NasdaqGS:TITN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.5%

TITN

5.2%

US Trade Distributors

1.0%

US Market


1 Year Return

2.0%

TITN

-0.002%

US Trade Distributors

6.7%

US Market

Return vs Industry: TITN exceeded the US Trade Distributors industry which returned -0% over the past year.

Return vs Market: TITN underperformed the US Market which returned 6.7% over the past year.


Share holder returns

TITNIndustryMarket
7 Day8.5%5.2%1.0%
30 Day3.0%-2.0%-1.8%
90 Day-24.0%1.9%-1.8%
1 Year2.0%2.0%1.8%-0.002%9.1%6.7%
3 Year61.6%61.6%42.1%36.0%46.0%36.6%
5 Year12.6%12.6%34.5%24.8%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

25.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: TITN ($15.51) is trading above our estimate of fair value ($2.01)

Significantly Undervalued: TITN is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: TITN is poor value based on its PE Ratio (25.2x) compared to the Trade Distributors industry average (16.1x).

PE vs Market: TITN is poor value based on its PE Ratio (25.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: TITN is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: TITN is good value based on its PB Ratio (1x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

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

39.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TITN's forecast earnings growth (39.6% per year) is above the savings rate (2.7%).

Earnings vs Market: TITN's earnings (39.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TITN's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TITN's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

41.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TITN has become profitable over the past 5 years, growing earnings by 41.7% per year.

Accelerating Growth: TITN's earnings growth over the past year (74.4%) exceeds its 5-year average (41.7% per year).

Earnings vs Industry: TITN earnings growth over the past year (74.4%) exceeded the Trade Distributors industry 0.9%.


Return on Equity

High ROE: TITN's Return on Equity (4.1%) is considered low.


Return on Assets

ROA vs Industry: TITN's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: TITN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Titan Machinery's financial position?


Financial Position Analysis

Short Term Liabilities: TITN's short term assets ($773.5M) exceeds its short term liabilities ($553.9M)

Long Term Liabilities: TITN's short term assets ($773.5M) exceeds its long term liabilities ($139.4M)


Debt to Equity History and Analysis

Debt Level: TITN's debt to equity ratio (145.8%) is considered high

Reducing Debt: TITN's debt to equity ratio has reduced from 267.9% to 145.8% over the past 5 years.

Debt Coverage: TITN's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: TITN's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: TITN has a high level of physical assets or inventory.

Debt Coverage by Assets: TITN's debt is covered by short term assets (assets are 1.579180x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Management

What is the CEO of Titan Machinery's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

David Meyer (66yo)

0yrs

Tenure

US$483,250

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 ($USD483.25K) is below average for companies of similar size in the US market ($USD1.85M).

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


Management Age and Tenure

4.3yrs

Average Tenure

47yo

Average Age

Experienced Management: TITN's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: TITN's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$73,14401 Jul 19
Bryan Knutson
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares3,711
Max PriceUS$19.71
SellUS$431,86028 Jun 19
Anton Christianson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares22,000
Max PriceUS$19.88
SellUS$983,68030 Nov 18
David Meyer
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares53,000
Max PriceUS$18.56

Ownership Breakdown


Management Team

  • Mark Kalvoda (47yo)

    CFO & Treasurer

    • Tenure: 8.5yrs
    • Compensation: US$906.72k
  • David Meyer (66yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$483.25k
  • Steve Noack

    General Counsel

    • Tenure: 4.3yrs
  • Ray Ochsner

    Chief Strategy Officer

    • Tenure: 0yrs
  • Jason Anderson

    Vice President of Human Resources & Administration

    • Tenure: 4.3yrs
  • Bj Knutson (41yo)

    Chief Operating Officer

    • Tenure: 2.2yrs
    • Compensation: US$648.16k
  • Jeff Bowman

    Chief Experience Officer

    • Tenure: 0yrs

Board Members

  • Tony Christianson (66yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$120.00k
  • Rich Mack (51yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$145.00k
  • Stan Dardis (69yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$135.00k
  • Christine Hamilton (63yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$133.85k
  • John Henderson (56yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$130.00k
  • David Meyer (66yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$483.25k
  • Stan Erickson (68yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$120.00k
  • Jody Horner (57yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$130.00k

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$340.814m
  • Shares outstanding: 21.97m
  • Website: https://www.titanmachinery.com

Number of Employees


Location

  • Titan Machinery Inc.
  • 644 East Beaton Drive
  • West Fargo
  • North Dakota
  • 58078
  • 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 Analysis2019/10/14 02:09
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.

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