- 25 facilities worldwide with over 30,000 employees
- Top 5 global PCB provider
- Publically traded US Company and listed on the NASDAQ (TTMI)
- Serve diverse end markets including Aerospace, Cellular phone, Industrial, among others
- Technology focus including 55 awarded patents with 28 patents pending for advancements in manufacturing and design
TTM Technologies, Inc. manufactures printed circuit boards (PCBs) worldwide. It provides a range of PCBs and electro-mechanical solutions, including conventional PCBs, high density interconnect PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration products, and IC substrates. It also produces test specialized circuits that are used in radio-frequency or microwave emission and collection applications; printed circuits with heavy copper cores, and embedded and press-fit coins; PCBs with electrically passive heat sinks; and PCBs with electrically active thermal cores. In addition, the company offers various services, including design for manufacturability, PCB layout design, simulation and testing, and quick turnaround services. The company's customers include original equipment manufacturers and electronic manufacturing services companies that primarily serve the networking/communications, cellular phone, computing, aerospace and defense, and medical/industrial/instrumentation end markets of the electronics industry; and the U.S. government. TTM Technologies, Inc. was founded in 1978 and is headquartered in Costa Mesa, California.
(Summary) (Company) (Chart)
9 July 2017
1yr Target $20.50
Payout Ratio ---
1yr Cap Gain 16.21%
1yr Tot Return 16.21%
EPS (ttm) $0.58
EPS next yr $1.82
Forward P/E 9.69
EPS next 5yr 19.90%
1yr Price Support $36.21
Market Cap $1.82 Bil
Revenues $2.58 Bil
Earnings $75.10 Mil
Profit Margin 2.90%
Quick Ratio 1.00
Current Ratio 1.40
1yr RevGR 20.90%
3yr RevGR 22.54%
5yr RevGR 12.14%
1yr EarnGR NA
3yr EarnGR 33.07%
5yr EarnGR -7.79%
1yr DivGR ---
3yr DivGR ---
5yr DivGR ---
TTM was incorporated in 1998 and is now be the largest printed circuit board (PCB) supplier in North America and one of the largest suppliers in the world. TTM's acquisition of Viasystems Group on May 31, 2015, resulted in combined pro forma revenue for 2014 of $2.5 billion.
TTM's rapid growth began with the merger of Pacific Circuits and Power Circuits in 1999 followed by a successful IPO on the NASDAQ under ticker symbol TTMI in 2000. The company then doubled in size with the acquisition of Honeywell Advanced Circuits in 2002 and again doubled in size with the acquisition of the Tyco Printed Circuit Group in 2006. The acquisition of Tyco transformed TTM into North America's largest provider of PCB products for the Aerospace & Defense Industry.
In 2010, the Meadville Printed Circuit Operation was added to the TTM family which once again doubled the size of the company and positioned TTM as a global leader in advanced HDI PCBs used in smart phones and tablet computers. The most recent acquisition of Viasystems has again doubled the size of the company and has quickly catapulted TTM into a leading position as a supplier of high reliability PCBs used in the Automotive Industry.
Today TTM is a global leader and is one of the largest PCB products manufacturers in the world. TTM's one-stop solution covers all stages of the product life cycle from inception to prototype with ramp to volume and high volume production. TTM's broad product offering is utilized by all major End Markets including Aerospace & Defense, automotive, computing, industrial, medical, mobility and networking/telecom.
General Business Description
TTM Technologies is a leading global printed circuit board (PCB) manufacturer, focusing on quick-turn and volume production of technologically complex PCBs and electro-mechanical solutions (E-M Solutions). They are the largest PCB manufacturer in North America and one of the largest PCB manufacturers in the world, in each case based on revenue, according to the 2015 rankings from N.T. Information LTD (NTI).
In 2016 the Company generated $2.5 billion in net sales and ended the year with approximately 28,360 employees worldwide. They operate a total of 25 specialized facilities in North America and China and focus on providing time-to-market and volume production of advanced technology products and offer a one-stop manufacturing solution to our customers from engineering support to prototype development through final mass production. This one-stop manufacturing solution allows us to align technology development with the diverse needs of our customers and to enable them to reduce the time required to develop new products and bring them to market.
The Company serves a diversified customer base consisting of approximately 1,500 customers in various markets throughout the world, including networking and communications infrastructure products, smartphones and touchscreen tablets, as well as aerospace and defense, automotive components, high-end computing and medical, industrial and instrumentation related products. The Company's customers include both original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) providers.
As a result of the acquisition of Viasystems Group, Inc. (Viasystems), the Company now manages theyr worldwide operations based on two reportable operating segments: (1) PCB, which consists of 13 domestic PCB fabrication plants, including a facility that provides follow-on value-added services primarily for one of the PCB fabrication plants; eight PCB fabrication plants in China and one in Canada, and (2) E-M Solutions, which consists of three custom electronic assembly plants in China. Each segment operates predominantly in the same industries with production facilities that produce customized products for our customers and use similar means of product distribution.
TTM offers a wide range of PCB products and electro-mechanical solutions, including conventional PCBs, HDI PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, and IC substrates. We also offer certain value-added services to support their customers’ needs. These include design-for-manufacturability (DFM), PCB design, simulation and testing services, and quick turnaround (QTA) production. By offering this wide range of PCB products and complementary value-added services, they are able to provide their customers with a “one-stop” manufacturing solution for their PCB requirements. This differentiates us from our competition and enhances our relationships with our customers.
A conventional PCB is made from a composite laminate that is metalized with a conductive material such as copper. The PCB is the basic platform used to interconnect components in most electronic products including computers, communications equipment, cellular phones, high-end consumer electronics, automotive controls, commercial aerospace and defense systems and medical and industrial equipment. Conventional PCBs can be classified as single-sided, double-sided and multi-layer boards.
RF and microwave circuits
TTM produces and tests specialized circuits used in radio-frequency or microwave emission and collection applications. These products are typically used for radar, transmit/receive antennas and similar wireless applications. Markets for these products include automotive, defense, avionics, satellite, and commercial applications. The manufacture of these products requires advanced materials, equipment, and methods that are highly specialized and distinct from conventional printed circuit manufacturing techniques.
High density interconnect or HDI PCBs
TTM's facilities in North America and China also produce HDI PCBs, which are PCBs with higher interconnect density per unit area requiring more sophisticated technology and manufacturing processes for their production than conventional PCB products. HDI PCBs are boards with high-density characteristics including micro-sized holes, or microvias (diameter at or less than 0.15 mm), and fine line circuitry (circuit line width and spacing at or less than 0.075 mm) and are fabricated with thin high performance materials, thereby enabling more interconnection functions per unit area. HDI PCBs generally are manufactured using a sequential build-up process in which circuitry is formed in the PCB one layer at a time through successive drilling, plating and lamination cycles. In general, a board’s complexity is a function of interconnect and circuit density, layer count, laminate material type and surface finishes. As electronic devices have become smaller and more portable with higher functionality, demand for advanced HDI PCB products has increased dramatically.
Flexible PCBs are printed circuits produced on flexible films, allowing them to be folded or bent to fit the available space or allowing for application movement. TTM manufactures circuits on flexible substrates that can be installed in three-dimensional applications for electronic packaging systems. Use of flexible circuitry can enable improved reliability, improved electrical performance, reduced weight and reduced assembly costs when compared with traditional wire harness or ribbon cable packaging. Flexible PCBs can provide for flexible electronic connectivity of an electrical device’s apparatus such as printer heads, cameras, camcorders, TVs, mobile handsets, and tablets.
Rigid-flex circuitry provides a simple means to integrate multiple PCB assemblies and other elements such as display, input or storage devices without wires, cables or connectors, replacing them with thin, light composites that integrate wiring in ultra-thin, flexible ribbons between rigid sections. In rigid-flex packaging, a flexible circuit substrate provides a backbone of wiring with rigid multilayer circuit sections built up as modules where needed.
Custom assemblies and system integration
TTM's assembly facilities produce custom electronic assemblies as well as fully integrated electronic systems. Custom electronic assemblies refers to a variety of PCB assemblies such as backplane and midplane assemblies, flexible and rigid-flex assemblies and RF assemblies. Each of these assemblies involves mounting electronic components to a printed circuit board and then testing the assembly for electrical continuity.
IC substrates provide mechanical support and electrical interconnect for very small ICs (integrated circuits or semiconductors) and up to comparatively larger PCBs for assembly into electronic end products such as memory modules, cellular phones, digital cameras, automotive GPS and engine controls. IC substrates, also known as chip carriers, are highly miniaturized circuits manufactured by a process largely similar to that for PCBs but requiring the use of ultra-thin materials and including micron-scale features, because they must bridge the gap between sub-micron IC features and millimeter scale PCBs.
From a purely technical point of view this stock should have been bought about $6 ago near $11 per share, but based upon the fundamentals and the estimates going forward, this stock can easily support a price in the mid 30s based upon estimated earnings and an estimated future earnings growth rate. So buying it near $17 per share still allows enough room for the stock to double over the next year to eighteen months.
A concern for me is the consistency of the earnings growth rate. This is offset by the consistency and stability of the revenue growth rate over the last few years. This is typical of small companies and isn't unexpected, but it is a concern.
Based on this, I expect to start a small position in this company and see how the stock reacts over the next few quarters. Assuming revenue growth rates remain stable and the earnings growth becomes more consistent, I'll increase my position. I like this company and the fact that it's a manufacturing company selling products directly into the Technology sector. I expect this to be a hot sector for years to come. This company is in the right sector of the economy. They just need to continue to produce.