Trio-Tech International (NYSE: TRT)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0000732026
Market Cap 26.76 Mn
P/B 0.80
P/E -245.50
P/S 0.54
ROIC (Qtr) 0.45
Div Yield % 0.00
Rev 1y % (Qtr) 81.56
Total Debt (Qtr) 3.55 Mn
Debt/Equity (Qtr) 0.11
Add ratio to table...

About

Trio-Tech International (TRT) is a company that operates in the semiconductor industry, with its main business activities encompassing manufacturing, testing services, distribution, and real estate. Established in 1958, the company has built a reputation as a reliable and innovative player in the industry. Trio-Tech's business model involves generating revenue from various segments, including manufacturing, testing services, distribution, and real estate. In the manufacturing segment, the company develops and manufactures a range of test equipment...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 12.40M provide 9.53x coverage of short-term debt 1.30M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 45.73M provides 12.90x coverage of total debt 3.55M, indicating robust asset backing and low credit risk.
  • Tangible assets of 45.73M provide exceptional 357.26x coverage of deferred revenue 128000, showing strong service capability backing.
  • Operating cash flow of 1.18M provides exceptional 24.16x coverage of interest expenses 49000, showing strong debt service capability.
  • Operating cash flow of 1.18M provides strong 9.25x coverage of deferred revenue 128000, indicating service delivery capability.

Bear case

  • Operating cash flow of 1.18M barely covers its investment activities of 1.47M, with a coverage ratio of 0.80, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 1.18M shows concerning coverage of stock compensation expenses of 436000, with a 2.72 ratio indicating potential earnings quality issues.
  • High receivables of 14.17M relative to inventory of 2.83M (5 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 225000 provides weak coverage of capital expenditures of 959000, with a 0.23 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 59000 show weak coverage of depreciation charges of 2.29M, with a 0.03 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 606.12 Bn 302.84 75.30 3.18 Bn
2 AMAT Applied Materials Inc /De 329.04 Bn 90.92 19.13 6.56 Bn
3 LRCX Lam Research Corp 298.73 Bn 48.08 14.53 4.48 Bn
4 KLAC Kla Corp 194.01 Bn 42.56 15.22 5.89 Bn
5 TER Teradyne, Inc 47.32 Bn 95.48 17.50 0.27 Bn
6 ENTG Entegris Inc 14.47 Bn -24.73 36.15 3.80 Bn
7 NVMI Nova Ltd. 13.32 Bn 51.37 15.12 0.80 Bn
8 AMKR Amkor Technology, Inc. 11.48 Bn 36.31 1.83 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.36 3.99
EV to Cash from Ops. EV/CFO 13.98 49.55
EV to Debt EV to Debt 4.67 2,495.74
EV to EBIT EV/EBIT 280.55 37.42
EV to EBITDA EV/EBITDA 6.47 21.14
EV to Free Cash Flow [EV/FCF] EV/FCF 73.57 178.05
EV to Market Cap EV to Market Cap 0.62 0.92
EV to Revenue EV/Rev 0.34 140.45
Price to Book Value [P/B] P/B 0.80 10.25
Price to Earnings [P/E] P/E -245.50 24.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.88
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.87
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.65
Interest Coverage Int. cover (Qtr) 1.20 72.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -145.27 -59.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 20.16 23.72
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -204.82 -208.83
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -25.15 -73.05
EBIT Growth (1y) % EBIT 1y % (Qtr) -95.02 -107.87
EBT Growth (1y) % EBT 1y % (Qtr) -99.11 -122.68
EPS Growth (1y) % EPS 1y % (Qtr) -128.57 -286.63
FCF Growth (1y) % FCF 1y % (Qtr) -81.45 66.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.42 43.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.08 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 1.06 1.59
Current Ratio Curr Ratio (Qtr) 2.96 4.17
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.30
Interest Cover Ratio Int Coverage (Qtr) 1.20 72.17
Times Interest Earned Times Interest Earned (Qtr) 1.20 72.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.80 -1,802.95
EBIT Margin % EBIT Margin % (Qtr) 0.12 -1,926.70
EBT Margin % EBT Margin % (Qtr) 0.02 -1,933.27
Gross Margin % Gross Margin % (Qtr) 19.70 22.53
Net Profit Margin % Net Margin % (Qtr) -0.20 -2,101.41