Trio-Tech (TRT) Is in League of Its Own

NIA decided to do a stock screen to see if there are any other stocks on major U.S. exchanges as undervalued as Trio-Tech International (TRT).

We started by excluding Canadian exchanges, U.S. OTC listed companies, and financial services companies. We were left with 8,597 non-financial services companies on major U.S. exchanges.

We created a filter for only companies with an insanely low enterprise value/revenue ratio of between 0 and 0.30. We were left with only 235 companies.

We created a filter to include only companies with positive net income over the trailing twelve-month period. We were left with only 72 companies.

We created a filter to include only companies with positive free cash flow over the trailing twelve-month period. We were left with only 52 companies.

We created a filter to include only companies with positive revenue growth in its most recent quarter on a year-over-year basis. We were left with only 23 companies.

We created a filter to include only companies with positive net cash positions. We were left with only 11 companies.

We created a filter to include only companies trading for below tangible book value. We were left with only 2 companies:

Coffee Holding Co Inc (JVA) and Trio-Tech International (TRT)

JVA is only a coffee company. TRT is an international technology conglomerate founded in 1958 with 676 employees working across five countries!

Many of the world's largest AI and EV semiconductor manufacturers are TRT clients!

The three closest publicly traded comparisons to Trio-Tech International (TRT) are:

1) AEHR Test Systems (AEHR), which gained by 20.27% on Friday and trades with an enterprise value/revenue ratio of 7.43 despite its revenue declining by 36.4% in its most recent quarter. In November 2011, AEHR bottomed at an enterprise value/revenue ratio of less than 0.04 and has since seen its multiple increase more than 185X higher.

2) Advantest Corporation (TSE: 6857), which gained by 31.68% over the past month alone and closed last week at a new all-time high with an enterprise value/revenue ratio of 10.95 its highest valuation multiple in history. In September 2015, Advantest bottomed at an enterprise value/revenue ratio of less than 0.60 and has since seen its multiple increase more than 18X higher.

3) Teradyne (TER), which has gained by 4,611% from its November 2008 low of $2.80 per share where it bottomed at an enterprise value/revenue ratio of less than 0.30 almost the exact same multiple TRT is trading at today. At its current price of $131.91 per share, TER has a current enterprise value/revenue ratio of 7.79 or more than 26X higher than in November 2008.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.