TWIN DISC INC (TWIN) Stock Fundamental Analysis
NASDAQ:TWIN - Nasdaq - US9014761012 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TWIN. TWIN was compared to 128 industry peers in the Machinery industry. Both the profitability and financial health of TWIN have multiple concerns. TWIN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TWIN had positive earnings in the past year.
TWIN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TWIN reported negative net income in multiple years.
TWIN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TWIN's Return On Assets of 1.23% is on the low side compared to the rest of the industry. TWIN is outperformed by 63.28% of its industry peers.
Looking at the Return On Equity, with a value of 2.74%, TWIN is doing worse than 61.72% of the companies in the same industry.
The Return On Invested Capital of TWIN (3.68%) is worse than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TWIN is significantly below the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.74% | ||
| ROIC | 3.68% |
ROA(3y)3.64%
ROA(5y)-2.68%
ROE(3y)7.43%
ROE(5y)-5.81%
ROIC(3y)4.04%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.25%, TWIN is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
TWIN's Profit Margin has been stable in the last couple of years.
TWIN's Operating Margin of 3.40% is on the low side compared to the rest of the industry. TWIN is outperformed by 65.63% of its industry peers.
TWIN's Operating Margin has declined in the last couple of years.
TWIN has a Gross Margin of 27.21%. This is comparable to the rest of the industry: TWIN outperforms 40.63% of its industry peers.
TWIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.4% | ||
| PM (TTM) | 1.25% | ||
| GM | 27.21% |
OM growth 3YN/A
OM growth 5Y-9.44%
PM growth 3YN/A
PM growth 5Y1.04%
GM growth 3Y6.63%
GM growth 5Y-0.94%
2. Health
2.1 Basic Checks
TWIN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TWIN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TWIN has more shares outstanding
TWIN has a worse debt/assets ratio than last year.
2.2 Solvency
TWIN has an Altman-Z score of 2.50. This is not the best score and indicates that TWIN is in the grey zone with still only limited risk for bankruptcy at the moment.
TWIN has a Altman-Z score of 2.50. This is in the lower half of the industry: TWIN underperforms 61.72% of its industry peers.
TWIN has a debt to FCF ratio of 4.50. This is a neutral value as TWIN would need 4.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.50, TWIN is in line with its industry, outperforming 56.25% of the companies in the same industry.
TWIN has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
TWIN has a better Debt to Equity ratio (0.29) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.38
WACC9.62%
2.3 Liquidity
A Current Ratio of 2.11 indicates that TWIN has no problem at all paying its short term obligations.
TWIN has a Current ratio of 2.11. This is comparable to the rest of the industry: TWIN outperforms 53.13% of its industry peers.
A Quick Ratio of 0.86 indicates that TWIN may have some problems paying its short term obligations.
The Quick ratio of TWIN (0.86) is worse than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for TWIN have decreased strongly by -90.80% in the last year.
TWIN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
Looking at the last year, TWIN shows a quite strong growth in Revenue. The Revenue has grown by 11.49% in the last year.
TWIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
EPS 1Y (TTM)-90.8%
EPS 3YN/A
EPS 5Y2.25%
EPS Q2Q%-140.74%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%9.55%
3.2 Future
TWIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.30% yearly.
Based on estimates for the next years, TWIN will show a quite strong growth in Revenue. The Revenue will grow by 11.77% on average per year.
EPS Next Y16.32%
EPS Next 2Y55.43%
EPS Next 3Y46.3%
EPS Next 5YN/A
Revenue Next Year18.13%
Revenue Next 2Y13.48%
Revenue Next 3Y11.77%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 117.25, which means the current valuation is very expensive for TWIN.
Compared to the rest of the industry, the Price/Earnings ratio of TWIN indicates a slightly more expensive valuation: TWIN is more expensive than 73.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. TWIN is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 6.81, which indicates a rather cheap valuation of TWIN.
Based on the Price/Forward Earnings ratio, TWIN is valued cheaper than 97.66% of the companies in the same industry.
TWIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.25 | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWIN is valued cheaper than 91.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWIN indicates a rather cheap valuation: TWIN is cheaper than 89.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.75 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TWIN does not grow enough to justify the current Price/Earnings ratio.
TWIN's earnings are expected to grow with 46.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.19
PEG (5Y)52.12
EPS Next 2Y55.43%
EPS Next 3Y46.3%
5. Dividend
5.1 Amount
TWIN has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.81, TWIN pays a better dividend. On top of this TWIN pays more dividend than 81.25% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, TWIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of TWIN decreases each year by -19.50%.
TWIN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TWIN decreased recently.
Dividend Growth(5Y)-19.5%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TWIN pays out 55.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP55.68%
EPS Next 2Y55.43%
EPS Next 3Y46.3%
NASDAQ:TWIN (7/11/2025, 8:00:02 PM)
9.38
-0.07 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners66.76%
Inst Owner Change0%
Ins Owners20.59%
Ins Owner Change0.25%
Market Cap132.73M
Analysts82.86
Price Target12.24 (30.49%)
Short Float %2.49%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend0.12
Dividend Growth(5Y)-19.5%
DP55.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-20%
EPS NQ rev (1m)119.23%
EPS NQ rev (3m)N/A
EPS NY rev (1m)3150%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.25 | ||
| Fwd PE | 6.81 | ||
| P/S | 0.4 | ||
| P/FCF | 12.75 | ||
| P/OCF | 7 | ||
| P/B | 0.89 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)0.08
EY0.85%
EPS(NY)1.38
Fwd EY14.68%
FCF(TTM)0.74
FCFY7.85%
OCF(TTM)1.34
OCFY14.3%
SpS23.21
BVpS10.57
TBVpS9.5
PEG (NY)7.19
PEG (5Y)52.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.74% | ||
| ROCE | 5% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 4.28% | ||
| OM | 3.4% | ||
| PM (TTM) | 1.25% | ||
| GM | 27.21% | ||
| FCFM | 3.17% |
ROA(3y)3.64%
ROA(5y)-2.68%
ROE(3y)7.43%
ROE(5y)-5.81%
ROIC(3y)4.04%
ROIC(5y)N/A
ROICexc(3y)4.38%
ROICexc(5y)N/A
ROICexgc(3y)4.71%
ROICexgc(5y)N/A
ROCE(3y)5.5%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.24%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.36%
OM growth 3YN/A
OM growth 5Y-9.44%
PM growth 3YN/A
PM growth 5Y1.04%
GM growth 3Y6.63%
GM growth 5Y-0.94%
F-Score3
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 67.53% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.59% | ||
| Profit Quality | 254.53% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.5 |
F-Score3
WACC9.62%
ROIC/WACC0.38
Cap/Depr(3y)73.79%
Cap/Depr(5y)70.15%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-90.8%
EPS 3YN/A
EPS 5Y2.25%
EPS Q2Q%-140.74%
EPS Next Y16.32%
EPS Next 2Y55.43%
EPS Next 3Y46.3%
EPS Next 5YN/A
Revenue 1Y (TTM)11.49%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%9.55%
Revenue Next Year18.13%
Revenue Next 2Y13.48%
Revenue Next 3Y11.77%
Revenue Next 5YN/A
EBIT growth 1Y1.48%
EBIT growth 3YN/A
EBIT growth 5Y-9.9%
EBIT Next Year7.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y408.99%
FCF growth 3Y129.46%
FCF growth 5YN/A
OCF growth 1Y228.84%
OCF growth 3Y72.84%
OCF growth 5YN/A