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

Moderate growth potential with mediocre 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


Market Performance


7 Day Return

3.5%

NasdaqGS:TITN

3.6%

US Trade Distributors

2.9%

US Market


1 Year Return

18.2%

NasdaqGS:TITN

-17.0%

US Trade Distributors

0.2%

US Market

TITN outperformed the Trade Distributors industry which returned -18% over the past year.

TITN outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

TITNIndustryMarket
7 Day3.5%3.6%2.9%
30 Day-10.5%-1.5%-2.3%
90 Day15.7%-0.2%3.1%
1 Year18.2%18.2%-15.5%-17.0%2.4%0.2%
3 Year66.9%66.9%25.6%20.1%41.7%32.4%
5 Year47.1%47.1%11.8%4.0%55.1%37.9%

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?

30.19x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Titan Machinery's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Titan Machinery's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Titan Machinery is overvalued based on earnings compared to the US Trade Distributors industry average.

Titan Machinery is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Titan Machinery is good value based on expected growth next year.


Price Based on Value of Assets

Titan Machinery is good value based on assets compared to the US Trade Distributors industry average.


Next Steps

Future Growth

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

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Titan Machinery's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Titan Machinery's earnings are expected to grow significantly at over 20% yearly.

Titan Machinery's revenue growth is positive but not above the United States of America market average.

Titan Machinery's earnings growth is expected to exceed the United States of America market average.

Titan Machinery's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Titan Machinery will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Titan Machinery performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Titan Machinery has delivered over 20% year on year earnings growth in the past 5 years.

Titan Machinery has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Titan Machinery has become profitable in the last year making it difficult to compare the US Trade Distributors industry average.


Return on Equity

Titan Machinery has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Titan Machinery used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Titan Machinery has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Titan Machinery's financial position?


Financial Position Analysis

Titan Machinery is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Titan Machinery's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Titan Machinery's level of debt (135.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (254.8% vs 135.8% today).

Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Titan Machinery's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Titan Machinery's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Titan Machinery has not reported any payouts.

Unable to verify if Titan Machinery's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Titan Machinery has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

David Meyer (66yo)

0.0yrs

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

David's remuneration is lower than average for companies of similar size in United States of America.

David's compensation has increased in line with Titan Machinery recently becoming profitable.


Management Age and Tenure

4.1yrs

Average Tenure

47yo

Average Age

The tenure for the Titan Machinery management team is about average.


Board Age and Tenure

2.4yrs

Average Tenure

64.5yo

Average Age

The average tenure for the Titan Machinery board of directors is less than 3 years, this suggests a new board.


Insider Trading

Titan Machinery individual insiders have only sold shares 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: 8.3yrs
    • Compensation: US$906.72k
  • David Meyer (66yo)

    Co-Founder

    • Tenure: 0.0yrs
    • Compensation: US$483.25k
  • Steve Noack

    General Counsel

    • Tenure: 4.1yrs
  • Ray Ochsner

    Chief Strategy Officer

    • Tenure: 0.0yrs
  • Jason Anderson

    Vice President of Human Resources & Administration

    • Tenure: 4.1yrs
  • Bj Knutson (41yo)

    Chief Operating Officer

    • Tenure: 2.0yrs
    • Compensation: US$648.16k
  • Jeff Bowman

    Chief Experience Officer

    • Tenure: 0.0yrs

Board Members

  • Tony Christianson (66yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$120.00k
  • Rich Mack (51yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$145.00k
  • Stan Dardis (69yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$135.00k
  • Christine Hamilton (63yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$133.85k
  • John Henderson (56yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$130.00k
  • David Meyer (66yo)

    Co-Founder

    • Tenure: 0.0yrs
    • Compensation: US$483.25k
  • Stan Erickson (68yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$120.00k
  • Jody Horner (57yo)

    Director

    • Tenure: 4.0yrs
    • 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$395.521m
  • Shares outstanding: 21.80m
  • 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 Analysis2019/08/22 00:06
End of Day Share Price2019/08/21 00:00
Earnings2019/04/30
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.