TESSCO Technologies IncorporatedFind Ratings Reports
TESSCO TECHNOLOGIES INC's gross profit margin for the first quarter of its fiscal year 2021 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. TESSCO TECHNOLOGIES INC has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.15% 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||Q1 FY21||Q1 FY20|
|Net Sales ($mil)||104.96||96.48|
|Net Income ($mil)||-1.72||-4.63|
|Balance Sheet||Q1 FY21||Q1 FY20|
|Cash & Equiv. ($mil)||2.21||0.0|
|Total Assets ($mil)||210.28||204.96|
|Total Debt ($mil)||50.6||38.78|
|Profitability||Q1 FY21||Q1 FY20|
|Gross Profit Margin||19.34||18.33|
|Return on Assets||-2.77||-11.56|
|Return on Equity||-15.55||-21.38|
|Debt||Q1 FY21||Q1 FY20|
|Share Data||Q1 FY21||Q1 FY20|
|Shares outstanding (mil)||8.89||8.64|
|Div / share||0.0||0.0|
|Book value / share||8.48||9.2|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||41724.0||100772.0|
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 0.64 indicates a significant discount versus the S&P 500 average of 4.43 and a significant discount versus the subsector average of 350.35. 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, TESSCO TECHNOLOGIES INC proves to trade at a discount to investment alternatives.
|TESS NM||Peers 29.57||TESS NM||Peers 17.26|
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.
TESS'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.
TESS's P/CF is negative making the measure meaningless.
|TESS NM||Peers 20.43||TESS NA||Peers 0.76|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
TESS's ratio is negative making this valuation measure meaningless.
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.
|TESS 0.64||Peers 350.35||TESS 31.48||Peers 105.10|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
TESS is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, TESS is expected to significantly trail its peers on the basis of its earnings growth rate.
|TESS 0.13||Peers 4.54||TESS -6.15||Peers 6.94|
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.
TESS 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.
TESS significantly trails its peers on the basis of sales growth.