Titan Machinery (NasdaqGS:TITN) - Share price, News & Analysis

Q: What is the Fair Price of TITN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TITN ($22.72) is trading below our estimate of [[fair value]] ($28.8)

TITN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

TITN Stock Overview

Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe.

Rewards

Trading at 21.1% below our estimate of its fair value

Earnings grew by 165.1% over the past year

Risk Analysis

No risks detected for TITN from our risk checks.

Titan Machinery Competitors

Transcat

NasdaqGM:TRNS

US$427.5m

BlueLinx Holdings

NYSE:BXC

US$669.2m

Hudson Technologies

NasdaqCM:HDSN

US$332.8m

DXP Enterprises

NasdaqGS:DXPE

US$583.0m

Price History & Performance

Summary of all time highs, changes and price drops for Titan Machinery
Historical stock prices
Current Share Price	US$22.72
52 Week High	US$38.58
52 Week Low	US$21.94
Beta	1.64
1 Month Change	-16.65%
3 Month Change	-18.42%
1 Year Change	-25.99%
3 Year Change	17.29%
5 Year Change	27.43%
Change since IPO	139.66%

Recent News & Updates

Jun 14

Do Titan Machinery's (NASDAQ:TITN) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

May 27

Titan Machinery (NASDAQ:TITN) Is Doing The Right Things To Multiply Its Share Price

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a...

Shareholder Returns

	TITN	US Trade Distributors	US Market
7D	-4.4%	-1.1%	-2.5%
1Y	-26.0%	-10.0%	-21.2%

Return vs Industry: TITN underperformed the US Trade Distributors industry which returned -10% over the past year.

Return vs Market: TITN underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is TITN's price volatile compared to industry and market?
TITN volatility
TITN Average Weekly Movement	6.9%
Trade Distributors Industry Average Movement	7.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: TITN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TITN's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	2,362	David Meyer	https://www.titanmachinery.com

Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe. It operates through three segments: Agriculture, Construction, and International. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers.

Titan Machinery Fundamentals Summary

How do Titan Machinery's earnings and revenue compare to its market cap?
TITN fundamental statistics
Market Cap	US$505.75m
Earnings (TTM)	US$72.03m
Revenue (TTM)	US$1.80b

7.0x

P/E Ratio

0.3x

P/S Ratio

Is TITN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TITN income statement (TTM)
Revenue	US$1.80b
Cost of Revenue	US$1.45b
Gross Profit	US$350.44m
Other Expenses	US$278.41m
Earnings	US$72.03m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.24
Gross Margin	19.47%
Net Profit Margin	4.00%
Debt/Equity Ratio	58.7%

How did TITN perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TITN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TITN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TITN. This is calculated by dividing TITN's market cap by their current preferred multiple.
What is TITN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$505.75m

TITN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	5.7x
PEG Ratio	4.1x

Price to Earnings Ratio vs Peers

How does TITN's PE Ratio compare to its peers?

TITN PE Ratio vs Peers

The above table shows the PE ratio for TITN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.3x
TRNS Transcat	37.6x	10.5%	US$427.5m
BXC BlueLinx Holdings	1.8x	-30.2%	US$669.2m
HDSN Hudson Technologies	5.3x	-22.0%	US$332.8m
DXPE DXP Enterprises	20.3x	37.5%	US$583.0m
TITN Titan Machinery	7x	1.7%	US$505.7m

Forward PE

Price-To-Earnings vs Peers: TITN is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does TITN's PE Ratio compare vs other companies in the US Trade Distributors Industry?

Price-To-Earnings vs Industry: TITN is good value based on its Price-To-Earnings Ratio (7x) compared to the US Trade Distributors industry average (12.1x)

Price to Earnings Ratio vs Fair Ratio

What is TITN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TITN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7x
Fair PE Ratio	13x

Price-To-Earnings vs Fair Ratio: TITN is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (13x).

Share Price vs Fair Value

What is the Fair Price of TITN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TITN ($22.72) is trading below our estimate of fair value ($28.8)

Significantly Below Fair Value: TITN is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: TITN is poor value based on its PEG Ratio (4.1x)

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TITN's forecast earnings growth (1.7% per year) is below the savings rate (1.9%).

Earnings vs Market: TITN's earnings (1.7% per year) are forecast to grow slower than the US market (13.6% per year).

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

Revenue vs Market: TITN's revenue (7.2% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: TITN's revenue (7.2% 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

Discover growth companies

Past Performance

How has Titan Machinery performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

63.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TITN has high quality earnings.

Growing Profit Margin: TITN's current net profit margins (4%) are higher than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: TITN has become profitable over the past 5 years, growing earnings by 63.2% per year.

Accelerating Growth: TITN's earnings growth over the past year (165.1%) exceeds its 5-year average (63.2% per year).

Earnings vs Industry: TITN earnings growth over the past year (165.1%) exceeded the Trade Distributors industry 80.4%.

Return on Equity

High ROE: TITN's Return on Equity (16.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Titan Machinery's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TITN's short term assets ($748.4M) exceed its short term liabilities ($417.5M).

Long Term Liabilities: TITN's short term assets ($748.4M) exceed its long term liabilities ($141.2M).

Debt to Equity History and Analysis

Debt Level: TITN's net debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: TITN's debt to equity ratio has reduced from 122.3% to 58.7% over the past 5 years.

Debt Coverage: TITN's debt is well covered by operating cash flow (51.8%).

Interest Coverage: TITN's interest payments on its debt are well covered by EBIT (17.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TITN has not reported any payouts.

Discover strong dividend paying companies

Management

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

7.0yrs

Average management tenure

CEO

David Meyer (69 yo)

42.5yrs

Tenure

US$483,700

Compensation

Mr. David Joseph Meyer Co-Founded Titan Machinery, Inc. in 1980 and has been its Chairman and Director since 1980 and serves as its Chief Executive Officer. From 1976 to 1980, he served as a Partner in a C...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD483.70K) is below average for companies of similar size in the US market ($USD2.92M).

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

Leadership Team

Experienced Management: TITN's management team is seasoned and experienced (7 years average tenure).

Board Members

Experienced Board: TITN's board of directors are considered experienced (6.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/04/30
Annual Earnings	2022/01/31