TESSCO Technologies Inc (TESS)
US8723861071 - Common Stock
We assign a fundamental rating of 2 out of 10 to TESS. TESS was compared to 54 industry peers in the Communications Equipment industry. TESS may be in some trouble as it scores bad on both profitability and health. TESS has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TESS had negative earnings in the past year.
In the past year TESS has reported a negative cash flow from operations.
TESS had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: TESS reported negative operating cash flow in multiple years.
1.2 Ratios
The profitability ratios for TESS are negative, so there is not much use analyzing them.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TESS's Gross Margin of 20.16% is on the low side compared to the rest of the industry. TESS is outperformed by 91.67% of its industry peers.
TESS's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for TESS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 20.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.85%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
TESS does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for TESS has been increased compared to 1 year ago.
The number of shares outstanding for TESS has been increased compared to 5 years ago.
TESS has a worse debt/assets ratio than last year.
2.2 Solvency
TESS has an Altman-Z score of 2.66. This is not the best score and indicates that TESS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.66, TESS is doing good in the industry, outperforming 71.67% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that TESS is somewhat dependend on debt financing.
TESS's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. TESS is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACCN/A
WACC8.49%
2.3 Liquidity
TESS has a Current Ratio of 1.98. This is a normal value and indicates that TESS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TESS (1.98) is comparable to the rest of the industry.
A Quick Ratio of 1.09 indicates that TESS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, TESS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for TESS have decreased strongly by -35.14% in the last year.
Looking at the last year, TESS shows a quite strong growth in Revenue. The Revenue has grown by 8.19% in the last year.
Measured over the past years, TESS shows a decrease in Revenue. The Revenue has been decreasing by -4.87% on average per year.
EPS 1Y (TTM)-35.14%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-408.33%
Revenue 1Y (TTM)8.19%
Revenue growth 3Y-5.77%
Revenue growth 5Y-4.87%
Revenue growth Q2Q2.57%
3.2 Future
TESS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.46% yearly.
Based on estimates for the next years, TESS will show a small growth in Revenue. The Revenue will grow by 4.16% on average per year.
EPS Next Y120.4%
EPS Next 2Y48.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y4.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TESS. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 88.14, the valuation of TESS can be described as expensive.
Based on the Price/Forward Earnings ratio, TESS is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of TESS to the average of the S&P500 Index (20.88), we can say TESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 88.14 |
4.2 Price Multiples
TESS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 97.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TESS's earnings are expected to grow with 48.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TESS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TESSCO Technologies Inc
NASDAQ:TESS (7/14/2023, 7:02:40 PM)
After market: 8.99 0 (0%)8.99
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap83.30M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 88.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 20.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-35.14%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y120.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.19%
Revenue growth 3Y-5.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y