TWIN DISC INC (TWIN) Stock Fundamental Analysis
NASDAQ:TWIN - US9014761012 - Common Stock
13.17 USD
+1.16 (+9.66%)
13.17 USD
0 (0%)
Taking everything into account, TWIN scores 3 out of 10 in our fundamental rating. TWIN was compared to 128 industry peers in the Machinery industry. While TWIN seems to be doing ok healthwise, there are quite some concerns on its profitability. TWIN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TWIN had negative earnings in the past year.
TWIN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TWIN reported negative net income in multiple years.
In multiple years TWIN reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TWIN (1.23%) is worse than 64.06% of its industry peers.
The Return On Equity of TWIN (2.74%) is worse than 64.06% of its industry peers.
TWIN has a Return On Invested Capital of 3.68%. This is in the lower half of the industry: TWIN underperforms 65.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TWIN is significantly below the industry average of 9.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.74% | ||
| ROIC | 3.68% |
ROA(3y)3.64%
ROA(5y)-2.68%
ROE(3y)7.43%
ROE(5y)-5.81%
ROIC(3y)4.04%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.25%, TWIN is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of TWIN has remained more or less at the same level.
The Operating Margin of TWIN (3.40%) is worse than 67.97% of its industry peers.
TWIN's Operating Margin has declined in the last couple of years.
TWIN has a Gross Margin (27.21%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TWIN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.4% | ||
| PM (TTM) | 1.25% | ||
| GM | 27.21% |
OM growth 3YN/A
OM growth 5Y-9.44%
PM growth 3YN/A
PM growth 5Y1.04%
GM growth 3Y6.63%
GM growth 5Y-0.94%
2. Health
2.1 Basic Checks
TWIN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for TWIN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.62 indicates that TWIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.62, TWIN perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
TWIN has a debt to FCF ratio of 4.50. This is a neutral value as TWIN would need 4.50 years to pay back of all of its debts.
The Debt to FCF ratio of TWIN (4.50) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.29 indicates that TWIN is not too dependend on debt financing.
TWIN has a Debt to Equity ratio of 0.29. This is in the better half of the industry: TWIN outperforms 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.37
WACC10.05%
2.3 Liquidity
TWIN has a Current Ratio of 2.11. This indicates that TWIN is financially healthy and has no problem in meeting its short term obligations.
TWIN's Current ratio of 2.11 is in line compared to the rest of the industry. TWIN outperforms 53.91% of its industry peers.
TWIN has a Quick Ratio of 2.11. This is a bad value and indicates that TWIN is not financially healthy enough and could expect problems in meeting its short term obligations.
TWIN has a Quick ratio of 0.86. This is in the lower half of the industry: TWIN underperforms 72.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
TWIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -124.56%.
EPS 1Y (TTM)-124.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-68.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.52%
3.2 Future
Based on estimates for the next years, TWIN will show a very strong growth in Earnings Per Share. The EPS will grow by 284.06% on average per year.
The Revenue is expected to grow by 8.72% on average over the next years. This is quite good.
EPS Next Y916%
EPS Next 2Y284.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.01%
Revenue Next 2Y8.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
TWIN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 11.53, the valuation of TWIN can be described as reasonable.
Based on the Price/Forward Earnings ratio, TWIN is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
TWIN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWIN indicates a rather cheap valuation: TWIN is cheaper than 85.16% of the companies listed in the same industry.
78.91% of the companies in the same industry are more expensive than TWIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TWIN's earnings are expected to grow with 284.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y284.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TWIN has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
TWIN's Dividend Yield is a higher than the industry average which is at 1.78.
With a Dividend Yield of 1.27, TWIN pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of TWIN decreases each year by -19.50%.
TWIN has paid a dividend for at least 10 years, which is a reliable track record.
TWIN has decreased its dividend recently.
Dividend Growth(5Y)-19.5%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
55.68% of the earnings are spent on dividend by TWIN. This is a bit on the high side, but may be sustainable.
DP55.68%
EPS Next 2Y284.06%
EPS Next 3YN/A
13.17
+1.16 (+9.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners67.88%
Inst Owner Change-4.16%
Ins Owners20.59%
Ins Owner Change8.06%
Market Cap186.36M
Analysts82.86
Price Target12.24 (-7.06%)
Short Float %0.74%
Short Ratio0.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.12
Dividend Growth(5Y)-19.5%
DP55.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-54.39%
EPS NQ rev (3m)0%
EPS NY rev (1m)-96.92%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.53 | ||
| P/S | 0.57 | ||
| P/FCF | 17.9 | ||
| P/OCF | 9.82 | ||
| P/B | 1.25 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)-0.14
EYN/A
EPS(NY)1.14
Fwd EY8.67%
FCF(TTM)0.74
FCFY5.59%
OCF(TTM)1.34
OCFY10.18%
SpS23.21
BVpS10.57
TBVpS9.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.74% | ||
| ROCE | 5% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 4.28% | ||
| OM | 3.4% | ||
| PM (TTM) | 1.25% | ||
| GM | 27.21% | ||
| FCFM | 3.17% |
ROA(3y)3.64%
ROA(5y)-2.68%
ROE(3y)7.43%
ROE(5y)-5.81%
ROIC(3y)4.04%
ROIC(5y)N/A
ROICexc(3y)4.38%
ROICexc(5y)N/A
ROICexgc(3y)4.71%
ROICexgc(5y)N/A
ROCE(3y)5.5%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.24%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.36%
OM growth 3YN/A
OM growth 5Y-9.44%
PM growth 3YN/A
PM growth 5Y1.04%
GM growth 3Y6.63%
GM growth 5Y-0.94%
F-Score3
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 67.53% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.59% | ||
| Profit Quality | 254.53% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.62 |
F-Score3
WACC10.05%
ROIC/WACC0.37
Cap/Depr(3y)73.79%
Cap/Depr(5y)70.15%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-124.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-68.75%
EPS Next Y916%
EPS Next 2Y284.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.52%
Revenue Next Year9.01%
Revenue Next 2Y8.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.48%
EBIT growth 3YN/A
EBIT growth 5Y-9.9%
EBIT Next Year7.69%
EBIT Next 3Y36.6%
EBIT Next 5YN/A
FCF growth 1Y408.99%
FCF growth 3Y129.46%
FCF growth 5YN/A
OCF growth 1Y228.84%
OCF growth 3Y72.84%
OCF growth 5YN/A