TRT  Trio-tech International

Exchange

AMEX

Sector

Technology

Industry

Industrial Machinery/Components

Market Cap.

19.69M

Vuru Grade

23.93/100

Current Price

$5.59
+0.23 (+4.29%)

Growth Price

$6.39
Undervalued by 14.39%

Stability Price

$0.17
Overvalued by 96.93%

Company Metrics

  • P/E 17.47
  • P/S 0.51
  • P/B 0.97
  • EPS 0.32
  • Cash ROIC -1.44%
  • Cash Ratio 0.43
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 17,150.00
  • Shares 3.52M
  • Market Cap. 19.69M

Company Description

Trio-Tech International provides third-party semiconductor testing and burn-in services through its laboratories in Southeast Asia. The company operates in five segments: Testing Services, Manufacturing, Distribution, Real Estate, and Fabrication services. The Testing Services segment offers test services, including stabilization bake, thermal shock, temperature cycling, mechanical shock, constant... more


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

News

BRIEF-Trio-Tech International Q3 EPS $0.10; revenue rises to $9.825 mln
Reuters - May 11, 2017
FAIRBANKS, Alaska, May 11 U.S. Secretary of State Rex Tillerson signed an agreement recognizing the landmark Paris climate accord at a meeting of Arctic nations in Alaska on Thursday, but said President Donald Trump was not rushing to decide whether ...
News Trio-Tech InternationalTRT
Wall Street Journal - Feb 12, 2011
Trio-Tech International TRT (U.S.: NYSE MKT). search. View All companies. AT CLOSE 3:59 PM EDT 05/17/17. $4.98 USD; 0.08 1.63%.
Trio-Tech International (:TRT) Moves Higher 5.47% For The Week
The Herald - 2 hours ago
Trio-Tech International (:TRT) performed nicely this week, continuing its impressive near-term upward movement. The stock has moved north 5.47% over the past week of trading.
Leading Tech Stocks Investor's Alert: Twitter Inc (NYSE:TWTR), Trio-Tech ... - Stock Watch
Trio-Tech International (TRT) Receives Daily News Impact Rating of 0.25
Markets Daily - 10 hours ago
Trio-Tech International logo News coverage about Trio-Tech International (NYSE:TRT) has trended positive this week, Alpha One reports.
Unusual Volume Spotted in Trio-Tech International (:TRT) Stock - The Herald
Keen Investors Taking a Look at Trio-Tech International (:TRT) - Evergreen Caller
Trio-Tech International (TRT) Reaches $5.37 After 4.00% Up Move, Dipexium ...
Key Gazette - May 25, 2017
The stock of Trio-Tech International (NYSEMKT:TRT) is a huge mover today! About 66,326 shares traded or 165.98% up from the average.
Trio-Tech: Stale Status Quo, Most Likely A Value Trap
Seeking Alpha - Jun 14, 2016
Trio-Tech International (NYSEMKT:TRT) is a manufacturer, tester, developer and distributor of various semiconductor-related products.
Trio-Tech International (TRT) Given Daily Media Impact Score of 0.20
Markets Daily - May 27, 2017
Trio-Tech International logo Media stories about Trio-Tech International (NYSE:TRT) have trended somewhat positive on Friday, according to Alpha One Sentiment Analysis.
Could Trio-Tech International (TRT) Skyrocket Even More? The Stock Just Made ... - Finance News Daily
Will Trio-Tech International (TRT) Continue To Underperform Its Industry?
Simply Wall St - May 23, 2017
Trio-Tech International (AMEX:TRT) delivered 6.7% ROE over the past year, compared to 23.44% generated by its industry. An investor will typically attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case ...
Watch-list Stock: Trio-Tech International's (TRT) stock price ends at $5.38 on ... - WsNews 4investors
Trio Tech International third-quarter profit jumps 133.33 percent on a YOY basis - Myiris.com
Trio-Tech International (TRT) Issues Earnings Results
The Cerbat Gem - May 22, 2017
Trio-Tech International logo Trio-Tech International (NYSE:TRT) posted its quarterly earnings data on Thursday. The company reported $0.10 EPS for the quarter.
Somewhat Positive Press Coverage Somewhat Likely to Impact Trio-Tech ... - Transcript Daily
Knuckling Down on Shares of Trio-Tech International (:TRT)
Evergreen Caller - May 28, 2017
As of late, the Street has taken a bit closer look at shares of Trio-Tech International (:TRT). In the latest session the stock moved 2.01%, putting the stock value at $5.59.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TRT 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 TRT'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.

$5.59 Current Price

$6.39 Growth Price (DCF)

Undervalued by 14.39%


Growth Rate Assumed by Market: -62.50%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.17 Stability Price (EPV)

Overvalued by 96.93%


Discount Rate: 15.0%

$0.68 NCA Price

Overvalued by 87.92%

$3.42 Book Price

Overvalued by 38.82%


Very Poor Cash Return on Invested Capital over the past 5 years

TRT has failed to generate positive returns on 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.

TRT has lost $1.44 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow -5.26M 1.65M 770,000.00 1.40M -643,000.00
divided by
Invested Capital 23.37M 20.75M 20.83M 20.06M 19.55M
Cash ROIC -22.52% 7.97% 3.70% 6.96% -3.29%

Very Poor Return on Equity over the past 5 years

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

TRT has generated a $3.65 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income -4.38M -1.10M 201,000.00 824,000.00 1.06M
divided by
Stockholders' Equity 18.84M 18.64M 19.10M 18.99M 19.26M
Return on Equity -23.23% -5.91% 1.05% 4.34% 5.51%

Mediocre Business Performance over the past 10 years

TRT isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

TRT has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Free Cash Flow 5.13M -1.45M -343,000.00 -7.20M 555,000.00 -5.26M 1.65M 770,000.00 1.40M -643,000.00

Good Balance Sheet

TRT's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Cash 14.95M 14.35M 8.03M 6.85M 3.31M 1.82M 2.90M 3.04M 3.71M 3.81M
Current Assets 24.67M 23.43M 13.64M 23.46M 14.43M 18.06M 16.58M 13.29M 13.56M 15.34M
Total Assets 32.79M 34.76M 27.95M 41.72M 36.36M 38.05M 36.04M 34.59M 32.04M 32.22M
Current Liabilities 8.23M 7.53M 4.34M 14.80M 7.17M 12.86M 12.39M 10.72M 8.27M 8.86M
Total Liabilities 11.35M 12.62M 8.08M 21.46M 14.35M 19.21M 17.41M 15.49M 13.05M 12.96M
Stockholder' Equity 21.43M 22.14M 19.86M 20.27M 22.01M 18.84M 18.64M 19.10M 18.99M 19.26M
Current Ratio 3.00 3.11 3.14 1.59 2.01 1.40 1.34 1.24 1.64 1.73
TL-to-TA 0.35 0.36 0.29 0.51 0.39 0.50 0.48 0.45 0.41 0.40

Low or No Reinvestment of Profits over the past 10 years

TRT has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to TRT 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 June
2007200820092010201120122013201420152016
Retained Earnings 10.14M 8.83M 6.86M 6.49M 5.79M 2.69M 1.67M 1.73M 2.25M 3.03M
Retained Earnings Growth - -12.93% -22.28% -5.44% -10.72% -53.60% -37.92% 3.42% 30.20% 34.68%

Loss Making Entity over the past 10 years

TRT 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.

$1.78 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Net Income 3.31M -956,000.00 -1.97M -592,000.00 -326,000.00 -4.38M -1.10M 201,000.00 824,000.00 1.06M
divided by
Revenue 46.75M 40.31M 20.05M 36.93M 35.54M 34.21M 31.77M 36.26M 33.93M 34.45M
Net Profit Margin 7.08% -2.37% -9.81% -1.60% -0.92% -12.79% -3.47% 0.55% 2.43% 3.08%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. TRT has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$22.21 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Gross Profit 12.09M 8.88M 4.76M 7.02M 8.32M 4.59M 6.35M 8.30M 8.93M 8.77M
divided by
Revenue 46.75M 40.31M 20.05M 36.93M 35.54M 34.21M 31.77M 36.26M 33.93M 34.45M
Gross Margin 25.87% 22.01% 23.76% 19.00% 23.41% 13.40% 19.99% 22.89% 26.30% 25.45%

High Capital Intensity over the past 10 years

TRT spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

526.36% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Capital Expenditure 2.81M 3.36M 1.36M 7.25M 4.00M 1.60M 1.84M 3.09M 2.69M 1.66M
divided by
Net Income 3.31M -956,000.00 -1.97M -592,000.00 -326,000.00 -4.38M -1.10M 201,000.00 824,000.00 1.06M
Capital Expenditure Ratio 85.01% -351.15% -69.07% -1,223.82% -1,225.77% -36.64% -166.79% 1,537.31% 326.94% 156.17%

Inconsistent Dividend History over the past 10 years

TRT 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 June
2007200820092010201120122013201420152016
Dividend Paid 323,000.00 354,000.00 - - - - - 312,000.00 6,000.00 -
divided by
Shares Outstanding 3.24M 3.23M 3.23M 3.23M 3.29M 3.29M 3.32M 3.55M 3.53M 3.54M
Dividend Paid Per Share 0.10 0.11 - - - - - 0.09 0.00 -
Price at Year End 9.20 1.66 3.23 4.20 2.39 1.55 3.36 2.94 2.84 3.32
Dividend Yield 1.09% 6.61% - - - - - 2.99% 0.06% -

History of Stock Buybacks over the past 10 years

TRT 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 June
2007200820092010201120122013201420152016
Shares Outstanding 3.24M 3.23M 3.23M 3.23M 3.29M 3.29M 3.32M 3.55M 3.53M 3.54M
Stock Bought Back - 0.28% -0.03% - -1.86% - -1.02% -6.40% 0.57% -0.17%
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