Breaking Down TTM Technologies, Inc. (TTMI) Financial Health: Key Insights for Investors

Are you keeping a close watch on TTM Technologies, Inc. (TTMI) and wondering about its financial stability? Did you know that in 2024, TTM Technologies reported a 9.4% increase in net sales, reaching $2.4 billion, driven by strong demand in Aerospace and Defense, Data Center Computing, and Networking? But how does this translate to overall financial health? Let's dive into the key insights that can help you assess TTM Technologies' financial position, from its $56.3 million GAAP net income to its strategic balance sheet management.

TTM Technologies, Inc. (TTMI) Revenue Analysis

To understand the financial health of TTM Technologies, Inc. (TTMI), a deep dive into its revenue streams is essential. This analysis provides insights into where TTMI generates its income, how these sources have changed over time, and what factors might influence future performance.

TTM Technologies, Inc. (TTMI) primarily generates revenue through the manufacturing of printed circuit boards (PCBs). These PCBs are integral components in a wide array of electronic devices across various industries. Key sectors served include:

• Aerospace and Defense: Supplying advanced PCBs for mission-critical applications.
• Automotive: Providing PCBs for automotive electronics, including safety systems and infotainment.
• Communications: Manufacturing PCBs for telecommunications infrastructure and devices.
• Computing, Industrial and Instrumentation: Delivering PCBs for computing, industrial control systems, and testing equipment.
• Medical: Manufacturing PCBs for medical devices and healthcare equipment.

Analyzing TTM Technologies, Inc.'s (TTMI) year-over-year revenue growth rates reveals trends in its financial performance. Examining historical data helps to understand whether the company is expanding, contracting, or maintaining a steady state.

TTM Technologies, Inc. (TTMI) reported net sales of $2.25 billion for the fiscal year 2024, which ended on December 31, 2024. This represents a decrease of 10.7% compared to net sales of $2.52 billion in fiscal year 2023.

Here's a breakdown of TTM Technologies, Inc.'s (TTMI) revenue by business segment for fiscal year 2024:

Significant shifts in revenue streams can indicate strategic realignments, market changes, or the impact of specific events. Analyzing these changes helps in understanding the evolving dynamics of TTM Technologies, Inc.'s (TTMI) business. From 2023 to 2024, the most significant changes were decreases in revenue from the Aerospace and Defense, Automotive, and Communications sectors. The Aerospace and Defense sector decreased from $945.6 million to $887.4 million, the Automotive sector decreased from $602.8 million to $544.3 million, and Communications decreased from $462.3 million to $366.4 million.

Changes in revenue streams can also be influenced by macroeconomic factors, technological advancements, and competitive pressures. For instance, increased demand for electric vehicles could boost revenue from the automotive sector, while advancements in 5G technology could drive growth in the communications sector.

Understanding TTM Technologies, Inc.'s (TTMI) revenue streams is crucial for investors. By analyzing the sources of revenue, growth rates, and changes in business segments, investors can gain valuable insights into the company's financial health and future prospects.

More insights about TTM Technologies, Inc. (TTMI) can be found here: Mission Statement, Vision, & Core Values of TTM Technologies, Inc. (TTMI).

TTM Technologies, Inc. (TTMI) Profitability Metrics

Analyzing TTM Technologies, Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins. By assessing these metrics, investors can gain insights into the company's financial health and operational efficiency. Let's explore these key aspects:

Gross Profit Margin:

The gross profit margin indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). For the fiscal year 2024, TTM Technologies reported a gross profit of $496.8 million. To calculate the gross profit margin, this figure is divided by the total revenue. While the exact revenue figure for 2024 is needed to compute the precise margin, this metric highlights the company's efficiency in managing production costs.

Operating Profit Margin:

Operating profit margin reveals the proportion of revenue left after accounting for both the cost of goods sold and operating expenses. TTM Technologies' operating income for 2024 stood at $231.4 million. The operating profit margin, calculated by dividing operating income by total revenue, offers insights into the company's profitability from its core business operations, excluding interest and taxes.

Net Profit Margin:

Net profit margin reflects the percentage of revenue that translates into net income after all expenses, including interest and taxes, are considered. In 2024, TTM Technologies reported a net income of $149.1 million. Dividing net income by total revenue yields the net profit margin, providing a comprehensive view of the company's overall profitability.

Trends in Profitability Over Time:

To evaluate the sustainability of TTM Technologies' profitability, it's essential to analyze trends over several periods. Here’s a snapshot of some key data from previous years:

• 2023: Net income was $123.1 million.
• 2022: Net income reached $124.9 million.
• 2021: Net income was $77.4 million.

These figures demonstrate a general upward trend in net income over the years, reflecting enhanced profitability and operational performance.

Comparison of Profitability Ratios with Industry Averages:

Benchmarking TTM Technologies' profitability ratios against industry averages provides valuable context. While specific industry averages fluctuate, comparing the company's gross, operating, and net profit margins to those of its peers helps assess its relative performance. For instance, if TTM Technologies' net profit margin consistently outperforms the industry average, it suggests a competitive advantage in cost management or pricing strategies.

Analysis of Operational Efficiency:

Operational efficiency is crucial for maintaining and improving profitability. Key factors include cost management and gross margin trends. Effective cost management ensures that TTM Technologies can minimize expenses while maximizing revenue. Monitoring gross margin trends helps identify whether the company is improving its production processes or optimizing its pricing strategies. For example, a rising gross margin indicates enhanced efficiency in managing the cost of goods sold.

For further insights into TTM Technologies, Inc.'s financial health, you can explore this comprehensive analysis: Breaking Down TTM Technologies, Inc. (TTMI) Financial Health: Key Insights for Investors

TTM Technologies, Inc. (TTMI) Debt vs. Equity Structure

Understanding how TTM Technologies, Inc. (TTMI) finances its operations and growth involves examining its debt and equity structure. This analysis provides insights into the company's financial leverage and risk profile.

As of the fiscal year 2024, TTM Technologies, Inc. (TTMI) has a mix of debt and equity. Reviewing the most recent financial statements will show the specific amounts of long-term and short-term debt. For example, let's consider some hypothetical but realistic figures based on previous financial behaviors:

• Long-term debt: $500 million
• Short-term debt: $100 million

The debt-to-equity ratio is a critical metric for assessing financial leverage. It compares a company's total debt to its shareholders' equity. To illustrate, if TTM Technologies, Inc. (TTMI) has total debt of $600 million and shareholders' equity of $800 million, the debt-to-equity ratio would be 0.75. This means that for every dollar of equity, the company has 75 cents of debt.

Industry standards for debt-to-equity ratios vary, but a ratio below 1.0 is generally considered healthy, indicating a balance between debt and equity. However, it's essential to compare TTM Technologies, Inc. (TTMI)'s ratio with its peers in the electronics manufacturing services (EMS) sector to get a more accurate perspective.

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact TTM Technologies, Inc. (TTMI)'s financial structure. Monitoring these events provides insights into the company's strategies for managing its debt obligations and optimizing its capital structure. For example, a recent credit rating upgrade could lower borrowing costs, while a new debt issuance might fund expansion or acquisitions.

Balancing between debt financing and equity funding is crucial for sustainable growth. Debt financing can provide capital without diluting ownership, but it also increases financial risk and fixed costs. Equity funding, on the other hand, dilutes ownership but reduces financial risk. TTM Technologies, Inc. (TTMI)'s approach to this balance reflects its strategic priorities and risk tolerance.

Here’s a simplified representation of key financial data:

Understanding these elements provides a comprehensive view of TTM Technologies, Inc. (TTMI)'s financial health and its ability to manage its capital structure effectively. More in-depth analysis is available at: Breaking Down TTM Technologies, Inc. (TTMI) Financial Health: Key Insights for Investors

TTM Technologies, Inc. (TTMI) Liquidity and Solvency

Assessing TTM Technologies, Inc.'s financial health requires a close look at its liquidity and solvency, which indicate its ability to meet short-term obligations and long-term liabilities, respectively. These metrics are crucial for investors to gauge the company's financial stability and risk profile.

Liquidity Positions: Current and Quick Ratios

The current and quick ratios are essential indicators of a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally suggests better liquidity. For the fiscal year 2024, we need to analyze these ratios based on the most recent financial data.

• Current Ratio: This ratio is calculated by dividing current assets by current liabilities. A current ratio of greater than 1 indicates that the company has more current assets than current liabilities.
• Quick Ratio: Also known as the acid-test ratio, this ratio excludes inventory from current assets before dividing by current liabilities. It provides a more conservative view of a company's liquidity since inventory may not be easily converted to cash.

For TTM Technologies, Inc. (TTMI), the specific values for these ratios in 2024 would need to be derived from their financial statements. These ratios help in understanding whether the company can comfortably meet its short-term obligations.

Analysis of Working Capital Trends

Working capital, which is the difference between a company's current assets and current liabilities, is a measure of its short-term financial health. Monitoring the trends in working capital can provide insights into how well the company is managing its short-term assets and liabilities. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities.

Cash Flow Statements Overview

Cash flow statements provide a detailed look at all the cash inflows and outflows a company experiences during a reporting period, categorized into operating, investing, and financing activities.

• Operating Cash Flow: This reflects the cash generated from the company's core business operations. A positive and increasing operating cash flow is generally a good sign.
• Investing Cash Flow: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends.

Analyzing these cash flow trends helps in understanding how TTM Technologies, Inc. (TTMI) is managing its cash, investing in its business, and financing its operations.

Potential Liquidity Concerns or Strengths

Based on the analysis of the current and quick ratios, working capital trends, and cash flow statements, it's possible to identify potential liquidity concerns or strengths. For example:

• If the current and quick ratios are declining, it may indicate a deteriorating liquidity position.
• Consistently negative operating cash flow could signal problems with the company's core business operations.
• However, strong and growing operating cash flow, coupled with healthy liquidity ratios, would suggest financial strength.

For a comprehensive understanding of TTM Technologies, Inc.'s financial strategy, exploring their Mission Statement, Vision, & Core Values of TTM Technologies, Inc. (TTMI). can provide additional insights.

To provide a more concrete analysis, here is an example table illustrating the kind of data that would be relevant. Please note that the following data is purely illustrative and should be replaced with actual 2024 figures.

Disclaimer: The data provided in the table above is purely illustrative and does not represent actual financial figures for TTM Technologies, Inc. (TTMI). Always refer to the company's official financial statements for accurate and up-to-date information.

TTM Technologies, Inc. (TTMI) Valuation Analysis

Assessing whether TTM Technologies, Inc. (TTMI) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects using the most recent data.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a fundamental metric used to evaluate a company's valuation relative to its earnings. As of the latest data, TTM Technologies' P/E ratio stands at 13.77. This indicates the amount investors are willing to pay for each dollar of TTM Technologies' earnings. A higher P/E ratio might suggest overvaluation if compared to industry peers or historical averages, while a lower P/E ratio could indicate undervaluation.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value, offering insights into how the market values the company's net assets. TTM Technologies currently has a P/B ratio of 1.52. A lower P/B ratio (typically less than 1) can suggest undervaluation, while a higher ratio may indicate the opposite.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess a company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio provides a more comprehensive valuation measure than the P/E ratio. TTM Technologies’ EV/EBITDA ratio is 8.47. A lower EV/EBITDA ratio often implies that a company is undervalued, while a higher ratio may suggest overvaluation.

Stock Price Trends: Analyzing the stock price trends over the past year provides context on market sentiment and investor confidence. Over the last 12 months, TTM Technologies has shown a stock price increase from $13.47 to $20.39. This increase suggests growing investor confidence and positive market perception.

Dividend Yield and Payout Ratios: As of now, TTM Technologies does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst Consensus: Analyst consensus provides a summarized view of professional opinions on the stock. The consensus for TTM Technologies is a Moderate Buy, with a price target of $22.50. This suggests that analysts generally believe the stock has potential for further appreciation.

Here's a summary of key valuation metrics for TTM Technologies:

Considering these factors, investors can gain a more informed perspective on TTM Technologies' current valuation and potential investment opportunities.

To gain more insights into the company's strategic direction, explore Mission Statement, Vision, & Core Values of TTM Technologies, Inc. (TTMI).

TTM Technologies, Inc. (TTMI) Risk Factors

TTM Technologies, Inc. (TTMI) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Industry Competition: The printed circuit board (PCB) and radio frequency (RF) components industries are intensely competitive. TTM Technologies, Inc. (TTMI) competes with numerous global and regional players. Increased competition could lead to price erosion, reduced profit margins, and loss of market share. To remain competitive, TTM Technologies, Inc. (TTMI) must continuously innovate, invest in technology, and optimize its cost structure.

Regulatory Changes: TTM Technologies, Inc. (TTMI) is subject to various environmental, health, and safety regulations worldwide. Changes in these regulations could increase compliance costs, require significant capital expenditures, or even restrict operations. Additionally, trade regulations and tariffs can impact the cost of raw materials and the company’s ability to serve international markets efficiently.

Market Conditions: Demand for TTM Technologies, Inc.'s (TTMI) products is closely tied to the performance of the end markets it serves, including the telecommunications, aerospace and defense, automotive, and computing industries. Economic downturns, technological shifts, or changes in consumer preferences in these sectors can reduce demand for PCBs and RF components, impacting TTM Technologies, Inc.'s (TTMI) revenue and profitability.

Operational Risks:

• Supply Chain Disruptions: TTM Technologies, Inc. (TTMI) relies on a global supply chain for raw materials and components. Disruptions caused by natural disasters, geopolitical events, or supplier bankruptcies can lead to production delays, increased costs, and reduced revenue.
• Manufacturing Complexities: The production of advanced PCBs and RF components requires sophisticated manufacturing processes and equipment. Any disruptions in manufacturing operations, such as equipment failures, quality control issues, or labor shortages, can negatively impact production volumes and product quality.
• Cybersecurity Threats: As a technology company, TTM Technologies, Inc. (TTMI) is vulnerable to cybersecurity threats, including data breaches, ransomware attacks, and intellectual property theft. Successful cyberattacks can disrupt operations, damage the company’s reputation, and result in significant financial losses.

Financial Risks:

• Debt Levels: TTM Technologies, Inc. (TTMI) carries a significant amount of debt, which could impact its financial flexibility and ability to invest in growth opportunities. High debt levels can also increase the company’s vulnerability to interest rate fluctuations and economic downturns.
• Customer Concentration: TTM Technologies, Inc. (TTMI) derives a significant portion of its revenue from a limited number of key customers. The loss of one or more of these customers could have a material adverse effect on the company’s financial performance.
• Inventory Management: Effective inventory management is crucial for TTM Technologies, Inc. (TTMI). Excess inventory can lead to obsolescence and write-downs, while insufficient inventory can result in lost sales and customer dissatisfaction.

Strategic Risks:

• Technology Obsolescence: The PCB and RF components industries are characterized by rapid technological advancements. TTM Technologies, Inc. (TTMI) must continually invest in research and development to keep pace with these changes. Failure to do so could render its products obsolete and reduce its competitiveness.
• Integration of Acquisitions: TTM Technologies, Inc. (TTMI) has grown through acquisitions, and the successful integration of acquired businesses is critical to realizing synergies and achieving financial targets. Integration challenges, such as cultural differences, operational inefficiencies, or unexpected costs, can negatively impact the company’s performance.

TTM Technologies, Inc. (TTMI) aims to mitigate these risks through various strategies, including diversification of its customer base, investments in technology and automation, implementation of robust cybersecurity measures, and proactive management of its supply chain. However, there is no guarantee that these efforts will be entirely successful.

Here is a link to more in-depth information: Breaking Down TTM Technologies, Inc. (TTMI) Financial Health: Key Insights for Investors

TTM Technologies, Inc. (TTMI) Growth Opportunities

To understand where TTM Technologies, Inc. (TTMI) is headed, it's crucial to analyze the factors driving its potential growth. Several elements contribute to the company's future prospects, including strategic initiatives, market dynamics, and competitive advantages.

Here's a breakdown of the key growth drivers for TTM Technologies, Inc. (TTMI):

• Product Innovations: Continuous investment in research and development to create advanced technology solutions.
• Market Expansion: Targeting growth in key sectors like aerospace and defense, automotive, and high-end computing.
• Strategic Acquisitions: Pursuing acquisitions to expand capabilities and market reach.

TTM Technologies, Inc.'s growth is significantly tied to several expanding markets. The demand for advanced circuitry in the aerospace and defense industries, driven by increasing technological complexities in military and space systems, plays a vital role. Similarly, the automotive sector, with its rapid shift towards electric vehicles and autonomous driving technologies, requires sophisticated printed circuit boards, boosting demand. High-end computing, encompassing data centers and high-performance computers, also relies on TTM Technologies, Inc.'s products to support ever-increasing processing power and speed requirements.

Future revenue growth projections and earnings estimates for TTM Technologies, Inc. (TTMI), as well as strategic initiatives, partnerships, and competitive advantages that may drive future growth, are not available in the provided search results.

TTM Technologies, Inc.'s competitive advantages that position the company for growth are not available in the provided search results.

More insights about TTM Technologies, Inc. can be found here: Exploring TTM Technologies, Inc. (TTMI) Investor Profile: Who’s Buying and Why?