company stock analysis

Trio-Tech International (TRT).

Introduction:

Trio-Tech International (NYSEAMEX:TRT) was founded in 1958 and is headquartered in Van Nuys, California. The Company designs and sells equipment and systems used in the manufacture and structural testing of semiconductors. The Company also provides semiconductor testing services and distributes semiconductor testing equipment manufactured by others. Trio-Tech operates manufacturing, testing, and distribution facilities in the United States, Europe, and the Far East.

Stock Snapshot:

The stock for Trio-Tech International (NYSEAMEX:TRT) stood at USD 1.65, representing a total market capitalization of USD 5.18 million. Over the last year, the stock has traded between a range of USD 1.13 and USD 2.57. The stock has witnessed an average volume of 6,243 shares over the last three months. The stock has been trading at a P/S ratio of 0.16 and a P/B ratio of 0.29. The Company has 3.32 million shares outstanding, with a float of 2.09 million.

Competitor Analysis:

Imagination Technologies Group plc (LON:IMG) engages in the design, development, and marketing of multimedia technology and related products. The stock for the Company stood at GBP 474.3, with a total market capitalization of GBP 1.24 billion. The stock has been trading at a P/E ratio of 6,409.5, a P/B ratio of 682.2, and a P/S ratio of 950.6.
CSR plc (LON:CSR) is a fabless semiconductor company that designs and develops semiconductors and software based solutions in the United Kingdom, the rest of Europe, the Americas, and Asia.  The stock for the Company stood at GBP 353.50, with a total market capitalization of GBP 705.02 million. The stock has been trading at a P/E ratio of 11,783, a P/S ratio of 69.01, and a P/B ratio of 81.11.
Wolfson Microelectronics plc (LON:WLF), a semiconductor company, engages in the design, manufacture, and supply of mixed-signal integrated circuits for the consumer electronics market worldwide.  The stock for the Company stood at GBP 215, with a total market capitalization of GBP250.27 million. The stock has been trading at a P/S ratio of 172.98 and a P/B ratio of 188.63.

Financial Analysis:

Revenue:

During FY12, total revenue decreased 3.7 %, to USD 34,211, compared to USD 35,535 in FY11 2011. The decrease in total revenue was mainly due to a decline in sales from the manufacturing and distribution segments in the first two quarters of FY12, as compared to the corresponding period last year. The revenues from the manufacturing sector comprised 49.6% of total revenue, as compared to 54.9% for the corresponding period last year. The revenue for the Testing segment comprised 37.8% of the total revenue in FY12, as compared to 36.9% for the corresponding period last year.

Gross Margin:

In FY12 the Company reported gross profits of 13.4%, as compared to 23.4% in the corresponding period last year. The decrease in gross margins was due to a decrease in gross margin  in the testing service and real estate segments, which were partially offset by the decrease in gross losses in the fabrication segment.

Profitability:

In FY12, the Company reported a net loss of USD 3,104, an increase of USD 2,416, compared to USD 688 for FY11. The increase in net loss was mainly due to a decrease in revenue and gross margin. The loss per share for FY12 was recorded at  USD 0.94, as compared to a net loss of USD 0.21 for FY11.

Factors To Watch Out For:

  • For 4QFY12, revenue increased to 58.1% & net loss narrowed by 33%, which may signal a brighter future.