tiprankstipranks
Trending News
More News >
Techtronic Industries (TTNDY)
OTHER OTC:TTNDY

Techtronic Industries (TTNDY) AI Stock Analysis

Compare
55 Followers

Top Page

TT

Techtronic Industries

(OTC:TTNDY)

Rating:80Outperform
Price Target:
$67.00
▲(13.60%Upside)
Techtronic Industries' robust financial performance and positive earnings call sentiment are the primary drivers of its strong stock score. While technical analysis and valuation provide moderate support, the company's strategic focus and market leadership in key segments bolster its future growth prospects.

Techtronic Industries (TTNDY) vs. SPDR S&P 500 ETF (SPY)

Techtronic Industries Business Overview & Revenue Model

Company DescriptionTechtronic Industries Company Limited engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floorcare and cleaning products worldwide. It offers power tools, power tool accessories, outdoor products, and outdoor product accessories for consumer, trade, professional, and industrial users under the MILWAUKEE, EMPIRE, AEG, RYOBI, HOMELITE, and HART brands, as well as to original equipment manufacturer (OEM) customers. The company provides floorcare products and accessories under the HOOVER, DIRT DEVIL, VAX, and ORECK brands, as well as to OEM customers. It serves Do-It-Yourself, professional, and industrial users in the home improvement, repair, maintenance, construction, and infrastructure industries. The company was founded in 1985 and is based in Kwai Chung, Hong Kong.
How the Company Makes MoneyTechtronic Industries generates revenue primarily through the sale of its diverse portfolio of power tools, outdoor power equipment, and floor care products. The company's products are distributed through major retail channels, including home improvement stores, online platforms, and direct sales to professionals and contractors. Key revenue streams include its flagship brands like Milwaukee and Ryobi, which are highly regarded in the construction and home improvement sectors. The company also benefits from strategic partnerships and licensing agreements that enhance its market reach and brand visibility. Continuous investment in innovation and product development further drives sales and maintains competitive advantage, contributing significantly to its earnings.

Techtronic Industries Earnings Call Summary

Earnings Call Date:Mar 04, 2025
(Q4-2024)
|
% Change Since: -16.07%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strongly positive outlook with significant revenue and profit growth, major debt reduction, and strategic investments in innovation and market leadership, particularly in the Milwaukee brand. However, challenges remain in the Floorcare & Cleaning division and in managing inventory and tax rates.
Q4-2024 Updates
Positive Updates
Record Revenue and Profit Growth
Revenue increased by 6.5% to $14.6 billion with net profit up 14.9% to $1.12 billion. Gross profits also rose by $476 million to $5.9 billion.
Strong Free Cash Flow
Generated $1.6 billion in free cash flow, a 23% increase from 2023, with a conversion of 142% of net profits.
Milwaukee's Market Leadership
Milwaukee sales grew by 11.6% in local currencies, further extending its market leadership.
Dividend Increase
Final dividend recommended at HK$1.18 per share, a 20.4% increase from 2023, with total dividend for 2024 increasing by 17.1%.
Strategic Focus on Innovation
Continued significant investment in R&D, increasing by over 40 basis points to 4.4% of sales.
Geographic Growth
All regions delivered growth, with Europe up over 10% and the rest of the world, led by Australia, up 12.5% in local currencies.
Reduction in Net Debt
Total net debt reduced by over 95% to $45 million at year-end.
Negative Updates
Floorcare & Cleaning Division Revenue Decline
Revenue for the Floorcare & Cleaning division was down 4.5% in local currency due to a focus on improving profitability and exiting non-performing SKUs.
Increased Effective Tax Rates
Effective tax rates increased by 30 basis points to 7.8%.
Inventory and Receivables Management
Trade receivables increased by 2 days due to higher Q4 sales, with inventory levels remaining comparable to 2023 despite sales growth.
Company Guidance
In the TTI Group's 2024 Annual Result Announcement, the company reported impressive financial metrics, showcasing a robust performance. Revenue increased by 6.5% to $14.6 billion, with Milwaukee Power Tools achieving a sales growth of 11.6% in local currencies, while RYOBI Power Tools grew by 6.7%. The company's net profit rose by 14.9% to $1.12 billion, with a net profit margin of 7.7%. Gross profits reached $5.9 billion, reflecting an increase in gross margin to 40.3%. The company's free cash flow surged to $1.6 billion, a 23% increase over the previous year, representing a 142% conversion of net profits. TTI's earnings per share rose by 15.1% to $0.6143, and the board recommended a final dividend of HK$1.18 per share, marking a 20.4% increase. The Power Equipment division accounted for 94% of total revenue, growing 7.3% to $13.7 billion. Despite challenges in the Floorcare & Cleaning division, operating profits increased by 4.73%, with margins improving to 3.2%. The company maintained a strong balance sheet with shareholders' equity at $6.4 billion, and a significant reduction in net debt by over 95% to $45 million. TTI's global expansion and strategic investments have positioned it well for future growth, with plans for continued innovation and market leadership.

Techtronic Industries Financial Statement Overview

Summary
Techtronic Industries shows solid financial performance with consistent margins and strong cash flow dynamics. While there is a slight dip in EBIT and equity trends, the company's conservative leverage and effective cash management provide a stable foundation.
Income Statement
78
Positive
Techtronic Industries shows a solid performance with gross profit and net profit margins at 39.46% and 7.11% respectively for the latest year. The revenue growth rate is modest at 3.60% from the previous year. Consistent EBIT and EBITDA margins at 8.26% and 12.95% demonstrate stable operational efficiency. However, the slight dip in EBIT compared to the previous year indicates potential challenges in cost management.
Balance Sheet
75
Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.49, indicating conservative leverage. The equity ratio stands robust at 46.33%, reflecting strong financial health. Return on Equity (ROE) is solid at 16.98%, showing effective utilization of shareholder capital. However, the declining trend in stockholders' equity over the years suggests a need for strategic equity management.
Cash Flow
82
Very Positive
Techtronic Industries demonstrates strong cash flow dynamics with a remarkable free cash flow growth rate of 88.63% year-over-year. The operating cash flow to net income ratio of 2.15 signifies strong cash-generating capabilities relative to net earnings. The free cash flow to net income ratio of 1.26 further supports efficient cash management. This robust cash flow performance adds significant financial flexibility.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
13.84B13.73B13.25B13.20B9.81B7.67B
Gross Profit
5.40B5.42B5.21B5.12B3.75B2.89B
EBIT
1.24B1.13B1.19B1.18B857.09M662.73M
EBITDA
1.47B1.78B1.44B1.38B1.03B818.12M
Net Income Common Stockholders
1.15B976.34M1.08B1.10B800.76M614.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.26B979.35M1.67B2.04B1.69B1.61B
Total Assets
6.35B12.40B13.32B13.01B9.39B7.70B
Total Debt
796.46M2.84B3.86B3.84B1.70B1.73B
Net Debt
-307.43M1.89B2.43B1.96B165.97M313.56M
Total Liabilities
3.29B6.65B8.11B8.29B5.49B4.30B
Stockholders Equity
3.06B5.75B5.21B4.72B3.90B3.39B
Cash FlowFree Cash Flow
-450.05M1.23B652.11M-847.48M700.14M267.67M
Operating Cash Flow
280.81M2.10B1.23B-100.94M1.16B724.27M
Investing Cash Flow
-1.10B-778.78M-919.23M-1.02B-580.27M-568.49M
Financing Cash Flow
-127.81M-1.80B-712.74M1.47B-498.09M162.76M

Techtronic Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.98
Price Trends
50DMA
53.85
Positive
100DMA
59.63
Negative
200DMA
64.33
Negative
Market Momentum
MACD
1.10
Negative
RSI
59.18
Neutral
STOCH
85.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTNDY, the sentiment is Positive. The current price of 58.98 is above the 20-day moving average (MA) of 58.00, above the 50-day MA of 53.85, and below the 200-day MA of 64.33, indicating a neutral trend. The MACD of 1.10 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 85.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTNDY.

Techtronic Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$21.63B19.0518.50%2.41%6.44%15.21%
77
Outperform
$11.09B24.5334.83%1.47%-2.29%-14.49%
RBRBC
77
Outperform
$11.88B49.228.51%4.87%19.66%
SNSNA
75
Outperform
$16.68B16.6919.15%2.60%-0.88%0.04%
TKTKR
74
Outperform
$4.94B15.2711.85%1.94%-3.69%-11.76%
SWSWK
66
Neutral
$10.15B27.804.03%5.00%-3.04%
66
Neutral
$4.48B12.265.32%248.53%4.10%-12.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TTNDY
Techtronic Industries
58.98
-1.16
-1.93%
LECO
Lincoln Electric Holdings
201.44
15.44
8.30%
RBC
RBC Bearings
381.30
105.20
38.10%
SNA
Snap-on
321.67
60.55
23.19%
SWK
Stanley Black & Decker
66.14
-12.67
-16.08%
TKR
Timken Company
71.79
-10.34
-12.59%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.