TITAN INTERNATIONAL INC (TWI) Stock Fundamental Analysis
NYSE:TWI - New York Stock Exchange, Inc. - US88830M1027 - Common Stock - Currency: USD
TWI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. TWI has a bad profitability rating. Also its financial health evaluation is rather negative. TWI is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years TWI had a positive operating cash flow.
1.2 Ratios
TWI has a worse Return On Assets (-0.89%) than 69.53% of its industry peers.
The Return On Equity of TWI (-2.88%) is worse than 69.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.24%, TWI is doing worse than 71.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TWI is in line with the industry average of 10.31%.
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's Operating Margin of 1.07% is on the low side compared to the rest of the industry. TWI is outperformed by 71.88% of its industry peers.
In the last couple of years the Operating Margin of TWI has declined.
TWI has a worse Gross Margin (12.92%) than 85.16% 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
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.
The number of shares outstanding for TWI has been increased compared to 5 years ago.
Compared to 1 year ago, TWI has a worse debt to assets ratio.
2.2 Solvency
TWI has an Altman-Z score of 1.87. This is not the best score and indicates that TWI is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, TWI is not doing good in the industry: 69.53% of the companies in the same industry are doing better.
TWI has a debt to FCF ratio of 15.96. This is a negative value and a sign of low solvency as TWI would need 15.96 years to pay back of all of its debts.
TWI has a worse Debt to FCF ratio (15.96) than 65.63% of its industry peers.
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 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 15.96 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.12
WACC10.18%
2.3 Liquidity
A Current Ratio of 2.26 indicates that TWI has no problem at all paying its short term obligations.
TWI has a better Current ratio (2.26) than 60.94% of its industry peers.
A Quick Ratio of 1.25 indicates that TWI should not have too much problems paying its short term obligations.
TWI has a Quick ratio (1.25) which is comparable to the rest of the 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.
TWI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.64%.
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)-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
Based on estimates for the next years, TWI will show a very strong growth in Earnings Per Share. The EPS will grow by 39.34% on average per year.
The Revenue is expected to grow by 3.18% on average over the next years.
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.
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
A Price/Earnings ratio of 701.00 indicates a quite expensive valuation of TWI.
TWI's Price/Earnings ratio is a bit more expensive when compared to the industry. TWI is more expensive than 73.44% of the companies in the same industry.
TWI is valuated expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.45, TWI is valued correctly.
TWI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TWI is cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TWI to the average of the S&P500 Index (21.76), we can say TWI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 701 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWI is valued a bit cheaper than 69.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TWI is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.12 | ||
| EV/EBITDA | 10.2 |
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 |
7.01
-0.03 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change2.34%
Ins Owners5.51%
Ins Owner Change6.22%
Market Cap446.54M
Analysts80
Price Target11.99 (71.04%)
Short Float %8.04%
Short Ratio4.84
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)-6%
PT rev (3m)-2.08%
EPS NQ rev (1m)-28.88%
EPS NQ rev (3m)-61.23%
EPS NY rev (1m)-64.11%
EPS NY rev (3m)-38.61%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 701 | ||
| Fwd PE | 12.45 | ||
| P/S | 0.24 | ||
| P/FCF | 12.12 | ||
| P/OCF | 4.43 | ||
| P/B | 0.84 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)0.01
EY0.14%
EPS(NY)0.56
Fwd EY8.03%
FCF(TTM)0.58
FCFY8.25%
OCF(TTM)1.58
OCFY22.59%
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 | 1.87 |
F-Score4
WACC10.18%
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 Year144.39%
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%