TTM Technologies Stock Is Growing Fast, but Cash Hasn’t Caught Up

Revenue up 37.4% over the trailing twelve months sounds like a company firing on all cylinders, yet TTM Technologies, Inc. has produced negative free cash flow of $19M over the same stretch. This TTM Technologies, Inc. stock analysis looks at why the model lands on a Hold signal despite the growth headline.

What Is Happening With the Stock Price

TTMI trades at $71.90, against a two-year range of $17.78 to $216.44. That puts the shares in the lower end of that range, well below the two-year high but far above the low. The spread between the two extremes is wide, which points to a stock whose valuation has swung sharply as sentiment around its end markets changed. With a market cap of $7.58B and a P/E of 32.54 on EPS of $2.21, the market is still paying a meaningful multiple for earnings that have only recently accelerated.

Quality: Is This a Financially Sound Business?

Margins are thin, as is typical for a manufacturer of electronic components: gross margin is 21.2%, operating margin 10.9% and net profit margin 7.0%. On revenue of $3.4B, that net margin implies net income of roughly $237M, yet free cash flow is negative at -$19M, a FCF yield of -0.3%. Earnings are therefore not currently backed by cash, which is a finding rather than a footnote: heavy investment or working capital needs to support rapid growth may explain it, but the data cannot confirm the cause.

The balance sheet is steadier. Debt-to-equity is 0.57, the current ratio 1.78 and the quick ratio 1.44, suggesting short-term obligations are covered. Return on equity of 13.3% and return on assets of 5.2% are respectable rather than exceptional. This TTM Technologies, Inc. stock analysis gives the business a Quality score of 44 out of 100, reflecting decent liquidity offset by modest margins and weak cash conversion.

Growth: Does This Company Have Real Upside?

Growth is the standout. Revenue grew 37.4% over the trailing twelve months, a sharp step up from the 5-year CAGR of 5.2%, and earnings growth over the TTM period was 92.5%. That contrast suggests a recent acceleration rather than a long-running trend, and acceleration of this kind can fade as comparisons toughen. EV/Revenue of 3.36 is moderate for this pace of expansion, but with a gross margin of 21.2% there is limited room for error if costs rise. The Growth score is 50 out of 100.

Opportunity: Is Now a Good Time to Enter?

Valuation is the weaker pillar. A P/E of 32.54, EV/EBITDA of 23.25 and price-to-book of 3.92 are not cheap for a business with single-digit net margins and no free cash flow. The lower-end price position adds some contrarian interest, but a drop from the two-year high does not by itself make a stock inexpensive. The Opportunity score is 33 out of 100.

TTM Technologies, Inc. Stock Analysis: The Bottom Line

The three pillars point in different directions: strong recent growth, modest quality with negative free cash flow, and a valuation that already prices in much of the improvement. The combined Recommendation Score is 42 out of 100, which maps to a Hold signal. The bull case rests on the revenue and earnings acceleration continuing and cash flow turning positive; the bear case is that growth normalizes toward its 5-year pace while the shares still carry a P/E above 30. The main risk is that earnings fail to convert to cash. Buy / Hold / Sell reflects StreetBriefs’ quantitative scoring model, a data-driven signal for further research and not a personalized recommendation to transact.