TWIN DISC INC (TWIN)
US9014761012 - Common Stock
Overall TWIN gets a fundamental rating of 3 out of 10. We evaluated TWIN against 132 industry peers in the Machinery industry. The financial health of TWIN is average, but there are quite some concerns on its profitability. TWIN has a expensive valuation and it also scores bad on growth.
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.
In multiple years TWIN reported negative net income over the last 5 years.
Of the past 5 years TWIN 4 years had a positive operating cash flow.
1.2 Ratios
TWIN has a Return On Assets (2.90%) which is comparable to the rest of the industry.
TWIN has a Return On Equity of 5.96%. This is comparable to the rest of the industry: TWIN outperforms 47.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.94%, TWIN is doing worse than 63.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TWIN is significantly below the industry average of 11.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 5.96% | ||
| ROIC | 3.94% |
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
TWIN has a Profit Margin (3.09%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TWIN has remained more or less at the same level.
With a Operating Margin value of 3.88%, TWIN is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
TWIN's Operating Margin has declined in the last couple of years.
TWIN has a Gross Margin (28.25%) which is comparable to the rest of the industry.
TWIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | 3.09% | ||
| GM | 28.25% |
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.
The number of shares outstanding for TWIN has been increased compared to 1 year ago.
The number of shares outstanding for TWIN has been increased compared to 5 years ago.
TWIN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.70 indicates that TWIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TWIN (2.70) is comparable to the rest of the industry.
The Debt to FCF ratio of TWIN is 3.04, which is a good value as it means it would take TWIN, 3.04 years of fcf income to pay off all of its debts.
TWIN has a Debt to FCF ratio of 3.04. This is in the better half of the industry: TWIN outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that TWIN is not too dependend on debt financing.
TWIN's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. TWIN outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.46
WACC8.52%
2.3 Liquidity
TWIN has a Current Ratio of 2.23. This indicates that TWIN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.23, TWIN is in line with its industry, outperforming 54.62% of the companies in the same industry.
TWIN has a Quick Ratio of 2.23. This is a bad value and indicates that TWIN is not financially healthy enough and could expect problems in meeting its short term obligations.
TWIN has a worse Quick ratio (0.84) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
TWIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.21%.
The Earnings Per Share has been growing slightly by 2.25% on average over the past years.
Looking at the last year, TWIN shows a small growth in Revenue. The Revenue has grown by 6.99% in the last year.
Measured over the past years, TWIN shows a decrease in Revenue. The Revenue has been decreasing by -0.51% on average per year.
EPS 1Y (TTM)-43.21%
EPS 3YN/A
EPS 5Y2.25%
EPS Q2Q%-122.22%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%14.71%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.46, the valuation of TWIN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TWIN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.61, TWIN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWIN is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
TWIN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TWIN is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.61 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)12.21
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
TWIN has a Yearly Dividend Yield of 1.43%.
TWIN's Dividend Yield is a higher than the industry average which is at 1.51.
Compared to the average S&P500 Dividend Yield of 2.19, TWIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
24.11% of the earnings are spent on dividend by TWIN. This is a low number and sustainable payout ratio.
DP24.11%
EPS Next 2YN/A
EPS Next 3YN/A
TWIN DISC INC
NASDAQ:TWIN (11/27/2024, 4:02:03 PM)
After market: 12.63 0 (0%)12.63
+0.4 (+3.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap178.08M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)12.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 5.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.88% | ||
| PM (TTM) | 3.09% | ||
| GM | 28.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.23 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-43.21%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.99%
Revenue growth 3Y10.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y