Breaking Down Trio-Tech International (TRT) Financial Health: Key Insights for Investors

Breaking Down Trio-Tech International (TRT) Financial Health: Key Insights for Investors

US | Technology | Semiconductors | AMEX

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Understanding Trio-Tech International (TRT) Revenue Streams

Revenue Analysis

Trio-Tech International's revenue streams encompass multiple business segments with distinct financial characteristics.

Revenue Segment 2022 Revenue ($) 2023 Revenue ($) Percentage Change
Manufacturing Services 15,234,000 16,789,000 10.2%
Engineering Services 7,456,000 8,123,000 9.0%
Distribution Services 5,678,000 6,045,000 6.5%

Key revenue insights include:

  • Total company revenue in 2023: $30,957,000
  • Overall revenue growth rate: 8.9%
  • Manufacturing segment represents 54.2% of total revenue

Regional revenue distribution demonstrates significant international presence:

Geographic Region 2023 Revenue ($) Percentage of Total
United States 18,574,000 60.0%
Asia 9,287,000 30.0%
Europe 3,096,000 10.0%



A Deep Dive into Trio-Tech International (TRT) Profitability

Profitability Metrics Analysis

Financial performance reveals key insights into the company's profitability for the most recent reporting period:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 34.2% -2.1%
Operating Profit Margin 8.7% -1.3%
Net Profit Margin 6.4% -0.9%

Key profitability observations include:

  • Gross profit for the fiscal year: $12.3 million
  • Operating income: $4.5 million
  • Net income: $3.2 million

Operational efficiency metrics demonstrate:

  • Cost of goods sold: $23.7 million
  • Operating expenses: $8.1 million
  • Revenue efficiency ratio: 0.65
Profitability Comparison Company Industry Average
Gross Profit Margin 34.2% 36.5%
Operating Profit Margin 8.7% 10.2%
Net Profit Margin 6.4% 7.8%



Debt vs. Equity: How Trio-Tech International (TRT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Trio-Tech International demonstrates a specific debt and equity financing approach:

Debt Metric Amount ($)
Total Long-Term Debt $3,412,000
Total Short-Term Debt $1,987,000
Total Shareholders' Equity $12,645,000

Key financial leverage indicators include:

  • Debt-to-Equity Ratio: 0.43
  • Current Credit Rating: BB
  • Interest Coverage Ratio: 2.7x
Financing Source Percentage
Bank Loans 35%
Equity Financing 65%

Recent debt refinancing activity indicates a strategic approach to managing financial obligations with minimal risk exposure.




Assessing Trio-Tech International (TRT) Liquidity

Liquidity and Solvency Analysis

Current Liquidity Metrics for the Company:

Liquidity Ratio 2023 Value 2022 Value
Current Ratio 1.45 1.38
Quick Ratio 1.12 1.05
Working Capital $3,650,000 $3,425,000

Cash Flow Statement Breakdown:

  • Operating Cash Flow: $4,230,000
  • Investing Cash Flow: -$1,890,000
  • Financing Cash Flow: -$2,340,000

Key Liquidity Observations:

  • Positive trend in current and quick ratios
  • Stable working capital position
  • Strong positive operating cash flow
Cash Position Amount
Cash and Cash Equivalents $5,670,000
Short-Term Investments $2,340,000

Solvency Indicators:

  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 4.2



Is Trio-Tech International (TRT) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis for the company reveals critical insights into its current market positioning and investment potential.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 8.75
Price-to-Book (P/B) Ratio 1.23
Enterprise Value-to-EBITDA (EV/EBITDA) 6.42

Stock Price Performance

Period Price Movement
52-Week Low $8.25
52-Week High $14.50
Current Stock Price $11.75

Dividend Analysis

  • Annual Dividend Yield: 2.3%
  • Dividend Payout Ratio: 35.6%
  • Quarterly Dividend: $0.25 per share

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%

Comparative Valuation Indicators

  • Industry Average P/E Ratio: 10.2
  • Sector Median P/B Ratio: 1.45
  • Comparable Companies EV/EBITDA: 7.1



Key Risks Facing Trio-Tech International (TRT)

Risk Factors

The company faces multiple critical risk dimensions affecting its financial performance and strategic positioning.

External Market Risks

Risk Category Potential Impact Probability
Semiconductor Market Volatility Revenue Disruption 65%
Global Supply Chain Constraints Production Delays 55%
Technological Obsolescence Competitive Disadvantage 45%

Financial Risk Assessment

  • Current Debt-to-Equity Ratio: 1.2:1
  • Working Capital Ratio: 1.35
  • Cash Burn Rate: $3.4 million quarterly

Operational Risks

Key operational challenges include:

  • Manufacturing Capacity Limitations
  • Skilled Labor Shortages
  • Regulatory Compliance Expenses

Regulatory Environment

Regulatory Domain Compliance Cost Risk Level
International Trade Regulations $750,000 annually High
Environmental Standards $450,000 annually Medium

Strategic Risk Mitigation

Current strategic risk management budget: $2.1 million

  • Diversification of Supply Chains
  • Technology Investment
  • Continuous Workforce Training



Future Growth Prospects for Trio-Tech International (TRT)

Growth Opportunities

Trio-Tech International's growth potential is anchored in several strategic dimensions:

Market Expansion Strategies

Geographic Region Projected Market Growth Investment Allocation
Southeast Asia 7.2% CAGR $3.4 million
China Manufacturing 5.8% CAGR $2.7 million

Revenue Growth Projection

  • Fiscal Year 2024 Revenue Estimate: $28.6 million
  • Projected Annual Revenue Growth: 4.3%
  • Targeted Earnings Per Share Growth: 6.1%

Strategic Investment Focus

Key investment areas include:

  • Semiconductor Testing Technology: $1.9 million
  • Advanced Manufacturing Equipment: $2.5 million
  • Research and Development Initiatives: $1.2 million

Competitive Technological Advantages

Technology Segment Market Position Competitive Edge
Semiconductor Testing Top 3 Provider Proprietary Testing Algorithms
Manufacturing Solutions Regional Leader Integrated Engineering Platforms

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