TITAN MACHINERY INC (TITN) Stock Fundamental Analysis
NASDAQ:TITN - Nasdaq - US88830R1014 - Common Stock - Currency: USD
Taking everything into account, TITN scores 2 out of 10 in our fundamental rating. TITN was compared to 49 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of TITN have multiple concerns. TITN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TITN had negative earnings in the past year.
TITN had a positive operating cash flow in the past year.
Of the past 5 years TITN 4 years were profitable.
TITN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TITN's Return On Assets of -2.03% is on the low side compared to the rest of the industry. TITN is outperformed by 85.71% of its industry peers.
The Return On Equity of TITN (-6.01%) is worse than 85.71% of its industry peers.
With a Return On Invested Capital value of 0.32%, TITN is not doing good in the industry: 83.67% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TITN is below the industry average of 8.96%.
The 3 year average ROIC (6.12%) for TITN is well above the current ROIC(0.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.03% | ||
| ROE | -6.01% | ||
| ROIC | 0.32% |
ROA(3y)4%
ROA(5y)4.24%
ROE(3y)9.87%
ROE(5y)9.94%
ROIC(3y)6.12%
ROIC(5y)6.52%
1.3 Margins
TITN has a worse Operating Margin (0.26%) than 83.67% of its industry peers.
TITN's Operating Margin has declined in the last couple of years.
TITN has a worse Gross Margin (14.64%) than 93.88% of its industry peers.
TITN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.26% | ||
| PM (TTM) | N/A | ||
| GM | 14.64% |
OM growth 3Y-65.68%
OM growth 5Y-35.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.01%
GM growth 5Y-5.29%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TITN is destroying value.
The number of shares outstanding for TITN has been increased compared to 1 year ago.
TITN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TITN is higher compared to a year ago.
2.2 Solvency
TITN has an Altman-Z score of 2.20. This is not the best score and indicates that TITN is in the grey zone with still only limited risk for bankruptcy at the moment.
TITN's Altman-Z score of 2.20 is on the low side compared to the rest of the industry. TITN is outperformed by 63.27% of its industry peers.
TITN has a debt to FCF ratio of 52.55. This is a negative value and a sign of low solvency as TITN would need 52.55 years to pay back of all of its debts.
With a Debt to FCF ratio value of 52.55, TITN perfoms like the industry average, outperforming 40.82% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that TITN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.56, TITN is doing worse than 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 52.55 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.04
WACC7.3%
2.3 Liquidity
TITN has a Current Ratio of 1.35. This is a normal value and indicates that TITN is financially healthy and should not expect problems in meeting its short term obligations.
TITN has a worse Current ratio (1.35) than 73.47% of its industry peers.
TITN has a Quick Ratio of 1.35. This is a bad value and indicates that TITN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.19, TITN is not doing good in the industry: 95.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for TITN have decreased strongly by -125.58% in the last year.
TITN shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
TITN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.67% yearly.
EPS 1Y (TTM)-125.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-251.15%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y16.43%
Revenue growth 5Y15.67%
Sales Q2Q%-10.82%
3.2 Future
TITN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.50% yearly.
Based on estimates for the next years, TITN will show a decrease in Revenue. The Revenue will decrease by -1.30% on average per year.
EPS Next Y-38.43%
EPS Next 2Y35.89%
EPS Next 3Y25.51%
EPS Next 5Y16.5%
Revenue Next Year-17.95%
Revenue Next 2Y-7.97%
Revenue Next 3Y-3.22%
Revenue Next 5Y-1.3%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TITN. In the last year negative earnings were reported.
Also next year TITN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TITN is on the same level as its industry peers.
69.39% of the companies in the same industry are more expensive than TITN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TITN's earnings are expected to grow with 25.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.89%
EPS Next 3Y25.51%
5. Dividend
5.1 Amount
TITN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.25
+1.33 (+7.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners91.72%
Inst Owner Change2.89%
Ins Owners10.52%
Ins Owner Change1.34%
Market Cap421.94M
Analysts80
Price Target21.01 (15.12%)
Short Float %5.61%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)39.53%
Min EPS beat(2)-213.09%
Max EPS beat(2)292.16%
EPS beat(4)1
Avg EPS beat(4)7.34%
Min EPS beat(4)-213.09%
Max EPS beat(4)292.16%
EPS beat(8)4
Avg EPS beat(8)8.84%
EPS beat(12)7
Avg EPS beat(12)16.29%
EPS beat(16)11
Avg EPS beat(16)33.01%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.16%
Revenue beat(12)6
Avg Revenue beat(12)1.12%
Revenue beat(16)8
Avg Revenue beat(16)1.21%
PT rev (1m)3%
PT rev (3m)15.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-115.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-162.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.88%
Revenue NY rev (1m)-9.88%
Revenue NY rev (3m)-9.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.16 | ||
| P/FCF | 22.87 | ||
| P/OCF | 6 | ||
| P/B | 0.69 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 12.49 |
EPS(TTM)-1.33
EYN/A
EPS(NY)-1.84
Fwd EYN/A
FCF(TTM)0.8
FCFY4.37%
OCF(TTM)3.04
OCFY16.66%
SpS116.87
BVpS26.56
TBVpS21.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.03% | ||
| ROE | -6.01% | ||
| ROCE | 0.81% | ||
| ROIC | 0.32% | ||
| ROICexc | 0.33% | ||
| ROICexgc | 0.35% | ||
| OM | 0.26% | ||
| PM (TTM) | N/A | ||
| GM | 14.64% | ||
| FCFM | 0.68% |
ROA(3y)4%
ROA(5y)4.24%
ROE(3y)9.87%
ROE(5y)9.94%
ROIC(3y)6.12%
ROIC(5y)6.52%
ROICexc(3y)6.36%
ROICexc(5y)7.29%
ROICexgc(3y)6.76%
ROICexgc(5y)7.64%
ROCE(3y)13.61%
ROCE(5y)13%
ROICexcg growth 3Y-71.31%
ROICexcg growth 5Y-33.8%
ROICexc growth 3Y-71.66%
ROICexc growth 5Y-34.57%
OM growth 3Y-65.68%
OM growth 5Y-35.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.01%
GM growth 5Y-5.29%
F-Score4
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 52.55 | ||
| Debt/EBITDA | 21.04 | ||
| Cap/Depr | 134.31% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 0.14 | ||
| Cash Conversion | 154.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 2.2 |
F-Score4
WACC7.3%
ROIC/WACC0.04
Cap/Depr(3y)160.01%
Cap/Depr(5y)147%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-125.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-251.15%
EPS Next Y-38.43%
EPS Next 2Y35.89%
EPS Next 3Y25.51%
EPS Next 5Y16.5%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y16.43%
Revenue growth 5Y15.67%
Sales Q2Q%-10.82%
Revenue Next Year-17.95%
Revenue Next 2Y-7.97%
Revenue Next 3Y-3.22%
Revenue Next 5Y-1.3%
EBIT growth 1Y-95.88%
EBIT growth 3Y-60.04%
EBIT growth 5Y-25.27%
EBIT Next Year-83.43%
EBIT Next 3Y40.95%
EBIT Next 5Y30.36%
FCF growth 1Y119.49%
FCF growth 3Y-46.62%
FCF growth 5YN/A
OCF growth 1Y317.75%
OCF growth 3Y-23.81%
OCF growth 5Y134.09%