TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
USA - NYSE:TWI - US88830M1027 - Common Stock
8.64 USD
-0.1 (-1.14%)
8.4 USD
-0.24 (-2.78%)
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. Both the profitability and financial health of TWI have multiple concerns. TWI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TWI had negative earnings in the past year.
In the past year TWI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TWI reported negative net income in multiple years.
In the past 5 years TWI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TWI (-1.26%) is worse than 72.66% of its industry peers.
TWI has a worse Return On Equity (-3.87%) than 72.66% of its industry peers.
With a Return On Invested Capital value of 0.47%, TWI is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TWI is in line with the industry average of 10.02%.
The 3 year average ROIC (11.56%) for TWI is well above the current ROIC(0.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -3.87% | ||
| ROIC | 0.47% |
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
Looking at the Operating Margin, with a value of 0.43%, TWI is doing worse than 72.66% of the companies in the same industry.
In the last couple of years the Operating Margin of TWI has declined.
With a Gross Margin value of 12.80%, TWI is not doing good in the industry: 85.94% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TWI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.43% | ||
| PM (TTM) | N/A | ||
| GM | 12.8% |
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.
The number of shares outstanding for TWI has been increased compared to 1 year ago.
The number of shares outstanding for TWI has been increased compared to 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 1.85. 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 1.85, TWI is not doing good in the industry: 69.53% of the companies in the same industry are doing better.
TWI has a Debt/Equity ratio of 1.00. This is a neutral value indicating TWI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 1.00, TWI is not doing good in the industry: 77.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.85 |
ROIC/WACC0.05
WACC10.25%
2.3 Liquidity
TWI has a Current Ratio of 2.35. This indicates that TWI is financially healthy and has no problem in meeting its short term obligations.
TWI's Current ratio of 2.35 is fine compared to the rest of the industry. TWI outperforms 60.16% of its industry peers.
TWI has a Quick Ratio of 1.27. This is a normal value and indicates that TWI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.27, TWI is in line with its industry, outperforming 52.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
TWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -110.78%.
TWI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
TWI shows a decrease in Revenue. In the last year, the revenue decreased by -1.29%.
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)-110.78%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-120%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%-13.41%
3.2 Future
Based on estimates for the next years, TWI will show a very strong growth in Earnings Per Share. The EPS will grow by 38.09% on average per year.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y-110.45%
EPS Next 2Y38.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.91%
Revenue Next 2Y2.06%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TWI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 15.62, the valuation of TWI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWI indicates a somewhat cheap valuation: TWI is cheaper than 76.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TWI to the average of the S&P500 Index (22.73), we can say TWI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWI indicates a somewhat cheap valuation: TWI is cheaper than 60.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.01 |
4.3 Compensation for Growth
TWI's earnings are expected to grow with 38.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.64
-0.1 (-1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.09%
Inst Owner Change-1.64%
Ins Owners6.03%
Ins Owner Change7.52%
Market Cap552.10M
Analysts80
Price Target11.22 (29.86%)
Short Float %5.16%
Short Ratio4.61
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)0
Avg EPS beat(2)-117.15%
Min EPS beat(2)-157.68%
Max EPS beat(2)-76.61%
EPS beat(4)1
Avg EPS beat(4)-355.52%
Min EPS beat(4)-1354.13%
Max EPS beat(4)166.34%
EPS beat(8)3
Avg EPS beat(8)-186.16%
EPS beat(12)5
Avg EPS beat(12)-122.92%
EPS beat(16)8
Avg EPS beat(16)-80.25%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)4.65%
Revenue beat(4)1
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-5.95%
Max Revenue beat(4)4.65%
Revenue beat(8)1
Avg Revenue beat(8)-4.76%
Revenue beat(12)1
Avg Revenue beat(12)-4.52%
Revenue beat(16)4
Avg Revenue beat(16)-1.97%
PT rev (1m)-8.33%
PT rev (3m)-6.38%
EPS NQ rev (1m)-220%
EPS NQ rev (3m)-135.29%
EPS NY rev (1m)-200%
EPS NY rev (3m)-132.43%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.62 | ||
| P/S | 0.31 | ||
| P/FCF | N/A | ||
| P/OCF | 12.44 | ||
| P/B | 0.97 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)-0.11
EYN/A
EPS(NY)0.55
Fwd EY6.4%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)0.69
OCFY8.04%
SpS27.9
BVpS8.93
TBVpS8.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -3.87% | ||
| ROCE | 0.59% | ||
| ROIC | 0.47% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 0.56% | ||
| OM | 0.43% | ||
| PM (TTM) | N/A | ||
| GM | 12.8% | ||
| FCFM | N/A |
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-Score3
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.73 | ||
| Cap/Depr | 85.97% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 0.19 | ||
| Cash Conversion | 60.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 1.85 |
F-Score3
WACC10.25%
ROIC/WACC0.05
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)-110.78%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-120%
EPS Next Y-110.45%
EPS Next 2Y38.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%-13.41%
Revenue Next Year-0.91%
Revenue Next 2Y2.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-92.35%
EBIT growth 3Y-22.67%
EBIT growth 5YN/A
EBIT Next Year129.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-108.37%
FCF growth 3YN/A
FCF growth 5Y53.16%
OCF growth 1Y-77.89%
OCF growth 3Y136.28%
OCF growth 5Y25.53%