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TESSCO Technologies Inc (TESS) Stock Fundamental Analysis

NASDAQ:TESS - Nasdaq - US8723861071 - Common Stock - Currency: USD

8.99  +0.01 (+0.11%)

After market: 8.99 0 (0%)

Fundamental Rating

2

TESS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 49 industry peers in the Communications Equipment industry. TESS has a bad profitability rating. Also its financial health evaluation is rather negative. TESS does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year TESS has reported negative net income.
In the past year TESS has reported a negative cash flow from operations.
TESS had negative earnings in 4 of the past 5 years.
In multiple years TESS reported negative operating cash flow during the last 5 years.
TESS Yearly Net Income VS EBIT VS OCF VS FCFTESS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M 20M -20M

1.2 Ratios

TESS has negative profitability rations, so we won't be analyzing them here.
Industry RankSector 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
TESS Yearly ROA, ROE, ROICTESS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

1.3 Margins

TESS has a worse Gross Margin (20.16%) than 91.67% of its industry peers.
In the last couple of years the Gross Margin of TESS has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for TESS so they could not be analyzed.
Industry RankSector 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%
TESS Yearly Profit, Operating, Gross MarginsTESS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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2

2. Health

2.1 Basic Checks

TESS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TESS has more shares outstanding
The number of shares outstanding for TESS has been increased compared to 5 years ago.
The debt/assets ratio for TESS is higher compared to a year ago.
TESS Yearly Shares OutstandingTESS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M
TESS Yearly Total Debt VS Total AssetsTESS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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.
TESS has a better Altman-Z score (2.66) than 71.67% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that TESS is somewhat dependend on debt financing.
TESS has a worse Debt to Equity ratio (0.96) than 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF N/A
Altman-Z 2.66
ROIC/WACCN/A
WACC8.49%
TESS Yearly LT Debt VS Equity VS FCFTESS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

2.3 Liquidity

A Current Ratio of 1.98 indicates that TESS should not have too much problems paying its short term obligations.
TESS has a Current ratio (1.98) which is in line with its industry peers.
TESS has a Quick Ratio of 1.09. This is a normal value and indicates that TESS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, TESS is doing worse than 60.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.09
TESS Yearly Current Assets VS Current LiabilitesTESS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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3

3. Growth

3.1 Past

TESS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.14%.
The Revenue has grown by 8.19% in the past year. This is quite good.
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 Q2Q%-408.33%
Revenue 1Y (TTM)8.19%
Revenue growth 3Y-5.77%
Revenue growth 5Y-4.87%
Sales Q2Q%2.57%

3.2 Future

The Earnings Per Share is expected to grow by 48.46% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.16% on average over the next years.
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.
TESS Yearly Revenue VS EstimatesTESS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
TESS Yearly EPS VS EstimatesTESS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 -1 2 -2

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2

4. Valuation

4.1 Price/Earnings Ratio

TESS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 88.14 indicates a quite expensive valuation of TESS.
60.00% of the companies in the same industry are cheaper than TESS, based on the Price/Forward Earnings ratio.
TESS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.94.
Industry RankSector Rank
PE N/A
Fwd PE 88.14
TESS Price Earnings VS Forward Price EarningsTESS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TESS is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 97.29
TESS Per share dataTESS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

TESS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TESS's earnings are expected to grow with 48.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.46%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

TESS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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TESSCO Technologies Inc

NASDAQ:TESS (7/14/2023, 8:02:40 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)05-26 2023-05-26/amc
Earnings (Next)07-25 2023-07-25/amc
Inst Owners0.51%
Inst Owner Change0%
Ins Owners37.15%
Ins Owner Change0%
Market Cap83.30M
Analysts43.33
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)55.51%
Min EPS beat(2)-19.61%
Max EPS beat(2)130.64%
EPS beat(4)3
Avg EPS beat(4)89.07%
Min EPS beat(4)-19.61%
Max EPS beat(4)190.5%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.87%
Min Revenue beat(2)-12.05%
Max Revenue beat(2)-1.69%
Revenue beat(4)2
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-12.05%
Max Revenue beat(4)4.39%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.58%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 88.14
P/S 0.18
P/FCF N/A
P/OCF N/A
P/B 1.14
P/tB 2.57
EV/EBITDA 97.29
EPS(TTM)-0.5
EYN/A
EPS(NY)0.1
Fwd EY1.13%
FCF(TTM)-2.99
FCFYN/A
OCF(TTM)-1.29
OCFYN/A
SpS48.76
BVpS7.89
TBVpS3.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 20.16%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score3
Asset Turnover1.94
Health
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF N/A
Debt/EBITDA 44.76
Cap/Depr 406.07%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.98
Quick Ratio 1.09
Altman-Z 2.66
F-Score3
WACC8.49%
ROIC/WACCN/A
Cap/Depr(3y)368.35%
Cap/Depr(5y)283.51%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-408.33%
EPS Next Y120.4%
EPS Next 2Y48.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.19%
Revenue growth 3Y-5.77%
Revenue growth 5Y-4.87%
Sales Q2Q%2.57%
Revenue Next Year0%
Revenue Next 2Y4.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year591.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-130.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-379.16%
OCF growth 3YN/A
OCF growth 5YN/A