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Twin Disc

Nasdaq:TWIN
Snowflake Description

Undervalued with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TWIN
Nasdaq
$182M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. The last earnings update was 70 days ago. More info.


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  • Twin Disc has significant price volatility in the past 3 months.
TWIN Share Price and Events
7 Day Returns
-1.6%
NasdaqGS:TWIN
1%
US Machinery
1.1%
US Market
1 Year Returns
-44.8%
NasdaqGS:TWIN
6.8%
US Machinery
4.7%
US Market
TWIN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Twin Disc (TWIN) -1.6% -0.4% -15.5% -44.8% 31.9% -57.2%
US Machinery 1% 4.5% -1.4% 6.8% 46.9% 28.5%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • TWIN underperformed the Machinery industry which returned 6.8% over the past year.
  • TWIN underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
TWIN
Industry
5yr Volatility vs Market

Value

 Is Twin Disc undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Twin Disc to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Twin Disc.

NasdaqGS:TWIN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:TWIN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 21%) (34.48%))
1.255
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.255 * 5.96%)
10.21%

Discounted Cash Flow Calculation for NasdaqGS:TWIN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Twin Disc is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:TWIN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.21%)
2020 14.65 Analyst x2 13.29
2021 22.42 Est @ 53.06% 18.46
2022 30.94 Est @ 37.96% 23.11
2023 39.41 Est @ 27.39% 26.71
2024 47.29 Est @ 19.99% 29.08
2025 54.30 Est @ 14.81% 30.30
2026 60.37 Est @ 11.19% 30.57
2027 65.60 Est @ 8.65% 30.13
2028 70.11 Est @ 6.88% 29.22
2029 74.05 Est @ 5.63% 28.01
Present value of next 10 years cash flows $258.88
NasdaqGS:TWIN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $74.05 × (1 + 2.73%) ÷ (10.21% – 2.73%)
$1,016.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,016.80 ÷ (1 + 10.21%)10
$384.55
NasdaqGS:TWIN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $258.88 + $384.55
$643.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $643.43 / 13.10
$49.12
NasdaqGS:TWIN Discount to Share Price
Calculation Result
Value per share (USD) From above. $49.12
Current discount Discount to share price of $13.86
= -1 x ($13.86 - $49.12) / $49.12
71.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Twin Disc is available for.
Intrinsic value
>50%
Share price is $13.86 vs Future cash flow value of $49.12
Current Discount Checks
For Twin Disc to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Twin Disc's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Twin Disc's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Twin Disc's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Twin Disc's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TWIN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $1.41
NasdaqGS:TWIN Share Price ** NasdaqGS (2019-07-16) in USD $13.86
United States of America Machinery Industry PE Ratio Median Figure of 98 Publicly-Listed Machinery Companies 21.27x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Twin Disc.

NasdaqGS:TWIN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TWIN Share Price ÷ EPS (both in USD)

= 13.86 ÷ 1.41

9.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Twin Disc is good value based on earnings compared to the US Machinery industry average.
  • Twin Disc is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Twin Disc's expected growth come at a high price?
Raw Data
NasdaqGS:TWIN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
8.5%per year
United States of America Machinery Industry PEG Ratio Median Figure of 79 Publicly-Listed Machinery Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NasdaqGS:TWIN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.83x ÷ 8.5%

1.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Twin Disc is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Twin Disc's assets?
Raw Data
NasdaqGS:TWIN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $14.21
NasdaqGS:TWIN Share Price * NasdaqGS (2019-07-16) in USD $13.86
United States of America Machinery Industry PB Ratio Median Figure of 126 Publicly-Listed Machinery Companies 2.3x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:TWIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TWIN Share Price ÷ Book Value per Share (both in USD)

= 13.86 ÷ 14.21

0.98x

* Primary Listing of Twin Disc.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Twin Disc is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Twin Disc's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Twin Disc has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Twin Disc expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Twin Disc expected to grow at an attractive rate?
  • Twin Disc's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Twin Disc's earnings growth is positive but not above the United States of America market average.
  • Twin Disc's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TWIN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TWIN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 8.5%
NasdaqGS:TWIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.4%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:TWIN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TWIN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-06-30 325 27 18 2
2019-06-30 308 6 16 2
NasdaqGS:TWIN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-29 304 -7 17
2018-12-28 292 -1 17
2018-09-28 270 9 9
2018-06-30 241 7 9
2018-03-30 221 5 5
2017-12-29 200 9 -1
2017-09-29 177 4 0
2017-06-30 168 3 -6
2017-03-31 157 8 -13
2016-12-30 154 5 -12
2016-09-30 165 3 -11
2016-06-30 166 3 -13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Twin Disc's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
  • Twin Disc's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:TWIN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Twin Disc Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TWIN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-06-30 1.35 1.60 1.10 2.00
2019-06-30 1.23 1.35 1.10 2.00
NasdaqGS:TWIN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-29 1.41
2018-12-28 1.43
2018-09-28 0.77
2018-06-30 0.82
2018-03-30 0.41
2017-12-29 -0.13
2017-09-29 -0.03
2017-06-30 -0.56
2017-03-31 -1.16
2016-12-30 -1.08
2016-09-30 -1.03
2016-06-30 -1.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Twin Disc will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Twin Disc's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Twin Disc has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Twin Disc performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Twin Disc's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Twin Disc's year on year earnings growth rate has been positive over the past 5 years.
  • Twin Disc's 1-year earnings growth exceeds its 5-year average (272.9% vs 9.2%)
  • Twin Disc's earnings growth has exceeded the US Machinery industry average in the past year (272.9% vs 33.5%).
Earnings and Revenue History
Twin Disc's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Twin Disc Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TWIN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-29 303.99 17.13 72.66
2018-12-28 291.92 16.86 69.73
2018-09-28 270.36 8.81 65.78
2018-06-30 240.73 9.31 60.14
2018-03-30 220.55 4.66 58.11
2017-12-29 200.29 -1.41 56.95
2017-09-29 177.41 -0.29 54.11
2017-06-30 168.18 -6.29 52.77
2017-03-31 157.24 -12.97 51.98
2016-12-30 153.59 -12.09 52.32
2016-09-30 164.74 -11.48 54.35
2016-06-30 166.28 -13.10 57.11
2016-03-25 190.97 -7.15 60.08
2015-12-25 210.48 -3.24 61.68
2015-09-25 238.34 2.81 63.59
2015-06-30 265.79 11.17 64.26
2015-03-27 272.02 13.06 64.42
2014-12-26 271.79 9.64 65.62
2014-09-26 262.31 6.41 66.30
2014-06-30 263.91 3.64 67.41
2014-03-28 266.27 1.37 66.68
2013-12-27 273.80 1.09 67.21
2013-09-27 282.92 3.93 66.80
2013-06-30 285.28 3.88 67.90
2013-03-29 305.46 5.10 69.45
2012-12-28 332.72 15.84 69.79
2012-09-28 343.33 18.39 73.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Twin Disc has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Twin Disc used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Twin Disc has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Twin Disc's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Twin Disc has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Twin Disc's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Twin Disc's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Twin Disc is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Twin Disc's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Twin Disc's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Twin Disc Company Filings, last reported 3 months ago.

NasdaqGS:TWIN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-29 186.64 49.28 15.76
2018-12-28 181.84 46.69 18.54
2018-09-28 178.46 37.45 16.56
2018-06-30 143.62 4.82 15.17
2018-03-30 135.61 7.60 15.12
2017-12-29 128.65 4.68 15.77
2017-09-29 130.08 8.24 15.46
2017-06-30 123.57 6.32 16.37
2017-03-31 110.17 8.98 14.94
2016-12-30 109.72 7.78 12.99
2016-09-30 115.70 9.69 16.08
2016-06-30 117.05 8.50 18.27
2016-03-25 131.00 11.80 13.40
2015-12-25 128.99 17.36 20.63
2015-09-25 133.73 14.27 23.04
2015-06-30 140.17 13.80 22.94
2015-03-27 146.83 12.40 23.61
2014-12-26 150.14 16.75 25.17
2014-09-26 151.08 23.57 25.70
2014-06-30 152.31 18.40 24.76
2014-03-28 146.37 25.05 26.36
2013-12-27 145.93 21.07 27.12
2013-09-27 144.38 24.84 24.06
2013-06-30 143.56 27.15 20.72
2013-03-29 139.83 34.70 17.16
2012-12-28 141.15 33.99 20.57
2012-09-28 139.59 38.99 21.49
  • Twin Disc's level of debt (26.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (17% vs 26.4% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 19.6x coverage).
X
Financial health checks
We assess Twin Disc's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Twin Disc has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Twin Disc's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Twin Disc dividends. Estimated to be 0% next year.
If you bought $2,000 of Twin Disc shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Twin Disc's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Twin Disc's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:TWIN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 75 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:TWIN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-06-30 0.00 2.00
2019-06-30 0.00 2.00
NasdaqGS:TWIN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2017-11-01 0.000 0.000
2017-10-27 0.000 0.000
2017-08-31 0.000 0.000
2017-08-04 0.000 0.000
2017-05-10 0.000 0.000
2017-05-05 0.000 0.000
2017-02-07 0.000 0.000
2017-01-31 0.000 0.000
2016-11-09 0.000 0.000
2016-11-01 0.000 0.000
2016-09-13 0.000 0.000
2016-08-18 0.000 0.000
2016-02-02 0.000 0.000
2015-10-27 0.360 3.393
2015-08-04 0.360 2.680
2015-04-28 0.360 2.036
2014-10-28 0.360 1.861
2014-08-05 0.360 1.263
2014-04-29 0.360 1.143
2014-01-28 0.360 1.467
2013-10-22 0.360 1.357
2013-07-30 0.360 1.385
2013-04-23 0.360 1.533
2013-01-22 0.360 1.490
2012-10-23 0.360 2.160
2012-07-31 0.360 1.924
2012-04-24 0.360 1.834
2012-01-23 0.360 1.263
2011-10-25 0.320 0.824
2011-08-02 0.320 1.013
2011-04-19 0.320 0.925
2011-01-24 0.320 1.012
2010-10-19 0.280 1.129
2010-08-03 0.280 2.147
2010-04-20 0.280 2.218
2010-01-21 0.280 2.445
2009-10-19 0.280 2.747
2009-08-04 0.280 2.196
2009-04-21 0.280 3.872
2009-01-22 0.280 4.398
2008-10-21 0.280 4.346
2008-07-29 0.280 1.908

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Twin Disc has not reported any payouts.
  • Unable to verify if Twin Disc's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Twin Disc's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Twin Disc has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Twin Disc's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Twin Disc's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Twin Disc afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Twin Disc has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Batten
COMPENSATION $1,994,028
AGE 54
TENURE AS CEO 6 years
CEO Bio

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 Disc, Incorporated from July 1, 2008 to November 1, 2013; Executive Vice President of European Operations from November 1, 2004 to June 2008; Executive Vice President of Global Marine Propulsion Sales & Marketing until June 2008; and Vice President & General Manager, Marine Products since October 2001. Mr. Batten joined Twin Disc in 1996 as an Application Engineer and t Mr. Batten served as Commercial Manager of Marine & Propulsion Products since 1998. Mr. Batten served as t Mr. Batten Executive Vice President since October 2004 at Twin Disc, Incorporated. Mr. Batten has been a Director of Twin Disc, Incorporated since December 2002. Mr. Batten is a sitting President and CEO of a Public Company. Mr. Batten earned a BA in History from Yale University and a BS in Mechanical Engineering from t Mr. Batten University of Colorado - Boulder. Mr. Batten Advanced Management Program of t Mr. Batten Harvard Business School.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Twin Disc management team in years:

4
Average Tenure
58
Average Age
  • The tenure for the Twin Disc management team is about average.
Management Team

John Batten

TITLE
CEO & Director
COMPENSATION
$2M
AGE
54
TENURE
6 yrs

Jeff Knutson

TITLE
VP of Finance
COMPENSATION
$949K
AGE
54
TENURE
4.1 yrs

Dean Bratel

TITLE
Vice President of Sales & Applied Technology
COMPENSATION
$862K
AGE
55
TENURE
2.9 yrs

Denise Wilcox

TITLE
Vice President of Human Resources
COMPENSATION
$653K
AGE
62
TENURE
14.7 yrs

Jim Feiertag

TITLE
President & COO
COMPENSATION
$743K
AGE
62
TENURE
0.5 yrs

Debbie Lange

TITLE
Corporate Controller
AGE
61
TENURE
3.9 yrs
Board of Directors Tenure

Average tenure and age of the Twin Disc board of directors in years:

10.8
Average Tenure
64
Average Age
  • The average tenure for the Twin Disc board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

David Rayburn

TITLE
Chairman of the Board
COMPENSATION
$175K
AGE
71
TENURE
4.2 yrs

John Batten

TITLE
CEO & Director
COMPENSATION
$2M
AGE
54
TENURE
16.6 yrs

Harold Stratton

TITLE
Director
COMPENSATION
$132K
AGE
71
TENURE
15 yrs

Michael Doar

TITLE
Director
COMPENSATION
$132K
AGE
64
TENURE
10.8 yrs

Janet Giesselman

TITLE
Director
COMPENSATION
$135K
AGE
64
TENURE
4.1 yrs

David Johnson

TITLE
Director
COMPENSATION
$125K
AGE
55
TENURE
3 yrs

David Zimmer

TITLE
Director
COMPENSATION
$142K
AGE
73
TENURE
24 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Feb 19 Sell Malcolm Moore Individual 21. Feb 19 21. Feb 19 -3,000 $18.00 $-54,000
X
Management checks
We assess Twin Disc's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Twin Disc has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Twin Disc, Incorporated's (NASDAQ:TWIN) P/E Ratio Signal A Buying Opportunity?

Twin Disc has a price to earnings ratio of 10.74, based on the last twelve months. … See our latest analysis for Twin Disc How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Twin Disc: P/E of 10.74 = $15.14 ÷ $1.41 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Twin Disc (NASDAQ:TWIN) Has A Pretty Healthy Balance Sheet

Importantly, Twin Disc, Incorporated (NASDAQ:TWIN) does carry debt. … Either way, since Twin Disc does have more debt than cash, it's worth keeping an eye on its balance sheet. … Our View Twin Disc's conversion of EBIT to free cash flow was a real negative on this analysis, although the other factors we considered were considerably better In particular, we are dazzled with its interest cover.

Simply Wall St -

Should You Worry About Twin Disc, Incorporated's (NASDAQ:TWIN) CEO Pay?

According to our data, Twin Disc, Incorporated has a market capitalization of US$189m, and pays its CEO total annual compensation worth US$2.0m. … Thus we can conclude that John Batten receives more in total compensation than the median of a group of companies in the same market, and of similar size to Twin Disc, Incorporated. … We compared total CEO remuneration at Twin Disc, Incorporated with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Do You Know About Twin Disc, Incorporated’s (NASDAQ:TWIN) ROCE?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Twin Disc: 0.11 = US$31m ÷ (US$345m - US$69m) (Based on the trailing twelve months to March 2019.) Therefore, Twin Disc has an ROCE of 11%. … How Twin Disc's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should You Be Holding Twin Disc, Incorporated (NASDAQ:TWIN)?

Investors have the opportunity to buy into the stock to reap capital gains, if TWIN's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. … NasdaqGS:TWIN Intrinsic value, May 13th 2019 Next Steps: For Twin Disc, I've compiled three important aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for TWIN’s future growth? … Dividend Income vs Capital Gains: Does TWIN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends?

Simply Wall St -

Is Twin Disc, Incorporated's (NASDAQ:TWIN) ROE Of 9.5% Concerning?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Twin Disc, Incorporated (NASDAQ:TWIN). … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.095. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

At US$16.73, Is Twin Disc, Incorporated (NASDAQ:TWIN) Worth Looking At Closely?

received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $18.55 at one point, and dropping to the lows of $15.49. … A question to answer is whether Twin Disc's current trading price of $16.73 reflective of the actual value of the? … Let’s take a look at Twin Disc’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Do Insiders Own Shares In Twin Disc, Incorporated (NASDAQ:TWIN)?

A look at the shareholders of Twin Disc, Incorporated (NASDAQ:TWIN) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Twin Disc is not a large company by global standards.

Simply Wall St -

If You Had Bought Twin Disc (NASDAQ:TWIN) Stock Three Years Ago, You Could Pocket A 52% Gain Today

For example, Twin Disc, Incorporated (NASDAQ:TWIN) shareholders have seen the share price rise 52% over three years, well in excess of the market return (39%, not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Twin Disc moved from a loss to profitability.

Simply Wall St -

Twin Disc, Incorporated (NASDAQ:TWIN): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Twin Disc, Incorporated (NASDAQ:TWIN), with a market cap of US$232m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Company Info

Description

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. The company operates through two segments, Manufacturing and Distribution. Its products include marine transmissions, surface drives, propellers, and boat management systems; and power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also offers non-twin disc manufactured products. It 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.

Details
Name: Twin Disc, Incorporated
TWIN
Exchange: NasdaqGS
Founded: 1918
$181,545,376
13,098,512
Website: http://www.twindisc.com
Address: Twin Disc, Incorporated
1328 Racine Street,
Racine,
Wisconsin, 53403,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TWIN Common Shares Nasdaq Global Select US USD 08. Mar 1977
DB TWN Common Shares Deutsche Boerse AG DE EUR 08. Mar 1977
Number of employees
Current staff
Staff numbers
696
Twin Disc employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:44
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/05/07
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/29
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.