TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWI - US88830M1027 - Common Stock
8.75 USD
-0.01 (-0.11%)
8.75 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
- TWI had positive 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.
- Each year in the past 5 years TWI had a positive operating cash flow.
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.
- 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.
- The Return On Invested Capital of TWI (0.89%) is worse than 70.45% 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 10.24%.
- The 3 year average ROIC (11.56%) for TWI is well above the current ROIC(0.89%). The reason for the recent decline needs to be investigated.
| 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 worse Operating Margin (0.82%) than 70.45% of its industry peers.
- In the last couple of years the Operating Margin of TWI has declined.
- 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.
- The number of shares outstanding for TWI has been increased compared to 1 year ago.
- TWI has more shares outstanding than it did 5 years ago.
- TWI has a worse debt/assets ratio than last year.
2.2 Solvency
- TWI has an Altman-Z score of 1.86. 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's Altman-Z score of 1.86 is on the low side compared to the rest of the industry. TWI is outperformed by 68.94% of its industry peers.
- TWI has a Debt/Equity ratio of 0.98. This is a neutral value indicating TWI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.98, TWI is doing worse than 76.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.09
WACC9.87%
2.3 Liquidity
- TWI has a Current Ratio of 2.28. This indicates that TWI is financially healthy and has no problem in meeting its short term obligations.
- TWI's Current ratio of 2.28 is in line compared to the rest of the industry. TWI outperforms 59.09% of 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
- The earnings per share for TWI have decreased strongly by -77.78% in the last year.
- 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 decrease in Revenue. The Revenue has decreased by -2.75% in the last 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
- TWI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.59% yearly.
- 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.
- 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 is valuated quite expensively with a Price/Earnings ratio of 72.92.
- Based on the Price/Earnings ratio, TWI is valued a bit more expensive than 68.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, TWI is valued quite expensively.
- TWI is valuated quite expensively with a Price/Forward Earnings ratio of 26.45.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TWI is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of TWI to the average of the S&P500 Index (25.96), we can say TWI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.92 | ||
| Fwd PE | 26.45 |
4.2 Price Multiples
- TWI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TWI is cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.07 |
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 72.92 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.