TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWI - US88830M1027 - Common Stock
8.88 USD
-0.29 (-3.16%)
8.88 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TWI. TWI was compared to 132 industry peers in the Machinery industry. TWI may be in some trouble as it scores bad on both profitability and health. TWI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TWI was profitable.
- TWI had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: TWI reported negative net income in multiple years.
- TWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TWI's Return On Assets of -0.35% is on the low side compared to the rest of the industry. TWI is outperformed by 71.21% of its industry peers.
- The Return On Equity of TWI (-1.07%) is worse than 68.94% of its industry peers.
- TWI has a worse Return On Invested Capital (0.89%) than 70.45% of its industry peers.
- TWI had an Average Return On Invested Capital over the past 3 years of 11.56%. This is in line with the industry average of 10.24%.
- The last Return On Invested Capital (0.89%) for TWI is well below the 3 year average (11.56%), which needs to be investigated, but indicates that TWI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.07% | ||
| ROIC | 0.89% |
ROA(3y)6.49%
ROA(5y)3.56%
ROE(3y)20.66%
ROE(5y)9.99%
ROIC(3y)11.56%
ROIC(5y)N/A
1.3 Margins
- TWI has a Operating Margin of 0.82%. This is in the lower half of the industry: TWI underperforms 70.45% of its industry peers.
- In the last couple of years the Operating Margin of TWI has declined.
- Looking at the Gross Margin, with a value of 13.28%, TWI is doing worse than 84.09% of the companies in the same industry.
- In the last couple of years the Gross Margin of TWI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.82% | ||
| PM (TTM) | N/A | ||
| GM | 13.28% |
OM growth 3Y-23.6%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.71%
GM growth 5Y10.29%
2. Health
2.1 Basic Checks
- TWI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- TWI has more shares outstanding than it did 1 year ago.
- TWI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for TWI is higher compared to a year ago.
2.2 Solvency
- TWI has an Altman-Z score of 1.87. This is not the best score and indicates that TWI is in the grey zone with still only limited risk for bankruptcy at the moment.
- TWI has a worse Altman-Z score (1.87) than 68.94% of its industry peers.
- A Debt/Equity ratio of 0.98 indicates that TWI is somewhat dependend on debt financing.
- TWI has a Debt to Equity ratio of 0.98. This is in the lower half of the industry: TWI underperforms 76.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.09
WACC10%
2.3 Liquidity
- A Current Ratio of 2.28 indicates that TWI has no problem at all paying its short term obligations.
- The Current ratio of TWI (2.28) is comparable to the rest of the industry.
- TWI has a Quick Ratio of 1.25. This is a normal value and indicates that TWI is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.25, TWI perfoms like the industry average, outperforming 53.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- TWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.78%.
- TWI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
- The Revenue has decreased by -2.75% in the past year.
- Measured over the past years, TWI shows a small growth in Revenue. The Revenue has been growing by 4.97% on average per year.
EPS 1Y (TTM)-77.78%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%121.05%
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%4.13%
3.2 Future
- The Earnings Per Share is expected to grow by 34.59% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 2.53% on average over the next years.
EPS Next Y-168.78%
EPS Next 2Y6.8%
EPS Next 3Y34.59%
EPS Next 5YN/A
Revenue Next Year-2.24%
Revenue Next 2Y0.85%
Revenue Next 3Y2.53%
Revenue Next 5YN/A
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- TWI is valuated quite expensively with a Price/Earnings ratio of 74.00.
- Based on the Price/Earnings ratio, TWI is valued a bit more expensive than 68.94% of the companies in the same industry.
- TWI is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- TWI is valuated quite expensively with a Price/Forward Earnings ratio of 26.85.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TWI is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TWI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74 | ||
| Fwd PE | 26.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TWI is valued a bit cheaper than 76.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
- TWI's earnings are expected to grow with 34.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.8%
EPS Next 3Y34.59%
5. Dividend
5.1 Amount
- No dividends for TWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TITAN INTERNATIONAL INC / TWI FAQ
What is the ChartMill fundamental rating of TITAN INTERNATIONAL INC (TWI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TWI.
What is the valuation status for TWI stock?
ChartMill assigns a valuation rating of 2 / 10 to TITAN INTERNATIONAL INC (TWI). This can be considered as Overvalued.
Can you provide the profitability details for TITAN INTERNATIONAL INC?
TITAN INTERNATIONAL INC (TWI) has a profitability rating of 3 / 10.
What are the PE and PB ratios of TITAN INTERNATIONAL INC (TWI) stock?
The Price/Earnings (PE) ratio for TITAN INTERNATIONAL INC (TWI) is 74 and the Price/Book (PB) ratio is 1.
Can you provide the expected EPS growth for TWI stock?
The Earnings per Share (EPS) of TITAN INTERNATIONAL INC (TWI) is expected to decline by -168.78% in the next year.