One-glance verdict
Undervalued
$9.28 our estimate vs market $1.19
87% below our estimate, below the bear case
Fundamentals snapshot
Tungray Technologies Inc.
TRSG · NCM · Industrials · Metal Fabrication
Current price
$1.19
52-week range
$1.00 - $1.75
Market cap
$19.53M
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 Inc. creates specialized tools and machinery for manufacturing in the semiconductor and electronics industries. Their main income comes from designing and building these custom machines, which is important because it shows they are a key partner for companies making high-tech products.
How the company got here
Tungray Technologies Inc. was incorporated in June 2022 and is headquartered in Singapore. It operates as a holding company with its main business activities conducted through subsidiaries in Singapore and China. The company was founded by Wanjun Yao and recently went public on the Nasdaq Capital Market in April 2024. Despite its recent incorporation, some of its subsidiaries have a longer operational history, with one dating back to 1996. The company has faced scrutiny regarding the reliability of its financial statements for previous years, leading to investigations by law firms.
What it actually does
Tungray Technologies Inc. is an engineer-to-order (ETO) company. This means they design and build custom industrial manufacturing solutions based on specific customer requirements. They serve original equipment manufacturers (OEMs) – companies that make products sold under their own brand name – in various sectors, including semiconductors, printers, electronics, and home appliances.
Customized Industrial Manufacturing Solutions
This is Tungray's core business, where they create bespoke machinery and equipment tailored to the unique needs of their clients. These solutions can include automated assembly equipment, precision testing equipment, and tooling fixtures. Essentially, if a manufacturer needs a specialized machine to produce a specific part or product, Tungray designs and builds it for them. This segment serves as a significant portion of the company's overall operations.
Direct Drive and Linear DC Motors
Tungray designs and manufactures industrial-grade direct drive (DD) motors and linear direct current (DC) motors. These are specialized electric motors used in various industrial applications where precise movement and control are critical. They are components that can be integrated into larger manufacturing systems or used in specific machinery. This business line contributes to the company's revenue alongside its custom manufacturing solutions.
Induction Welding Equipment
Through its subsidiaries, Tungray also designs and manufactures induction welding equipment. This includes both manual and automatic machines used in the production of items like refrigerators, air conditioners, and heat pump clothes dryers. Induction welding uses electromagnetic fields to heat the material, allowing for precise and efficient joining of metal parts. This segment represents another distinct way Tungray generates revenue.
What management is betting on now
As a relatively new public company, Tungray Technologies is focused on establishing its market presence and delivering on its custom manufacturing solutions. The company's strategy relies on its engineer-to-order (ETO) model, emphasizing its ability to innovate and adapt to the specific technological needs of its clients in fast-paced industries like semiconductors and electronics. Management is likely focused on expanding its customer base and ensuring the reliability and quality of its engineered solutions to drive future growth and profitability.
Price history
How the share price has moved
—
Loading price history…
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 $9.28 vs current price $1.19
Our most-likely fair value is $9.28 a share — about 677.3% above today's price of $1.19, 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
1.06x
P/S
1.25x
EV/EBITDA
78.60x
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
0.0%
Payout ratio
0.0%
Last ex-div date
—