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Techtronic Industries (TTNDY)
:TTNDY
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Techtronic Industries
(OTC:TTNDY)
Rating:80Outperform
Price Target:
$69.00
▲(6.01% Upside)
Techtronic Industries (TTNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.54B
Dividend Yield2.26%
Average Volume (3M)36.28K
Price to Earnings (P/E)19.6
Beta (1Y)1.00
Revenue Growth6.82%
EPS Growth14.30%
CountryUS
Employees46,580
SectorIndustrials
Sector Strength79
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)1.72
Shares Outstanding366,219,000
10 Day Avg. Volume33,647
30 Day Avg. Volume36,276
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda13.55
Forecast
1Y Price Target
$69.00Price Target Upside6.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 power tools, outdoor equipment, and floor care products. The company utilizes a diversified revenue model that includes direct sales through retail partners, online platforms, and distributors. Key revenue streams include sales of branded tools and equipment to both professional contractors and consumer markets, as well as accessories and replacement parts. Significant partnerships with major retailers and distributors enhance market reach and visibility. Additionally, Techtronic Industries invests in research and development to innovate product offerings, which can lead to increased sales and market share, further contributing to its earnings.
Techtronic Industries Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted TTI's strong financial performance and strategic positioning, with record revenue and growth in key segments like MILWAUKEE and RYOBI. However, challenges such as a decline in non-core business and tariff uncertainties were noted. Overall, the company is optimistic about its ability to navigate these challenges while continuing to deliver strong results.Q2-2025 Updates
Positive Updates
Record Revenue and Growth
TTI reported a record first half of 2025 with revenue increasing by 7.1% to USD 7.83 billion, driven by significant growth in its MILWAUKEE and RYOBI business segments.
MILWAUKEE Sales Surge
The MILWAUKEE business extended its leadership position with an 11.9% sales growth globally, contributing significantly to the company's overall revenue.
Improved Margins
Gross profit increased by 8% to USD 3.16 billion with margins improving by 34 basis points to 40.3%. EBIT increased by 13.3% to USD 709 million, with margins increasing by 49 basis points to 9.1%.
Strong Free Cash Flow
TTI generated USD 468 million in free cash flow in the first half of 2025 and expects to maintain positive cash flow despite potential tariff impacts.
Dividend Increase
The Board declared an interim dividend of HKD 1.25 per share, an increase of 15.7% over last year, representing a payout ratio of 46.9%.
Negative Updates
Non-Core Business Decline
The company's non-core business decreased as it continues to rationalize product lines, impacting overall growth.
Tariff Uncertainties
TTI faces uncertainties due to recent tariff changes, which could impact operations and require strategic adjustments.
European Market Challenges
While Europe showed positive results, it was noted that challenges remain, particularly in adapting strategies for different regional needs.
Company Guidance
In the call, TTI provided robust guidance for the first half of 2025, highlighting a record performance with notable metrics. Revenue increased by 7.1% to USD 7.83 billion, driven by an 11.9% sales growth in the MILWAUKEE segment and an 8.7% growth in the RYOBI segment. Gross profit rose by 8% to USD 3.16 billion, with margins improving by 34 basis points to 40.3%. EBIT improved by 13.3% to USD 709 million, with a margin increase of 49 basis points to 9.1%. Net profit increased by 14.2% to USD 628 million, and earnings per share went up by 14.1% to USD 0.34. The Board declared an interim dividend of HKD 1.25 per share, a 15.7% increase, reflecting a payout ratio of 46.9%. R&D spending increased to 4.6% of sales, and the net finance cost reduced by 14.5%. The effective tax rate stood at 7.8%, and the balance sheet showed a 6.4% increase in shareholders' equity to USD 6.7 billion. Free cash flow was positive at USD 468 million, and the company remained in a net cash position. The call also emphasized strategic initiatives, including geographic expansion and the development of new businesses to sustain growth.Techtronic Industries Financial Statement Overview
Summary
Techtronic Industries demonstrates strong financial performance with robust revenue growth, solid profitability, and efficient cash flow management. The company's prudent leverage and effective use of equity contribute to its stable financial position. However, there is room for improvement in cost management as indicated by the slight decrease in net profit margin.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
65.09
Price Trends
59.86
Positive
56.97
Positive
61.13
Positive
Market Momentum
1.46
Positive
60.41
Neutral
35.43
Neutral
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 65.09 is above the 20-day moving average (MA) of 63.66, above the 50-day MA of 59.86, and above the 200-day MA of 61.13, indicating a bullish trend. The MACD of 1.46 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 35.43 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $23.54B | 19.63 | 18.56% | 2.26% | 6.82% | 14.30% | |
78 Outperform | $12.58B | 50.15 | 8.56% | ― | 5.48% | 16.88% | |
78 Outperform | $16.97B | 17.44 | 18.18% | 2.63% | -0.76% | -2.62% | |
78 Outperform | $13.39B | 27.61 | 37.35% | 1.22% | 0.24% | 0.05% | |
75 Outperform | $5.45B | 17.97 | 10.52% | 1.79% | -2.01% | -9.95% | |
69 Neutral | $11.50B | 23.88 | 5.38% | 4.42% | -2.71% | ― | |
64 Neutral | $10.85B | 16.20 | 8.89% | 1.97% | 2.67% | -15.04% |
* Industrials Sector Average
Performance Comparison
TTNDY
Techtronic Industries
65.09
-0.65
-0.99%
LECO
Lincoln Electric Holdings
242.63
58.68
31.90%
RBC
RBC Bearings
389.96
101.13
35.01%
SNA
Snap-on
325.24
52.72
19.35%
SWK
Stanley Black & Decker
74.29
-22.51
-23.25%
TKR
Timken Company
77.23
-2.26
-2.84%
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.