TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
NYSE:TWI - New York Stock Exchange, Inc. - US88830M1027 - Common Stock - Currency: USD
Overall TWI gets a fundamental rating of 3 out of 10. We evaluated TWI against 127 industry peers in the Machinery industry. TWI may be in some trouble as it scores bad on both profitability and health. TWI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TWI has reported negative net income.
In the past year TWI had a positive cash flow from operations.
In multiple years TWI reported negative net income over the last 5 years.
Each year in the past 5 years TWI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.89%, TWI is doing worse than 70.08% of the companies in the same industry.
The Return On Equity of TWI (-2.88%) is worse than 70.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.24%, TWI is doing worse than 72.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TWI is in line with the industry average of 10.83%.
The 3 year average ROIC (11.56%) for TWI is well above the current ROIC(1.24%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Operating Margin, with a value of 1.07%, TWI is doing worse than 73.23% of the companies in the same industry.
TWI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.92%, TWI is not doing good in the industry: 85.83% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TWI is creating some value.
The number of shares outstanding for TWI has been increased compared to 1 year ago.
Compared to 5 years ago, TWI has more shares outstanding
TWI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that TWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.92, TWI is not doing good in the industry: 67.72% of the companies in the same industry are doing better.
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: 67.72% 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 has a worse Debt to Equity ratio (1.07) than 77.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.96 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.15
WACC8.33%
2.3 Liquidity
A Current Ratio of 2.26 indicates that TWI has no problem at all paying its short term obligations.
TWI's Current ratio of 2.26 is in line compared to the rest of the industry. TWI outperforms 56.69% of its industry peers.
TWI has a Quick Ratio of 1.25. This is a normal value and indicates that TWI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.25, TWI is in line with its industry, outperforming 53.54% 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 -110.78% in the last year.
TWI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
TWI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.32%.
Measured over the past years, TWI shows a small growth in Revenue. The Revenue has been growing by 4.97% on average per year.
EPS 1Y (TTM)-110.78%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-120%
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%-13.41%
3.2 Future
The Earnings Per Share is expected to grow by 39.34% on average over the next years. This is a very strong growth
TWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.79% yearly.
EPS Next Y-89.55%
EPS Next 2Y39.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.32%
Revenue Next 2Y2.79%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TWI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 15.06, which indicates a correct valuation of TWI.
71.65% of the companies in the same industry are more expensive than TWI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TWI to the average of the S&P500 Index (36.21), we can say TWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWI indicates a somewhat cheap valuation: TWI is cheaper than 67.72% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWI indicates a rather cheap valuation: TWI is cheaper than 81.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 11.27 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TWI's earnings are expected to grow with 39.34% in the coming years.
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 |
8.48
+0.02 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.35%
Inst Owner Change-0.21%
Ins Owners5.92%
Ins Owner Change7.52%
Market Cap540.18M
Analysts80
Price Target11.83 (39.5%)
Short Float %5.16%
Short Ratio4.56
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)-7.2%
EPS NQ rev (1m)-24.96%
EPS NQ rev (3m)-46.63%
EPS NY rev (1m)-31.82%
EPS NY rev (3m)-88.36%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.06 | ||
| P/S | 0.29 | ||
| P/FCF | 14.66 | ||
| P/OCF | 5.35 | ||
| P/B | 1.01 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 11.27 |
EPS(TTM)-0.11
EYN/A
EPS(NY)0.56
Fwd EY6.64%
FCF(TTM)0.58
FCFY6.82%
OCF(TTM)1.58
OCFY18.68%
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 | 1.92 |
F-Score4
WACC8.33%
ROIC/WACC0.15
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)-110.78%
EPS 3Y-30.12%
EPS 5YN/A
EPS Q2Q%-120%
EPS Next Y-89.55%
EPS Next 2Y39.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%-13.41%
Revenue Next Year0.32%
Revenue Next 2Y2.79%
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%