Tectonic Financial, Inc. (TECTP)
Valuation Overview•Is Tectonic Financial, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
TECTP demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($6M) and minimal debt risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (-12.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $20.4M | +9.7% | — | — | +13.0% | |
| EBITDA | $54K | — | — | — | — | |
| Net Income | $5.5M | -8.4% | -3.4% | — | +16.5% | |
| EPS (Diluted) | $0.73 | -10.2% | -8.6% | +11.4% | +1.1% | |
| Free Cash Flow | -$17.3M | -158.8% | -26.2% | -36.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 68.1% | 83.5% | 79.8% | 89.9% |
| Operating Margin | -12.9% | 39.6% | 36.9% | 42.8% |
| Net Margin | 3.6% | 21.9% | 22.2% | 19.9% |
| FCF Margin | -32.2% | -75.1% | -68.1% | -45.0% |
Total return is +2.9% (1Y), lagging the benchmark by -17.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -4.0% | -11.3% | — |
| 1Y | +2.9% | -17.9% | +8.1% |
| 3YCAGR | +8.8% | -10.6% | +29.4% |
| 5YCAGR | +8.7% | -3.3% | +49.0% |
| 10YCAGR | +5.1% | -8.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Tectonic Financial, Inc. (TECTP) valuation, health, and returns.
Based on peer relative multiples, Tectonic Financial, Inc. appears Slightly cheap versus peers compared to industry peers.
Tectonic Financial, Inc. has multiple valuation anchors: Peer Relative Fair Value: $11.21. A convergence of these signals offers higher conviction.
Tectonic Financial, Inc. displays fair financial health with a composite quality score of 45/100, supported by a Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 16.5%.
Tectonic Financial, Inc. pays a 6.5% dividend yield, covered by a 34% payout ratio with 2 years of growth, supplemented by a 4.4% buyback yield.
Tectonic Financial, Inc.'s current growth trajectory is Accelerating. The company achieved +9.7% 1Y revenue growth and -10.2% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Tectonic Financial, Inc. include: -13.8% 1-year max drawdown. Volatility risk is characterized by a beta of -0.07x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.