TESSCO Technologies Inc (TESS) Fundamental Analysis & Valuation

NASDAQ:TESS • US8723861071

Current stock price

8.99 USD
+0.01 (+0.11%)
At close:
8.99 USD
0 (0%)
After Hours:

This TESS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. TESS Profitability Analysis

1.1 Basic Checks

  • In the past year TESS has reported negative net income.
  • TESS had a negative operating cash flow in the past year.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M 20M -20M

1.2 Ratios

  • The profitability ratios for TESS are negative, so there is not much use analyzing them.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20

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.
  • TESS does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. TESS Health Analysis

2.1 Basic Checks

  • TESS does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • TESS has more shares outstanding than it did 1 year ago.
  • TESS has a worse debt/assets ratio than last year.
TESS Yearly Shares OutstandingTESS Yearly Shares OutstandingYearly Shares Outstanding 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 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.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

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.
  • Looking at the Current ratio, with a value of 1.98, TESS is in line with its industry, outperforming 55.00% of the companies in the same industry.
  • 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.
  • TESS has a worse Quick ratio (1.09) than 60.00% of its industry peers.
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 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. TESS Growth Analysis

3.1 Past

  • TESS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.14%.
  • Looking at the last year, TESS shows a quite strong growth in Revenue. The Revenue has grown by 8.19% in the last year.
  • The Revenue has been decreasing by -4.87% on average over the past years.
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

  • 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

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TESS Yearly Revenue VS EstimatesTESS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 -1 -2

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Find the best growth stocksShow best growing peers

2

4. TESS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for TESS. In the last year negative earnings were reported.
  • A Price/Forward Earnings ratio of 88.14 indicates a quite expensive valuation of TESS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TESS indicates a slightly more expensive valuation: TESS is more expensive than 60.00% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.68. TESS is valued rather expensively when compared to this.
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.
  • 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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TESS Dividend Analysis

5.1 Amount

  • No dividends for TESS!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

TESS Fundamentals: All Metrics, Ratios and Statistics

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 IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Industry Strength91.93
Industry Growth94.41
Earnings (Last)05-26
Earnings (Next)07-25
Inst Owners0.51%
Inst Owner Change0%
Ins Owners37.15%
Ins Owner Change0%
Market Cap83.30M
Revenue(TTM)451.75M
Net Income(TTM)-4.35M
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
Graham Number0 (-100%)
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
ROICexgc growth 3YN/A
ROICexgc 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

TESSCO Technologies Inc / TESS Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TESSCO Technologies Inc?

ChartMill assigns a fundamental rating of 2 / 10 to TESS.


Can you provide the valuation status for TESSCO Technologies Inc?

ChartMill assigns a valuation rating of 2 / 10 to TESSCO Technologies Inc (TESS). This can be considered as Overvalued.


How profitable is TESSCO Technologies Inc (TESS) stock?

TESSCO Technologies Inc (TESS) has a profitability rating of 1 / 10.


Can you provide the expected EPS growth for TESS stock?

The Earnings per Share (EPS) of TESSCO Technologies Inc (TESS) is expected to grow by 120.4% in the next year.