TRT  Trio-tech International

Exchange

AMEX

Sector

Technology

Industry

Industrial Machinery/Components

Market Cap.

13.74M

Vuru Grade

34.33/100

Current Price

$3.91
-0.04 (-1.01%)

Growth Price

$6.41
Undervalued by 63.93%

Stability Price

$0.17
Overvalued by 95.60%

Company Metrics

  • P/E 15.10
  • P/S 0.38
  • P/B 0.75
  • EPS 0.26
  • Cash ROIC -1.44%
  • Cash Ratio 0.43
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 8,769.00
  • Shares 3.51M
  • Market Cap. 13.74M

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 q2 EPS $0.09
Reuters - Feb 10, 2017
Feb 10 Amazon.com Inc warned on Friday that government actions to bolster domestic companies against foreign competition could hurt its business, in a possible reference to U.S.
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.
Investor Watch on Shares of Trio-Tech International (AMEX:TRT)
Benton Bulletin - 3 hours ago
Trio-Tech International (AMEX:TRT) currently has a Gross Margin (Marx) ratio of 0.297368. Robert Novy-Marx has provided investors with insights on finding high-quality value stocks.
Trio-Tech Fiscal 2017 First Quarter Revenue Up 13.1%, Operating Income Up 26.1 ...
Business Wire (press release) - Nov 14, 2016
Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, and real estate.
Stock Inside Trader Spotlight: Trio-Tech International's (TRT) stock price ...
WsNews 4investors - Feb 10, 2017
Trio-Tech International's (TRT) stock price tumbled -0.15% to finalize at $3.41 throughout previous buying and selling session.
Trio-Tech International's (TRT) stock price finalizes at $3.42 with ...
WsNews 4investors - Feb 9, 2017
Trio-Tech International's (TRT) stock price escalated 2.10% to finalize at $3.42 throughout previous buying and selling session.
Why Trio-Tech International's (TRT) ROE Of 5% Does Not Tell The Whole Story
Simply Wall St - Feb 7, 2017
Trio-Tech International's (AMEX:TRT) 5% ROE over the past year fell short of the performance averaged by the industry, which delivered 22.19% ROE in the same period.
Most Sizzling Buzzer of Monday: Trio-Tech International's (TRT) stock price ...
WsNews 4investors - Feb 14, 2017
Trio-Tech International's (TRT) stock price tumbled -1.26% to finalize at $3.78 throughout previous buying and selling session.
18 Biggest Mid-Day Gainers For Monday
Benzinga - Feb 13, 2017
Chemours Co (NYSE: CC) shares climbed 15 percent to $32.32 as DuPont reached a global $670.7 million settlement of multi-district PFOA litigation.
Triotech Partners Merlin Entertainments and Heide Park to Create Ghostbusters ...
Blooloop - Nov 23, 2016
Media-based attractions specialist, Triotech, has announced that it is teaming up with Merlin Entertainments and Heide Park Resort to create a brand new Ghostbusters dark ride.
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.

$3.91 Current Price

$6.41 Growth Price (DCF)

Undervalued by 63.93%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.17 Stability Price (EPV)

Overvalued by 95.60%


Discount Rate: 15.0%

$0.68 NCA Price

Overvalued by 82.69%

$3.40 Book Price

Overvalued by 12.94%


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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