TAIT  Taitron Components Incorporate...

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Electronic Components

Market Cap.

8.97M

Vuru Grade

48.09/100

Current Price

$1.61
-0.04 (-2.42%)

Growth Price

$3.02
Undervalued by 87.60%

Stability Price

$0.33
Overvalued by 79.66%

Company Metrics

  • P/E 0
  • P/S 1.27
  • P/B 0.78
  • EPS -0.47
  • Cash ROIC 6.17%
  • Cash Ratio 2.98
  • Dividend 0.10 / 6.29 %
  • Avg. Vol. 21,582.00
  • Shares 5.57M
  • Market Cap. 8.97M

Company Description

Taitron Components Incorporated engages in the distribution of brand name electronic components, as well as the supply of original designed and manufactured (ODM) electronic components. It offers various discrete semiconductors, which include rectifiers, diodes, transistors, optoelectronic devices, commodity integrated circuits, and passive components. The company's ODM products are marketed in wi... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Taitron Components: How I Made 49% Profit On This Cigar-Butt Within 21 Months
Seeking Alpha - May 9, 2016
The company has a long history of losses justifying its low stock market valuation. However, now the company is running breakeven; it is worth $10 million for an acquirer.
Taitron Components - Inventory Net-Net With Minimal Downside, But Unclear Upside
Seeking Alpha - Oct 18, 2016
Taitron Components Inc. (NASDAQ:TAIT) is a company focused on distributing discrete semiconductor offerings, which includes rectifiers, diodes, transistors and other similar commodity-like semiconductor products.
Taitron Components Incorporated (TAIT) Ex-Dividend Date Scheduled for November ...
Nasdaq - Nov 8, 2016
Taitron Components Incorporated ( TAIT ) will begin trading ex-dividend on November 09, 2016. A cash dividend payment of $0.025 ... Western Digital Corporation ( WDC ). TAIT's current earnings per share, an indicator of a company's profitability, is -$.04.
Analysts See $0.11 EPS for Shutterstock (SSTK); Taitron Components (TAIT)'s ...
NormanObserver.com - Oct 18, 2017
Analysts expect Shutterstock Inc (NYSE:SSTK) to report $0.11 EPS on November, 3.They anticipate $0.17 EPS change or 60.71% from last quarter's $0.28 EPS.
Taitron Components Inc (NASDAQ:TAIT) Institutional Investor Sentiment Trend
BZ Weekly - Oct 8, 2017
Taitron Components Inc (NASDAQ:TAIT) institutional sentiment increased to 1.5 in Q2 2017. Its up 0.50, from 1 in 2017Q1. The ratio has improved, as 3 active investment managers increased or started new stock positions, while 2 sold and decreased stock ...
Taitron Announces Quarterly Cash Dividend
GlobeNewswire (press release) - Feb 3, 2017
03, 2017 (GLOBE NEWSWIRE) -- Taitron Components Incorporated (NASDAQ:TAIT) today announced that its Board of Directors has declared a quarterly cash dividend of $0.025 per share of common stock, payable on February 28, 2017 to stockholders of record as ...
Why Taitron Components Incorporated (TAIT)'s 6.79% dividend is not good enough ...
Simply Wall St - May 31, 2017
Likewise a payout ratio of 150% means the company is paying out more as a dividend than it earns, usually this is paid out of debt or cash.
Given Its Low Debt-Load, Is Taitron Components Incorporated (TAIT) A ...
Simply Wall St - Jul 5, 2017
Taitron Components Incorporated (NASDAQ:TAIT) is a small-cap company - a market capitalization of less than $2 billion.
Harvard Bioscience, Inc. (HBIO) EPS Estimated At $0.01; Shorts at Taitron ...
Wolcott Daily - Oct 13, 2017
Analysts expect Harvard Bioscience, Inc. (NASDAQ:HBIO) to report $0.01 EPS on October, 26.They anticipate $0.00 EPS change or 0.00% from last quarter's $0.01 EPS.
Analysts See $0.01 EPS for PDF Solutions, Inc. (PDFS); Taitron Components ...
Wolcott Daily - Oct 10, 2017
Analysts expect PDF Solutions, Inc. (NASDAQ:PDFS) to report $0.01 EPS on October, 26.They anticipate $0.05 EPS change or 83.33% from last quarter's $0.06 EPS.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TAIT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate TAIT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.61 Current Price

$3.02 Growth Price (DCF)

Undervalued by 87.60%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.33 Stability Price (EPV)

Overvalued by 79.66%


Discount Rate: 15.0%

$1.27 NCA Price

Overvalued by 21.07%

$0.71 Book Price

Overvalued by 56.05%


Poor Cash Return on Invested Capital over the past 5 years

TAIT has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

TAIT has only created $6.17 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 890,000.00 244,000.00 965,000.00 237,000.00 1.24M
divided by
Invested Capital 15.34M 15.65M 13.32M 12.51M 8.67M
Cash ROIC 5.80% 1.56% 7.24% 1.89% 14.34%

Very Poor Return on Equity over the past 5 years

TAIT has shown an inability to deliver results for shareholders. This could be due to poor management, TAIT operating in a highly competitive industry, or having a weak business in general.

TAIT has generated a $9.65 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -771,000.00 -965,000.00 -1.14M -595,000.00 -3.12M
divided by
Stockholders' Equity 17.66M 16.76M 15.68M 15.10M 11.58M
Return on Equity -4.37% -5.76% -7.26% -3.94% -26.92%

Good Business Performance over the past 10 years

It's likely TAIT has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is TAIT has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

TAIT has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -356,000.00 467,000.00 1.23M -164,000.00 -564,000.00 890,000.00 244,000.00 965,000.00 237,000.00 1.24M

Very Strong Balance Sheet

TAIT has more Cash than its Total Liabilities, resulting in $0.28 Net Cash per share. In other words, if you buy TAIT today, the price you're paying for shares is actually $1.33 because $0.28 of Cash is included in the current share price. This much Cash is very healthy. It can help TAIT sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 1.11M 1.76M 2.77M 3.10M 1.91M 2.48M 2.72M 3.47M 3.69M 4.02M
Current Assets 17.56M 17.22M 16.04M 16.63M 15.46M 14.48M 13.50M 12.62M 13.16M 9.53M
Total Assets 23.80M 22.77M 21.42M 21.87M 21.16M 20.41M 19.23M 17.93M 18.05M 14.04M
Current Liabilities 1.93M 1.23M 918,000.00 2.72M 1.13M 2.60M 856,000.00 1.14M 1.84M 1.35M
Total Liabilities 2.35M 2.31M 2.14M 2.93M 2.81M 2.75M 2.48M 2.25M 2.95M 2.45M
Stockholder' Equity 21.45M 20.46M 19.28M 18.94M 18.35M 17.66M 16.76M 15.68M 15.10M 11.58M
Current Ratio 9.09 14.03 17.47 6.11 13.74 5.58 15.77 11.11 7.14 7.07
TL-to-TA 0.10 0.10 0.10 0.13 0.13 0.13 0.13 0.13 0.16 0.17

Low or No Reinvestment of Profits over the past 10 years

TAIT has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to TAIT operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 10.86M 9.79M 8.59M 8.24M 7.63M 6.89M 5.96M 4.83M 4.25M 720,000.00
Retained Earnings Growth - -9.79% -12.31% -3.99% -7.44% -9.68% -13.54% -18.91% -12.15% -83.04%

Loss Making Entity over the past 10 years

TAIT has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$16.14 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -1.41M -786,000.00 -929,000.00 -343,000.00 -613,000.00 -771,000.00 -965,000.00 -1.14M -595,000.00 -3.12M
divided by
Revenue 7.54M 7.20M 5.54M 7.19M 6.80M 7.19M 6.27M 5.82M 5.67M 6.92M
Net Profit Margin -18.65% -10.92% -16.77% -4.77% -9.01% -10.72% -15.40% -19.54% -10.49% -45.09%

Inconsistent Gross Profit Margins over the past 10 years

TAIT has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$28.97 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 1.33M 1.90M 1.37M 2.20M 6.80M 1.61M 1.41M 1.48M 1.76M -748,000.00
divided by
Revenue 7.54M 7.20M 5.54M 7.19M 6.80M 7.19M 6.27M 5.82M 5.67M 6.92M
Gross Margin 17.68% 26.41% 24.64% 30.56% 100.00% 22.39% 22.45% 25.38% 31.05% -10.82%

Low Capital Intensity over the past 10 years

TAIT has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that TAIT may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 78,000.00 32,000.00 45,000.00 65,000.00 31,000.00 20,000.00 20,000.00 14,000.00 37,000.00 4,000.00
divided by
Net Income -1.41M -786,000.00 -929,000.00 -343,000.00 -613,000.00 -771,000.00 -965,000.00 -1.14M -595,000.00 -3.12M
Capital Expenditure Ratio -5.55% -4.07% -4.84% -18.95% -5.06% -2.59% -2.07% -1.23% -6.22% -0.13%

Inconsistent Dividend History over the past 10 years

TAIT has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 552,000.00 277,000.00 276,000.00 - - - - - - 414,000.00
divided by
Shares Outstanding 5.53M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M
Dividend Paid Per Share 0.10 0.05 0.05 - - - - - - 0.07
Price at Year End 1.28 0.81 1.34 1.62 1.14 0.99 1.07 0.99 0.99 1.20
Dividend Yield 7.79% 6.17% 3.72% - - - - - - 6.23%

History of Stock Buybacks over the past 10 years

TAIT has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 5.53M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M 5.54M
Stock Bought Back - -0.13% - - - - - - 0.01% -
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