TITAN MACHINERY INC (TITN)
US88830R1014 - Common Stock
We assign a fundamental rating of 3 out of 10 to TITN. TITN was compared to 51 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of TITN while its profitability can be described as average. TITN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TITN was profitable.
In the past year TITN has reported a negative cash flow from operations.
In the past 5 years TITN has always been profitable.
TITN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.57%, TITN is in line with its industry, outperforming 54.90% of the companies in the same industry.
TITN has a Return On Equity (16.87%) which is in line with its industry peers.
TITN has a Return On Invested Capital of 7.29%. This is comparable to the rest of the industry: TITN outperforms 43.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TITN is below the industry average of 11.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 16.87% | ||
| ROIC | 7.29% |
ROA(3y)6.97%
ROA(5y)4.93%
ROE(3y)16.86%
ROE(5y)11.93%
ROIC(3y)9.3%
ROIC(5y)6.94%
1.3 Margins
Looking at the Profit Margin, with a value of 4.02%, TITN is in line with its industry, outperforming 41.18% of the companies in the same industry.
TITN's Profit Margin has improved in the last couple of years.
The Operating Margin of TITN (6.12%) is worse than 62.75% of its industry peers.
In the last couple of years the Operating Margin of TITN has grown nicely.
TITN has a worse Gross Margin (19.26%) than 84.31% of its industry peers.
TITN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.12% | ||
| PM (TTM) | 4.02% | ||
| GM | 19.26% |
OM growth 3Y28.62%
OM growth 5Y20.73%
PM growth 3Y44.01%
PM growth 5Y33.42%
GM growth 3Y1.31%
GM growth 5Y0.97%
2. Health
2.1 Basic Checks
TITN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TITN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TITN has been increased compared to 5 years ago.
TITN has a worse debt/assets ratio than last year.
2.2 Solvency
TITN has an Altman-Z score of 2.40. 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.
The Altman-Z score of TITN (2.40) is comparable to the rest of the industry.
TITN has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
TITN has a Debt to Equity ratio of 1.52. This is in the lower half of the industry: TITN underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.4 |
ROIC/WACC1.02
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.32 indicates that TITN should not have too much problems paying its short term obligations.
The Current ratio of TITN (1.32) is worse than 76.47% of its industry peers.
TITN has a Quick Ratio of 1.32. This is a bad value and indicates that TITN is not financially healthy enough and could expect problems in meeting its short term obligations.
TITN's Quick ratio of 0.19 is on the low side compared to the rest of the industry. TITN is outperformed by 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.79% over the past year.
Measured over the past years, TITN shows a very strong growth in Earnings Per Share. The EPS has been growing by 51.11% on average per year.
TITN shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.86%.
The Revenue has been growing by 16.94% on average over the past years. This is quite good.
EPS 1Y (TTM)14.79%
EPS 3Y60.83%
EPS 5Y51.11%
EPS growth Q2Q61.73%
Revenue 1Y (TTM)24.86%
Revenue growth 3Y25.03%
Revenue growth 5Y16.94%
Revenue growth Q2Q46.16%
3.2 Future
The Earnings Per Share is expected to decrease by -9.76% on average over the next years.
The Revenue is expected to grow by 3.54% on average over the next years.
EPS Next Y-36.96%
EPS Next 2Y-17.82%
EPS Next 3Y-14.29%
EPS Next 5Y-9.76%
Revenue Next Year13.83%
Revenue Next 2Y6.92%
Revenue Next 3Y4.58%
Revenue Next 5Y3.54%
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 decreasing.
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
TITN is valuated cheaply with a Price/Earnings ratio of 4.58.
Based on the Price/Earnings ratio, TITN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TITN is valuated cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.27, the valuation of TITN can be described as very cheap.
TITN's Price/Forward Earnings ratio is rather cheap when compared to the industry. TITN is cheaper than 98.04% of the companies in the same industry.
TITN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.58 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
98.04% of the companies in the same industry are more expensive than TITN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.07 |
4.3 Compensation for Growth
TITN's earnings are expected to decrease with -14.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-17.82%
EPS Next 3Y-14.29%
5. Dividend
5.1 Amount
No dividends for TITN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TITAN MACHINERY INC
NASDAQ:TITN (5/17/2024, 7:00:01 PM)
After market: 23.83 0 (0%)23.83
+0.55 (+2.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap543.80M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.58 | ||
| Fwd PE | 7.27 | ||
| 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)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 16.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.12% | ||
| PM (TTM) | 4.02% | ||
| GM | 19.26% | ||
| 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 Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.19 | ||
| 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)
Growth
EPS 1Y (TTM)14.79%
EPS 3Y60.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-36.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.86%
Revenue growth 3Y25.03%
Revenue growth 5Y
Revenue growth 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