Technical Communications Corporation
Find Ratings ReportsTECHNICAL 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 0.6 | 1.23 |
| EBITDA ($mil) | -0.48 | -0.33 |
| EBIT ($mil) | -0.48 | -0.33 |
| Net Income ($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 ($mil) | 0.6 | 0.0 |
| Equity ($mil) | 0.94 | 1.18 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 60.2 | 36.47 |
| EBITDA Margin | -79.76 | -26.33 |
| Operating Margin | -80.6 | -26.74 |
| Sales Turnover | 1.63 | 2.63 |
| Return on Assets | -10.02 | -32.06 |
| Return on Equity | -31.16 | -56.17 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 1.5 | 2.28 |
| Debt/Capital | 0.39 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 1.85 | 1.85 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.26 | -0.18 |
| 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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| 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. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| 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. |
|||||||||||||||||||||||
