TTM Technologies (TTMI) AI Stock Analysis

• Market Cap: $1.90B
• Dividend Yield: N/A
• Average Volume (3M): 722.80K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.82
• Revenue Growth: 9.41%
• EPS Growth: N/A
• Country: US
• Employees: 16,400
• Sector: Technology
• Sector Strength: 51
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.54
• Shares Outstanding: 101,621,160
• 10 Day Avg. Volume: 738,747
• 30 Day Avg. Volume: 722,797
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.95
• Price to Cash Flow (P/CF): 6.80
• P/FCF Ratio: 15.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.75
• Price Target Upside: 86.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

TTM Technologies scores 61.08, reflecting a stable yet challenged position. The company shows strong revenue growth and a solid balance sheet, but low profitability margins and cash flow uncertainties weigh down the score. Technical indicators suggest a cautious market stance, while the high P/E ratio raises valuation concerns. The positive earnings call outlook partially offsets these challenges, indicating potential growth in key sectors and setting a cautiously optimistic outlook.

Positive Factors

Market Expansion

TTMI's new manufacturing site in Malaysia is viewed as a longer-term positive catalyst as China-based PCBs designed for hyperscalers migrate to Penang.

Revenue Growth

Q4 revenues increased 14% year over year, above consensus of 11% and the high end of guidance.

Strategic Position

Analyst reaffirms a Buy recommendation, indicating confidence in the company's strategic position and market prospects.

Negative Factors

Automotive Sector Concerns

There are concerns about macro pressures in the automotive and Medical Industry & Instrumentation sectors, including negative data in the semiconductor test market.

Facility Ramp-Up Costs

Weaker margins were attributed to headwinds related to the ramp of its new Penang facility, which is expected to reach breakeven later in the year.

TTM Technologies Business Overview & Revenue Model

Company Description

TTM Technologies, Inc., together with its subsidiaries, engages in the manufacture and sale of printed circuit boards (PCBs) worldwide. The company operates in two segments, PCB and RF&S Components. It offers PCB products, radio frequency (RF) components, conventional PCBs, RF and microwave circuits, high density interconnect PCBs, substrate-like PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration products, IC substrates, passive RF components, advanced ceramic RF components, multi-chip modules, and beamforming and switching networks. The company also produces printed circuits with heavy copper cores, as well as embedded and press-fit coins; PCBs with electrically passive heat sinks; and PCBs with electrically active thermal cores. In addition, it offers value-added services, including RF design to specification capability, design for manufacturability, PCB layout design, simulation and testing, and quick turnaround services. The company serves original equipment manufacturers and electronic manufacturing services companies that primarily serve aerospace and defense, data center computing, automotive components, medical, industrial, and instrumentation related products sectors. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.

How the Company Makes Money

TTM Technologies generates revenue primarily through the design, manufacture, and sale of printed circuit boards and related products. The company's key revenue streams include sales of advanced technology PCBs, standard PCBs, and backplane assemblies. TTM also offers electronics manufacturing services, which include prototyping, testing, and assembly services. These services are crucial for customers looking to develop and produce electronic systems efficiently. TTM's significant partnerships with major players in the aerospace, automotive, and telecommunications industries contribute to its earnings by ensuring a steady demand for its products and services. Additionally, TTM benefits from long-term contracts and relationships with customers in defense and industrial sectors, providing a stable revenue base.

TTM Technologies Financial Statement Overview

Summary

TTM Technologies presents a mixed financial picture. The income statement indicates growth in revenue and gross profit, with a solid revenue increase of 9.4% and improved gross profit margin at 19.5%. However, the net profit margin is low at 2.3% and EBIT margin at 4.8%, indicating challenges in operational efficiency. The balance sheet is stable with low leverage and a strong equity position but a low ROE of 3.6%. Cash flow analysis reveals concerns, with volatility and absence of operating cash flow data for 2024, highlighting the need for better cash management.

Income Statement

TTM Technologies shows a solid performance in its income statement, with a revenue growth rate of 9.4% from 2023 to 2024, indicating a positive trajectory. However, the net profit margin as of 2024 was relatively low at 2.3%, which suggests room for improvement in profitability. The gross profit margin improved to 19.5% in 2024, reflecting better cost management. Despite these strengths, the EBIT margin remained moderate at 4.8%, indicating some challenges in operational efficiency.

Balance Sheet

The balance sheet of TTM Technologies is stable, with a debt-to-equity ratio of 0.05 in 2024, showing low financial leverage, which is a positive indicator of financial health. The equity ratio stands at a strong 45.0%, suggesting a solid capital structure. However, the return on equity (ROE) was relatively low at 3.6% in 2024, indicating that the company could enhance its efficiency in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals certain areas of concern, with free cash flow showing volatility and an absence of operating cash flow data for 2024. Previously, free cash flow grew by 59.1% from 2022 to 2023, but the lack of data for 2024 raises uncertainties about cash flow sustainability. Additionally, the absence of operating cash flow to net income ratios makes it challenging to assess cash generation efficiency.

Breakdown
Dec 2024	Mar 2024	Mar 2023	Mar 2022	Dec 2020
Income Statement		Total Revenue
2.44B	2.23B	2.50B	2.25B	2.11B
	Gross Profit
477.38M	413.27M	457.96M	372.01M	359.02M
	EBIT
116.04M	42.32M	210.41M	125.99M	112.84M
	EBITDA
281.59M	205.91M	308.13M	231.59M	161.88M
	Net Income Common Stockholders
56.30M	-18.72M	94.58M	54.41M	-16.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
503.93M	450.21M	402.75M	537.68M	451.56M
	Total Assets
3.47B	3.32B	3.32B	3.03B	2.90B
	Total Debt
81.30M	1.02B	962.60M	964.45M	842.85M
	Net Debt
-422.63M	569.65M	559.85M	426.77M	391.29M
	Total Liabilities
1.91B	1.81B	1.79B	1.57B	1.45B
	Stockholders Equity
1.56B	1.51B	1.54B	1.46B	1.44B
Cash Flow		Free Cash Flow
51.16M	27.04M	169.99M	94.68M	183.89M
	Operating Cash Flow
236.89M	187.28M	272.87M	176.63M	287.18M
	Investing Cash Flow
-146.21M	-92.03M	-395.46M	-84.14M	404.29M
	Financing Cash Flow
-36.82M	-47.67M	-11.31M	-7.23M	-642.31M

TTM Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTMI, the sentiment is Negative. The current price of 18.65 is below the 20-day moving average (MA) of 20.73, below the 50-day MA of 22.89, and below the 200-day MA of 21.82, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 34.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTMI.

TTM Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSIS	75 Outperform	$3.18B	24.37	16.85%	―	20.69%	17.89%
VICR	65 Neutral	$2.12B	359.95	1.10%	―	-14.92%	-91.72%
BHE	62 Neutral	$1.27B	20.45	5.78%	1.92%	-6.44%	-2.60%
TTMI	61 Neutral	$1.90B	34.44	3.66%	―	9.41%	―
ROG	58 Neutral	$1.04B	40.14	2.08%	―	-8.62%	-53.84%
ST	58 Neutral	$2.91B	22.76	4.36%	2.45%	-3.34%	―
Sector *	57 Neutral	$19.95B	9.66	-12.05%	2.76%	5.40%	-24.89%

TTM Technologies Corporate Events

TTM Technologies Announces New COO Appointment

On February 17, 2025, TTM Technologies announced a planned succession change in which James P. Walsh will assume the role of Chief Operating Officer on July 1, 2025. Philip Titterton, the current COO, will transition to an advisory position, assisting with special operations projects. Mr. Walsh, who has been with TTM since 2019, brings over 25 years of operations management experience and will receive a comprehensive compensation package. This transition reflects the company’s commitment to maintaining operational leadership and excellence in its industry, ensuring continuity in its strategic initiatives.