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TWIN DISC INC (TWIN) Stock Fundamental Analysis

NASDAQ:TWIN - Nasdaq - US9014761012 - Common Stock - Currency: USD

7.42  +0.18 (+2.49%)

After market: 7.08 -0.34 (-4.58%)

Fundamental Rating

3

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 expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

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.
The reported net income has been mixed in the past 5 years: TWIN reported negative net income in multiple years.
TWIN had a positive operating cash flow in 4 of the past 5 years.
TWIN Yearly Net Income VS EBIT VS OCF VS FCFTWIN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M

1.2 Ratios

TWIN has a Return On Assets (3.05%) which is in line with its industry peers.
TWIN has a Return On Equity (6.38%) which is comparable to the rest of the industry.
TWIN's Return On Invested Capital of 4.55% is on the low side compared to the rest of the industry. TWIN is outperformed by 62.50% of its industry peers.
TWIN had an Average Return On Invested Capital over the past 3 years of 4.04%. This is significantly below the industry average of 10.56%.
The 3 year average ROIC (4.04%) for TWIN is below the current ROIC(4.55%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.05%
ROE 6.38%
ROIC 4.55%
ROA(3y)3.64%
ROA(5y)-2.68%
ROE(3y)7.43%
ROE(5y)-5.81%
ROIC(3y)4.04%
ROIC(5y)N/A
TWIN Yearly ROA, ROE, ROICTWIN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10 -20

1.3 Margins

TWIN has a Profit Margin of 2.92%. This is in the lower half of the industry: TWIN underperforms 60.16% 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 3.94%. This is in the lower half of the industry: TWIN underperforms 65.63% of its industry peers.
TWIN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.58%, TWIN is in line with its industry, outperforming 43.75% of the companies in the same industry.
TWIN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.94%
PM (TTM) 2.92%
GM 27.58%
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%
TWIN Yearly Profit, Operating, Gross MarginsTWIN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWIN is destroying value.
The number of shares outstanding for TWIN has been increased compared to 1 year ago.
The number of shares outstanding for TWIN has been increased compared to 5 years ago.
Compared to 1 year ago, TWIN has a worse debt to assets ratio.
TWIN Yearly Shares OutstandingTWIN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
TWIN Yearly Total Debt VS Total AssetsTWIN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

TWIN has an Altman-Z score of 2.59. This is not the best score and indicates that TWIN is in the grey zone with still only limited risk for bankruptcy at the moment.
TWIN's Altman-Z score of 2.59 is in line compared to the rest of the industry. TWIN outperforms 42.19% of its industry peers.
The Debt to FCF ratio of TWIN is 2.27, which is a good value as it means it would take TWIN, 2.27 years of fcf income to pay off all of its debts.
TWIN's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. TWIN outperforms 75.00% of its industry peers.
TWIN has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, TWIN is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 2.27
Altman-Z 2.59
ROIC/WACC0.48
WACC9.56%
TWIN Yearly LT Debt VS Equity VS FCFTWIN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

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.
The Current ratio of TWIN (2.11) is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 0.86, TWIN is doing worse than 72.66% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 0.86
TWIN Yearly Current Assets VS Current LiabilitesTWIN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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1

3. Growth

3.1 Past

TWIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -90.80%.
Measured over the past 5 years, TWIN shows a small growth in Earnings Per Share. The EPS has been growing by 2.25% on average per year.
Looking at the last year, TWIN shows a small growth in Revenue. The Revenue has grown by 6.54% in the last year.
The Revenue has been decreasing by -0.51% on average over the past years.
EPS 1Y (TTM)-90.8%
EPS 3YN/A
EPS 5Y2.25%
EPS Q2Q%-140.74%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%9.55%

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 YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
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.
TWIN Yearly Revenue VS EstimatesTWIN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
TWIN Yearly EPS VS EstimatesTWIN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1 -1 -2

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 92.75 indicates a quite expensive valuation of TWIN.
71.88% of the companies in the same industry are cheaper than TWIN, based on the Price/Earnings ratio.
TWIN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.12.
Industry RankSector Rank
PE 92.75
Fwd PE N/A
TWIN Price Earnings VS Forward Price EarningsTWIN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

TWIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TWIN is cheaper than 95.31% of the companies in the same industry.
93.75% of the companies in the same industry are more expensive than TWIN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.75
EV/EBITDA 4.85
TWIN Per share dataTWIN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)41.23
EPS Next 2YN/A
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

TWIN has a Yearly Dividend Yield of 2.35%.
In the last 3 months the price of TWIN has falen by -33.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.02, TWIN pays a better dividend. On top of this TWIN pays more dividend than 86.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TWIN has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.35%

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.
The dividend of TWIN decreased recently.
Dividend Growth(5Y)-19.5%
Div Incr Years1
Div Non Decr Years1
TWIN Yearly Dividends per shareTWIN Yearly Dividends per shareYearly Dividends per share 2015 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

24.20% of the earnings are spent on dividend by TWIN. This is a low number and sustainable payout ratio.
DP24.2%
EPS Next 2YN/A
EPS Next 3YN/A
TWIN Yearly Income VS Free CF VS DividendTWIN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M
TWIN Dividend Payout.TWIN Dividend Payout, showing the Payout Ratio.TWIN Dividend Payout.PayoutRetained Earnings

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TWIN DISC INC

NASDAQ:TWIN (5/8/2025, 8:26:24 PM)

After market: 7.08 -0.34 (-4.58%)

7.42

+0.18 (+2.49%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-13 2025-08-13
Inst Owners66.82%
Inst Owner Change0.69%
Ins Owners20.58%
Ins Owner Change0.25%
Market Cap104.99M
Analysts82.86
Price Target12.24 (64.96%)
Short Float %1.28%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield 2.35%
Yearly Dividend0.12
Dividend Growth(5Y)-19.5%
DP24.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-14 2025-02-14 (0.04)
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)-20%
PT rev (3m)-20%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 92.75
Fwd PE N/A
P/S 0.33
P/FCF 7.75
P/OCF 4.78
P/B 0.71
P/tB 0.77
EV/EBITDA 4.85
EPS(TTM)0.08
EY1.08%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.96
FCFY12.91%
OCF(TTM)1.55
OCFY20.94%
SpS22.71
BVpS10.39
TBVpS9.62
PEG (NY)N/A
PEG (5Y)41.23
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 6.38%
ROCE 6.19%
ROIC 4.55%
ROICexc 4.93%
ROICexgc 5.23%
OM 3.94%
PM (TTM) 2.92%
GM 27.58%
FCFM 4.22%
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-Score4
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 2.27
Debt/EBITDA 1.15
Cap/Depr 73.36%
Cap/Sales 2.62%
Interest Coverage 250
Cash Conversion 90.99%
Profit Quality 144.42%
Current Ratio 2.11
Quick Ratio 0.86
Altman-Z 2.59
F-Score4
WACC9.56%
ROIC/WACC0.48
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)-90.8%
EPS 3YN/A
EPS 5Y2.25%
EPS Q2Q%-140.74%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%9.55%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.48%
EBIT growth 3YN/A
EBIT growth 5Y-9.9%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y190.72%
FCF growth 3Y129.46%
FCF growth 5YN/A
OCF growth 1Y404.07%
OCF growth 3Y72.84%
OCF growth 5YN/A