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Titanium Transportation (TSE:TTNM)
TSX:TTNM
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Titanium Transportation
(TSX:TTNM)
56Neutral
Positive Factors
Debt Reduction
TTNM has aggressively repaid a total of $32.8M in net debt so far in 2024.
Earnings
Titanium reported Q4/24 results which beat expectations.
Negative Factors
Dividend Suspension
Titanium announced it is suspending its quarterly dividend to strengthen its balance sheet in response to market uncertainties.
Market Uncertainty
Growing concerns over supply chain disruptions and costs driven by tariff volatility between the U.S. and Canada.
Titanium Transportation (TTNM) vs. S&P 500 (SPY)
Market Cap
C$65.66M
Dividend Yield5.52%
Average Volume (3M)45.57K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth5.42%
EPS Growth-331.87%
CountryCA
Employees1,100
SectorIndustrials
Sector Strength70
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)-0.53
Shares Outstanding45,284,164
10 Day Avg. Volume38,795
30 Day Avg. Volume45,570
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.14
Price to Cash Flow (P/CF)-2.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.00Price Target Upside109.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Titanium Transportation Business Overview & Revenue Model
Company DescriptionTitanium Transportation (TTNM) is a leading North American transportation and logistics company that offers a comprehensive range of services including freight transportation, logistics, and warehousing solutions. Specializing in both asset-based and non-asset-based transportation, Titanium provides integrated supply chain solutions to a diverse client base across various industries, enhancing efficiency and reliability in their logistics operations.
How the Company Makes MoneyTitanium Transportation generates revenue through multiple streams, primarily from its freight transportation services, which include full truckload (FTL) and less than truckload (LTL) shipping. The company utilizes its fleet of trucks and drivers to transport goods across North America. In addition to its asset-based services, Titanium also offers non-asset-based logistics solutions, such as third-party logistics (3PL) and brokerage services. These services allow the company to manage and coordinate the transportation of goods without directly owning the vehicles used. Titanium's warehousing and distribution services further contribute to its revenue by providing clients with storage solutions and inventory management. The company's partnerships with various carriers and its investment in technology enhance its operational capabilities and efficiency, supporting its profitability.
Titanium Transportation Financial Statement Overview
Summary
Titanium Transportation's financial health shows mixed signals. Declining revenue and profitability are concerning, with negative free cash flow indicating potential liquidity issues. However, the balance sheet suggests manageable leverage.Income Statement
The income statement shows a declining trend in revenue from the previous years, with the most recent TTM (Trailing-Twelve-Months) revenue at $467.9 million. Gross profit margin decreased to 5.05% TTM, indicating reduced efficiency in managing production costs. Net profit margin turned negative at -0.37% TTM, reflecting a challenging profitability environment. EBIT and EBITDA margins also declined to 1.80% and 10.44% TTM respectively, signaling reduced operating profitability.50
Neutral
Balance Sheet
The balance sheet indicates a moderate financial structure with a debt-to-equity ratio of 1.68 TTM, suggesting significant leverage. However, the equity ratio stands at 30.49% TTM, implying a reasonable proportion of equity financing. Return on equity (ROE) fell to -1.74% TTM, highlighting concerns about the company's ability to generate returns for shareholders amid current challenges.60
Neutral
Cash Flow
Cash flow analysis reveals negative free cash flow trends, with TTM free cash flow at -$18.7 million, indicating potential liquidity issues. The operating cash flow to net income ratio is unreliable due to negative net income, and the free cash flow to net income ratio is similarly impacted. This suggests cash flow management needs improvement to ensure financial stability.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 467.93M | 438.69M | 496.37M | 399.44M | 200.74M | 167.03M | Gross Profit |
| 23.64M | 34.60M | 45.50M | 20.66M | 15.35M | 10.76M | EBIT |
| 8.42M | 20.32M | 33.37M | 10.20M | 10.15M | 5.31M | EBITDA |
| 48.84M | 56.52M | 66.00M | 32.07M | 25.04M | 19.40M | Net Income Common Stockholders |
| -1.75M | 10.23M | 24.88M | 5.04M | 6.27M | 1.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 237.50K | 9.33M | 34.89M | 18.05M | 3.09M | 442.83K | Total Assets |
| 112.67M | 356.00M | 281.14M | 233.67M | 138.76M | 135.39M | Total Debt |
| 52.94M | 207.21M | 130.32M | 104.83M | 60.34M | 72.81M | Net Debt |
| 52.71M | 197.87M | 95.42M | 86.79M | 57.25M | 72.37M | Total Liabilities |
| 73.56M | 251.45M | 182.92M | 159.95M | 91.69M | 94.79M | Stockholders Equity |
| 39.11M | 104.55M | 98.22M | 73.71M | 47.07M | 40.60M |
| Cash Flow | Free Cash Flow | ||||
| -18.68M | -41.41M | -27.06M | 12.65M | 15.78M | 17.71M | Operating Cash Flow |
| 21.95M | 37.61M | 43.47M | 13.30M | 15.84M | 18.85M | Investing Cash Flow |
| -6.45M | -108.29M | -46.14M | -28.59M | 4.78M | 1.97M | Financing Cash Flow |
| -35.93M | 45.13M | 19.52M | 30.24M | -17.98M | -20.62M |
Titanium Transportation Technical Analysis
Negative
1.43
Price Trends
1.75
Negative
2.03
Negative
2.09
Negative
Market Momentum
-0.07
Negative
37.38
Neutral
53.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TTNM, the sentiment is Negative. The current price of 1.43 is above the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.75, and below the 200-day MA of 2.09, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TTNM.
Titanium Transportation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$1.22B | 24.88 | 8.63% | 3.09% | 3.68% | 19.78% | |
75 Outperform | C$1.56B | 13.61 | 15.84% | 5.77% | 7.98% | -0.29% | |
73 Outperform | C$1.14B | 10.13 | 11.27% | 5.95% | -0.27% | -15.99% | |
68 Neutral | C$10.12B | 17.46 | 16.05% | 1.98% | 13.32% | -13.75% | |
62 Neutral | $8.33B | 14.18 | 2.58% | 3.07% | 3.83% | -14.77% | |
57 Neutral | C$1.44B | ― | -0.38% | ― | 18.07% | 98.61% | |
56 Neutral | C$65.66M | ― | -20.72% | 5.52% | 5.42% | -331.87% |
* Industrials Sector Average
Performance Comparison
TSE:TTNM
Titanium Transportation
1.43
-1.00
-41.15%
TSE:TFII
TFI International
119.92
-94.15
-43.98%
TSE:WTE
Westshore Terminals
25.71
1.29
5.28%
TSE:SIS
Savaria
16.85
0.51
3.12%
TSE:NFI
NFI Group Inc
12.08
-0.79
-6.14%
TSE:MTL
Mullen Group Ltd.
13.06
-0.73
-5.29%
Titanium Transportation Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: 5.93% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
Despite facing significant market challenges, Titanium Transportation Group demonstrated resilience and strategic growth, particularly in its Logistics segment and U.S. expansion. Debt reduction and revenue growth were notable positives. However, challenges remain in the Truck Transportation segment with revenue declines and asset impairments, alongside the suspension of dividends.Highlights
Revenue and EBITDA Growth
Titanium Transportation Group generated $114 million in revenue and $11.7 million in consolidated EBITDA for Q4 2024, up from $10.3 million in Q3 2024. For the full year, the company delivered a consolidated revenue of $460 million, an increase of 5% year-over-year.
Logistics Segment Expansion
The Logistics segment generated revenue of $62 million in Q4 2024, up 18.4% compared to Q4 2023, and $220 million annually, an increase of 10.6% year-over-year.
Debt Reduction
Titanium paid down debt by approximately $53 million in 2024, reinforcing its financial position.
U.S. Logistics Growth
U.S. logistics revenue grew by 16.1% in Q4 2024, reflecting the benefits of ongoing expansion and new logistics offices in Virginia Beach and Irving, Texas.
Lowlights
Truck Transportation Revenue Decline
The Truck Transportation segment generated $229.8 million in revenue for 2024, a 0.5% decrease from fiscal year 2023, attributed to soft contract pricing and a weak freight market.
Asset Impairment
Recognized an asset impairment of $23.1 million in the Truck Transportation segment due to revised future cash flow projections amidst challenging market conditions.
Dividend Suspension
Titanium suspended its dividend to maintain financial discipline and prioritize prudent capital allocation amidst economic uncertainties.
Company Guidance
During the Titanium Transportation Group's Q4 2024 conference call, the company refrained from providing guidance for 2025 due to ongoing geopolitical uncertainties, particularly those related to tariffs and trade disputes that affect the transportation sector. Despite significant headwinds in 2024, including reductions in freight rates and increased operational costs, Titanium maintained growth by moving 25,000 more loads than in 2023 and achieving a 5% year-over-year increase in consolidated revenue to $460 million. The company generated $41.9 million in EBITDA with a margin of 10.1%, while the logistics segment showed significant growth, with Q4 revenue up 18.4% year-over-year. Titanium also strengthened its financial position by paying down $53 million in debt and strategically selling non-core assets, generating $21 million in cash flow. As they move into 2025, the company is focused on expanding its asset-light model, particularly in the U.S., and optimizing operational efficiencies through technology, though they are cautious about issuing forward guidance until there's more clarity on the geopolitical landscape.Titanium Transportation Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Titanium Transportation Group Achieves 5% Revenue Growth in FY 2024 Amid Market Challenges
Positive
Mar 18, 2025
Titanium Transportation Group reported a 5% revenue growth for FY 2024, driven by significant increases in both its trucking and logistics segments. Despite market challenges, the company strengthened its capital position by divesting non-core assets and reducing debt, while expanding its U.S. presence and maintaining a focus on long-term growth and resilience amid industry uncertainties.
DividendsBusiness Operations and Strategy
Titanium Transportation Suspends Dividend to Strengthen Financial Resilience
Neutral
Feb 7, 2025
Titanium Transportation Group Inc. announced the suspension of its quarterly dividend as part of a strategy to strengthen its financial position amid market uncertainties, such as potential tariff changes and geopolitical issues. The decision aims to enhance the company’s financial resilience, reduce debt, and support long-term growth. Despite this temporary suspension, the company remains committed to its strategic priorities and long-term shareholder value, with a plan to regularly review its financial standing to potentially reinstate dividends in the future.
Private Placements and FinancingBusiness Operations and Strategy
Titanium Transportation Group Awards Long-Term Stock Options
Positive
Jan 29, 2025
Titanium Transportation Group announced the grant of 393,900 long-term incentive stock options to employees and directors, allowing them to purchase shares at $2.30 each over a 10-year period. This initiative aligns with the company’s Stock Option Plan and requires TSX approval, reflecting Titanium’s commitment to incentivizing its workforce and potentially enhancing its market positioning.
Titanium Transportation Expands U.S. Operations with New Texas Office
Jan 16, 2025
Titanium Transportation Group Inc. has expanded its North American operations by opening a new logistics office in Irving, Texas, which aligns with its strategic plan to enhance its presence in the U.S. market. The new office, situated near key supply chain corridors, supports Titanium’s asset-light, technology-focused business model and positions the company to capitalize on increasing nearshoring strategies that businesses are adopting to cut costs and mitigate supply chain risks. This expansion marks Titanium’s ninth U.S. operation since 2019, reinforcing its commitment to grow its logistics services and deliver value to its customers.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.