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Titan International (TWI)
:TWI
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Titan International
(NYSE:TWI)
53Neutral
Positive Factors
Acquisition
The Carlstar acquisition expands Titan International's product portfolio, allowing them to serve a broader range of customers.
Market Position
Titan International is the leader in Agricultural and other tires & wheels, indicating strong market positioning.
Technology
Low side wall tires are highlighted for their compelling use case, offering significant fuel economy and yield benefits.
Negative Factors
Market Conditions
TWI, the leader in Agricultural and other tires & wheels, has seen its stock decline nearly 50% YTD as core end-markets deteriorated.
Stock Performance
Titan International's stock price has declined nearly 50% as core end-markets have deteriorated.
Titan International (TWI) vs. S&P 500 (SPY)
Market Cap
$413.31M
Dividend YieldN/A
Average Volume (3M)967.95K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth1.32%
EPS Growth-104.92%
CountryUS
Employees8,303
SectorIndustrials
Sector Strength63
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)-0.06
Shares Outstanding63,197,710
10 Day Avg. Volume715,008
30 Day Avg. Volume967,947
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)15.80
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
$11.50Price Target Upside75.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Titan International Business Overview & Revenue Model
Company DescriptionTitan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in North America, Europe, Latin America, the Commonwealth of Independent States region, the Middle East, Africa, Russia, and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers rims, wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment. The company also offers rims, wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. In addition, it provides bias and light truck tires; and products for ATVs, turf, and golf cart applications, as well as specialty and train brakes. It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and own distribution centers. Titan International, Inc. was founded in 1890 and is headquartered in Quincy, Illinois.
How the Company Makes MoneyTitan International generates revenue through the sale of its wide range of products, including wheels, tires, and undercarriage systems, to original equipment manufacturers (OEMs) and aftermarket customers. The company's key revenue streams are anchored in its agricultural and construction segments, which demand high-quality, specialized products for various off-highway vehicles and equipment. Titan International also benefits from strategic partnerships and long-term contracts with major industry players, contributing to a steady flow of orders and strengthening its market position. Additionally, the company invests in research and development to innovate and meet the evolving needs of its customers, further driving sales and enhancing profitability.
Titan International Financial Statement Overview
Summary
Titan International faces challenges with profitability and cash flow generation, as indicated by negative net income and free cash flow. While the balance sheet shows some stability, the increased leverage and inconsistent revenue growth are areas of concern. The company needs to focus on improving efficiency and profitability to enhance financial health.Income Statement
Titan International has shown fluctuating revenue trends with a recent dip in gross profit and net income. The negative net profit margin and declining EBIT margin indicate challenges in profitability. The revenue growth rate is inconsistent, suggesting potential volatility in sales performance.55
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose risks if not managed carefully. However, the equity ratio shows a stable portion of assets financed by equity, and the ROE suggests moderate returns on shareholders' equity, despite recent profitability issues.62
Positive
Cash Flow
Titan's cash flow performance reflects challenges with generating free cash flow, as evidenced by a negative free cash flow growth rate. The operating cash flow to net income ratio indicates issues in converting income into cash, which could impact liquidity if not improved.48
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.85B | 1.82B | 2.17B | 1.78B | 1.26B | Gross Profit |
| 257.80M | 305.85M | 360.71M | 237.54M | 114.32M | EBIT |
| 33.18M | 148.73M | 205.80M | 85.17M | -16.55M | EBITDA |
| 105.40M | 170.97M | 274.05M | 130.26M | 26.02M | Net Income Common Stockholders |
| -5.56M | 78.76M | 176.30M | 49.59M | -65.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 195.97M | 220.25M | 159.58M | 98.11M | 117.43M | Total Assets |
| 1.58B | 1.29B | 1.28B | 1.18B | 1.03B | Total Debt |
| 565.45M | 437.26M | 445.62M | 484.95M | 464.70M | Net Debt |
| 369.47M | 217.01M | 286.04M | 386.84M | 347.27M | Total Liabilities |
| 1.09B | 821.83M | 901.49M | 955.51M | 855.62M | Stockholders Equity |
| 496.07M | 467.06M | 381.24M | 229.30M | 179.26M |
| Cash Flow | Free Cash Flow | |||
| 75.86M | 118.55M | 113.70M | -28.08M | 35.55M | Operating Cash Flow |
| 141.49M | 179.35M | 160.68M | 10.73M | 57.23M | Investing Cash Flow |
| -201.60M | -56.92M | -36.75M | -37.60M | 33.22M | Financing Cash Flow |
| 64.55M | -56.02M | -61.31M | 13.95M | -38.56M |
Titan International Technical Analysis
Negative
6.54
Price Trends
8.53
Negative
7.88
Negative
7.76
Negative
Market Momentum
0.03
Positive
44.05
Neutral
20.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWI, the sentiment is Negative. The current price of 6.54 is below the 20-day moving average (MA) of 8.35, below the 50-day MA of 8.53, and below the 200-day MA of 7.76, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 20.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWI.
Titan International Risk Analysis
Titan International disclosed 29 risk factors in its most recent earnings report. Titan International reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Titan International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.27B | 6.90 | 19.13% | 1.99% | -0.47% | -34.74% | |
74 Outperform | $116.67B | 19.05 | 27.91% | 1.44% | -20.93% | -34.33% | |
68 Neutral | $5.34B | 7.98 | 17.34% | 2.29% | 11.36% | 13.78% | |
65 Neutral | $285.31M | 5.01 | 8.98% | ― | -2.24% | 42.13% | |
62 Neutral | $7.26B | 12.38 | 3.01% | 3.40% | 3.58% | -14.13% | |
53 Neutral | $413.31M | ― | -1.15% | ― | 1.32% | -104.92% | |
52 Neutral | $5.92B | 46.40 | -10.11% | 1.46% | -19.08% | -136.41% |
* Industrials Sector Average
Performance Comparison
TWI
Titan International
6.54
-5.77
-46.87%
AGCO
Agco
79.34
-37.88
-32.32%
DE
Deere
429.86
25.12
6.21%
MTW
Manitowoc Company
7.83
-5.68
-42.04%
OSK
Oshkosh
82.58
-42.22
-33.83%
TEX
Terex
34.18
-29.96
-46.71%
Titan International Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -25.09% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a cautiously optimistic outlook driven by improving farmer sentiment, strong performance in Brazil, and stability in the aftermarket business. However, challenges remain, such as cyclical downturn impacts, European market slowdowns, and increased expenses. The company appears well-positioned for potential growth, particularly if market conditions improve as anticipated.Highlights
Improved Farmer Sentiment
Positive sentiment among farmers due to supportive government, with corn prices over 15% higher than the previous year, indicating potential for increased farm income and investment.
Brazil Market Growth
Encouraging demand and activity in Brazil, with expectations for increased sales in both OE and aftermarket channels.
Aftermarket Business Stability
Strong performance in the aftermarket segment across all divisions, contributing to a steadier business model during cyclical downturns.
Successful Integration of CarlStar
CarlStar acquisition has expanded product offerings and improved synergy, particularly in the consumer segment.
Strong Cash Flow Management
Maintained strong cash flow and integrated a large acquisition successfully, with a focus on debt reduction in 2025.
Lowlights
Cyclical Downturn Impact
Fourth-quarter revenue was $384 million, with adjusted EBITDA of $9 million, reflecting the seasonal low and cyclical downturn impact.
European Market Challenges
Slow business in the European market with hopes for a turnaround contingent on geopolitical resolutions.
Increased SG&A Expenses
Fourth-quarter SG&A expenses rose to $51 million, attributed to the CarlStar acquisition and distribution costs.
High Effective Tax Rate
Full-year tax expense was around $12 million, with an effective rate of 143%, due to domestic losses and interest expense non-deductibility.
OEM Inventory Management
OEMs continue to manage inventory levels carefully, impacting Titan's near-term sales outlook.
Company Guidance
During the Titan International, Inc. Fourth Quarter 2024 Earnings Call, the company provided guidance for the first quarter of 2025. Revenues are expected to be in the range of $450 million to $500 million, with adjusted EBITDA anticipated at $25 million, marking a sequential improvement from the fourth quarter's revenue of $384 million and adjusted EBITDA of $9 million. The company reported a gross margin of nearly 11% in Q4, with segment-specific gross margins of 9% for agriculture, 6% for earthmoving and construction, and 18% for consumer. Titan's net debt at the end of 2024 was $369 million, equivalent to 2.9 times trailing twelve-month adjusted EBITDA. The company aims to reduce debt and continue smart investments, with lower capital expenditures in 2025. Despite a negative free cash flow of $4.6 million in Q4, Titan expects positive cash flow as the year progresses.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.