TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
NYSE:TWI - New York Stock Exchange, Inc. - US88830M1027 - Common Stock - Currency: USD
Taking everything into account, TWI scores 3 out of 10 in our fundamental rating. TWI was compared to 128 industry peers in the Machinery industry. TWI has a bad profitability rating. Also its financial health evaluation is rather negative. TWI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years TWI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.89%, TWI is not doing good in the industry: 70.31% of the companies in the same industry are doing better.
TWI has a worse Return On Equity (-2.88%) than 70.31% of its industry peers.
TWI has a worse Return On Invested Capital (1.24%) than 72.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TWI is in line with the industry average of 10.71%.
The 3 year average ROIC (11.56%) for TWI is well above the current ROIC(1.24%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.88% | ||
| ROIC | 1.24% |
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's Operating Margin of 1.07% is on the low side compared to the rest of the industry. TWI is outperformed by 72.66% 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 12.92%, TWI is doing worse than 85.94% 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 | 1.07% | ||
| PM (TTM) | N/A | ||
| GM | 12.92% |
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.
Compared to 1 year ago, TWI has more shares outstanding
Compared to 5 years ago, TWI has more shares outstanding
The debt/assets ratio for TWI is higher compared to a year ago.
2.2 Solvency
TWI has an Altman-Z score of 2.00. 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.
With a Altman-Z score value of 2.00, TWI is not doing good in the industry: 67.97% of the companies in the same industry are doing better.
TWI has a debt to FCF ratio of 15.96. This is a negative value and a sign of low solvency as TWI would need 15.96 years to pay back of all of its debts.
The Debt to FCF ratio of TWI (15.96) is worse than 68.75% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that TWI has dependencies on debt financing.
TWI has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: TWI underperforms 78.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.96 | ||
| Altman-Z | 2 |
ROIC/WACC0.12
WACC10.27%
2.3 Liquidity
A Current Ratio of 2.26 indicates that TWI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.26, TWI is in line with its industry, outperforming 58.59% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that TWI should not have too much problems paying its short term obligations.
TWI's Quick ratio of 1.25 is in line compared to the rest of the industry. TWI outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| 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 -99.26%.
The earnings per share for TWI have been decreasing by -30.12% on average. This is quite bad
Looking at the last year, TWI shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
The Revenue has been growing slightly by 4.97% on average over the past years.
EPS 1Y (TTM)-99.26%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-96.55%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%1.76%
3.2 Future
The Earnings Per Share is expected to grow by 36.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.89% on average over the next years.
EPS Next Y-84.68%
EPS Next 2Y36.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.59%
Revenue Next 2Y2.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 1072.00, the valuation of TWI can be described as expensive.
Based on the Price/Earnings ratio, TWI is valued a bit more expensive than 74.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. TWI is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 19.80, TWI is valued on the expensive side.
TWI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TWI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1072 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWI is valued a bit cheaper than the industry average as 60.16% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TWI is valued a bit cheaper than 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.53 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TWI's earnings are expected to grow with 36.63% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.72
-0.14 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.35%
Inst Owner Change2.97%
Ins Owners5.92%
Ins Owner Change7.47%
Market Cap682.86M
Analysts80
Price Target11.83 (10.35%)
Short Float %6.85%
Short Ratio5.52
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)1
Avg EPS beat(2)44.86%
Min EPS beat(2)-76.61%
Max EPS beat(2)166.34%
EPS beat(4)1
Avg EPS beat(4)-331%
Min EPS beat(4)-1354.13%
Max EPS beat(4)166.34%
EPS beat(8)3
Avg EPS beat(8)-166.57%
EPS beat(12)6
Avg EPS beat(12)-108.24%
EPS beat(16)9
Avg EPS beat(16)-67.57%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)4.65%
Revenue beat(4)1
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-5.95%
Max Revenue beat(4)4.65%
Revenue beat(8)1
Avg Revenue beat(8)-5.15%
Revenue beat(12)1
Avg Revenue beat(12)-4.35%
Revenue beat(16)5
Avg Revenue beat(16)-1.07%
PT rev (1m)-1.28%
PT rev (3m)-10.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-48.16%
EPS NY rev (1m)-52.43%
EPS NY rev (3m)-79.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1072 | ||
| Fwd PE | 19.8 | ||
| P/S | 0.37 | ||
| P/FCF | 18.53 | ||
| P/OCF | 6.77 | ||
| P/B | 1.28 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)0.01
EY0.09%
EPS(NY)0.54
Fwd EY5.05%
FCF(TTM)0.58
FCFY5.4%
OCF(TTM)1.58
OCFY14.77%
SpS29.11
BVpS8.39
TBVpS7.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.88% | ||
| ROCE | 1.57% | ||
| ROIC | 1.24% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 1.5% | ||
| OM | 1.07% | ||
| PM (TTM) | N/A | ||
| GM | 12.92% | ||
| FCFM | 1.99% |
ROA(3y)6.49%
ROA(5y)3.56%
ROE(3y)20.66%
ROE(5y)9.99%
ROIC(3y)11.56%
ROIC(5y)N/A
ROICexc(3y)14.56%
ROICexc(5y)N/A
ROICexgc(3y)14.66%
ROICexgc(5y)N/A
ROCE(3y)14.63%
ROCE(5y)N/A
ROICexcg growth 3Y-32.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y-33.62%
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.96 | ||
| Debt/EBITDA | 6.78 | ||
| Cap/Depr | 99.18% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 0.5 | ||
| Cash Conversion | 119.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2 |
F-Score4
WACC10.27%
ROIC/WACC0.12
Cap/Depr(3y)120.42%
Cap/Depr(5y)96.36%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-99.26%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-96.55%
EPS Next Y-84.68%
EPS Next 2Y36.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%1.76%
Revenue Next Year0.59%
Revenue Next 2Y2.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-84.05%
EBIT growth 3Y-22.67%
EBIT growth 5YN/A
EBIT Next Year137.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-75.8%
FCF growth 3YN/A
FCF growth 5Y53.16%
OCF growth 1Y-50.37%
OCF growth 3Y136.28%
OCF growth 5Y25.53%