TTM Technologies (TTMI) Stock May Be Undervalued As Fresh Buybacks Begin

TTM Technologies has seen a sharp pullback over the past month after a very strong multi year run, which naturally raises the question of whether the current share price still lines up with what its earnings can support. With sentiment swinging and the stock now reacting to new capital return plans, the focus turns to what investors are really paying for each dollar of profit.

• Over the past 3 years, TTM Technologies has returned about 367.1%, so a lot of the discussion now revolves around whether its earnings profile can carry that kind of rerating.

• The company has completed a US$100 million share repurchase and approved another US$100 million program that may support per share earnings if profits hold up against the reduced share count.

• There is a second opinion on TTM Technologies worth weighing. See what analysts think TTM Technologies’s shares could be worth.

The issue now is whether TTM Technologies’ current valuation multiple is justified by its earnings power after this mix of strong long term gains and fresh buyback activity.

If you are weighing whether TTM Technologies’ recent pullback and buyback activity still leave room at its current P/E, it can help to compare that earnings story with 39 high quality undervalued stocks.

Does TTM Technologies Look Undervalued on Earnings?

The P/E lens suits TTM Technologies because earnings are a key focus for a business that is not paying a dividend and is committing cash to buybacks. On this metric, the stock trades on about 26.1x earnings, which is slightly above both the Electronic industry average of roughly 25.1x and a peer group closer to 24.2x. That cluster of numbers points to investors paying a modest premium for each dollar of profit compared with similar hardware makers.

Because management has just completed a US$100 million repurchase and lined up another US$100 million program, you are looking at a multiple that already reflects that confidence yet still appears low against a fair P/E level implied by the company’s growth profile and risk. The current ratio sits below that tailored fair benchmark, so the market is not pricing TTM Technologies as fully as those fundamentals might support. Explore the numbers behind TTM Technologies’s P/E valuation.

The TTM Technologies Narrative: What Would Justify Today’s Price?

Narratives for TTM Technologies pick up where the P/E puzzle leaves off, spelling out which growth, margin and earnings paths would need to play out for the share price to look meaningfully higher or lower than it is today. They sit on Simply Wall St’s Community page, and each one treats fair value as a thesis about how TTM Technologies’ business might evolve over time that you can watch either hold up or break down against new information.