Trio-Tech International (TRT) | Investment Case

1. Company Snapshot

1.a. Company Description

Trio-Tech International, together with its subsidiaries, provides manufacturing, testing, and distribution services to the semiconductor industry.The company's Testing Services segment offers stabilization bake, thermal shock, temperature cycling, mechanical shock, constant acceleration, gross and fine leak, electrical, static and dynamic burn-in, and vibration testing, as well as reliability lab and microprocessor equipment contract cleaning services.This segment also provides qualification testing services that test small samples of output from manufacturers for qualification of their processes and devices.

Its Manufacturing segment manufactures front-end semiconductor test equipment, such as artic temperature-controlled wafer chucks used for test, characterization, and failure analysis of semiconductor wafers and other components; and wet process stations for cleaning, rinsing, and drying semiconductor wafers, flat panel display magnetic disks, and other microelectronic substrates.This segment also manufactures back-end products comprising autoclaves and highly accelerated stress test equipment; burn-in equipment and boards; and component centrifuges and leak detection equipment.The company's Distribution segment distributes complementary products, including environmental chambers, handlers, interface systems, vibration systems, shaker systems, solderability testers, and other semiconductor equipment, as well as components, such as connectors, sockets, LCD display panels, and touch-screen panels.

Its Real Estate segment invests in and rents real estate properties.The company primarily serves semiconductor chip manufacturers or testing facilities that purchase testing equipment.The company operates in the United States, Singapore, Malaysia, Thailand, and China.

Trio-Tech International was incorporated in 1958 and is headquartered in Van Nuys, California.

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1.b. Last Insights on TRT

Trio-Tech International's recent performance was positively influenced by its participation in the TRT World Forum 2025, where the company likely leveraged the platform to shape the global agenda and foster international collaborations. The company's recent earnings release showed improved sales, driven by increased demand for its testing and measurement solutions. Additionally, Trio-Tech's management expressed confidence in the company's growth prospects, citing a strong backlog and expanding product offerings. A recent rating upgrade by a reputable analyst firm further boosted investor sentiment.

1.c. Company Highlights

Last Price	8.53
Change Percentage	0.29%
Open	8.2
Previous Close	8.5
Market Cap ( Millions)	37
Volume	18501
Year High	9.5
Year Low	4.62
M A 50	7.24
M A 200	5.93

FCF Yield	6.03%
Dividend Yield	0.00%
ROE	1.47%
Debt / Equity	2.30%
Net Debt / EBIDTA	-466.59%
Price To Book	1.08
Price Earnings Ratio	75.65
Price To FCF	16.58
Price To sales	1.38
EV / EBITDA	10.28

2. Transcript Summary

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3. NewsRoom

TRT World Forum Shaped the Global Agenda

Nov -05

Source: feeds.newsfilecorp.com

Trio-Tech Reports Fiscal 2025 Third Quarter Financial Results and Announces Share Repurchase Program

May -13

Source: businesswire.com

Trio-Tech Reports Improved Third Quarter Results

May -13

Source: businesswire.com

Trio-Tech Reports First Quarter Results; Delivers First Dynamic Power Module Test System

Nov -13

Source: businesswire.com

Trio-Tech Reports Fourth Quarter and Fiscal 2023 Results

Sep -27

Source: businesswire.com

Trio-Tech International: Undiscovered Stock, Strong Fundamentals, Positive Outlook

Apr -20

Source: Seeking Alpha

Trio-Tech International (TRT) Stock: Why The Price Surged

Nov -17

Source: Pulse2

Trio-Tech International (TRT) Stock: Why The Price Surged Today

Nov -15

Source: Pulse2

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Testing Services

Expected Growth: 8.1%

Growing demand for reliable electronic devices, increasing adoption of IoT devices, and rising need for quality assurance drive the growth of Trio-Tech International's testing services.

Manufacturing

Expected Growth: 8.5%

Growing demand for advanced semiconductor test equipment, increasing adoption of 5G and IoT devices, and rising need for efficient manufacturing processes drive the growth of Trio-Tech International's manufacturing segment.

Distribution

Expected Growth: 8.1%

Growing demand for semiconductor equipment, increasing adoption of IoT and AI technologies, and rising need for equipment repair and refurbishment services drive the growth of Trio-Tech International's Distribution segment.

Real Estate

Expected Growth: 5.5%

Trio-Tech International's Real Estate segment is poised for growth driven by Asia's rising demand for commercial and residential spaces, urbanization, and government initiatives supporting infrastructure development.

7. Detailed Products

Fabrication Services

Trio-Tech International provides fabrication services for the production of complex electronic components and assemblies.

Test and Inspection Services

Trio-Tech International offers test and inspection services for electronic components and assemblies, including functional testing, environmental testing, and failure analysis.

Manufacturing Services

Trio-Tech International provides manufacturing services for the production of electronic components, including printed circuit board assembly, cable assembly, and box build assembly.

Engineering Services

Trio-Tech International offers engineering services, including design, development, and prototyping of electronic components and assemblies.

Supply Chain Management

Trio-Tech International provides supply chain management services, including procurement, inventory management, and logistics.

8. Trio-Tech International's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Trio-Tech International is moderate due to the availability of alternative products and services in the semiconductor industry.

Bargaining Power Of Customers

The bargaining power of customers for Trio-Tech International is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Trio-Tech International is moderate due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants for Trio-Tech International is high due to the relatively low barriers to entry in the semiconductor industry and the presence of venture capital funding for startups.

Intensity Of Rivalry

The intensity of rivalry for Trio-Tech International is high due to the highly competitive nature of the semiconductor industry, with multiple established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.26%
Debt Cost	3.95%
Equity Weight	87.74%
Equity Cost	8.79%
WACC	8.19%
Leverage	13.98%

11. Quality Control: Trio-Tech International passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

ACM Research

A-Score: 5.3/10

Value: 4.5

Growth: 9.7

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

NVE

A-Score: 5.0/10

Value: 1.6

Growth: 3.3

Quality: 9.1

Yield: 9.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

Photronics

A-Score: 4.7/10

Value: 5.9

Growth: 7.3

Quality: 6.8

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

inTEST

A-Score: 4.1/10

Value: 6.7

Growth: 4.6

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

QuickLogic

A-Score: 3.2/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

Trio-Tech

A-Score: 3.0/10

Value: 6.0

Growth: 1.1

Quality: 4.6

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

13.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.19%

Trio-Tech International - US8967122057

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TRT

1.c. Company Highlights

Strong Momentum

Fairly Valued

Average Yield

Cheaper

Medium Volatility

Stable Momentum

Average Growth

Weak Momentum

Average Quality

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Testing Services

Expected Growth: 8.1%

Manufacturing

Expected Growth: 8.5%

Distribution

Expected Growth: 8.1%

Real Estate

Expected Growth: 5.5%

7. Detailed Products

Fabrication Services

Test and Inspection Services

Manufacturing Services

Engineering Services

Supply Chain Management

8. Trio-Tech International's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Trio-Tech International passed 7 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.52$

Current Price

8.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA