TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
NYSE:TWI - New York Stock Exchange, Inc. - US88830M1027 - Common Stock - Currency: USD
TWI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and financial health of TWI have multiple concerns. 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.
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
TWI has a Return On Assets of -0.35%. This is in the lower half of the industry: TWI underperforms 68.75% of its industry peers.
The Return On Equity of TWI (-1.12%) is worse than 67.97% of its industry peers.
With a Return On Invested Capital value of 2.60%, TWI is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
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 10.69%.
The 3 year average ROIC (11.56%) for TWI is well above the current ROIC(2.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.12% | ||
| ROIC | 2.6% |
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 (2.13%) than 69.53% of its industry peers.
In the last couple of years the Operating Margin of TWI has declined.
TWI has a worse Gross Margin (13.42%) than 84.38% of its industry peers.
TWI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.13% | ||
| PM (TTM) | N/A | ||
| GM | 13.42% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TWI is creating some value.
TWI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TWI has more shares outstanding
TWI has a worse debt/assets ratio than last year.
2.2 Solvency
TWI has an Altman-Z score of 2.05. 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 2.05 is on the low side compared to the rest of the industry. TWI is outperformed by 66.41% of its industry peers.
TWI has a debt to FCF ratio of 7.49. This is a slightly negative value and a sign of low solvency as TWI would need 7.49 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.49, TWI perfoms like the industry average, outperforming 44.53% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TWI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, TWI is doing worse than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.25
WACC10.2%
2.3 Liquidity
A Current Ratio of 2.35 indicates that TWI has no problem at all paying its short term obligations.
TWI has a Current ratio of 2.35. This is in the better half of the industry: TWI outperforms 60.94% of its industry peers.
TWI has a Quick Ratio of 1.23. This is a normal value and indicates that TWI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TWI (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for TWI have decreased strongly by -81.76% in the last year.
TWI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
Looking at the last year, TWI shows a small growth in Revenue. The Revenue has grown by 1.32% 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)-81.76%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-73.53%
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%-1.7%
3.2 Future
The Earnings Per Share is expected to grow by 48.07% on average over the next years. This is a very strong growth
Based on estimates for the next years, TWI will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
EPS Next Y-10.23%
EPS Next 2Y48.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.43%
Revenue Next 2Y3.1%
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
TWI is valuated quite expensively with a Price/Earnings ratio of 25.69.
Based on the Price/Earnings ratio, TWI is valued a bit more expensive than the industry average as 64.06% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.79. TWI is around the same levels.
A Price/Forward Earnings ratio of 28.62 indicates a quite expensive valuation of TWI.
TWI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TWI is more expensive than 61.72% of the companies in the same industry.
TWI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 28.62 |
4.2 Price Multiples
TWI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TWI is cheaper than 77.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TWI is valued cheaper than 95.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
TWI's earnings are expected to grow with 48.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.45
-0.13 (-1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change0.18%
Ins Owners5.51%
Ins Owner Change6.22%
Market Cap470.84M
Analysts80
Price Target12.75 (71.14%)
Short Float %9.38%
Short Ratio5.39
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)-593.89%
Min EPS beat(2)-1354.13%
Max EPS beat(2)166.34%
EPS beat(4)1
Avg EPS beat(4)-320.89%
Min EPS beat(4)-1354.13%
Max EPS beat(4)166.34%
EPS beat(8)4
Avg EPS beat(8)-156.11%
EPS beat(12)7
Avg EPS beat(12)-97.45%
EPS beat(16)10
Avg EPS beat(16)-61.81%
Revenue beat(2)0
Avg Revenue beat(2)-4.83%
Min Revenue beat(2)-5.95%
Max Revenue beat(2)-3.7%
Revenue beat(4)0
Avg Revenue beat(4)-6.13%
Min Revenue beat(4)-11.14%
Max Revenue beat(4)-3.7%
Revenue beat(8)0
Avg Revenue beat(8)-6.1%
Revenue beat(12)1
Avg Revenue beat(12)-4.02%
Revenue beat(16)4
Avg Revenue beat(16)-1.38%
PT rev (1m)-3.85%
PT rev (3m)4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.09%
EPS NY rev (1m)71.07%
EPS NY rev (3m)17.16%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 28.62 | ||
| P/S | 0.26 | ||
| P/FCF | 6.21 | ||
| P/OCF | 3.33 | ||
| P/B | 0.95 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)0.29
EY3.89%
EPS(NY)0.26
Fwd EY3.49%
FCF(TTM)1.2
FCFY16.11%
OCF(TTM)2.24
OCFY30.05%
SpS29.21
BVpS7.85
TBVpS7.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.12% | ||
| ROCE | 3.29% | ||
| ROIC | 2.6% | ||
| ROICexc | 3.11% | ||
| ROICexgc | 3.24% | ||
| OM | 2.13% | ||
| PM (TTM) | N/A | ||
| GM | 13.42% | ||
| FCFM | 4.11% |
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.49 | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 108.11% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 1.06 | ||
| Cash Conversion | 141.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.05 |
F-Score3
WACC10.2%
ROIC/WACC0.25
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)-81.76%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-73.53%
EPS Next Y-10.23%
EPS Next 2Y48.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%-1.7%
Revenue Next Year-0.43%
Revenue Next 2Y3.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-73.52%
EBIT growth 3Y-22.67%
EBIT growth 5YN/A
EBIT Next Year144.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-36.01%
FCF growth 3YN/A
FCF growth 5Y53.16%
OCF growth 1Y-21.11%
OCF growth 3Y136.28%
OCF growth 5Y25.53%