TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
NYSE:TWI - New York Stock Exchange, Inc. - US88830M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to TWI. TWI was compared to 127 industry peers in the Machinery industry. Both the profitability and financial health of TWI have multiple concerns. While showing a medium growth rate, TWI is valued expensive at the moment.
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.
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 66.93% of its industry peers.
With a Return On Equity value of -1.12%, TWI is not doing good in the industry: 66.14% of the companies in the same industry are doing better.
The Return On Invested Capital of TWI (2.60%) is worse than 69.29% 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 10.85%.
The last Return On Invested Capital (2.60%) 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 | -1.12% | ||
| 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's Operating Margin of 2.13% is on the low side compared to the rest of the industry. TWI is outperformed by 70.08% of its industry peers.
TWI's Operating Margin has declined in the last couple of years.
TWI's Gross Margin of 13.42% is on the low side compared to the rest of the industry. TWI is outperformed by 85.04% of its industry peers.
In the last couple of years the Gross Margin of TWI has grown nicely.
| 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
TWI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TWI has more shares outstanding
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 2.10. 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 2.10, TWI is not doing good in the industry: 66.14% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of TWI (7.49) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TWI has dependencies on debt financing.
TWI has a worse Debt to Equity ratio (1.12) than 81.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.23
WACC11.39%
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 62.20% 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.
TWI has a Quick ratio (1.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
TWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.13%.
Measured over the past years, TWI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -29.33% on average per year.
The Revenue has been growing slightly by 1.32% 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)-81.13%
EPS 3Y-29.33%
EPS 5YN/A
EPS Q2Q%-155.88%
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%14.81%
3.2 Future
The Earnings Per Share is expected to grow by 38.16% 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 3.54% on average per year.
EPS Next Y-49.27%
EPS Next 2Y38.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.37%
Revenue Next 2Y3.54%
Revenue Next 3YN/A
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.
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
A Price/Earnings ratio of 29.93 indicates a quite expensive valuation of TWI.
65.35% of the companies in the same industry are cheaper than TWI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TWI to the average of the S&P500 Index (29.35), we can say TWI is valued inline with the index average.
With a Price/Forward Earnings ratio of 59.01, TWI can be considered very expensive at the moment.
TWI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TWI is more expensive than 66.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, TWI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 59.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWI is valued a bit cheaper than 76.38% of the companies in the same industry.
96.06% of the companies in the same industry are more expensive than TWI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
TWI's earnings are expected to grow with 38.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.98
+0.34 (+3.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change-13.32%
Ins Owners5.51%
Ins Owner Change0%
Market Cap567.54M
Analysts80
Price Target13.26 (47.66%)
Short Float %8.74%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)260.01%
Min EPS beat(2)-40.04%
Max EPS beat(2)560.07%
EPS beat(4)1
Avg EPS beat(4)106.06%
Min EPS beat(4)-59.59%
Max EPS beat(4)560.07%
EPS beat(8)4
Avg EPS beat(8)57.37%
EPS beat(12)7
Avg EPS beat(12)44.87%
EPS beat(16)10
Avg EPS beat(16)44.93%
Revenue beat(2)1
Avg Revenue beat(2)3.26%
Min Revenue beat(2)-5.95%
Max Revenue beat(2)12.47%
Revenue beat(4)1
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-11.14%
Max Revenue beat(4)12.47%
Revenue beat(8)1
Avg Revenue beat(8)-4.07%
Revenue beat(12)2
Avg Revenue beat(12)-2.67%
Revenue beat(16)5
Avg Revenue beat(16)-0.37%
PT rev (1m)8.33%
PT rev (3m)4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 59.01 | ||
| P/S | 0.31 | ||
| P/FCF | 7.48 | ||
| P/OCF | 4.01 | ||
| P/B | 1.14 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)0.3
EY3.34%
EPS(NY)0.15
Fwd EY1.69%
FCF(TTM)1.2
FCFY13.37%
OCF(TTM)2.24
OCFY24.93%
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 | 2.1 |
F-Score3
WACC11.39%
ROIC/WACC0.23
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)-81.13%
EPS 3Y-29.33%
EPS 5YN/A
EPS Q2Q%-155.88%
EPS Next Y-49.27%
EPS Next 2Y38.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%14.81%
Revenue Next Year-0.37%
Revenue Next 2Y3.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-73.52%
EBIT growth 3Y-22.67%
EBIT growth 5YN/A
EBIT Next Year109.12%
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%