Titan Machinery Inc. Fundamental Analysis
Titan Machinery Inc. (TITN) shows weak financial fundamentals with a PE ratio of -8.42, profit margin of -2.28%, and ROE of -9.05%. The company generates $2.4B in annual revenue with weak year-over-year growth of -2.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TITN's fundamental strength across five key dimensions:
Efficiency Score
WeakTITN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTITN trades at attractive valuation levels.
Growth Score
WeakTITN faces weak or negative growth trends.
Financial Health Score
ExcellentTITN maintains a strong and stable balance sheet.
Profitability Score
WeakTITN struggles to sustain strong margins.
Key Financial Metrics
Is TITN Expensive or Cheap?
P/E Ratio
TITN trades at -8.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TITN's PEG of -0.87 indicates potential undervaluation.
Price to Book
The market values Titan Machinery Inc. at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.20 times EBITDA. This signals the market has high growth expectations.
How Well Does TITN Make Money?
Net Profit Margin
For every $100 in sales, Titan Machinery Inc. keeps $-2.28 as profit after all expenses.
Operating Margin
Core operations generate -0.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.05 in profit for every $100 of shareholder equity.
ROA
Titan Machinery Inc. generates $-3.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Titan Machinery Inc. generates limited operating cash flow of $237.50M, signaling weaker underlying cash strength.
Free Cash Flow
Titan Machinery Inc. produces free cash flow of $220.25M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.45 in free cash annually.
FCF Yield
TITN converts 46.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-8.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.09
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How TITN Stacks Against Its Sector Peers
| Metric | TITN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -8.42 | 26.21 | Better (Cheaper) |
| ROE | -9.05% | 1254.00% | Weak |
| Net Margin | -2.28% | -35113.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.38 | 9.96 | Neutral |
| ROA | -3.32% | -1487045.00% (disorted) | Weak |
TITN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Titan Machinery Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
100.99%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-356.81%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
7045.42%
Industry Style: Cyclical, Value, Infrastructure
High Growth