TTM Technologies (TTMI) AI Stock Analysis

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TTM Technologies

(NASDAQ:TTMI)

Rating:74Outperform

Price Target:

$40.00

▲(12.04%Upside)

TTM Technologies' strong financial performance and positive earnings call outcomes are the main strengths, supported by robust growth in key markets. However, overvaluation concerns and the technical overbought condition slightly offset these positives. Addressing cash flow issues and monitoring geopolitical impacts are crucial for future stability.

Positive Factors

Earnings Performance

Q1 revenues and EPS were both solidly above the high end of guidance.

Market Growth

Steady backlog-supported growth is expected in TTM's largest market vertical A&D, which comprises about 46% of year-to-date revenues.

Strategic Position

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

Negative Factors

Automotive Sector Decline

The Automotive segment, representing 13% of revenues, is likely to decline for a third consecutive year.

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 Concerns

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

$3.38B

Dividend YieldN/A

Average Volume (3M)968.17K

Price to Earnings (P/E)44.4

Beta (1Y)1.92

Revenue Growth11.65%

EPS GrowthN/A

CountryUS

Employees16,400

SectorTechnology

Sector Strength84

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)0.50

Shares Outstanding101,630,330

10 Day Avg. Volume1,002,413

30 Day Avg. Volume968,166

Financial Highlights & Ratios

PEG Ratio1.17

Price to Book (P/B)2.29

Price to Sales (P/S)0.00

P/FCF Ratio-208.86

Enterprise Value/Market Cap0.95

Enterprise Value/Revenue0.33

Enterprise Value/Gross Profit6.51

Enterprise Value/Ebitda2.97

Forecast

1Y Price Target

$36.25

Price Target Upside1.54% Upside

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: 78.32%|

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 solid financial health with strong revenue growth and profitability margins. The balance sheet is robust with low leverage and good equity ratios. However, the decline in free cash flow is a concern that needs addressing for sustained growth.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Mar 2024	Mar 2023	Mar 2022	Dec 2020
Breakdown
Income Statement		Total Revenue
2.52B	2.44B	2.23B	2.50B	2.25B	2.11B
	Gross Profit
494.37M	477.38M	413.27M	457.96M	372.01M	359.02M
	EBIT
150.27M	116.04M	42.32M	210.41M	125.99M	112.84M
	EBITDA
300.75M	277.39M	205.91M	308.13M	231.59M	161.88M
	Net Income Common Stockholders
78.01M	56.30M	-18.72M	94.58M	54.41M	-16.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
361.99M	503.93M	450.21M	402.75M	537.68M	451.56M
	Total Assets
3.52B	3.47B	3.32B	3.32B	3.03B	2.90B
	Total Debt
1.49B	1.02B	1.02B	962.60M	964.45M	842.85M
	Net Debt
1.13B	511.27M	569.65M	559.85M	426.77M	391.29M
	Total Liabilities
2.25B	1.91B	1.81B	1.79B	1.57B	1.45B
	Stockholders Equity
1.28B	1.56B	1.51B	1.54B	1.46B	1.44B
Cash Flow		Free Cash Flow
-17.37M	51.16M	27.04M	169.99M	94.68M	183.89M
	Operating Cash Flow
182.34M	236.89M	187.28M	272.87M	176.63M	287.18M
	Investing Cash Flow
-166.87M	-146.21M	-92.03M	-395.46M	-84.14M	404.29M
	Financing Cash Flow
-44.56M	-36.82M	-47.67M	-11.31M	-7.23M	-642.31M

TTM Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price35.70

Price Trends

50DMA

24.58

Positive

100DMA

24.39

Positive

200DMA

23.04

Positive

Market Momentum

MACD

2.39

Negative

RSI

85.83

Negative

STOCH

83.77

Negative

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 35.7 is above the 20-day moving average (MA) of 30.36, above the 50-day MA of 24.58, and above the 200-day MA of 23.04, indicating a bullish trend. The MACD of 2.39 indicates Negative momentum. The RSI at 85.83 is Negative, neither overbought nor oversold. The STOCH value of 83.77 is Negative, 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSIS	75 Outperform	$3.80B	27.71	16.73%	―	14.93%	12.89%
TTMI	74 Outperform	$3.38B	44.36	5.02%	―	11.65%	―
ST	74 Outperform	$3.95B	33.01	4.20%	1.77%	-5.61%	―
VICR	73 Outperform	$2.05B	89.69	4.16%	―	-5.61%	-18.63%
BHE	68 Neutral	$1.37B	26.14	4.84%	1.78%	-7.36%	-20.46%
ROG	63 Neutral	$1.24B	76.19	1.34%	―	-8.06%	-75.10%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%

* Technology Sector Average

Performance Comparison

TTMI

TTM Technologies

35.70

17.40

95.08%

BHE

Benchmark Electronics

38.26

-1.60

-4.01%

OSIS

OSI Systems

227.78

91.50

67.14%

ROG

Rogers

69.20

-46.47

-40.17%

Sensata

27.77

-10.83

-28.06%

VICR

Vicor

45.84

11.45

33.29%

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.