TWIN DISC INC (TWIN)
US9014761012 - Common Stock
Overall TWIN gets a fundamental rating of 4 out of 10. We evaluated TWIN against 132 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
In the past year TWIN was profitable.
In the past year TWIN had a positive cash flow from operations.
In multiple years TWIN reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: TWIN reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 3.87%, TWIN perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
TWIN has a Return On Equity of 7.59%. This is comparable to the rest of the industry: TWIN outperforms 50.39% of its industry peers.
TWIN has a Return On Invested Capital of 5.06%. This is comparable to the rest of the industry: TWIN outperforms 41.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 7.59% | ||
| ROIC | 5.06% |
ROA(3y)-1.13%
ROA(5y)-2.77%
ROE(3y)-2.54%
ROE(5y)-6.06%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TWIN has a Profit Margin of 3.75%. This is comparable to the rest of the industry: TWIN outperforms 48.06% of its industry peers.
In the last couple of years the Profit Margin of TWIN has remained more or less at the same level.
TWIN has a Operating Margin of 4.04%. This is in the lower half of the industry: TWIN underperforms 64.34% of its industry peers.
In the last couple of years the Operating Margin of TWIN has declined.
TWIN has a Gross Margin (27.64%) which is comparable to the rest of the industry.
TWIN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.04% | ||
| PM (TTM) | 3.75% | ||
| GM | 27.64% |
OM growth 3YN/A
OM growth 5Y-11.62%
PM growth 3YN/A
PM growth 5Y-0.99%
GM growth 3Y5.93%
GM growth 5Y-4.34%
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.
The number of shares outstanding for TWIN has been increased compared to 1 year ago.
Compared to 5 years ago, TWIN has more shares outstanding
TWIN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.26 indicates that TWIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of TWIN (3.26) is comparable to the rest of the industry.
TWIN has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.75, TWIN belongs to the top of the industry, outperforming 89.92% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that TWIN is not too dependend on debt financing.
TWIN has a better Debt to Equity ratio (0.14) than 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.54
WACC9.3%
2.3 Liquidity
TWIN has a Current Ratio of 2.22. This indicates that TWIN is financially healthy and has no problem in meeting its short term obligations.
TWIN has a Current ratio of 2.22. This is comparable to the rest of the industry: TWIN outperforms 54.26% of its industry peers.
TWIN has a Quick Ratio of 2.22. This is a bad value and indicates that TWIN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.87, TWIN is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.82% over the past year.
TWIN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.35% yearly.
The Revenue has grown by 15.60% in the past year. This is quite good.
The Revenue has been growing slightly by 2.85% on average over the past years.
EPS 1Y (TTM)17.82%
EPS 3YN/A
EPS 5Y-6.35%
EPS growth Q2Q-12.5%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y3.92%
Revenue growth 5Y2.85%
Revenue growth Q2Q15.22%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y55.25%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
TWIN is valuated rather expensively with a Price/Earnings ratio of 20.70.
Compared to the rest of the industry, the Price/Earnings ratio of TWIN indicates a somewhat cheap valuation: TWIN is cheaper than 62.79% of the companies listed in the same industry.
TWIN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.92.
A Price/Forward Earnings ratio of 14.24 indicates a correct valuation of TWIN.
76.74% of the companies in the same industry are more expensive than TWIN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.49. TWIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 14.24 |
4.2 Price Multiples
68.22% of the companies in the same industry are more expensive than TWIN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TWIN is valued cheaper than 97.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.65 | ||
| EV/EBITDA | 10.73 |
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.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, TWIN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.71, TWIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, TWIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
TWIN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TWIN decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2YN/A
EPS Next 3YN/A
TWIN DISC INC
NASDAQ:TWIN (4/26/2024, 7:21:10 PM)
16.56
-0.18 (-1.08%)
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 Cap231.84M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 14.24 | ||
| 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)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 7.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.04% | ||
| PM (TTM) | 3.75% | ||
| GM | 27.64% | ||
| 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.87 | ||
| 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)
Growth
EPS 1Y (TTM)17.82%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y55.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.6%
Revenue growth 3Y3.92%
Revenue growth 5Y
Revenue growth 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