TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWI - US88830M1027 - Common Stock
8.76 USD
-0.12 (-1.35%)
8.76 USD
0 (0%)
TWI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 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
- In the past year TWI was profitable.
- TWI had a positive operating cash flow in the past year.
- In multiple years TWI reported negative net income over the last 5 years.
- TWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -0.35%, TWI is not doing good in the industry: 71.21% of the companies in the same industry are doing better.
- With a Return On Equity value of -1.07%, TWI is not doing good in the industry: 68.94% of the companies in the same industry are doing better.
- TWI has a Return On Invested Capital of 0.89%. This is in the lower half of the industry: TWI underperforms 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
- Looking at the Operating Margin, with a value of 0.82%, TWI is doing worse than 70.45% of the companies in the same industry.
- TWI's Operating Margin has declined in the last couple of years.
- TWI has a worse Gross Margin (13.28%) than 84.09% of its industry peers.
- TWI's Gross Margin has improved in the last couple of years.
| 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.
- With a Altman-Z score value of 1.87, TWI is not doing good in the industry: 68.94% of the companies in the same industry are doing better.
- TWI has a Debt/Equity ratio of 0.98. This is a neutral value indicating TWI is somewhat dependend on debt financing.
- The Debt to Equity ratio of TWI (0.98) is worse than 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
WACC9.88%
2.3 Liquidity
- A Current Ratio of 2.28 indicates that TWI has no problem at all paying its short term obligations.
- TWI has a Current ratio (2.28) which is in line with its industry peers.
- A Quick Ratio of 1.25 indicates that TWI should not have too much problems paying its short term obligations.
- TWI has a Quick ratio (1.25) which is in line with its industry peers.
| 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.
- TWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
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
- TWI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.59% yearly.
- TWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.53% yearly.
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
- 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
- The Price/Earnings ratio is 73.00, which means the current valuation is very expensive for TWI.
- Compared to the rest of the industry, the Price/Earnings ratio of TWI indicates a slightly more expensive valuation: TWI is more expensive than 68.94% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of TWI to the average of the S&P500 Index (27.25), we can say TWI is valued expensively.
- A Price/Forward Earnings ratio of 26.48 indicates a quite expensive valuation of TWI.
- TWI's Price/Forward Earnings is on the same level as the industry average.
- TWI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73 | ||
| Fwd PE | 26.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TWI is valued a bit cheaper than the industry average as 76.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as TWI's earnings are expected to grow with 34.59% in the coming years.
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 73 and the Price/Book (PB) ratio is 0.98.
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.