17.5 USD
-0.62 (-3.42%)
19.195 USD
+1.7 (+9.69%)
Taking everything into account, TWIN scores 4 out of 10 in our fundamental rating. TWIN was compared to 132 industry peers in the Machinery industry. TWIN has a bad profitability rating. Also its financial health evaluation is rather negative. TWIN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TWIN was profitable.
- TWIN had a positive operating cash flow in the past year.
- In multiple years TWIN reported negative net income over the last 5 years.
- Of the past 5 years TWIN 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.10%, TWIN is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- TWIN's Return On Equity of 0.22% is on the low side compared to the rest of the industry. TWIN is outperformed by 65.91% of its industry peers.
- TWIN's Return On Invested Capital of 4.66% is on the low side compared to the rest of the industry. TWIN is outperformed by 62.12% 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 10.24%.
- The 3 year average ROIC (4.31%) for TWIN is below the current ROIC(4.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | 0.22% | ||
| ROIC | 4.66% |
ROA(3y)2.19%
ROA(5y)-0.08%
ROE(3y)4.37%
ROE(5y)-0.33%
ROIC(3y)4.31%
ROIC(5y)N/A
1.3 Margins
- TWIN's Profit Margin of 0.10% is on the low side compared to the rest of the industry. TWIN is outperformed by 67.42% of its industry peers.
- TWIN has a worse Operating Margin (4.09%) than 65.91% of its industry peers.
- In the last couple of years the Operating Margin of TWIN has declined.
- TWIN has a Gross Margin (28.16%) which is comparable to the rest of the industry.
- TWIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.09% | ||
| PM (TTM) | 0.1% | ||
| GM | 28.16% |
OM growth 3Y-6.57%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.33%
GM growth 5Y3.81%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWIN 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
- The debt/assets ratio for TWIN is higher compared to a year ago.
2.2 Solvency
- TWIN has an Altman-Z score of 2.75. 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.
- Looking at the Altman-Z score, with a value of 2.75, TWIN is in line with its industry, outperforming 43.94% of the companies in the same industry.
- TWIN has a debt to FCF ratio of 10.88. This is a negative value and a sign of low solvency as TWIN would need 10.88 years to pay back of all of its debts.
- TWIN has a Debt to FCF ratio of 10.88. This is comparable to the rest of the industry: TWIN outperforms 40.15% of its industry peers.
- TWIN has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of TWIN (0.29) is better than 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 10.88 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.49
WACC9.6%
2.3 Liquidity
- A Current Ratio of 2.08 indicates that TWIN has no problem at all paying its short term obligations.
- TWIN has a Current ratio (2.08) which is comparable to the rest of the industry.
- TWIN has a Quick Ratio of 2.08. 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 0.79, TWIN is not doing good in the industry: 78.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- TWIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -95.65%.
- TWIN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.24%.
- Measured over the past years, TWIN shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)-95.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y11.94%
Revenue growth 5Y6.66%
Sales Q2Q%9.73%
3.2 Future
- TWIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 251.36% yearly.
- The Revenue is expected to grow by 8.72% on average over the next years. This is quite good.
EPS Next Y879.57%
EPS Next 2Y251.36%
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
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- TWIN is valuated quite expensively with a Price/Earnings ratio of 875.00.
- TWIN's Price/Earnings ratio is a bit more expensive when compared to the industry. TWIN is more expensive than 72.73% of the companies in the same industry.
- TWIN is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 12.08, which indicates a correct valuation of TWIN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TWIN indicates a rather cheap valuation: TWIN is cheaper than 93.94% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TWIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 875 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
- 85.61% of the companies in the same industry are more expensive than TWIN, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWIN indicates a slightly more expensive valuation: TWIN is more expensive than 64.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.06 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
- TWIN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- TWIN's earnings are expected to grow with 251.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y251.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TWIN has a yearly dividend return of 0.88%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.01, TWIN pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.88, TWIN pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
- The dividend of TWIN decreases each year by -14.70%.
- TWIN has been paying a dividend for at least 10 years, so it has a reliable track record.
- TWIN has decreased its dividend recently.
Dividend Growth(5Y)-14.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- TWIN pays out 647.73% of its income as dividend. This is not a sustainable payout ratio.
DP647.73%
EPS Next 2Y251.36%
EPS Next 3YN/A
TWIN DISC INC / TWIN FAQ
What is the fundamental rating for TWIN stock?
ChartMill assigns a fundamental rating of 4 / 10 to TWIN.
Can you provide the valuation status for TWIN DISC INC?
ChartMill assigns a valuation rating of 4 / 10 to TWIN DISC INC (TWIN). This can be considered as Fairly Valued.
How profitable is TWIN DISC INC (TWIN) stock?
TWIN DISC INC (TWIN) has a profitability rating of 3 / 10.
What is the valuation of TWIN DISC INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TWIN DISC INC (TWIN) is 875 and the Price/Book (PB) ratio is 1.57.
How financially healthy is TWIN DISC INC?
The financial health rating of TWIN DISC INC (TWIN) is 3 / 10.