TrioTech International reported a solid Q4 2024 with revenue of $9.746 million, up 7.35% year over year and down 6.27% quarter over quarter. Gross margin expanded modestly to 27.55%, while operating margin stood at 3.67% and net margin at 2.49%, underscoring a disciplined cost structure in a relatively small but diversified semiconductor equipment business. Net income of $0.243 million and basic EPS of $0.0572 reflect the low-margin, high-precision nature of the company’s Testing, Manufacturing, and Distribution segments, even as the balance sheet remains exceptionally cash-rich.
The company entered the period with a robust liquidity profile: total assets of $42.54 million and a healthy current ratio of 3.42, quick ratio of 3.08, and cash-related strength that yields a net cash position (net debt of -$7.18 million). Operating cash flow was modest at $0.045 million for the quarter, with capital expenditures of $0.334 million and free cash flow of approximately -$0.289 million, indicating ongoing investment activity that modestly weighed on cash flow even as the company continued to fund growth and maintain liquidity. The balance sheet shows a measured leverage profile (total debt $2.85 million; debt to equity 0.091x) and substantial equity (stockholders’ equity $31.33 million).
Looking ahead, management did not publish explicit quarterly guidance in the provided data. The investment case rests on the ability to leverage TRT’s cash position and diversified segment mix to navigate cyclical semiconductor demand, coupled with potential operating efficiencies and selective growth opportunities in high-potential regions. The stock’s valuation metrics (P/S ~2.64x and P/E ~26.4x) suggest a conservative premium given earnings stability, but the small-scale business and cyclical exposure imply a cautious stance until scale and free cash flow visibility improve.