NasdaqGS:TWIN

Stock Analysis Report

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Executive Summary

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TWIN's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

7.5%

TWIN

2.2%

US Machinery

2.8%

US Market


1 Year Return

-38.0%

TWIN

19.4%

US Machinery

20.7%

US Market

Return vs Industry: TWIN underperformed the US Machinery industry which returned 19.4% over the past year.

Return vs Market: TWIN underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

TWINIndustryMarket
7 Day7.5%2.2%2.8%
30 Day20.2%17.7%12.3%
90 Day1.1%15.2%6.4%
1 Year-38.0%-38.0%22.5%19.4%23.4%20.7%
3 Year-77.0%-77.0%32.6%23.1%47.2%37.4%
5 Year-40.4%-40.4%125.8%100.6%94.1%72.7%

Long-Term 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

Valuation

Is Twin Disc undervalued compared to its fair value and its price relative to the market?

0.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TWIN ($6.31) is trading above our estimate of fair value ($6.19)

Significantly Below Fair Value: TWIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TWIN is unprofitable, so we can't compare its PE Ratio to the US Machinery industry average.

PE vs Market: TWIN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TWIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TWIN is good value based on its PB Ratio (0.6x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

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

117.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWIN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TWIN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TWIN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TWIN's revenue (5.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TWIN's revenue (5.4% 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?

-22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWIN is currently unprofitable.

Growing Profit Margin: TWIN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWIN is unprofitable, and losses have increased over the past 5 years at a rate of 22.6% per year.

Accelerating Growth: Unable to compare TWIN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TWIN is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-15.4%).


Return on Equity

High ROE: TWIN has a negative Return on Equity (-26.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is Twin Disc's financial position?


Financial Position Analysis

Short Term Liabilities: TWIN's short term assets ($172.6M) exceed its short term liabilities ($69.4M).

Long Term Liabilities: TWIN's short term assets ($172.6M) exceed its long term liabilities ($92.4M).


Debt to Equity History and Analysis

Debt Level: TWIN's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: TWIN's debt to equity ratio has increased from 10.7% to 31.3% over the past 5 years.


Balance Sheet


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: Insufficient data to determine if TWIN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TWIN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

5.8yrs

Average management tenure


CEO

John Batten (55 yo)

7.33yrs

Tenure

US$1,815,807

Compensation

Mr. John H. Batten has been Chief Executive Officer of Twin Disc, Incorporated since July 2013 and served as its President July 2008 until May 1, 2019. Mr. Batten served as Chief Operating Officer of Twin ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.82M) is above average for companies of similar size in the US market ($USD561.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Batten
CEO & Director7.33yrsUS$1.82m19.82%
$ 18.1m
James Feiertag
President & COO1.5yrsUS$903.71k0.37%
$ 334.5k
Jeffrey Knutson
VP of Finance5.75yrsUS$721.73k0.64%
$ 584.6k
Debbie Lange
Chief Accounting Officer & Corporate Controller5.25yrsno data0.18%
$ 160.3k
Denise Wilcox
Vice President of Human Resources16yrsUS$653.21k0.27%
$ 246.5k

5.8yrs

Average Tenure

62yo

Average Age

Experienced Management: TWIN's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Batten
CEO & Director7.33yrsUS$1.82m19.82%
$ 18.1m
David Rayburn
Independent Chairman of the Board5.5yrsUS$187.99k0.64%
$ 587.0k
Harold Stratton
Independent Director16.33yrsUS$144.99k0.44%
$ 403.2k
Michael Doar
Independent Director12.08yrsUS$144.99k0.52%
$ 472.6k
Michael Smiley
Independent Director1.25yrsUS$150.19k0.33%
$ 298.6k
David Johnson
Independent Director4.33yrsUS$154.37k0.25%
$ 228.0k
Janet Giesselman
Independent Director5.42yrsUS$149.37k0.24%
$ 216.8k

5.5yrs

Average Tenure

65yo

Average Age

Experienced Board: TWIN's board of directors are considered experienced (5.5 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

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$91.446m
  • Shares outstanding: 13.57m
  • Website: https://www.twindisc.com

Number of Employees


Location

  • Twin Disc, Incorporated
  • 1328 Racine Street
  • Racine
  • Wisconsin
  • 53403
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWINNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMar 1977
TWNDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 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 comp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:16
End of Day Share Price2020/11/27 00:00
Earnings2020/09/25
Annual Earnings2020/06/30


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.