Twin Disc
Market Cap
US$141.1m
Last Updated
2020/01/18 23:43 UTC
Data Sources
Company Financials +
Executive Summary
Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate balance sheet.
Similar Companies
Share Price & News
How has Twin Disc's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TWIN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.6%
TWIN
1.9%
US Machinery
2.0%
US Market
1 Year Return
-40.8%
TWIN
18.6%
US Machinery
23.6%
US Market
Return vs Industry: TWIN underperformed the US Machinery industry which returned 22.4% over the past year.
Return vs Market: TWIN underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| TWIN | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.6% | 1.9% | 2.0% |
| 30 Day | 6.8% | 1.8% | 3.9% |
| 90 Day | 5.8% | 10.5% | 12.0% |
| 1 Year | -40.8%-40.8% | 20.8%18.6% | 26.2%23.6% |
| 3 Year | -42.6%-42.6% | 46.1%36.7% | 53.2%43.3% |
| 5 Year | -37.7%-39.1% | 78.2%56.7% | 75.7%56.3% |
Price Volatility Vs. Market
How volatile is Twin Disc's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Should You Be Concerned About Twin Disc, Incorporated's (NASDAQ:TWIN) Historical Volatility?1 month ago | Simply Wall St
Does Twin Disc (NASDAQ:TWIN) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
Do Insiders Own Shares In Twin Disc, Incorporated (NASDAQ:TWIN)?Valuation
Is Twin Disc undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TWIN ($10.78) is trading below our estimate of fair value ($34.7)
Significantly Below Fair Value: TWIN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TWIN is poor value based on its PE Ratio (99.4x) compared to the Machinery industry average (23.4x).
PE vs Market: TWIN is poor value based on its PE Ratio (99.4x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: TWIN is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: TWIN is good value based on its PB Ratio (0.8x) compared to the US Machinery industry average (2.5x).
Next Steps
Future Growth
How is Twin Disc forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
118.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TWIN's forecast earnings growth (118% per year) is above the savings rate (1.7%).
Earnings vs Market: TWIN's earnings (118% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TWIN's revenue (1.3% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: TWIN'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 TWIN's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Twin Disc performed over the past 5 years?
14.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TWIN has a large one-off loss of $7.7M impacting its September 27 2019 financial results.
Growing Profit Margin: TWIN's current net profit margins (0.5%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: TWIN's earnings have grown by 14.4% per year over the past 5 years.
Accelerating Growth: TWIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TWIN had negative earnings growth (-84.1%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).
Return on Equity
High ROE: TWIN's Return on Equity (0.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Twin Disc's financial position?
Financial Position Analysis
Short Term Liabilities: TWIN's short term assets ($198.5M) exceed its short term liabilities ($72.2M).
Long Term Liabilities: TWIN's short term assets ($198.5M) exceed its long term liabilities ($95.9M).
Debt to Equity History and Analysis
Debt Level: TWIN's debt to equity ratio (29.1%) is considered satisfactory.
Reducing Debt: TWIN's debt to equity ratio has increased from 15.5% to 29.1% over the past 5 years.
Debt Coverage: TWIN's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: TWIN's interest payments on its debt are well covered by EBIT (8.3x coverage).
Balance Sheet
Inventory Level: TWIN has a high level of physical assets or inventory.
Debt Coverage by Assets: TWIN's debt is covered by short term assets (assets are 3.9x debt).
Next Steps
Dividend
What is Twin Disc's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate TWIN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate TWIN'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 TWIN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TWIN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: TWIN is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TWIN'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 Twin Disc's salary, the management and board of directors tenure and is there insider trading?
4.7yrs
Average management tenure
CEO
John Batten (54yo)
6.5yrs
Tenure
US$2,023,707
Compensation
Mr. John H. Batten has been Chief Executive Officer of Twin Disc, Incorporated since November 1, 2013 and served as its President July 2008 until 2019. Mr. Batten served as Chief Operating Officer of Twin ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD2.02M) is above average for companies of similar size in the US market ($USD519.76K).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.7yrs
Average Tenure
58yo
Average Age
Experienced Management: TWIN's management team is considered experienced (4.7 years average tenure).
Board Age and Tenure
8.0yrs
Average Tenure
64yo
Average Age
Experienced Board: TWIN's board of directors are considered experienced (8 years average tenure).
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
| Entity | Company |
| Shares | 12,000 |
| Max Price | US$14.35 |
| Entity | Company |
| Shares | 41,495 |
| Max Price | US$15.05 |
| Entity | Company |
| Shares | 172,640 |
| Max Price | US$15.13 |
| Entity | Company |
| Shares | 500 |
| Max Price | US$14.59 |
| Entity | Individual |
| Shares | 3,000 |
| Max Price | US$18.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.2%.
Management Team
Jim Feiertag (62yo)
President & COO
- Tenure: 1yrs
- Compensation: US$743.37k
John Batten (54yo)
CEO & Director
- Tenure: 6.5yrs
- Compensation: US$2.02m
Dean Bratel (55yo)
Vice President of Sales & Applied Technology
- Tenure: 3.4yrs
- Compensation: US$695.39k
Denise Wilcox (62yo)
Vice President of Human Resources
- Tenure: 15.2yrs
- Compensation: US$653.21k
Jeff Knutson (54yo)
VP of Finance
- Tenure: 4.9yrs
- Compensation: US$821.10k
Debbie Lange (61yo)
Corporate Controller
- Tenure: 4.4yrs
Board Members
David Rayburn (71yo)
Chairman of the Board
- Tenure: 4.7yrs
- Compensation: US$175.01k
Harold Stratton (71yo)
Independent Director
- Tenure: 15.5yrs
- Compensation: US$134.26k
David Zimmer (73yo)
Independent Director
- Tenure: 24.5yrs
- Compensation: US$125.01k
Michael Doar (64yo)
Independent Director
- Tenure: 11.3yrs
- Compensation: US$134.26k
John Batten (54yo)
CEO & Director
- Tenure: 6.5yrs
- Compensation: US$2.02m
Mike Smiley (59yo)
Independent Director
- Tenure: 0.4yrs
- Compensation: US$135.50k
David Johnson (55yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: US$141.88k
Janet Giesselman (64yo)
Independent Director
- Tenure: 4.6yrs
- Compensation: US$136.88k
Company Information
Twin Disc, Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Twin Disc, Incorporated
- Ticker: TWIN
- Exchange: NasdaqGS
- Founded: 1918
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: US$141.072m
- Shares outstanding: 13.36m
- Website: https://www.twindisc.com
Number of Employees
Location
- Twin Disc, Incorporated
- 1328 Racine Street
- Racine
- Wisconsin
- 53403
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TWIN | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Mar 1977 |
| TWN | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 1977 |
Biography
Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. It operates through two segments, Manufacturing and Distribution. The company’s products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. It also provides non-twin disc manufactured products. The company sells its products through a direct sales force and distributor network to customers primarily in the commercial, pleasure craft, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/18 23:43 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/27 |
| Annual Earnings | 2019/06/30 |
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.