TRIUMPH GROUP INC (TGI) Stock Fundamental Analysis
NYSE:TGI - New York Stock Exchange, Inc. - US8968181011 - Common Stock - Currency: USD
Overall TGI gets a fundamental rating of 4 out of 10. We evaluated TGI against 64 industry peers in the Aerospace & Defense industry. While TGI is still in line with the averages on profitability rating, there are concerns on its financial health. TGI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TGI was profitable.
TGI had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TGI reported negative net income in multiple years.
In multiple years TGI reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 37.05%, TGI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.14%, TGI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TGI is in line with the industry average of 7.79%.
The last Return On Invested Capital (10.14%) for TGI is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.05% | ||
| ROE | N/A | ||
| ROIC | 10.14% |
ROA(3y)11.06%
ROA(5y)2.76%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
TGI has a Profit Margin of 45.07%. This is amongst the best in the industry. TGI outperforms 100.00% of its industry peers.
TGI's Operating Margin of 12.45% is fine compared to the rest of the industry. TGI outperforms 79.69% of its industry peers.
In the last couple of years the Operating Margin of TGI has grown nicely.
The Gross Margin of TGI (30.51%) is better than 68.75% of its industry peers.
TGI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.45% | ||
| PM (TTM) | 45.07% | ||
| GM | 30.51% |
OM growth 3Y28.2%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.63%
GM growth 5Y16.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TGI is destroying value.
TGI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TGI has more shares outstanding
Compared to 1 year ago, TGI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that TGI is in the distress zone and has some risk of bankruptcy.
TGI's Altman-Z score of 1.61 is on the low side compared to the rest of the industry. TGI is outperformed by 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.61 |
ROIC/WACC0.92
WACC10.97%
2.3 Liquidity
A Current Ratio of 2.50 indicates that TGI has no problem at all paying its short term obligations.
The Current ratio of TGI (2.50) is comparable to the rest of the industry.
A Quick Ratio of 1.23 indicates that TGI should not have too much problems paying its short term obligations.
The Quick ratio of TGI (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
TGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 414.29%, which is quite impressive.
The earnings per share for TGI have been decreasing by -51.82% on average. This is quite bad
TGI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.03%.
The Revenue for TGI have been decreasing by -18.74% on average. This is quite bad
EPS 1Y (TTM)414.29%
EPS 3YN/A
EPS 5Y-51.82%
EPS Q2Q%268.75%
Revenue 1Y (TTM)-20.03%
Revenue growth 3Y-13.93%
Revenue growth 5Y-18.74%
Sales Q2Q%10.77%
3.2 Future
The Earnings Per Share is expected to grow by 134.40% on average over the next years. This is a very strong growth
TGI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.12% yearly.
EPS Next Y1154.37%
EPS Next 2Y326.28%
EPS Next 3Y192.39%
EPS Next 5Y134.4%
Revenue Next Year-0.24%
Revenue Next 2Y5.16%
Revenue Next 3Y5.75%
Revenue Next 5Y8.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.31, which means the current valuation is very expensive for TGI.
Based on the Price/Earnings ratio, TGI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
TGI is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.65, TGI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TGI is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, TGI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 22.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGI indicates a somewhat cheap valuation: TGI is cheaper than 71.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.9 |
4.3 Compensation for Growth
TGI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TGI may justify a higher PE ratio.
TGI's earnings are expected to grow with 192.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y326.28%
EPS Next 3Y192.39%
5. Dividend
5.1 Amount
No dividends for TGI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.7
-0.16 (-0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners105.81%
Inst Owner Change0%
Ins Owners2.14%
Ins Owner Change-0.8%
Market Cap1.91B
Analysts51.43
Price Target21.18 (-14.25%)
Short Float %5.03%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1553.96%
Min EPS beat(2)39.6%
Max EPS beat(2)3068.32%
EPS beat(4)3
Avg EPS beat(4)788.1%
Min EPS beat(4)-10.77%
Max EPS beat(4)3068.32%
EPS beat(8)5
Avg EPS beat(8)382.31%
EPS beat(12)8
Avg EPS beat(12)525.43%
EPS beat(16)12
Avg EPS beat(16)402.34%
Revenue beat(2)2
Avg Revenue beat(2)3.74%
Min Revenue beat(2)0.55%
Max Revenue beat(2)6.92%
Revenue beat(4)4
Avg Revenue beat(4)3.58%
Min Revenue beat(4)0.55%
Max Revenue beat(4)6.92%
Revenue beat(8)7
Avg Revenue beat(8)0.97%
Revenue beat(12)10
Avg Revenue beat(12)0.97%
Revenue beat(16)11
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)15.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.54%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 22.65 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.9 |
EPS(TTM)0.72
EY2.91%
EPS(NY)1.09
Fwd EY4.41%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)-0.41
OCFYN/A
SpS16.05
BVpS-1.06
TBVpS-8.41
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.05% | ||
| ROE | N/A | ||
| ROCE | 12.83% | ||
| ROIC | 10.14% | ||
| ROICexc | 11.4% | ||
| ROICexgc | 24.26% | ||
| OM | 12.45% | ||
| PM (TTM) | 45.07% | ||
| GM | 30.51% | ||
| FCFM | N/A |
ROA(3y)11.06%
ROA(5y)2.76%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)8.52%
ROICexc(5y)8.34%
ROICexgc(3y)21.87%
ROICexgc(5y)20.78%
ROCE(3y)8.29%
ROCE(5y)7.92%
ROICexcg growth 3Y24.4%
ROICexcg growth 5YN/A
ROICexc growth 3Y17.86%
ROICexc growth 5YN/A
OM growth 3Y28.2%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.63%
GM growth 5Y16.22%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.21 | ||
| Cap/Depr | 70.36% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.61 |
F-Score5
WACC10.97%
ROIC/WACC0.92
Cap/Depr(3y)60.28%
Cap/Depr(5y)47.33%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)414.29%
EPS 3YN/A
EPS 5Y-51.82%
EPS Q2Q%268.75%
EPS Next Y1154.37%
EPS Next 2Y326.28%
EPS Next 3Y192.39%
EPS Next 5Y134.4%
Revenue 1Y (TTM)-20.03%
Revenue growth 3Y-13.93%
Revenue growth 5Y-18.74%
Sales Q2Q%10.77%
Revenue Next Year-0.24%
Revenue Next 2Y5.16%
Revenue Next 3Y5.75%
Revenue Next 5Y8.12%
EBIT growth 1Y10.72%
EBIT growth 3Y10.34%
EBIT growth 5YN/A
EBIT Next Year44.86%
EBIT Next 3Y28.26%
EBIT Next 5Y23.22%
FCF growth 1Y47.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.61%
OCF growth 3YN/A
OCF growth 5YN/A