TWIN DISC INC (TWIN) Stock Fundamental Analysis
NASDAQ:TWIN - Nasdaq - US9014761012 - Common Stock - Currency: USD
Overall TWIN gets a fundamental rating of 4 out of 10. We evaluated TWIN against 128 industry peers in the Machinery industry. TWIN may be in some trouble as it scores bad on both profitability and health. TWIN has a correct valuation and a medium 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.
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.
1.2 Ratios
TWIN's Return On Assets of 1.23% is on the low side compared to the rest of the industry. TWIN is outperformed by 64.06% of its industry peers.
Looking at the Return On Equity, with a value of 2.74%, TWIN is doing worse than 62.50% of the companies in the same industry.
With a Return On Invested Capital value of 3.68%, TWIN is not doing good in the industry: 63.28% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TWIN is significantly below the industry average of 10.72%.
| 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
TWIN has a worse Profit Margin (1.25%) than 63.28% of its industry peers.
TWIN's Profit Margin has been stable in the last couple of years.
The Operating Margin of TWIN (3.40%) is worse than 65.63% of its industry peers.
In the last couple of years the Operating Margin of TWIN has declined.
Looking at the Gross Margin, with a value of 27.21%, TWIN is in line with its industry, outperforming 40.63% of the companies in the same industry.
TWIN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWIN is destroying value.
TWIN has more shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 2.46 indicates that TWIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
TWIN has a worse Altman-Z score (2.46) than 61.72% of its industry peers.
The Debt to FCF ratio of TWIN is 4.50, which is a neutral value as it means it would take TWIN, 4.50 years of fcf income to pay off all of its debts.
TWIN has a Debt to FCF ratio (4.50) which is comparable to the rest of the industry.
TWIN has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.29, TWIN is doing good in the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.38
WACC9.76%
2.3 Liquidity
A Current Ratio of 2.11 indicates that TWIN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.11, TWIN is in line with its industry, outperforming 53.13% of the companies in the same 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.
TWIN has a Quick ratio of 0.86. This is in the lower half of the industry: TWIN underperforms 71.09% 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 -90.80%.
TWIN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
The Revenue has grown by 11.49% in the past year. This is quite good.
Measured over the past years, TWIN shows a decrease in Revenue. The Revenue has been decreasing by -0.51% on average per year.
EPS 1Y (TTM)-90.8%
EPS 3YN/A
EPS 5Y2.25%
EPS Q2Q%-140.74%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%9.55%
3.2 Future
The Earnings Per Share is expected to grow by 41.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.48% on average over the next years. This is quite good.
EPS Next Y-96.42%
EPS Next 2Y41.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2Y13.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 107.25 indicates a quite expensive valuation of TWIN.
73.44% of the companies in the same industry are cheaper than TWIN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.65, TWIN is valued quite expensively.
The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap 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 96.88% of the companies listed in the same industry.
TWIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.25 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWIN is valued cheaply inside the industry as 92.97% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TWIN is valued cheaply inside the industry as 88.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TWIN's earnings are expected to grow with 41.57% in the coming years.
PEG (NY)N/A
PEG (5Y)47.68
EPS Next 2Y41.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TWIN has a Yearly Dividend Yield of 1.98%.
Compared to an average industry Dividend Yield of 1.94, TWIN pays a better dividend. On top of this TWIN pays more dividend than 83.59% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of TWIN decreases each year by -19.50%.
TWIN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TWIN decreased 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 2Y41.57%
EPS Next 3YN/A
NASDAQ:TWIN (6/23/2025, 8:00:01 PM)
8.58
+0.34 (+4.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners66.76%
Inst Owner Change0.08%
Ins Owners20.59%
Ins Owner Change0.25%
Market Cap121.41M
Analysts82.86
Price Target12.24 (42.66%)
Short Float %2.2%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)-20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.25 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.37 | ||
| P/FCF | 11.66 | ||
| P/OCF | 6.4 | ||
| P/B | 0.81 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)0.08
EY0.93%
EPS(NY)1.14
Fwd EY13.31%
FCF(TTM)0.74
FCFY8.58%
OCF(TTM)1.34
OCFY15.63%
SpS23.21
BVpS10.57
TBVpS9.5
PEG (NY)N/A
PEG (5Y)47.68
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 | 2.46 |
F-Score3
WACC9.76%
ROIC/WACC0.38
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 Y-96.42%
EPS Next 2Y41.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.49%
Revenue growth 3Y10.52%
Revenue growth 5Y-0.51%
Sales Q2Q%9.55%
Revenue Next YearN/A
Revenue Next 2Y13.48%
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 3YN/A
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