One-glance verdict
Undervalued
$10.39 our estimate vs market $1.52
85% below our estimate, below the bear case
Fundamentals snapshot
Tungray Technologies Inc.
TRSG · NCM · Industrials · Metal Fabrication
Current price
$1.52
52-week range
$1.02 - $1.75
Market cap
$24.84M
Balance sheet
Healthy
-1.50x Concerning
Net cash $3.71M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 22.0% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from 20.1% to -6.4% over 3 years.
- Risk Return on equity was -1.0% last year — the company lost money on shareholders' equity.
What this company does
Tungray Technologies Inc.
Tungray Technologies builds specialized machines and tools that other companies use to make their own products, such as semiconductors and printers. It earns money by selling these custom-engineered solutions to manufacturers, primarily in China and Singapore. This is important because Tungray's business depends on the health and equipment needs of the manufacturing industry, which produces many of the electronics and appliances people use every day.
How the company got here
Tungray began its journey in 1997, starting small and developing its expertise for over two decades before officially incorporating in 2022. The company builds specialized manufacturing equipment for other businesses. In April 2024, it held an Initial Public Offering (IPO), which is when a private company first sells shares of stock to the public to raise money. This made it a publicly traded company on the Nasdaq stock exchange.
What it actually does
Tungray is an "engineer-to-order" company, which means it doesn't make mass-produced items for store shelves. Instead, it designs and builds unique, custom machinery and parts for other manufacturing companies, known as Original Equipment Manufacturers (OEMs). Think of them as a custom builder for factories that produce things like home appliances, printers, and electronics. These factories pay Tungray to create specific tools and machines that solve a particular problem on their assembly line.
Customized Industrial Manufacturing Solutions
This is the company's main business, where they act like expert problem-solvers for other manufacturers. A company might need a special machine to test a new electronic part or a unique automated system to assemble a product. Tungray's team designs, develops, and builds that specific solution from scratch to fit the customer's exact needs. This segment provides these tailored engineering services and the resulting custom-built equipment.
Direct Drive and Linear DC Motors
This part of the business focuses on designing and making highly precise electric motors. Unlike regular motors, direct drive and linear motors provide very controlled and exact movements, which are essential for delicate tasks in manufacturing things like semiconductors and electronics. Companies that need robotic arms or other automated equipment to perform with high accuracy buy these specialized motors from Tungray. This is a smaller but important part of their business.
Induction Welding Equipment Manufacturing
Tungray also designs and manufactures equipment for induction welding, a process that uses electricity to create heat and join metal parts together quickly and precisely. This is a more efficient and controlled method than using a traditional flame. Customers in industries that need to manufacture metal components with strong, clean welds purchase this specialized equipment. This represents another of the company's focused industrial product lines.
What management is betting on now
The company's main strategy is to continue focusing on being a specialized partner for manufacturers rather than competing on mass production. They are betting that large companies will always need unique, tailor-made solutions for their production lines to stay efficient and innovative. By concentrating on their technical know-how and ability to build small batches of custom equipment, they aim to be the go-to expert for solving specific, complex manufacturing challenges.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.26M
FY2025 Q4
$-3.85M
Revenue
$15.62M
Net income
$-170.28K
Diluted EPS
—
Operating cash flow
$-3.05M
Free cash flow
$-3.85M
Fetching…
Sources
Revenue
$12.81M
Net income
$-480.02K
Diluted EPS
—
Operating cash flow
$-811.89K
Free cash flow
$-1.26M
Fetching…
Sources
Is it cheap or expensive?
Fair value $10.39 vs current price $1.52
Our most-likely fair value is $10.39 a share — about 583.8% above today's price of $1.52, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $3.7M - more cash than debt. Interest coverage -1.5x.
Net debt
$-3.71M
Interest coverage
-1.50x
Tungray Technologies Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TRSG
BASELINE
Tungray Technologies Inc.
Total debt $2.92M Interest coverage -1.50x This is the baseline the peer rows are being compared against.
Total debt $8.38M Interest coverage -2.20x Neither company has much profit cushion over interest right now.
Total debt $2.52M Interest coverage -13.72x Neither company has much profit cushion over interest right now.
Total debt $4.89M Interest coverage -2.51x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -134.38x Neither company has much profit cushion over interest right now.
What you should know
The case for and against TRSG
2 Rewards
2 Risks
Rewards
-
Revenue grew 22.0% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from 20.1% to -6.4% over 3 years.
-
Return on equity was -1.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
1.35x
P/S
1.59x
EV/EBITDA
105.53x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
45.9%
Operating margin
-6.4%
Net margin
-0.1%
ROE
-1.0%
ROA
-0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
1.94x
Quick ratio
1.16x
Total debt
$2.92M
Total cash
$6.62M
Growth
How the business has been compounding
Revenue TTM
$59.13M
Revenue 5Y CAGR
-2.8%
EPS TTM
0.00
EPS 5Y CAGR
-55.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$230.52K
Free CF TTM
$-3.85M
FCF margin
-6.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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