Trio-Tech International (NYSE: TRT)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0000732026
Market Cap 47.33 Mn
P/B 1.39
P/E 174.00
P/S 1.12
ROIC (Qtr) 0.25
Div Yield % 0.00
Rev 1y % (Qtr) 58.32
Total Debt (Qtr) 2.06 Mn
Debt/Equity (Qtr) 0.06

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...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 3.16M provides robust 1.54x coverage of total debt 2.06M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 12.26M provide 15.03x coverage of short-term debt 816000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 3.16M provides exceptional 27.25x coverage of minority interest expenses 116000, showing strong core operations.
  • Strong tangible asset base of 47.38M provides 23.05x coverage of total debt 2.06M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 3.16M provides exceptional 79.03x coverage of interest expenses 40000, showing strong debt service capability.

Bear case

  • High receivables of 16.57M relative to inventory of 2.40M (6.89 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 493000 show weak coverage of depreciation charges of 2.56M, with a 0.19 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 2.38M represents just -7.19x of debt issuance (331000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 3.16M barely covers operating expenses of (89000) with a -35.52 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High depreciation of 2.56M relative to operating cash flow of 3.16M, which is 0.81x suggests significant maintenance capital requirements affecting free cash flow.

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 596.49 Bn 243.99 49.68 3.18 Bn
2 AMAT Applied Materials Inc /De 306.44 Bn 110.83 20.97 6.56 Bn
3 LRCX Lam Research Corp 292.93 Bn 47.14 14.25 4.48 Bn
4 KLAC Kla Corp 190.42 Bn 41.78 14.94 5.89 Bn
5 TER Teradyne, Inc 49.92 Bn 61.37 15.61 0.27 Bn
6 ENTG Entegris Inc 16.38 Bn 147.43 21.20 3.91 Bn
7 NVMI Nova Ltd. 13.55 Bn 55.28 15.88 0.88 Bn
8 ONTO Onto Innovation Inc. 10.25 Bn 58.57 10.23 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.81 3.78
EV to Cash from Ops. EV/CFO 12.08 31.10
EV to Debt EV to Debt 18.57 2,381.40
EV to EBIT EV/EBIT 77.42 33.45
EV to EBITDA EV/EBITDA 13.99 21.36
EV to Free Cash Flow [EV/FCF] EV/FCF 16.04 76.88
EV to Market Cap EV to Market Cap 0.81 0.93
EV to Revenue EV/Rev 0.90 57.80
Price to Book Value [P/B] P/B 1.39 9.83
Price to Earnings [P/E] P/E 174.00 39.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.75
Interest Coverage Int. cover (Qtr) 12.33 69.41
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -68.32 -55.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 37.04 22.64
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -52.22 -204.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -41.95 -87.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -57.13 -107.43
EBT Growth (1y) % EBT 1y % (Qtr) -58.21 -121.11
EPS Growth (1y) % EPS 1y % (Qtr) -57.14 -283.91
FCF Growth (1y) % FCF 1y % (Qtr) 539.78 59.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.95 43.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.89 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 1.03 1.54
Current Ratio Curr Ratio (Qtr) 3.15 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 0.29
Interest Cover Ratio Int Coverage (Qtr) 12.33 69.41
Times Interest Earned Times Interest Earned (Qtr) 12.33 69.41
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.20 -1,802.89
EBIT Margin % EBIT Margin % (Qtr) 1.17 -1,926.71
EBT Margin % EBT Margin % (Qtr) 1.07 -1,933.27
Gross Margin % Gross Margin % (Qtr) 22.30 22.64
Net Profit Margin % Net Margin % (Qtr) 0.60 -2,101.38