The case for & against
Bull & Bear analysis
Bullish
TTM Technologies, Inc. (NASDAQ: TTMI) specializes in the design and manufacturing of advanced interconnect products and printed circuit boards (PCBs). The company is leading within fast-growing sectors like artificial intelligence (AI), defense, and advanced technology applications. As part of significant megatrends in defense and technology, TTM aims to capitalize on rising demand for specific applications, emphasizing its innovative product offerings.
Bull says
- ↑Q2 2026 revenue hit $1B (+37% YoY) with 16.6% adjusted EBITDA margin
- ↑Non-GAAP EPS $0.99 (+71% YoY) and free cash flow rose to $46M
- ↑AI and defense contracts backlog totals $1.7B; book-to-bill ratio stands at 1.49
- ↑Innovative asymmetrical interconnect PCBs expected to improve yields and boost margins
- ↑Operating cash flow $96M and 1.24% dividend yield underline strong liquidity
- ↑Analysts rate TTMI Strong Buy, pricing in ~50% upside to consensus targets
Bear says
- ↓Stock trades ~280% above intrinsic valuation, risking a sharp correction
- ↓Negative earnings yield and weak profitability factors raise long-term health concerns
- ↓Ongoing supply chain constraints in automotive could delay shipment and margin expansion
- ↓European acquisitions pose integration risks and may divert focus from core growth
- ↓Elevated short interest and low institutional ownership reflect pronounced bearish sentiment
- ↓High forward P/E may not be justified if growth momentum falters
Investment themes with TTMI
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Earnings Call · Q1 2024 · Mgmt. Guidance
Updated 05-04-2025bearish
Transcript signals
Bull points
- we're still up 100 basis points operating margin year-over-year. We're forecasting increasing that up to other -- another almost 190 basis points into Q2. So yes, you'll see that come back in the second half of the year, continue to grow.
Bear points
- the headwind we have in A&D continues to be concentrated in supply chain. We're still looking at a headwind of about $8 million quarterly. That's less than half of where we were a year ago, but we still do have that headwind to overcome each quarter.
- So from a labor perspective, absolutely ongoing challenge, but really, it's much more of that supply chain situation. And then just a little bit of lumpiness as we ship out on particular programs.
- For the first quarter, net sales were $57.1 million compared to $544.4 million in the first quarter of 2023.
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