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TTM Technologies, Inc.
Technology | Electronic Components
⚡ Executive Summary
📊 The Bottom Line
TTM Technologies, Inc. is a key player in the electronic components industry, manufacturing printed circuit boards and RF components. The company serves diverse high-growth sectors, including aerospace & defense and data center computing, but operates in a competitive and capital-intensive market. Its strategic focus on advanced technologies positions it for long-term growth.
⚖️ Risk vs Reward
TTMI currently trades at a premium valuation, with a forward P/E of 32.46. Analyst price targets suggest potential upside to US$123, but a low target of US$72 indicates considerable downside risk. The risk/reward appears balanced, favoring investors with a long-term view on high-tech component demand. Valuation multiples are above industry averages.
🚀 Why TTMI Could Soar
- • Strong demand from the aerospace and defense sector is expected to drive continued order volumes and sustained high-margin revenue growth for TTMI's specialized components.
- • Accelerated demand for advanced PCBs, particularly High-Density Interconnect (HDI) boards, driven by generative AI applications and data center expansion, could significantly boost revenue.
- • Strategic investments in new global manufacturing facilities (e.g., Penang, Syracuse) will enhance production capacity, improve supply chain resiliency, and attract new high-value customers.
⚠️ What Could Go Wrong
- • Intensified competition and potential pricing pressure within the fragmented electronic components market could erode TTMI's profit margins, impacting overall profitability and earnings.
- • Disruptions in global supply chains, coupled with volatile raw material costs (e.g., copper, epoxy resins), could lead to production delays and increased operating expenses.
- • A broader economic downturn or continued softness in certain end markets, such as the automotive sector, could dampen demand for TTMI's products and hinder revenue growth.
🏢 Company Overview
💰 How TTMI Makes Money
- • TTM Technologies manufactures and sells advanced printed circuit boards (PCBs) and specialized radio frequency (RF) components and assemblies.
- • The company primarily serves original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, and government agencies.
- • Key end markets include aerospace & defense, data center computing, automotive, medical/industrial/instrumentation, and networking.
- • TTMI provides value-added services such as design for manufacturability, PCB layout, simulation, testing, and quick-turnaround production.
- • Its product offerings encompass high-density interconnect (HDI) PCBs, flexible PCBs, rigid-flex PCBs, and mission-critical RF systems.
Revenue Breakdown
Aerospace & Defense
43%
High-reliability PCBs and RF components for defense and space applications.
Data Center Computing
24%
High-performance PCBs supporting generative AI and cloud infrastructure.
Medical/Industrial/Instrumentation
15%
Components for medical devices, industrial automation, and test equipment.
Automotive
10%
PCBs and RF solutions for advanced driver-assistance systems and in-car electronics.
Networking
8%
Advanced PCBs for communication infrastructure and AI-driven networking products.
🎯 WHY THIS MATTERS
TTMI's diversified revenue across critical, high-growth end markets like aerospace & defense and data center computing mitigates risk and provides multiple avenues for expansion. Its strategic focus on advanced technology products helps maintain competitive differentiation in a complex industry.
⭐ Competitive Advantage: What Makes TTMI Special
1. Specialized Technology and Manufacturing Capabilities
TTMI possesses advanced manufacturing capabilities for highly complex printed circuit boards (PCBs) and radio frequency (RF) components, including HDI, rigid-flex, and microelectronic assemblies. This expertise allows them to serve demanding applications in aerospace & defense and data center computing, where precision and reliability are paramount. Their ability to produce mission-critical components creates a barrier to entry for competitors lacking similar sophisticated processes.
2. Strong Position in High-Growth End Markets
The company has strategically positioned itself within rapidly growing sectors like advanced data center computing (especially for generative AI applications) and the consistently strong aerospace & defense market. This focus on markets with robust demand and higher barriers to entry ensures a steady stream of high-value projects and growth opportunities, differentiating them from more commodity-focused PCB manufacturers.
3. Diversified Global Manufacturing Footprint
TTMI operates a global manufacturing footprint, including facilities in North America and Asia, with recent investments in Malaysia. This diversification enhances supply chain resiliency, reduces geopolitical risks, and allows the company to cater to customers requiring localized production or specific regional capabilities. The ability to offer alternative manufacturing locations is a key competitive advantage, particularly in the current geopolitical climate.
🎯 WHY THIS MATTERS
These advantages collectively allow TTMI to maintain a strong position in high-value segments of the electronic components market. Their specialized capabilities and strategic market focus enable them to command better pricing and achieve higher margins, contributing to long-term profitability and competitive resilience.
👔 Who's Running The Show
Edwin Roks
President, CEO & Director
Dr. Edwin Roks, 60, President and CEO of TTM Technologies, leverages his technology background to drive strategic growth. He focuses on expanding into advanced technologies and high-growth markets like aerospace & defense and data center computing. His leadership prioritizes operational excellence and global manufacturing optimization for competitive advantage.
⚔️ What's The Competition
The electronic components and PCB manufacturing market is highly competitive and fragmented, characterized by rapid technological advancements, intense pricing pressure, and significant capital expenditure requirements. Competitors range from large diversified electronics manufacturers to specialized PCB fabricators, with competition based on technology, quality, lead times, and cost efficiency.
📊 Market Context
- Total Addressable Market - The global PCB market is US$85.2B in 2026, growing at 5.17% CAGR. It's driven by increasing electronics demand, automotive integration, and telecommunications expansion.
- Key Trend - The surge in demand for high-density interconnect (HDI) boards, crucial for AI servers, electric vehicles, and 5G infrastructure, is a key market trend.
Competitor
Description
vs TTMI
Zhen Ding Technology Holding Ltd
A leading global PCB manufacturer, specializing in flexible, HDI, and IC substrates for various electronics applications.
With a market cap of US$6.48B, Zhen Ding is a major player with a broader product portfolio. TTMI distinguishes itself with a strong focus on high-reliability aerospace and defense components.
Unimicron Technology Corp.
World's second-largest PCB and carrier manufacturer, with strong positions in mobile HDI and advanced substrate boards.
Unimicron is significantly larger (US$18.28B market cap) and deeply invested in high-end substrate technology. TTMI competes in high-performance computing, but Unimicron has a broader global footprint.
Tripod Technology Corp.
Taiwanese manufacturer of double-sided and multilayer PCBs, primarily for personal computers, communication products, and industrial instruments.
Tripod Technology (US$5.75B market cap) has a more traditional PCB product focus. TTMI differentiates itself with a greater emphasis on advanced technology and defense-oriented segments.
Market Share - Global Printed Circuit Board Market (2025)
Unimicron Technology Corp.
5.7%
Zhen Ding Technology Holding Ltd
4%
TTM Technologies
3%
Tripod Technology Corp.
2%
Others
85.3%
📊 Valuation & Analysis
📈 Wall Street Summary
Analyst Rating Distribution - 3 Buy, 1 Strong Buy
3
1
12-Month Price Target Range
Low Target
US$72
-27%
Average Target
US$103
+5%
High Target
US$123
+25%
Closing: US$98.20 (30 Jan 2026)
🚀 The Bull Case - Upside to US$123
1. AI-Driven Demand & Data Center Growth
High Probability
The surging demand for advanced PCBs crucial for generative AI applications and data center computing is a significant tailwind. TTMI's strong position in this segment (projected 24% of sales) could drive accelerated revenue growth and improved margins as complex, high-performance boards are required.
2. Aerospace & Defense Sector Strength
High Probability
Continued robust demand and positive budget tailwinds in the Aerospace & Defense (A&D) sector, which accounts for a substantial portion of TTMI's revenue (projected 43% of sales), provide a stable and growing base for high-margin business with strong program backlogs.
3. Strategic Manufacturing Expansion & Diversification
Medium Probability
Investments in new facilities, like Penang, Malaysia, and Syracuse, New York, enhance manufacturing capabilities for advanced technologies (e.g., ultra-HDI) and improve supply chain resiliency. These expansions are expected to contribute to increased capacity, operational efficiency, and the ability to capture higher-value business, boosting profitability.
🐻 The Bear Case - Downside to US$72
1. Intensified Competition & Pricing Pressure
Medium Probability
The electronic components market is highly competitive, with numerous global players. Increased competition could lead to pricing pressure, particularly in more commoditized PCB segments, potentially eroding TTMI's gross and operating margins, impacting earnings per share and investor confidence.
2. Supply Chain Disruptions & Raw Material Volatility
Medium Probability
TTMI is exposed to global supply chain vulnerabilities and volatility in raw material costs, such as copper and epoxy resins. Disruptions or significant price increases could lead to higher cost of goods sold, production delays, and hinder the company's ability to fulfill orders, impacting growth projections.
3. Weakness in Key End Markets
Medium Probability
While some segments show strength, continued softness in specific end markets like the automotive segment (which saw a YoY decline) could dampen overall revenue growth. A broader economic downturn could exacerbate this, impacting demand across multiple industrial sectors TTMI serves, leading to underperformance.
🔮 Final thought: Is this a long term relationship?
TTM Technologies appears to be a durable long-term investment for those believing in the continued growth of advanced electronics, particularly in aerospace & defense and AI-driven data center computing. Its strategic shift towards high-value, specialized components and diversified global manufacturing provides a resilient business model. Key risks include intense market competition and raw material cost volatility. Management's focus on operational excellence and strategic expansions, including new facilities in Malaysia and New York, positions TTMI to capitalize on future technological trends and maintain its competitive edge over the next decade.
📋 Appendix
Financial Performance
Metric
31 Dec 2024
31 Dec 2023
31 Dec 2022
Income Statement
Revenue
US$2.44B
US$2.23B
US$2.50B
Gross Profit
US$0.48B
US$0.41B
US$0.46B
Operating Income
US$0.16B
US$0.11B
US$0.16B
Net Income
US$0.06B
US$-0.02B
US$0.09B
EPS (Diluted)
0.54
-0.18
0.91
Balance Sheet
Cash & Equivalents
US$0.50B
US$0.45B
US$0.40B
Total Assets
US$3.47B
US$3.32B
US$3.32B
Total Debt
US$1.02B
US$1.02B
US$0.96B
Shareholders' Equity
US$1.56B
US$1.51B
US$1.54B
Key Ratios
Gross Margin
19.5%
18.5%
18.4%
Operating Margin
6.5%
5.0%
6.5%
Return on Equity
3.60
-1.24
6.16
Analyst Estimates
Metric
Annual (31 Dec 2025)
Annual (31 Dec 2026)
EPS Estimate
US$2.44
US$3.02
EPS Growth
+42.5%
+24.1%
Revenue Estimate
US$2.9B
US$3.2B
Revenue Growth
+18.1%
+12.0%
Number of Analysts
4
4
Valuation Ratios
| Metric | Value | Description |
|---|---|---|
| P/E Ratio (TTM) | 77.94 | Measures the current share price relative to the company's trailing twelve-month earnings per share, indicating how much investors are willing to pay for each dollar of earnings. |
| Forward P/E | 32.46 | Measures the current share price relative to the company's estimated future earnings per share, reflecting investor expectations for future profitability. |
| Price/Sales (TTM) | 3.65 | Indicates how much investors are willing to pay for each dollar of revenue generated over the past twelve months, often used for companies with inconsistent earnings. |
| Price/Book (MRQ) | 5.96 | Compares the stock's market price to its book value per share, revealing how investors value the company's net assets on its balance sheet. |
| EV/EBITDA | 28.21 | Compares the Enterprise Value (market cap plus net debt) to earnings before interest, taxes, depreciation, and amortization, useful for valuing companies with varying debt levels or depreciation policies. |
| Return on Equity (TTM) | 0.08 | Measures the net income generated as a percentage of shareholders' equity, indicating how efficiently the company is using shareholder investments to generate profits. |
| Operating Margin | 0.10 | Represents the percentage of revenue left after deducting operating expenses, showing how much profit a company makes from its core operations. |
Peer Comparison
| Company | Market Cap (B) | P/E Ratio | P/B Ratio | Revenue Growth (%) | Operating Margin (%) |
|---|---|---|---|---|---|
| TTM Technologies (Target) | 10.15 | 77.94 | 5.96 | 22.1% | 9.6% |
| Zhen Ding Technology Holding Ltd | 6.48 | 20.88 | 1.80 | 18.1% | 19.1% |
| Unimicron Technology Corp. | 18.28 | 38.68 | 2.72 | 12.0% | 3.7% |
| Tripod Technology Corp. | 5.75 | 19.08 | 3.18 | 12.2% | 17.3% |
| Sector Average | — | 26.21 | 2.57 | 14.1% | 13.4% |