TRIUMPH GROUP INC (TGI) Stock Fundamental Analysis
NYSE:TGI - New York Stock Exchange, Inc. - US8968181011 - Common Stock - Currency: USD
TGI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of TGI while its profitability can be described as average. TGI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TGI had positive earnings in the past year.
In the past year TGI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TGI reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: TGI reported negative operating cash flow in multiple years.
1.2 Ratios
TGI has a Return On Assets (2.51%) which is comparable to the rest of the industry.
TGI's Return On Invested Capital of 11.13% is amongst the best of the industry. TGI outperforms 90.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TGI is in line with the industry average of 8.44%.
The 3 year average ROIC (8.29%) for TGI is below the current ROIC(11.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | N/A | ||
| ROIC | 11.13% |
ROA(3y)12.71%
ROA(5y)3.46%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.29%
ROIC(5y)7.37%
1.3 Margins
The Profit Margin of TGI (3.24%) is comparable to the rest of the industry.
TGI has a Operating Margin of 12.56%. This is in the better half of the industry: TGI outperforms 78.46% of its industry peers.
In the last couple of years the Operating Margin of TGI has grown nicely.
The Gross Margin of TGI (31.55%) is better than 69.23% of its industry peers.
TGI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.56% | ||
| PM (TTM) | 3.24% | ||
| GM | 31.55% |
OM growth 3Y14.98%
OM growth 5Y13.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y9.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TGI is still creating some value.
Compared to 1 year ago, TGI has more shares outstanding
TGI has more shares outstanding than it did 5 years ago.
TGI has a better debt/assets ratio than last year.
2.2 Solvency
TGI has an Altman-Z score of 1.59. This is a bad value and indicates that TGI is not financially healthy and even has some risk of bankruptcy.
TGI's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. TGI is outperformed by 76.92% of its industry peers.
TGI has a debt to FCF ratio of 51.66. This is a negative value and a sign of low solvency as TGI would need 51.66 years to pay back of all of its debts.
TGI has a Debt to FCF ratio (51.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 51.66 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.01
WACC10.98%
2.3 Liquidity
A Current Ratio of 2.22 indicates that TGI has no problem at all paying its short term obligations.
TGI has a Current ratio (2.22) which is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that TGI should not have too much problems paying its short term obligations.
The Quick ratio of TGI (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1383.33% over the past year.
The earnings per share for TGI have been decreasing by -18.53% on average. This is quite bad
The Revenue for TGI has decreased by -16.93% in the past year. This is quite bad
The Revenue for TGI have been decreasing by -15.33% on average. This is quite bad
EPS 1Y (TTM)1383.33%
EPS 3Y4.05%
EPS 5Y-18.53%
EPS Q2Q%54.84%
Revenue 1Y (TTM)-16.93%
Revenue growth 3Y-0.02%
Revenue growth 5Y-15.33%
Sales Q2Q%5.38%
3.2 Future
TGI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.85% yearly.
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y23.07%
EPS Next 2Y29.74%
EPS Next 3Y28.85%
EPS Next 5YN/A
Revenue Next Year11.67%
Revenue Next 2Y9.26%
Revenue Next 3Y8.93%
Revenue Next 5Y10.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.91, TGI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TGI is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.28. TGI is around the same levels.
A Price/Forward Earnings ratio of 23.49 indicates a rather expensive valuation of TGI.
Based on the Price/Forward Earnings ratio, TGI is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TGI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
TGI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TGI is cheaper than 87.69% of the companies in the same industry.
TGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 105.8 | ||
| EV/EBITDA | 14.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TGI's earnings are expected to grow with 28.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y29.74%
EPS Next 3Y28.85%
5. Dividend
5.1 Amount
TGI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.73
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners101.98%
Inst Owner Change-4.71%
Ins Owners2.14%
Ins Owner Change4.16%
Market Cap1.99B
Analysts69.09
Price Target21.81 (-15.24%)
Short Float %10.27%
Short Ratio5.71
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)2
Avg EPS beat(2)37.56%
Min EPS beat(2)35.53%
Max EPS beat(2)39.6%
EPS beat(4)3
Avg EPS beat(4)783.17%
Min EPS beat(4)-10.77%
Max EPS beat(4)3068.32%
EPS beat(8)5
Avg EPS beat(8)380.69%
EPS beat(12)9
Avg EPS beat(12)529.14%
EPS beat(16)12
Avg EPS beat(16)402.98%
Revenue beat(2)2
Avg Revenue beat(2)8.81%
Min Revenue beat(2)6.92%
Max Revenue beat(2)10.7%
Revenue beat(4)4
Avg Revenue beat(4)5.31%
Min Revenue beat(4)0.55%
Max Revenue beat(4)10.7%
Revenue beat(8)7
Avg Revenue beat(8)0.74%
Revenue beat(12)11
Avg Revenue beat(12)2.32%
Revenue beat(16)11
Avg Revenue beat(16)0.05%
PT rev (1m)0%
PT rev (3m)3.02%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 23.49 | ||
| P/S | 1.58 | ||
| P/FCF | 105.8 | ||
| P/OCF | 52.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.3 |
EPS(TTM)0.89
EY3.46%
EPS(NY)1.1
Fwd EY4.26%
FCF(TTM)0.24
FCFY0.95%
OCF(TTM)0.49
OCFY1.9%
SpS16.3
BVpS-0.99
TBVpS-8.33
PEG (NY)1.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | N/A | ||
| ROCE | 12.86% | ||
| ROIC | 11.13% | ||
| ROICexc | 14.36% | ||
| ROICexgc | 35.5% | ||
| OM | 12.56% | ||
| PM (TTM) | 3.24% | ||
| GM | 31.55% | ||
| FCFM | 1.49% |
ROA(3y)12.71%
ROA(5y)3.46%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.29%
ROIC(5y)7.37%
ROICexc(3y)10.84%
ROICexc(5y)9.74%
ROICexgc(3y)26.38%
ROICexgc(5y)24.28%
ROCE(3y)9.58%
ROCE(5y)8.52%
ROICexcg growth 3Y7.93%
ROICexcg growth 5Y4.96%
ROICexc growth 3Y13.48%
ROICexc growth 5Y4.89%
OM growth 3Y14.98%
OM growth 5Y13.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y9.07%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 51.66 | ||
| Debt/EBITDA | 5.12 | ||
| Cap/Depr | 64.41% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 20.15% | ||
| Profit Quality | 46.07% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.59 |
F-Score5
WACC10.98%
ROIC/WACC1.01
Cap/Depr(3y)68.55%
Cap/Depr(5y)54.45%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1383.33%
EPS 3Y4.05%
EPS 5Y-18.53%
EPS Q2Q%54.84%
EPS Next Y23.07%
EPS Next 2Y29.74%
EPS Next 3Y28.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.93%
Revenue growth 3Y-0.02%
Revenue growth 5Y-15.33%
Sales Q2Q%5.38%
Revenue Next Year11.67%
Revenue Next 2Y9.26%
Revenue Next 3Y8.93%
Revenue Next 5Y10.34%
EBIT growth 1Y16.86%
EBIT growth 3Y14.96%
EBIT growth 5Y-4.26%
EBIT Next Year56.27%
EBIT Next 3Y25.52%
EBIT Next 5YN/A
FCF growth 1Y252.04%
FCF growth 3YN/A
FCF growth 5Y-19.84%
OCF growth 1Y301.2%
OCF growth 3YN/A
OCF growth 5Y-17.09%