Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Tel-Instrument Electronics Corp. (TIKK) specializes in the development, production, and distribution of sophisticated test and measurement equipment for aircraft electronics. The company caters to a diverse clientele, including commercial air transport providers, general aviation operators, and governmental/military aerospace and defense entities, serving both domestic and international markets. Its operations are segmented into two main divisions: Avionics Government and Avionics Commercial. The company's product line is designed to facilitate the comprehensive testing, measurement, calibration, and repair of various airborne navigation and communication systems. Key offerings include the TS-4530A and T-4530i, which are specialized Identification Friend or Foe (IFF) transponder test sets, alongside the T-47/M5, a dual cryptographic test solution. Additionally, Tel-Instrument Electronics provides AN/USM-708 and AN/USM-719 radio frequency avionics flight line testers for communication and navigation systems, the SDR-OMNI avionics test suite, and the Lockheed Martin MADL test set, specifically engineered for the F-35's secure communication radio. The company reaches its customer base either directly or through an established network of distributors. Established in 1947, Tel-Instrument Electronics Corp. maintains its corporate headquarters in East Rutherford, New Jersey.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA.