TITAN INTERNATIONAL INC (TWI)

US88830M1027 - Common Stock

8.22  +0.58 (+7.59%)

After market: 8.01 -0.21 (-2.55%)

Fundamental Rating

5

TWI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. Both the profitability and the financial health of TWI get a neutral evaluation. Nothing too spectacular is happening here. TWI may be a bit undervalued, certainly considering the very reasonable score on growth



6

1. Profitability

1.1 Basic Checks

TWI had positive earnings in the past year.
TWI had a positive operating cash flow in the past year.
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

The Return On Assets of TWI (3.09%) is comparable to the rest of the industry.
The Return On Equity of TWI (8.91%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 7.80%, TWI perfoms like the industry average, outperforming 57.48% of the companies in the same industry.
TWI had an Average Return On Invested Capital over the past 3 years of 14.40%. This is above the industry average of 10.80%.
The last Return On Invested Capital (7.80%) for TWI is well below the 3 year average (14.40%), which needs to be investigated, but indicates that TWI had better years and this may not be a problem.
Industry RankSector Rank
ROA 3.09%
ROE 8.91%
ROIC 7.8%
ROA(3y)8.01%
ROA(5y)2.73%
ROE(3y)28.24%
ROE(5y)5.92%
ROIC(3y)14.4%
ROIC(5y)N/A

1.3 Margins

TWI has a Profit Margin of 3.20%. This is comparable to the rest of the industry: TWI outperforms 43.31% of its industry peers.
TWI's Profit Margin has improved in the last couple of years.
TWI has a Operating Margin (7.11%) which is in line with its industry peers.
TWI's Operating Margin has improved in the last couple of years.
TWI's Gross Margin of 15.83% is on the low side compared to the rest of the industry. TWI is outperformed by 79.53% of its industry peers.
TWI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.11%
PM (TTM) 3.2%
GM 15.83%
OM growth 3YN/A
OM growth 5Y25.39%
PM growth 3YN/A
PM growth 5Y77.79%
GM growth 3Y19.13%
GM growth 5Y6.72%

4

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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for TWI has been increased compared to 5 years ago.
The debt/assets ratio for TWI has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.07 indicates that TWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
TWI has a worse Altman-Z score (2.07) than 66.14% of its industry peers.
TWI has a debt to FCF ratio of 6.29. This is a slightly negative value and a sign of low solvency as TWI would need 6.29 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.29, TWI perfoms like the industry average, outperforming 48.82% of the companies in the same industry.
TWI has a Debt/Equity ratio of 0.88. This is a neutral value indicating TWI is somewhat dependend on debt financing.
The Debt to Equity ratio of TWI (0.88) is worse than 81.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 6.29
Altman-Z 2.07
ROIC/WACC0.9
WACC8.7%

2.3 Liquidity

A Current Ratio of 2.33 indicates that TWI has no problem at all paying its short term obligations.
With a Current ratio value of 2.33, TWI perfoms like the industry average, outperforming 59.06% of the companies in the same industry.
TWI has a Quick Ratio of 1.31. This is a normal value and indicates that TWI is financially healthy and should not expect problems in meeting its short term obligations.
TWI has a Quick ratio of 1.31. This is comparable to the rest of the industry: TWI outperforms 55.91% of its industry peers.
Industry RankSector Rank
Current Ratio 2.33
Quick Ratio 1.31

4

3. Growth

3.1 Past

TWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.30%.
The Earnings Per Share has been growing by 81.83% on average over the past years. This is a very strong growth
Looking at the last year, TWI shows a very negative growth in Revenue. The Revenue has decreased by -18.81% in the last year.
TWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.60% yearly.
EPS 1Y (TTM)-41.3%
EPS 3YN/A
EPS 5Y81.83%
EPS Q2Q%-45.28%
Revenue 1Y (TTM)-18.81%
Revenue growth 3Y13.1%
Revenue growth 5Y2.6%
Sales Q2Q%-12.11%

3.2 Future

TWI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.41% yearly.
The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
EPS Next Y-42.19%
EPS Next 2Y-16.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.71%
Revenue Next 2Y9.51%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.09, the valuation of TWI can be described as very cheap.
96.85% of the companies in the same industry are more expensive than TWI, based on the Price/Earnings ratio.
TWI is valuated cheaply when we compare the Price/Earnings ratio to 29.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.40, which indicates a rather cheap valuation of TWI.
95.28% of the companies in the same industry are more expensive than TWI, based on the Price/Forward Earnings ratio.
TWI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.09
Fwd PE 7.4

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TWI is valued cheaply inside the industry as 92.91% of the companies are valued more expensively.
98.43% of the companies in the same industry are more expensive than TWI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.54
EV/EBITDA 5.76

4.3 Compensation for Growth

The decent profitability rating of TWI may justify a higher PE ratio.
A cheap valuation may be justified as TWI's earnings are expected to decrease with -16.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-16.41%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

TWI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

TITAN INTERNATIONAL INC

NYSE:TWI (7/16/2024, 7:04:00 PM)

After market: 8.01 -0.21 (-2.55%)

8.22

+0.58 (+7.59%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap598.99M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 6.09
Fwd PE 7.4
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)0.07
Profitability
Industry RankSector Rank
ROA 3.09%
ROE 8.91%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.11%
PM (TTM) 3.2%
GM 15.83%
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 Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.33
Quick Ratio 1.31
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-41.3%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-42.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.81%
Revenue growth 3Y13.1%
Revenue growth 5Y
Sales 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