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 129 industry peers in the Machinery industry. TWI has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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.
TWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TWI's Return On Assets of -0.35% is on the low side compared to the rest of the industry. TWI is outperformed by 68.22% of its industry peers.
TWI's Return On Equity of -1.12% is on the low side compared to the rest of the industry. TWI is outperformed by 67.44% of its industry peers.
The Return On Invested Capital of TWI (2.60%) is worse than 68.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TWI is in line with the industry average of 10.67%.
The 3 year average ROIC (11.56%) for TWI is well above the current ROIC(2.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.12% | ||
| ROIC | 2.6% |
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 (2.13%) than 68.99% of its industry peers.
TWI's Operating Margin has declined in the last couple of years.
TWI has a Gross Margin of 13.42%. This is amonst the worse of the industry: TWI underperforms 83.72% of its industry peers.
TWI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.13% | ||
| PM (TTM) | N/A | ||
| GM | 13.42% |
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
The debt/assets ratio for TWI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.03 indicates that TWI is not a great score, but indicates only limited risk for bankruptcy at the moment.
TWI's Altman-Z score of 2.03 is on the low side compared to the rest of the industry. TWI is outperformed by 65.89% of its industry peers.
TWI has a debt to FCF ratio of 7.49. This is a slightly negative value and a sign of low solvency as TWI would need 7.49 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.49, TWI perfoms like the industry average, outperforming 44.96% of the companies in the same industry.
TWI has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.12, TWI is doing worse than 77.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.25
WACC10.25%
2.3 Liquidity
TWI has a Current Ratio of 2.35. This indicates that TWI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.35, TWI is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
TWI has a Quick Ratio of 1.23. 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 (1.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
TWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -99.26%.
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.
Looking at the last year, TWI shows a small growth in Revenue. The Revenue has grown by 1.32% in the last 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)1.32%
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 48.07% yearly.
TWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y-10.23%
EPS Next 2Y48.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.43%
Revenue Next 2Y3.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 701.00, which means the current valuation is very expensive for TWI.
74.42% of the companies in the same industry are cheaper than TWI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TWI to the average of the S&P500 Index (28.22), we can say TWI is valued expensively.
The Price/Forward Earnings ratio is 11.03, which indicates a very decent valuation of TWI.
TWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. TWI is cheaper than 86.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, TWI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 701 | ||
| Fwd PE | 11.03 |
4.2 Price Multiples
TWI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TWI is cheaper than 79.84% of the companies 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 95.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TWI's earnings are expected to grow with 48.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.01
+0.66 (+10.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change0.19%
Ins Owners5.51%
Ins Owner Change6.22%
Market Cap446.54M
Analysts80
Price Target12.75 (81.88%)
Short Float %8.97%
Short Ratio5.13
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)-593.89%
Min EPS beat(2)-1354.13%
Max EPS beat(2)166.34%
EPS beat(4)1
Avg EPS beat(4)-320.89%
Min EPS beat(4)-1354.13%
Max EPS beat(4)166.34%
EPS beat(8)4
Avg EPS beat(8)-156.11%
EPS beat(12)7
Avg EPS beat(12)-97.45%
EPS beat(16)10
Avg EPS beat(16)-61.81%
Revenue beat(2)0
Avg Revenue beat(2)-4.83%
Min Revenue beat(2)-5.95%
Max Revenue beat(2)-3.7%
Revenue beat(4)0
Avg Revenue beat(4)-6.13%
Min Revenue beat(4)-11.14%
Max Revenue beat(4)-3.7%
Revenue beat(8)0
Avg Revenue beat(8)-6.1%
Revenue beat(12)1
Avg Revenue beat(12)-4.02%
Revenue beat(16)4
Avg Revenue beat(16)-1.38%
PT rev (1m)-3.85%
PT rev (3m)4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.51%
EPS NY rev (1m)18.78%
EPS NY rev (3m)71.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 701 | ||
| Fwd PE | 11.03 | ||
| P/S | 0.24 | ||
| P/FCF | 5.89 | ||
| P/OCF | 3.16 | ||
| P/B | 0.9 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.01
EY0.14%
EPS(NY)0.64
Fwd EY9.07%
FCF(TTM)1.19
FCFY16.99%
OCF(TTM)2.22
OCFY31.69%
SpS28.98
BVpS7.79
TBVpS7.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.12% | ||
| ROCE | 3.29% | ||
| ROIC | 2.6% | ||
| ROICexc | 3.11% | ||
| ROICexgc | 3.24% | ||
| OM | 2.13% | ||
| PM (TTM) | N/A | ||
| GM | 13.42% | ||
| FCFM | 4.11% |
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-Score3
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.49 | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 108.11% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 1.06 | ||
| Cash Conversion | 141.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.03 |
F-Score3
WACC10.25%
ROIC/WACC0.25
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-10.23%
EPS Next 2Y48.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.22%
Revenue growth 5Y4.97%
Sales Q2Q%1.76%
Revenue Next Year-0.43%
Revenue Next 2Y3.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-73.52%
EBIT growth 3Y-22.67%
EBIT growth 5YN/A
EBIT Next Year144.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-36.01%
FCF growth 3YN/A
FCF growth 5Y53.16%
OCF growth 1Y-21.11%
OCF growth 3Y136.28%
OCF growth 5Y25.53%