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TTM Technologies (TTMI)
NASDAQ:TTMI
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TTM Technologies
(NASDAQ:TTMI)
Rating:74Outperform
Price Target:
$50.00
▲(5.33%Upside)
Positive Factors
AI and Data Center Growth
Recent data points indicate continued strength in AI-related infrastructure investment in the data center computing market.
Earnings Performance
Q1 revenues and EPS were both solidly above the high end of guidance.
Negative Factors
Facility Ramp-Up Challenges
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.
Macroeconomic Pressures
There are concerns about macro pressures in the automotive and Medical Industry & Instrumentation sectors, including negative data in the semiconductor test market.
TTM Technologies (TTMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.58B
Dividend YieldN/A
Average Volume (3M)1.85M
Price to Earnings (P/E)63.4
Beta (1Y)1.98
Revenue Growth11.65%
EPS GrowthN/A
CountryUS
Employees16,400
SectorTechnology
Sector Strength93
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.50
Shares Outstanding101,630,330
10 Day Avg. Volume2,150,967
30 Day Avg. Volume1,854,476
Financial Highlights & Ratios
PEG Ratio1.50
Price to Book (P/B)2.96
Price to Sales (P/S)0.00
P/FCF Ratio-269.42
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit8.59
Enterprise Value/Ebitda3.92
Forecast
1Y Price Target
$45.25Price Target Upside-4.68% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
TTM Technologies Business Overview & Revenue Model
Company DescriptionTTM Technologies, Inc. (TTMI) is a leading global manufacturer of printed circuit boards (PCBs) and provider of comprehensive electronics manufacturing services to the aerospace, defense, automotive, medical, industrial, and communications industries. The company specializes in producing advanced technology PCBs and backplane assemblies, which are essential components in electronic devices. TTM Technologies operates in the electronics manufacturing sector, delivering high-quality products and solutions that meet the complex requirements of its diverse customer base.
How the Company Makes MoneyTTM Technologies generates revenue primarily through the design, manufacturing, and sale of printed circuit boards and electronics manufacturing services. The company serves a broad range of industries, including aerospace and defense, automotive, and communications, each requiring specialized and often complex PCB solutions. TTM's revenue streams are mainly derived from contracts and sales agreements with original equipment manufacturers (OEMs) and various technology companies that rely on high-performance, reliable PCBs for their products. Additionally, TTM Technologies benefits from strategic partnerships and long-term contracts within key markets, helping to stabilize earnings and support business growth.
TTM Technologies Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 137.11%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive performance with significant revenue growth and margin improvements across key markets. While there are concerns about automotive sales decline and potential geopolitical impacts, the company's strategic initiatives and current market strengths provide a robust foundation for continued growth.Q1-2025 Updates
Positive Updates
Record Revenue Growth
TTM Technologies achieved a 14% year-over-year revenue growth, reaching $648.7 million in Q1 2025, driven by aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation end markets.
Strong Non-GAAP Operating Margins
The company reported a non-GAAP operating margin of 10.5%, up 340 basis points year-over-year, achieving record high non-GAAP operating margin and EPS for a first quarter.
Aerospace and Defense Market Performance
The aerospace and defense market, comprising 47% of total sales, grew 15% year-on-year, supported by a solid program backlog of $1.55 billion.
Data Center and Networking Growth
Data center computing and networking markets saw significant year-on-year growth of 15% and 53% respectively, driven by demand for generative AI applications and increased switch-related demand.
Positive Outlook for New Facilities
TTM continues progress on customer qualifications in Penang and construction in Syracuse, with expectations for Penang to reach breakeven revenue levels by Q3 2025.
Sustainable Practices
TTM published its second corporate sustainability report on Earth Day, reflecting a commitment to minimizing environmental impact.
Negative Updates
Automotive Revenue Decline
Automotive sales represented 11% of total sales, down from 13% in the previous year, due to inventory adjustments and soft demand.
Geopolitical and Tariff Concerns
Potential impacts from geopolitical tensions and tariffs were noted, with concerns about revenue from imports and costs associated with equipment and materials, though no significant customer behavior changes have been observed yet.
Company Guidance
During the TTM Technologies, Inc. first quarter 2025 earnings call, the company reported impressive financial metrics, exceeding their own guidance expectations. The revenue grew by 14% year-over-year, reaching $648.7 million, driven primarily by strong performance in the aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation sectors, although there was a slight decline in the automotive sector. The book-to-bill ratio stood at 1.10, indicating robust demand. Non-GAAP operating margins rose to 10.5%, up 340 basis points from the previous year, marking a record high for a first quarter. The company also achieved a non-GAAP EPS of $0.50 per diluted share, showing significant improvement from $0.28 in the previous year. TTM's strategic focus on reducing seasonality and diversifying their manufacturing footprint has positioned them well against potential geopolitical challenges, including tariffs, with minimal expected direct revenue impact. The aerospace and defense sector, accounting for 47% of sales, showed a 15% increase in revenue, while data center computing also showed a 15% growth. The company is also making progress with new facilities in Penang and Syracuse, aiming for break-even levels in Penang by the end of the third quarter.TTM Technologies Financial Statement Overview
Summary
TTM Technologies shows strong revenue growth and profitability margins. The balance sheet is solid with low leverage and good equity ratios, although the decline in free cash flow raises concerns.Income Statement
TTM Technologies has shown solid growth with a revenue increase of 3.21% in the latest TTM period compared to the previous year. The gross profit margin stands at 19.61%, and the net profit margin has improved to 3.09%. EBITDA and EBIT margins are healthy at 11.93% and 5.96% respectively, indicating stable profitability. The consistent improvement in margins and revenue growth is a positive indicator of the company’s financial health.85
Very Positive
Balance Sheet
The company boasts a strong balance sheet with an impressive debt-to-equity ratio of 0.0024, showcasing low leverage. The return on equity (ROE) is decent at 4.91%, and the equity ratio is robust at 45.93%, highlighting a stable capital structure. However, the decrease in cash reserves over the periods is a point to monitor, though current liabilities are well covered by equity.78
Positive
Cash Flow
TTM Technologies' operating cash flow to net income ratio is 2.34, indicating efficient cash generation from operations. However, the free cash flow has declined by 133.94% in the TTM period, raising concerns about cash retention and capital expenditures. Despite this, the company maintains a positive operating cash flow, which supports its operational needs.73
Positive
| 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 |
| EBITDA | 277.39M | 205.91M | 308.13M | 231.59M | 161.88M |
| Net Income | 56.30M | -18.72M | 94.58M | 54.41M | -16.39M |
Balance Sheet | |||||
| Total Assets | 3.47B | 3.32B | 3.32B | 3.03B | 2.90B |
| Cash, Cash Equivalents and Short-Term Investments | 503.93M | 450.21M | 402.75M | 537.68M | 451.56M |
| Total Debt | 1.02B | 1.02B | 962.60M | 964.45M | 842.85M |
| 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
Positive
47.47
Price Trends
36.09
Positive
28.72
Positive
26.16
Positive
Market Momentum
3.09
Negative
77.24
Negative
70.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTMI, the sentiment is Positive. The current price of 47.47 is above the 20-day moving average (MA) of 42.62, above the 50-day MA of 36.09, and above the 200-day MA of 26.16, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 77.24 is Negative, neither overbought nor oversold. The STOCH value of 70.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTMI.
TTM Technologies Risk Analysis
TTM Technologies disclosed 41 risk factors in its most recent earnings report. TTM Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TTM Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.55B | 26.26 | 16.73% | ― | 14.93% | 12.89% | |
75 Outperform | $2.15B | 93.52 | 4.16% | ― | -5.61% | -18.63% | |
74 Outperform | $4.58B | 63.39 | 5.02% | ― | 11.65% | ― | |
72 Outperform | $4.61B | 38.51 | 4.20% | 1.53% | -5.61% | ― | |
69 Neutral | $1.42B | 27.23 | 4.84% | 1.71% | -7.36% | -20.46% | |
63 Neutral | $34.61B | 5.36 | -11.67% | 1.95% | 5.33% | -20.62% | |
61 Neutral | $1.21B | 72.12 | 1.34% | ― | -8.06% | -75.10% |
* Technology Sector Average
Performance Comparison
TTMI
TTM Technologies
47.47
25.63
117.35%
BHE
Benchmark Electronics
39.84
-1.56
-3.77%
OSIS
OSI Systems
215.89
65.99
44.02%
ROG
Rogers
64.78
-63.72
-49.59%
ST
Sensata
31.38
-6.98
-18.20%
VICR
Vicor
47.80
9.85
25.96%
TTM Technologies Corporate Events
Executive/Board ChangesShareholder MeetingsStock Buyback
TTM Technologies Announces New Share Repurchase Program
Neutral
May 9, 2025
On May 8, 2025, TTM Technologies announced the retirement of its founder, Kenton K. Alder, from the board due to reaching the mandatory retirement age, marking the end of an era for the company. The same day, TTM held its 2025 Annual Meeting of Stockholders where all proposals passed, and Class I Directors were elected. Additionally, on May 9, 2025, TTM announced a new share repurchase program allowing the company to buy back up to $100 million of its shares through May 2027, following the expiration of its previous program.
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.