock Analysis

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TRT

Trio-Tech International

(NYSE MKT:TRT)

Rating:65Neutral
Price Target:
$6.00
▲(8.11% Upside)
Trio-Tech International's overall stock score reflects a stable financial foundation with significant potential for strategic growth. The strong balance sheet and recent corporate actions, like the acquisition and share buyback, are positives. However, low profitability and challenging valuation metrics weigh down the score. Technical indicators are neutral, suggesting stability but limited immediate upside. Strategic initiatives to boost revenue and profitability are crucial for improving the outlook.

Trio-Tech International (TRT) vs. SPDR S&P 500 ETF (SPY)

Trio-Tech International Business Overview & Revenue Model

Company DescriptionTrio-Tech International (TRT) is a diversified company specializing in the design, development, manufacturing, and sale of equipment and systems used in the testing and burn-in of semiconductor devices. The company operates in several sectors, including semiconductor testing services, manufacturing, and distribution of semiconductor testing equipment. With a global presence, Trio-Tech serves a wide range of industries by providing essential quality assurance solutions to ensure the reliability and performance of semiconductor devices.
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's financial performance is stable but faces challenges. The balance sheet is strong with low leverage, but profitability and revenue growth are weak. Cash flow is solid from operations but declining free cash flow is a concern.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue42.31M43.25M44.06M32.46M34.47M
Gross Profit10.76M11.71M11.73M7.67M7.27M
EBITDA5.94M7.58M6.25M2.29M4.44M
Net Income1.05M1.54M2.40M-1.13M878.00K
Balance Sheet
Total Assets42.54M42.19M43.42M38.31M35.66M
Cash, Cash Equivalents and Short-Term Investments16.53M14.21M13.12M12.49M10.85M
Total Debt2.85M4.11M6.06M4.46M4.11M
Total Liabilities10.96M12.62M15.42M12.25M10.51M
Stockholders Equity31.33M29.41M27.87M25.63M23.97M
Cash Flow
Free Cash Flow2.02M3.61M655.00K526.00K1.99M
Operating Cash Flow2.56M8.11M2.12M1.64M3.01M
Investing Cash Flow-113.00K-6.07M-444.00K-567.00K-2.62M
Financing Cash Flow-90.00K-1.24M911.00K-2.00K-732.00K

Trio-Tech International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.55
Price Trends
50DMA
5.37
Positive
100DMA
5.42
Positive
200DMA
5.86
Negative
Market Momentum
MACD
0.07
Negative
RSI
57.83
Neutral
STOCH
88.30
Negative
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 5.55 is above the 20-day moving average (MA) of 5.53, above the 50-day MA of 5.37, and below the 200-day MA of 5.86, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 88.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRT.

Trio-Tech International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$23.94M37.800.06%-14.64%-97.84%
61
Neutral
$34.87B5.87-10.42%2.07%6.72%-8.84%
52
Neutral
$47.98M-2911.20%-47.93%-37.78%
51
Neutral
$4.30M-178.04%5.99%83.47%
43
Neutral
$79.47M-51.84%-61.52%35.64%
42
Neutral
$13.32M-14.79%485.62%85.02%
39
Underperform
$3.68M-208.24%854.55%-40.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRT
Trio-Tech International
5.55
0.26
4.91%
PRSO
Peraso
0.86
-0.64
-42.67%
PXLW
Pixelworks
9.14
-0.59
-6.06%
LEDS
SemiLEDs
1.62
0.27
20.00%
WKEY
WISeKey International Holding
5.30
2.80
112.00%
SMTK
SmartKem
0.87
-5.73
-86.82%

Trio-Tech International Corporate Events

M&A TransactionsBusiness Operations and Strategy
Trio-Tech Acquires Full Ownership of Jiangsu Subsidiary
Positive
Jul 7, 2025

On June 30, 2025, Trio-Tech International, through its subsidiary Trio-Tech (SIP) Co., Ltd., acquired the remaining 49% equity interest in Trio-Tech (Jiangsu) Co. Ltd., making it a wholly-owned subsidiary. This strategic acquisition strengthens Trio-Tech’s operational control and presence in the Chinese market, potentially enhancing its competitive positioning in the semiconductor industry.

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: Aug 01, 2025