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Techtronic Industries (TTNDY)
OTHER OTC:TTNDY
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Techtronic Industries
(OTC:TTNDY)
Rating:78Outperform
Price Target:
$66.00
▲(12.23%Upside)
Techtronic Industries (TTNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.41B
Dividend Yield2.58%
Average Volume (3M)51.90K
Price to Earnings (P/E)19.1
Beta (1Y)0.96
Revenue Growth6.44%
EPS Growth15.21%
CountryUS
Employees46,580
SectorIndustrials
Sector Strength90
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)1.55
Shares Outstanding366,219,000
10 Day Avg. Volume55,067
30 Day Avg. Volume51,900
Financial Highlights & Ratios
PEG Ratio2.57
Price to Book (P/B)3.20
Price to Sales (P/S)0.00
P/FCF Ratio11.27
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit3.58
Enterprise Value/Ebitda3.61
Forecast
1Y Price Target
$66.00Price Target Upside12.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Techtronic Industries Business Overview & Revenue Model
Company DescriptionTechtronic Industries Company Limited (TTNDY) is a global leader in the design, manufacturing, and marketing of power tools, outdoor power equipment, and floor care appliances. The company operates through two primary business segments: Power Equipment, which includes products like power tools, accessories, hand tools, and outdoor products; and Floor Care, which offers a wide range of products for home cleaning. Known for its innovative approach, Techtronic Industries markets its products under well-established brands such as Milwaukee, AEG, Ryobi, and Hoover, catering to both professional and consumer markets worldwide.
How the Company Makes MoneyTechtronic Industries generates revenue primarily through the sale of power tools and outdoor power equipment. The Power Equipment segment is the largest contributor to the company's revenue, driven by strong brand recognition and a diverse product portfolio that appeals to both professional users and DIY enthusiasts. The company leverages a combination of direct sales through retailers and distributors, as well as strategic partnerships with major home improvement chains and online platforms, to reach its customers. Additionally, the Floor Care segment contributes to the company's revenue by offering a variety of cleaning appliances under brands like Hoover and Vax. Techtronic Industries focuses on continuous product innovation and expansion into new markets to sustain its growth and maintain its competitive edge.
Techtronic Industries Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: -16.31%|
Next Earnings Date:Aug 05, 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 presents a robust financial profile with strong revenue growth, solid profitability, and efficient cash flow management. The company maintains a stable financial position with prudent leverage management and effective use of equity. While the net profit margin has slightly decreased, the company's operational efficiency and cash flow generation remain commendable.Income Statement
Techtronic Industries has demonstrated strong revenue growth with a consistent upward trajectory, evidenced by a 6.5% increase in revenue from 2023 to 2024. The company maintains robust profitability with a gross profit margin of 40.3% and a net profit margin of 7.7% in 2024. Additionally, EBIT and EBITDA margins are healthy at 8.7% and 13.7%, respectively, indicating efficient operational management. However, the net profit margin is slightly lower than the previous year, suggesting room for improvement in cost management.85
Very Positive
Balance Sheet
The balance sheet of Techtronic Industries reflects a stable financial position with a debt-to-equity ratio of 0.33, indicating prudent leverage management. The equity ratio stands at 49.4%, showcasing a solid equity base. Return on equity is strong at 17.6%, highlighting effective utilization of shareholder funds. However, the total debt has decreased, which is positive, but the company should continue to monitor its liabilities closely to maintain financial flexibility.78
Positive
Cash Flow
Techtronic Industries exhibits strong cash flow generation, with a significant increase in free cash flow by 28.6% from 2023 to 2024. The operating cash flow to net income ratio is 2.02, indicating excellent cash conversion efficiency. The free cash flow to net income ratio is 1.41, underscoring effective capital expenditure management. The company has improved its cash flow stability, although it should continue to focus on optimizing its capital allocation strategies.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.62B | 13.73B | 13.25B | 13.20B | 9.81B |
| Gross Profit | 5.90B | 5.42B | 5.21B | 5.12B | 3.75B |
| EBITDA | 2.00B | 1.78B | 1.44B | 1.38B | 1.03B |
| Net Income | 1.12B | 976.34M | 1.08B | 1.10B | 800.76M |
Balance Sheet | |||||
| Total Assets | 12.89B | 12.40B | 13.32B | 13.01B | 9.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.17B | 1.67B | 2.04B | 1.69B |
| Total Debt | 2.11B | 2.84B | 3.86B | 3.84B | 1.70B |
| Total Liabilities | 6.53B | 6.65B | 8.11B | 8.29B | 5.49B |
| Stockholders Equity | 6.36B | 5.75B | 5.21B | 4.72B | 3.90B |
Cash Flow | |||||
| Free Cash Flow | 1.58B | 1.23B | 652.11M | -847.48M | 700.14M |
| Operating Cash Flow | 2.27B | 2.10B | 1.23B | -100.94M | 1.16B |
| Investing Cash Flow | -606.24M | -778.78M | -919.23M | -1.02B | -580.27M |
| Financing Cash Flow | -1.33B | -1.80B | -712.74M | 1.47B | -498.09M |
Techtronic Industries Technical Analysis
Positive
58.81
Price Trends
56.80
Positive
56.87
Positive
62.66
Negative
Market Momentum
0.41
Negative
62.59
Neutral
96.29
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 58.81 is above the 20-day moving average (MA) of 55.72, above the 50-day MA of 56.80, and below the 200-day MA of 62.66, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 62.59 is Neutral, neither overbought nor oversold. The STOCH value of 96.29 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.41B | 19.15 | 18.50% | 2.58% | 6.44% | 15.21% | |
77 Outperform | $12.51B | 51.73 | 8.51% | ― | 4.87% | 19.66% | |
76 Outperform | $12.39B | 27.40 | 34.83% | 1.35% | -2.29% | -14.49% | |
75 Outperform | $17.56B | 17.95 | 18.18% | 2.54% | -0.76% | -2.62% | |
74 Outperform | $5.54B | 17.08 | 11.85% | 1.77% | -3.69% | -11.76% | |
72 Outperform | $10.85B | 29.78 | 4.03% | 4.68% | -3.04% | ― | |
65 Neutral | $10.94B | 15.63 | 5.18% | 1.91% | 3.14% | -27.13% |
* Industrials Sector Average
Performance Comparison
TTNDY
Techtronic Industries
58.81
-2.91
-4.71%
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221.98
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25.74%
SWK
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70.11
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TKR
Timken Company
79.16
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-4.07%
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.