TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
NYSE:TWI - New York Stock Exchange, Inc. - US88830M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to TWI. TWI was compared to 128 industry peers in the Machinery industry. TWI may be in some trouble as it scores bad on both profitability and health. TWI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TWI was profitable.
In the past year TWI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TWI reported negative net income in multiple years.
In the past 5 years TWI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.89%, TWI is doing worse than 70.31% of the companies in the same industry.
TWI has a worse Return On Equity (-2.88%) than 70.31% of its industry peers.
With a Return On Invested Capital value of 1.24%, TWI is not doing good in the industry: 72.66% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TWI is in line with the industry average of 10.69%.
The last Return On Invested Capital (1.24%) for TWI is well below the 3 year average (11.56%), which needs to be investigated, but indicates that TWI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.88% | ||
| ROIC | 1.24% |
ROA(3y)6.49%
ROA(5y)3.56%
ROE(3y)20.66%
ROE(5y)9.99%
ROIC(3y)11.56%
ROIC(5y)N/A
1.3 Margins
TWI has a worse Operating Margin (1.07%) than 72.66% of its industry peers.
In the last couple of years the Operating Margin of TWI has declined.
The Gross Margin of TWI (12.92%) is worse than 85.94% of its industry peers.
In the last couple of years the Gross Margin of TWI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.07% | ||
| PM (TTM) | N/A | ||
| GM | 12.92% |
OM growth 3Y-23.6%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.71%
GM growth 5Y10.29%
2. Health
2.1 Basic Checks
TWI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TWI has more shares outstanding than it did 1 year ago.
TWI has more shares outstanding than it did 5 years ago.
TWI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.93 indicates that TWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TWI (1.93) is worse than 70.31% of its industry peers.
The Debt to FCF ratio of TWI is 15.96, which is on the high side as it means it would take TWI, 15.96 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.96, TWI is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
TWI has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
TWI's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. TWI is outperformed by 78.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.96 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.12
WACC10.25%
2.3 Liquidity
A Current Ratio of 2.26 indicates that TWI has no problem at all paying its short term obligations.
With a Current ratio value of 2.26, TWI perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that TWI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, TWI is in line with its industry, outperforming 55.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for TWI have decreased strongly by -99.26% in the last year.
Measured over the past years, TWI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.12% on average per year.
The Revenue has been growing slightly by 5.64% in the past year.
TWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
EPS 1Y (TTM)-99.26%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-96.55%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%1.76%
3.2 Future
TWI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.34% yearly.
Based on estimates for the next years, TWI will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y-67.78%
EPS Next 2Y39.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.64%
Revenue Next 2Y3.18%
Revenue Next 3YN/A
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.
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
TWI is valuated quite expensively with a Price/Earnings ratio of 884.00.
TWI's Price/Earnings ratio is a bit more expensive when compared to the industry. TWI is more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, TWI is valued quite expensively.
The Price/Forward Earnings ratio is 15.70, which indicates a correct valuation of TWI.
Based on the Price/Forward Earnings ratio, TWI is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
TWI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 884 | ||
| Fwd PE | 15.7 |
4.2 Price Multiples
TWI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TWI is cheaper than 63.28% of the companies in the same industry.
71.09% of the companies in the same industry are more expensive than TWI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
TWI's earnings are expected to grow with 39.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TWI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.84
-0.25 (-2.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.35%
Inst Owner Change2.97%
Ins Owners5.92%
Ins Owner Change6.22%
Market Cap563.11M
Analysts80
Price Target11.99 (35.63%)
Short Float %7.54%
Short Ratio5.23
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)1
Avg EPS beat(2)44.86%
Min EPS beat(2)-76.61%
Max EPS beat(2)166.34%
EPS beat(4)1
Avg EPS beat(4)-331%
Min EPS beat(4)-1354.13%
Max EPS beat(4)166.34%
EPS beat(8)3
Avg EPS beat(8)-166.57%
EPS beat(12)6
Avg EPS beat(12)-108.24%
EPS beat(16)9
Avg EPS beat(16)-67.57%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)4.65%
Revenue beat(4)1
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-5.95%
Max Revenue beat(4)4.65%
Revenue beat(8)1
Avg Revenue beat(8)-5.15%
Revenue beat(12)1
Avg Revenue beat(12)-4.35%
Revenue beat(16)5
Avg Revenue beat(16)-1.07%
PT rev (1m)0%
PT rev (3m)-9.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 884 | ||
| Fwd PE | 15.7 | ||
| P/S | 0.3 | ||
| P/FCF | 15.28 | ||
| P/OCF | 5.58 | ||
| P/B | 1.05 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)0.01
EY0.11%
EPS(NY)0.56
Fwd EY6.37%
FCF(TTM)0.58
FCFY6.54%
OCF(TTM)1.58
OCFY17.92%
SpS29.11
BVpS8.39
TBVpS7.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.88% | ||
| ROCE | 1.57% | ||
| ROIC | 1.24% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 1.5% | ||
| OM | 1.07% | ||
| PM (TTM) | N/A | ||
| GM | 12.92% | ||
| FCFM | 1.99% |
ROA(3y)6.49%
ROA(5y)3.56%
ROE(3y)20.66%
ROE(5y)9.99%
ROIC(3y)11.56%
ROIC(5y)N/A
ROICexc(3y)14.56%
ROICexc(5y)N/A
ROICexgc(3y)14.66%
ROICexgc(5y)N/A
ROCE(3y)14.63%
ROCE(5y)N/A
ROICexcg growth 3Y-32.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y-33.62%
ROICexc growth 5YN/A
OM growth 3Y-23.6%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.71%
GM growth 5Y10.29%
F-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.96 | ||
| Debt/EBITDA | 6.78 | ||
| Cap/Depr | 99.18% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 0.5 | ||
| Cash Conversion | 119.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.93 |
F-Score4
WACC10.25%
ROIC/WACC0.12
Cap/Depr(3y)120.42%
Cap/Depr(5y)96.36%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-99.26%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-96.55%
EPS Next Y-67.78%
EPS Next 2Y39.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%1.76%
Revenue Next Year0.64%
Revenue Next 2Y3.18%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-84.05%
EBIT growth 3Y-22.67%
EBIT growth 5YN/A
EBIT Next Year137.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-75.8%
FCF growth 3YN/A
FCF growth 5Y53.16%
OCF growth 1Y-50.37%
OCF growth 3Y136.28%
OCF growth 5Y25.53%