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%)
Overall TWI gets a fundamental rating of 3 out of 10. We evaluated TWI against 132 industry peers in the Machinery industry. TWI has a bad profitability rating. Also its financial health evaluation is rather negative. TWI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year TWI was profitable.
- In the past year TWI had a positive cash flow from operations.
- In multiple years TWI reported negative net income over the last 5 years.
- In the past 5 years TWI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TWI (-0.35%) is worse than 71.21% of its industry peers.
- TWI's Return On Equity of -1.07% 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 Return On Invested Capital of 0.89%. This is in the lower half of the industry: TWI underperforms 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 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's Operating Margin of 0.82% is on the low side compared to the rest of the industry. TWI is outperformed by 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.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TWI is still 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 1.86. 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 has a Altman-Z score of 1.86. This is in the lower half of the industry: TWI underperforms 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.
- 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 | 1.86 |
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 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
- The earnings per share for TWI have decreased strongly by -77.78% in the last year.
- Measured over the past years, TWI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.12% on average per year.
- The Revenue has decreased by -2.75% in the past year.
- The Revenue has been growing slightly by 4.97% on average over the past years.
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
- Based on estimates for the next years, TWI will show a very strong growth in Earnings Per Share. The EPS will grow by 34.59% on average per year.
- 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
- 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
- The Price/Earnings ratio is 73.00, which means the current valuation is very expensive for TWI.
- Based on the Price/Earnings ratio, TWI is valued a bit more expensive than the industry average as 68.94% of the companies are valued more cheaply.
- TWI is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- TWI is valuated quite expensively with a Price/Forward Earnings ratio of 26.48.
- The rest of the industry has a similar Price/Forward Earnings ratio as TWI.
- TWI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73 | ||
| Fwd PE | 26.48 |
4.2 Price Multiples
- 76.52% of the companies in the same industry are more expensive than TWI, based on the Enterprise Value to EBITDA ratio.
| 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
- TWI does not give a dividend.
| 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.