Technical Communications CorporationFind Ratings Reports
TECHNICAL COMMUNICATIONS CP's gross profit margin for the third quarter of its fiscal year 2020 has significantly increased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its subsector, revenue growth did not. TECHNICAL COMMUNICATIONS CP has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 20.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY20||Q3 FY19|
|Net Sales ($mil)||0.6||1.23|
|Net Income ($mil)||-0.48||-0.33|
|Balance Sheet||Q3 FY20||Q3 FY19|
|Cash & Equiv. ($mil)||0.96||0.77|
|Total Assets ($mil)||2.91||2.06|
|Total Debt ($mil)||0.6||0.0|
|Profitability||Q3 FY20||Q3 FY19|
|Gross Profit Margin||60.2||36.47|
|Return on Assets||-10.02||-32.06|
|Return on Equity||-31.16||-56.17|
|Debt||Q3 FY20||Q3 FY19|
|Share Data||Q3 FY20||Q3 FY19|
|Shares outstanding (mil)||1.85||1.85|
|Div / share||0.0||0.0|
|Book value / share||0.51||0.64|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||425681.0||87443.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 11.51 indicates a significant premium versus the S&P 500 average of 4.02 and a significant premium versus the subsector average of 4.90. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, TECHNICAL COMMUNICATIONS CP proves to trade at a premium to investment alternatives.
|TCCO NM||Peers 28.52||TCCO NM||Peers 16.88|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
TCCO's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
TCCO's P/CF is negative making the measure meaningless.
|TCCO NA||Peers 20.03||TCCO NA||Peers 0.77|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|TCCO 11.51||Peers 4.90||TCCO 55.56||Peers 44.05|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
TCCO is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
TCCO is expected to have an earnings growth rate that significantly exceeds its peers.
|TCCO 2.28||Peers 4.17||TCCO -12.50||Peers -1.03|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
TCCO is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
TCCO significantly trails its peers on the basis of sales growth.