NasdaqGS:TITN

Stock Analysis Report

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Executive Summary

Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores.


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

How has Titan Machinery's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TITN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

TITN

2.2%

US Trade Distributors

0.5%

US Market


1 Year Return

-32.6%

TITN

22.2%

US Trade Distributors

18.7%

US Market

Return vs Industry: TITN underperformed the US Trade Distributors industry which returned 22.2% over the past year.

Return vs Market: TITN underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

TITNIndustryMarket
7 Day4.3%2.2%0.5%
30 Day3.9%10.8%4.9%
90 Day40.4%35.7%19.8%
1 Year-32.6%-32.6%24.6%22.2%21.2%18.7%
3 Year-26.8%-26.8%39.5%33.2%46.2%36.8%
5 Year-7.7%-7.7%62.4%50.1%85.3%65.1%

Price Volatility Vs. Market

How volatile is Titan Machinery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Titan Machinery undervalued compared to its fair value and its price relative to the market?

16.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TITN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TITN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TITN is good value based on its PE Ratio (16.2x) compared to the US Trade Distributors industry average (17.2x).

PE vs Market: TITN is good value based on its PE Ratio (16.2x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: TITN is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: TITN is good value based on its PB Ratio (0.8x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

How is Titan Machinery forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TITN's forecast earnings growth (8% per year) is above the savings rate (2.2%).

Earnings vs Market: TITN's earnings (8% per year) are forecast to grow slower than the US market (24.1% per year).

High Growth Earnings: TITN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TITN's revenue (1.3% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: TITN's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TITN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Titan Machinery performed over the past 5 years?

62.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TITN has high quality earnings.

Growing Profit Margin: TITN's current net profit margins (1.2%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: TITN has become profitable over the past 5 years, growing earnings by 62.8% per year.

Accelerating Growth: TITN's earnings growth over the past year (25%) is below its 5-year average (62.8% per year).

Earnings vs Industry: TITN earnings growth over the past year (25%) exceeded the Trade Distributors industry -5.7%.


Return on Equity

High ROE: TITN's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Titan Machinery's financial position?


Financial Position Analysis

Short Term Liabilities: TITN's short term assets ($721.3M) exceed its short term liabilities ($477.4M).

Long Term Liabilities: TITN's short term assets ($721.3M) exceed its long term liabilities ($145.2M).


Debt to Equity History and Analysis

Debt Level: TITN's debt to equity ratio (119.3%) is considered high.

Reducing Debt: TITN's debt to equity ratio has reduced from 222% to 119.3% over the past 5 years.

Debt Coverage: TITN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TITN's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Titan Machinery current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TITN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TITN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TITN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TITN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TITN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

David Meyer (67 yo)

no data

Tenure

US$483,400

Compensation

Mr. David Joseph Meyer co-founded Titan Machinery, Inc. in 1980 and has been its Chairman and Director since 1980. Mr. Meyer serves as the Chief Executive Officer of Titan Machinery, Inc. From 1976 to 1980 ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD483.40K) is below average for companies of similar size in the US market ($USD1.27M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Meyer
Co-Founderno dataUS$483.40k13.04%
$ 35.1m
Mark Kalvoda
CFO & Treasurer9.33yrsUS$875.99k0.85%
$ 2.3m
Bryan Knutson
Chief Operating Officer3yrsUS$759.66k0.29%
$ 781.0k
Jason Anderson
Vice President of Human Resources & Administration5.08yrsno datano data
Steve Noack
General Counsel5.08yrsno datano data
Ray Ochsner
Chief Strategy Officerno datano datano data
Jeff Bowman
Chief Experience Officerno datano datano data

5.1yrs

Average Tenure

48yo

Average Age

Experienced Management: TITN's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Meyer
Co-Founderno dataUS$483.40k13.04%
$ 35.1m
Anton Christianson
Independent Director17.58yrsUS$120.00k1.33%
$ 3.6m
Richard Mack
Independent Director5.17yrsUS$145.00k0.14%
$ 364.8k
Stanley Dardis
Lead Independent Director3.17yrsUS$135.00k0.19%
$ 513.2k
Christine Hamilton
Independent Director2.42yrsUS$120.00k0.070%
$ 189.0k
Stan Erickson
Independent Director3.42yrsUS$120.00k0.14%
$ 380.3k
Jody Horner
Independent Director5yrsUS$130.00k0.13%
$ 358.1k

4.2yrs

Average Tenure

67yo

Average Age

Experienced Board: TITN's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Titan Machinery Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Titan Machinery Inc.
  • Ticker: TITN
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$269.362m
  • Shares outstanding: 21.95m
  • Website: https://www.titanmachinery.com

Number of Employees


Location

  • Titan Machinery Inc.
  • 644 East Beaton Drive
  • West Fargo
  • North Dakota
  • 58078-2648
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TITNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2007
3TYDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2007

Biography

Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores. It operates through three segments: Agriculture, Construction, and International. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 11:54
End of Day Share Price2020/08/13 00:00
Earnings2020/04/30
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.