TechPrecision Corporation: Improving Financials, But Remains Overvalued

Nov. 30, 2022 3:38 PM ETTechPrecision Corporation (TPCS)12 Comments

Summary

  • TPCS has grown its sales by almost 80% in the last quarter compared to the year prior, outpacing costs.
  • Coupled with improvements in Opex as a % of sales, EBITDA margin for the quarter improved to above 12% from below 6% the year prior.
  • Despite these improvements, the share price remains overvalued compared to peers on an EV/EBITDA basis.

Female Steel Factory Worker at work

Lim Weixiang - Zeitgeist Photos

Thesis

TechPrecision Corporation (OTCQB:TPCS) is having a successful year with growing sales and profit margins. Despite the financial improvements, and the share price being down on the year, the stock remains overvalued compared to peers on an

Share price

Seeking Alpha

Revenue split

10-Q

Sales chart

10-Q

Gross Profit

10-Q

SG&A

10-Q

EBITDA

10-Q

EV.EBITDA Valuations

Seeking Alpha

This article was written by

Focus on value and special situations. Anything I write is simply my personal opinion and should not be taken as trading advice.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (12)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.