TBLT Low-Float Nas Listed Alert w/ Record Revenues + Huge Upside
Alert Price: $1.05
Price Target: $2.50
(Maxim Group)
Float: 38.6M
Technical Analysis
Company Website| Recent News
Homebuilding is booming.
The rising need for more work-at-home space and record-low borrowing costs have ushered in a bullish building market.
There are several ways to capitalize on this homebuilding boom, but none as attractive as our latest trade idea.
Please turn your immediate attention to ToughBuilt Industries, Inc. (TBLT).
This NASDAQ listed company trades at just above a $1.00, but Wall St. analysts believe it is highly undervalued at these levels.
Equity research firm Maxim Group recently slapped on a $2.50 price target, which represents an upside of over +138% from today's alert price.
Those looking for a potential triple-digit ROI should add TBLT to the top of their watchlists immediately.
About Toughbuilt Industries Inc.
ToughBuilt Industries, Inc. is an advanced product design, manufacturer and distributor with emphasis on innovative products. Currently focused on tools and other accessories for the professional and do-it-yourself construction industries. We market and distribute various home improvement and construction product lines for both the do-it-yourself and professional markets under the TOUGHBUILT brand name, within the global multibillion dollar per year tool market industry. All of our products are designed by our in-house design team. Since launching product sales in 2013, we have experienced significant annual sales growth. Our current product line includes three major categories, with several additional categories in various stages of development, consisting of Soft Goods & Kneepads and Sawhorses & Work Products. Our mission is to provide products to the building and home improvement communities that are innovative, of superior quality derived in part from enlightened creativity for our end users while enhancing performance, improving well-being and building high brand loyalty. Additional information about the Company is available on the company website
TBLT Tools Now Available For Purchase At Lowe's
Last month, the Company announced the launch of Cutting products consisting of Shears, Knives and Aviation Snips, at Lowe’s USA stores.
Michael Panosian, Chief Executive Officer of ToughBuilt, stated, “We are very pleased to be adding new hand tools at Lowe’s. We believe our new pro quality Shear, Knives and Aviation Snip lines will be a positive addition to the Lowe’s wide offering in the cutting hand tool categories. This is another key accomplishment for us as we continue to expand our hand tool lines.
The shears are available nationwide at Lowe’s stores. The aviation snips and knives are currently available on the west coast stores. All items are available on Lowes.com. Please see the Shear, Aviation Snip and the Knife videos.
TBLT Announces Record Q3 2020
Revenues Increase 248% in third quarter 2020 vs. 2019
Company reaches profitability in the third quarter
Operating Results for the Three Months Ended September 30, 2020
Net sales for three-month period ended September 30, 2020 were $16.6 million, an increase of 248% from $4.7 million for the same period in 2019.
Gross profit increased by 410% to $7.5 million for the three months ended Sept 30, 2020, from $1.4 million in the same period in 2019.
Income from operations for the three months ended Sept 30, 2020 was $335,000, compared to a loss of $2.4 million for the same period in 2019.
Net Income was $120,000 for the three months ended Sept 30, 2020, compared to a net loss of $2.6 million in the same period in 2019.
Operating Results for the Nine Months Ended September 30, 2020
Net sales for the nine-month period ended Sept 30, 2020 were $27.4 million, an increase of 88% from $14.5 million for the same period in 2019.
Gross profit increased by 203% to $11.6 million in the nine months ended Sept 30, 2020, from $3.8 million for the same period in 2019.
Loss from operations for the nine months ended Sept 30, 2020 was $5.3 million, compared to a loss of $6.4 million for the same period in 2019.
Net loss for the nine-month period ended Sept 30, 2020 was $6.1 million, compared to a net loss of $2.1 million for the same period in 2019.
Michael Panosian, ToughBuilt’s Chief Executive Officer, commented, “ToughBuilt delivered record financial results across the board, despite the Covid-19 pandemic impacting the industry globally. I am proud of our tough team and grateful to all retail partners, international manufacturers and global distributors for their amazing support and efforts. We continue to navigate today’s complex business landscape and are encouraged to implement more development and growth in all Markets.”
“During the third quarter, we increased our inventory levels to ensure timely delivery of products, increased our product pipeline, expanded our customer and manufacturing relationships internationally and utilized our Amazon.com storefront to create more brand awareness and sales to service our end users. We remain committed and confident to providing market-leading innovative quality products for the professionals and other passionate builders.”
Maxim Group Slaps On $2.50 Price Target (+139% Upside)
Raising Estimates and PT to $2.50, from $2, as 3Q Beats Across the Board; We See Multiple Growth Catalysts – Reiterate Buy
Summary
3Q20 beats across the board as solid segment sales drive total revenue up 248% y/y and positive GAAP net income.
Previously announced major partnerships, including Lowe's, are likely to serve as a significant sales catalyst for ToughBuilt.
We raise estimates despite continued uncertainty due to extended impact from COVID-19, but we remain confident in the company’s near-term growth initiatives.
Given the recent $20M+ public offering of common shares and warrants in June, we do not believe TBLT will require additional capital in the foreseeable future.
TBLT is up 14% QTD, but down 60% YTD; with shares trading at 0.4x our increased 2021 revenue estimate vs. peers at 2.0x, we reiterate our Buy rating and increase our price target to $2.50, from $2, representing 1.5x our 2021 revenue estimate.
Source: on request
Market Outlook
Analysts expect home improvement spending to reach $439.9 billion in 2020 - In the time of a global pandemic, there is indeed no place like home. As millions of Americans practice social distancing while working and learning remotely, the home has become the focal point of our lives. The desire to make residences safer, more comfortable and more enjoyable has led to a home improvement boom.
The Home Improvement Research Institute predicts Americans will spend $439.9 billion on home improvement products in 2020. The online home remodeling platform Houzz reports that demand for kitchen and bath remodeling was up 40% year over date in June 2020, while home additions increased 52% and fencing projects jumped 166%. Pool and hot tub installations are seeing a wave of strong demand across the country.
Technical Analysis
TBLT's Chart Is Showing Several Breakout Signals
We've done our very own chart analysis and see the potential for a big move from here!
Bullish Indicators
Stock is coming out of a huge base built throughout 2020.
Volume is increasing in tandem with the strengthening fundamentals.
CMF on verge of breaking from range.
7 and 12MA's rising in strong support.
The Bottom Line
All around the country people remain locked up at home, staring at the same four walls day in and day out because of the pandemic. The desire to improve one's home, the need for something new and the sheer monotony of remaining indoors all day have led to a surge of interest among consumers in home improvement projects. Do-it-yourself projects and renovations are on the rise around the country. Companies that can supply customers with everything they need to spruce up their homes are enjoying impressive gains as a result.
It is for this reason that we believe that TBLT will see significant returns in the short, medium, and long-term.
Those looking for a potential triple-digit ROI should add TBLT to the top of their watchlists immediately.By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)
Sources can be provided upon request as this platform does not allow such clarifications to be used.