NasdaqGS:TITN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with acceptable track record.

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

11.0%

TITN

12.9%

US Trade Distributors

9.9%

US Market


1 Year Return

-41.8%

TITN

-24.6%

US Trade Distributors

-11.9%

US Market

Return vs Industry: TITN underperformed the US Trade Distributors industry which returned -23.8% over the past year.

Return vs Market: TITN underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

TITNIndustryMarket
7 Day11.0%12.9%9.9%
30 Day-10.4%-25.4%-15.0%
90 Day-38.8%-36.4%-21.5%
1 Year-41.8%-41.8%-23.1%-24.6%-10.0%-11.9%
3 Year-40.9%-40.9%-18.9%-22.8%12.3%5.1%
5 Year-31.1%-31.1%-1.7%-9.2%32.5%18.1%

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?

14.25x

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 poor value based on its PE Ratio (14.3x) compared to the Trade Distributors industry average (11.1x).

PE vs Market: TITN is poor value based on its PE Ratio (14.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: TITN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TITN is good value based on its PB Ratio (0.6x) compared to the US Trade Distributors industry average (1x).


Next Steps

Future Growth

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

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TITN's forecast earnings growth (26.4% per year) is above the savings rate (1.7%).

Earnings vs Market: TITN's earnings (26.4% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: TITN's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: TITN's revenue is forecast to decline over the next 3 years (-1.6% 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?

58.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TITN has a large one-off loss of $3.8M impacting its January 31 2020 financial results.

Growing Profit Margin: TITN's current net profit margins (1.1%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: TITN has become profitable over the past 5 years, growing earnings by 58.7% per year.

Accelerating Growth: TITN's earnings growth over the past year (16.5%) is below its 5-year average (58.7% per year).

Earnings vs Industry: TITN earnings growth over the past year (16.5%) exceeded the Trade Distributors industry 5.1%.


Return on Equity

High ROE: TITN's Return on Equity (4%) 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 ($727.5M) exceed its short term liabilities ($494.2M).

Long Term Liabilities: TITN's short term assets ($727.5M) exceed its long term liabilities ($136.1M).


Debt to Equity History and Analysis

Debt Level: TITN's debt to equity ratio (122.7%) is considered high.

Reducing Debt: TITN's debt to equity ratio has reduced from 220.1% to 122.7% over the past 5 years.


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 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TITN is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TITN is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Titan Machinery's 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 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.


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

Management

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

4.7yrs

Average management tenure


CEO

David Meyer (66yo)

no data

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 ($USD483.25K) is below average for companies of similar size in the US market ($USD1.45M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Meyer
Co-Founderno dataUS$483.25k13.03% $25.9m
Mark Kalvoda
CFO & Treasurer8.92yrsUS$906.72k0.68% $1.3m
Bryan Knutson
Chief Operating Officer2.58yrsUS$648.16k0.13% $256.5k
Jason Anderson
Vice President of Human Resources & Administration4.67yrsno datano data
Steve Noack
General Counsel4.67yrsno datano data
Ray Ochsner
Chief Strategy Officerno datano datano data
Jeff Bowman
Chief Experience Officerno datano datano data

4.7yrs

Average Tenure

47yo

Average Age

Experienced Management: TITN's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Meyer
Co-Founderno dataUS$483.25k13.03% $25.9m
Anton Christianson
Director17.17yrsUS$120.00k1.3% $2.6m
Richard Mack
Independent Director4.75yrsUS$145.00k0.11% $214.0k
Stanley Dardis
Lead Independent Director 2.75yrsUS$135.00k0.16% $323.6k
Christine Hamilton
Independent Director2yrsUS$133.85k0.042% $84.3k
John Henderson
Independent Director3yrsUS$130.00k0.062% $123.1k
Stan Erickson
Independent Director3yrsUS$120.00k0.11% $225.5k
Jody Horner
Independent Director4.58yrsUS$130.00k0.11% $209.1k

3.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: TITN's board of directors are considered experienced (3 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.


Recent Insider Transactions

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$199.035m
  • 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 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. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company’s construction equipment comprise heavy construction machinery, light industrial machinery for commercial and residential construction, road and highway construction machinery, and mining operations equipment. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services. The company operates in Arizona, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; and Bulgaria, Germany, Romania, Serbia, and Ukraine, Europe. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 01:42
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
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.