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1. Company Snapshot

1.a. Company Description

TT Electronics plc provides engineered electronics for performance critical applications in the automation and electrification, healthcare, and aerospace and defense markets worldwide.The company operates through three divisions: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components.The Power and Connectivity division designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data.


This segment collaborates with customers for developing solutions to optimize their electronic systems.The Global Manufacturing Solutions division provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products.This segment manufactures integrated product assemblies, as well as provides designing testing solutions and value-engineering services.


The Sensors and Specialist Components division works with customers to develop standard and customized solutions, including sensors and power management devices.Its solutions enhance the precision, speed, and reliability of critical aspects of its customers' applications.The company offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, IRC, OPTEK Technology, Precision, Power Partners, PowerPax, Stontronics, Torotel, Semelab, Welwyn, and Roxspur Measurement & Control brands.


The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000.TT Electronics plc was incorporated in 1906 and is headquartered in Woking, the United Kingdom.

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1.b. Last Insights on TTG

TT Electronics' recent performance was positively influenced by valuation assessments, with an estimated fair value of UK£1.24 based on a 2-stage Free Cash Flow to Equity model. No recent earnings release or significant acquisitions were reported. The company's valuation appears attractive, with a current price of UK£1.10. Investor attention on UK smaller-cap stocks, such as Filtronic, may also contribute to TT Electronics' prospects. Additionally, no negative short-term news was found specifically related to TT Electronics.

1.c. Company Highlights

2. TT Electronics' H1 2025 Results: Stabilization Efforts Underway

TT Electronics reported a 6% organic revenue decline to GBP 136 million in H1 2025, with adjusted operating profit down 29.7% to GBP 13 million. The company's EPS came out at -0.05796, missing estimates of 0.0355. The revenue decline was largely driven by weakness in North America, which faced another difficult half, while Europe continued to perform well, with a 5% organic revenue increase and 34% organic increase in adjusted operating profit. The company's cash conversion was excellent at 135% in the half, with leverage of 1.9x, within the target range.

Publication Date: Oct -28

📋 Highlights
  • Inventory Reduction & Cash Conversion:: Achieved 135% cash conversion in H1 2025, with leverage at 1.9x within target range of 1.5-2x by year-end.
  • North America Restructuring:: Closed loss-making Plano site (GBP 6 million annual loss) and implemented Cleveland site efficiency gains.
  • Regional Profitability:: Europe saw 34% organic adjusted operating profit increase, while Asia maintained margins despite 14% profit decline.
  • Customer & Market Wins:: Secured GBP 23 million contract with Kongsberg and leveraged long-term programs with blue-chip clients in Aerospace & Defense.

Regional Performance

The regional performance showed a mixed picture, with Europe continuing to perform well, driven by strong Aerospace & Defense programs. North America faced challenges, but actions taken, including the closure of the loss-making Plano site in Texas, are expected to show improvement in the second half. Asia made a good contribution despite lower revenue, with operating profit reducing by 14% organically. Eric Lakin, CEO, noted that the company is "steadily improving operational efficiency" and focusing on "developing people, products, and market positioning to drive sustainable shareholder value."

Operational Improvements

The company has made significant strides in stabilizing the business, particularly in North America, where the Cleveland site has seen significant progress, with improved productivity and efficiency. The company is also focusing on inventory reduction, which contributed to the excellent cash conversion outcome. TT Electronics has a strong presence in growth end markets, including Aerospace & Defense, and Healthcare, with a broad range of customer relationships across its end markets.

Outlook and Valuation

The company expects full-year adjusted operating profit to be in line with market expectations, with profit weighted to the second half. Analysts estimate next year's revenue growth at 3.4%. With a P/E Ratio of -2.39 and an EV/EBITDA of -9.35, the company's valuation metrics suggest that the market is pricing in significant challenges. However, the company's Free Cash Flow Yield is 31.46%, indicating a potentially attractive return for investors. The dividend yield is currently 0.0%, as the company has paused the dividend to focus on strengthening the balance sheet.

Growth Opportunities

TT Electronics sees continued growth opportunities in Aerospace & Defense, driven by the NATO commitment to raise Defense spending targets. The company is also investing in innovative technologies, such as the development of Altitude DC, a high-voltage direct current power system. With a strong presence in growth end markets and a focus on operational improvements, TT Electronics is well-positioned to drive sustainable shareholder value in the long term.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.12%)

6. Segments

Global Manufacturing Solutions

Expected Growth: 9.33%

TT Electronics plc's Global Manufacturing Solutions segment growth of 9.33% is driven by increasing demand for electrification in the automotive sector, growth in industrial automation, and rising adoption of IoT and 5G technologies. Additionally, the company's strategic acquisitions and investments in digital manufacturing capabilities have enhanced its competitiveness and fueled growth.

Power and Connectivity

Expected Growth: 8.95%

TT Electronics plc's Power and Connectivity segment growth of 8.95% is driven by increasing demand for electric vehicles, renewable energy systems, and industrial automation. Additionally, the company's strategic acquisitions and investments in research and development have enhanced its product offerings, further contributing to the segment's growth.

Sensors and Specialist Components

Expected Growth: 8.9%

TT Electronics' Sensors and Specialist Components segment growth of 8.9% is driven by increasing demand for electric vehicles, autonomous driving, and industrial automation. Additionally, the company's focus on innovation, strategic acquisitions, and expansion into high-growth markets such as aerospace and defense, and medical devices, contribute to its growth momentum.

7. Detailed Products

Sensors

TT Electronics plc offers a wide range of sensors, including temperature, pressure, and position sensors, designed for use in harsh environments and extreme temperatures.

Power Electronics

TT Electronics plc provides power electronic components, including power supplies, DC-DC converters, and electromagnetic interference (EMI) filters, designed for high-reliability applications.

Connectors

TT Electronics plc offers a range of connectors, including circular, rectangular, and custom connectors, designed for use in harsh environments and high-reliability applications.

Magnetics

TT Electronics plc provides a range of magnetic components, including inductors, transformers, and chokes, designed for use in high-reliability applications.

Hybrid Microcircuits

TT Electronics plc offers custom hybrid microcircuits, designed for use in high-reliability applications, including aerospace, defense, and industrial control systems.

Electromechanical Components

TT Electronics plc provides a range of electromechanical components, including switches, relays, and contactors, designed for use in harsh environments and high-reliability applications.

8. TT Electronics plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TT Electronics plc is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for TT Electronics plc is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TT Electronics plc is medium due to the company's dependence on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants for TT Electronics plc is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for TT Electronics plc is high due to the competitive nature of the industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.86%
Debt Cost 3.95%
Equity Weight 59.14%
Equity Cost 8.35%
WACC 6.55%
Leverage 69.09%

11. Quality Control: TT Electronics plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Barco

A-Score: 5.8/10

Value: 6.7

Growth: 4.7

Quality: 6.4

Yield: 5.6

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Incap

A-Score: 4.7/10

Value: 6.8

Growth: 8.6

Quality: 7.0

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

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Hanza

A-Score: 4.6/10

Value: 3.5

Growth: 7.1

Quality: 3.9

Yield: 1.9

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Eltek

A-Score: 4.5/10

Value: 5.4

Growth: 4.2

Quality: 6.1

Yield: 3.1

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
TT Electronics

A-Score: 4.1/10

Value: 8.6

Growth: 2.8

Quality: 2.7

Yield: 3.1

Momentum: 7.5

Volatility: 0.0

1-Year Total Return ->

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NCAB

A-Score: 3.7/10

Value: 1.1

Growth: 7.2

Quality: 5.6

Yield: 5.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.32$

Current Price

1.32$

Potential

-0.00%

Expected Cash-Flows