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 66 industry peers in the Aerospace & Defense industry. TGI has a medium profitability rating, but doesn't score so well on its financial health evaluation. TGI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TGI was profitable.
In the past year TGI had a positive cash flow from operations.
In multiple years TGI reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: TGI reported negative operating cash flow in multiple years.
1.2 Ratios
TGI has a Return On Assets of 2.51%. This is comparable to the rest of the industry: TGI outperforms 48.48% of its industry peers.
TGI has a better Return On Invested Capital (11.13%) than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TGI is in line with the industry average of 8.47%.
The last Return On Invested Capital (11.13%) for TGI is above the 3 year average (8.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | N/A | ||
| ROIC | 11.13% |
ROA(3y)12.71%
ROA(5y)3.46%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.29%
ROIC(5y)7.37%
1.3 Margins
The Profit Margin of TGI (3.24%) is comparable to the rest of the industry.
The Operating Margin of TGI (12.56%) is better than 78.79% of its industry peers.
In the last couple of years the Operating Margin of TGI has grown nicely.
With a decent Gross Margin value of 31.55%, TGI is doing good in the industry, outperforming 71.21% of the companies in the same industry.
In the last couple of years the Gross Margin of TGI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.56% | ||
| PM (TTM) | 3.24% | ||
| GM | 31.55% |
OM growth 3Y14.98%
OM growth 5Y13.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y9.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TGI is destroying value.
The number of shares outstanding for TGI has been increased compared to 1 year ago.
TGI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TGI has been reduced compared to a year ago.
2.2 Solvency
TGI has an Altman-Z score of 1.60. This is a bad value and indicates that TGI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.60, TGI is doing worse than 75.76% of the companies in the same industry.
TGI has a debt to FCF ratio of 51.66. This is a negative value and a sign of low solvency as TGI would need 51.66 years to pay back of all of its debts.
With a Debt to FCF ratio value of 51.66, TGI perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 51.66 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.97
WACC11.49%
2.3 Liquidity
A Current Ratio of 2.22 indicates that TGI has no problem at all paying its short term obligations.
TGI's Current ratio of 2.22 is in line compared to the rest of the industry. TGI outperforms 50.00% of its industry peers.
TGI has a Quick Ratio of 1.32. This is a normal value and indicates that TGI is financially healthy and should not expect problems in meeting its short term obligations.
TGI's Quick ratio of 1.32 is in line compared to the rest of the industry. TGI outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
TGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1383.33%, which is quite impressive.
Measured over the past years, TGI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.53% on average per year.
The Revenue for TGI has decreased by -16.93% in the past year. This is quite bad
The Revenue for TGI have been decreasing by -15.33% on average. This is quite bad
EPS 1Y (TTM)1383.33%
EPS 3Y4.05%
EPS 5Y-18.53%
EPS Q2Q%54.84%
Revenue 1Y (TTM)-16.93%
Revenue growth 3Y-0.02%
Revenue growth 5Y-15.33%
Sales Q2Q%5.38%
3.2 Future
The Earnings Per Share is expected to grow by 28.85% 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 10.34% yearly.
EPS Next Y23.07%
EPS Next 2Y29.74%
EPS Next 3Y28.85%
EPS Next 5YN/A
Revenue Next Year11.67%
Revenue Next 2Y9.26%
Revenue Next 3Y8.88%
Revenue Next 5Y10.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 29.08, TGI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TGI is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.50, TGI is valued at the same level.
With a Price/Forward Earnings ratio of 23.63, TGI is valued on the expensive side.
TGI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGI is cheaper than 69.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TGI to the average of the S&P500 Index (36.44), we can say TGI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 23.63 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than TGI, based on the Enterprise Value to EBITDA ratio.
TGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 106.82 | ||
| EV/EBITDA | 14.4 |
4.3 Compensation for Growth
TGI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TGI's earnings are expected to grow with 28.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y29.74%
EPS Next 3Y28.85%
5. Dividend
5.1 Amount
TGI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.88
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners101.98%
Inst Owner Change0%
Ins Owners2.14%
Ins Owner Change4.16%
Market Cap2.01B
Analysts70
Price Target21.81 (-15.73%)
Short Float %12.36%
Short Ratio7
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)37.56%
Min EPS beat(2)35.53%
Max EPS beat(2)39.6%
EPS beat(4)3
Avg EPS beat(4)783.17%
Min EPS beat(4)-10.77%
Max EPS beat(4)3068.32%
EPS beat(8)5
Avg EPS beat(8)380.69%
EPS beat(12)9
Avg EPS beat(12)529.14%
EPS beat(16)12
Avg EPS beat(16)402.98%
Revenue beat(2)2
Avg Revenue beat(2)8.81%
Min Revenue beat(2)6.92%
Max Revenue beat(2)10.7%
Revenue beat(4)4
Avg Revenue beat(4)5.31%
Min Revenue beat(4)0.55%
Max Revenue beat(4)10.7%
Revenue beat(8)7
Avg Revenue beat(8)0.74%
Revenue beat(12)11
Avg Revenue beat(12)2.32%
Revenue beat(16)11
Avg Revenue beat(16)0.05%
PT rev (1m)0%
PT rev (3m)3.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 23.63 | ||
| P/S | 1.59 | ||
| P/FCF | 106.82 | ||
| P/OCF | 53.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.4 |
EPS(TTM)0.89
EY3.44%
EPS(NY)1.1
Fwd EY4.23%
FCF(TTM)0.24
FCFY0.94%
OCF(TTM)0.49
OCFY1.88%
SpS16.24
BVpS-0.98
TBVpS-8.3
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | N/A | ||
| ROCE | 12.86% | ||
| ROIC | 11.13% | ||
| ROICexc | 14.36% | ||
| ROICexgc | 35.5% | ||
| OM | 12.56% | ||
| PM (TTM) | 3.24% | ||
| GM | 31.55% | ||
| FCFM | 1.49% |
ROA(3y)12.71%
ROA(5y)3.46%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.29%
ROIC(5y)7.37%
ROICexc(3y)10.84%
ROICexc(5y)9.74%
ROICexgc(3y)26.38%
ROICexgc(5y)24.28%
ROCE(3y)9.58%
ROCE(5y)8.52%
ROICexcg growth 3Y7.93%
ROICexcg growth 5Y4.96%
ROICexc growth 3Y13.48%
ROICexc growth 5Y4.89%
OM growth 3Y14.98%
OM growth 5Y13.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y9.07%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 51.66 | ||
| Debt/EBITDA | 5.12 | ||
| Cap/Depr | 64.41% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 20.15% | ||
| Profit Quality | 46.07% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.6 |
F-Score5
WACC11.49%
ROIC/WACC0.97
Cap/Depr(3y)68.55%
Cap/Depr(5y)54.45%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1383.33%
EPS 3Y4.05%
EPS 5Y-18.53%
EPS Q2Q%54.84%
EPS Next Y23.07%
EPS Next 2Y29.74%
EPS Next 3Y28.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.93%
Revenue growth 3Y-0.02%
Revenue growth 5Y-15.33%
Sales Q2Q%5.38%
Revenue Next Year11.67%
Revenue Next 2Y9.26%
Revenue Next 3Y8.88%
Revenue Next 5Y10.34%
EBIT growth 1Y16.86%
EBIT growth 3Y14.96%
EBIT growth 5Y-4.26%
EBIT Next Year56.27%
EBIT Next 3Y25.52%
EBIT Next 5YN/A
FCF growth 1Y252.04%
FCF growth 3YN/A
FCF growth 5Y-19.84%
OCF growth 1Y301.2%
OCF growth 3YN/A
OCF growth 5Y-17.09%