Titan Machinery Inc. (TITN)
NASDAQ:TITN
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Titan Machinery
(NASDAQ:TITN)
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Rating:55Neutral
Price Target:
$20.50
▲(2.60% Upside)
Action:ReiteratedDate:04/10/26
The score is held back primarily by weak recent profitability and margin compression despite a stronger balance sheet and improved free cash flow. Technicals are supportive with price above key moving averages, but momentum looks stretched. The earnings call adds some support via clear operational progress and improving FY27 modeling, though guidance still implies losses and continued revenue pressure, and valuation remains challenged due to negative earnings.
Positive Factors
Balance sheet leverage reduction
Material deleveraging materially strengthens financial flexibility and covenant headroom for a cyclical dealer. Lower leverage reduces interest burden risk and increases capacity to fund working capital, capex or opportunistic acquisitions during a prolonged equipment downturn.
Negative Factors
Persistent revenue declines
Sustained top-line contraction across key segments reduces scale economics and limits the installed base growth that drives higher-margin parts and service sales. Prolonged revenue weakness makes margin recovery and return to consistent profitability dependent on a cyclical industry rebound.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet leverage reduction
Material deleveraging materially strengthens financial flexibility and covenant headroom for a cyclical dealer. Lower leverage reduces interest burden risk and increases capacity to fund working capital, capex or opportunistic acquisitions during a prolonged equipment downturn.
Read all positive factors
Titan Machinery (TITN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$462.42M
Dividend YieldN/A
Average Volume (3M)228.57K
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth-8.92%
EPS Growth-304.76%
CountryUS
Employees3,340
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-1.43
Shares Outstanding23,354,500
10 Day Avg. Volume226,155
30 Day Avg. Volume228,570
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.64
Price to Sales (P/S)0.15
P/FCF Ratio3.22
Enterprise Value/Market Cap2.74
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit3.31
Enterprise Value/Ebitda36.26
Forecast
1Y Price Target
$21.00Price Target Upside5.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.88
Revenue Forecast (FY)$2.22B
Titan Machinery Business Overview & Revenue Model
Company Description
Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe. It operates through three segments: Agriculture, Construction, and International. The company sells ne...
How the Company Makes Money
Titan Machinery makes money primarily by operating as a dealer for major equipment manufacturers, generating revenue across several integrated streams: (1) New equipment sales: The company sells new agricultural and construction machines (typicall...
Titan Machinery Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational progress—most notably a large, multi-quarter inventory reduction ($625M over 18 months), marked improvement in inventory quality, a strong Q4 gross margin recovery, lower interest expense and constructive segment-level turnarounds (notably in Domestic Ag, Europe and Australia). Management provided prudently conservative FY27 guidance that anticipates further margin recovery, reduced interest expense and improved adjusted EBITDA. Offsetting these positives are continued revenue declines (total revenue and domestic ag sales materially down), ongoing net losses (including a larger-than-expected non-cash valuation allowance), industry-wide weakness with North American volumes at cyclical trough levels, and remaining inventory/margin pressure in select categories. Overall, the tone is constructive: the company executed well through the downturn and is positioned to benefit when industry conditions improve, but near-term demand challenges and reported losses remain significant risks.Positive Updates
Aggressive Inventory Reduction and Improved Inventory Quality
Reduced total equipment inventory by more than $200 million in fiscal 2026 (to $725 million), surpassing the initial $100M target and revised $150M target; reduced total inventory by $625 million over an 18-month period. Aged equipment (inventory >12 months) declined ~45% to $174 million, with management noting materially improved mix and freshness.
Negative Updates
Significant Revenue Declines
Total revenue in Q4 was $641.8M vs $759.9M prior year (same-store sales down 14.6%). Full-year revenue declined to $2.4B from $2.7B (≈11.1% decrease). Domestic Agriculture Q4 same-store sales down 22.8%; management expects Domestic Agriculture revenue down 15%–20% in FY27.
Read all updates
Q4-2026 Updates
Positive
Negative
Aggressive Inventory Reduction and Improved Inventory Quality
Reduced total equipment inventory by more than $200 million in fiscal 2026 (to $725 million), surpassing the initial $100M target and revised $150M target; reduced total inventory by $625 million over an 18-month period. Aged equipment (inventory >12 months) declined ~45% to $174 million, with management noting materially improved mix and freshness.
Read all positive updates
Company Guidance
The company’s guidance reflected a pivot from inventory reduction to margin and mix optimization for fiscal 2027, after materially improving its balance sheet in FY26: FY26 equipment inventory fell $201M to $725M (and has been reduced $625M over 18 months), aged equipment declined ~45% to $174M in H2, cash was $28M and adjusted debt-to-tangible-net-worth was 1.7x (bank covenant 3.5x). Q4 FY26 revenue was $641.8M (down from $759.9M; same-store sales -14.6%), gross profit $87.0M and gross margin 13.5%, floorplan interest $9.6M (down ~27% YoY, 13% sequential), Q4 net loss $36.2M (loss per diluted share $1.59, including a $0.78 non‑cash valuation allowance), Q4 adjusted net loss $32.5M ($1.43), and full‑year revenue was $2.4B with an adjusted net loss of $50.6M ($2.22). Segment Q4s: Domestic Ag $406.7M (same‑store -22.8%), Construction $90.2M (-4.6%), Europe $68.8M (+5.2%, flat on constant currency), Australia $76.1M (+16.7%). For FY27 the company models Domestic Ag revenue down 15–20%, Construction flat to +5%, Europe down 20–25% (reflecting the ~$50M Germany exit), Australia up 10–15%; consolidated equipment margin ≈8.4% (vs 7.3% FY26); OpEx ≈17% of sales; floorplan interest expected down ~25%; adjusted EPS loss of $1.25 to $1.75; adjusted EBITDA $17M–$29M (vs $13.9M FY26); CapEx ~ $15M (ex‑rental); tax expense $0–$1M; D&A ~ $35M and impairments expected to be modest (sub ~$2M).Titan Machinery Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.43B | 2.70B | 2.76B | 2.21B | 1.71B |
| Gross Profit | 382.56M | 395.63M | 531.35M | 439.84M | 332.72M |
| EBITDA | 34.88M | 42.61M | 200.32M | 163.52M | 124.63M |
| Net Income | -54.17M | -36.91M | 110.92M | 101.87M | 66.05M |
Balance Sheet | |||||
| Total Assets | 1.62B | 1.81B | 1.99B | 1.19B | 946.67M |
| Cash, Cash Equivalents and Short-Term Investments | 28.16M | 35.90M | 38.07M | 43.91M | 146.15M |
| Total Debt | 826.00M | 1.00B | 1.07B | 413.93M | 290.24M |
| Total Liabilities | 1.04B | 1.20B | 1.33B | 652.39M | 511.47M |
| Stockholders Equity | 579.30M | 614.08M | 657.64M | 536.31M | 435.20M |
Cash Flow | |||||
| Free Cash Flow | 115.09M | 18.45M | -94.64M | -26.39M | 121.29M |
| Operating Cash Flow | 137.45M | 70.29M | -32.28M | 10.82M | 158.92M |
| Investing Cash Flow | -22.71M | -47.75M | -163.37M | -134.06M | -55.20M |
| Financing Cash Flow | -123.70M | -23.62M | 188.58M | 21.96M | -35.34M |
Titan Machinery Technical Analysis
Positive
19.98
Price Trends
18.05
Positive
17.12
Positive
17.76
Positive
Market Momentum
0.62
Negative
67.51
Neutral
90.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TITN, the sentiment is Positive. The current price of 19.98 is above the 20-day moving average (MA) of 17.13, above the 50-day MA of 18.05, and above the 200-day MA of 17.76, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 90.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TITN.
Titan Machinery Risk Analysis
Titan Machinery disclosed 30 risk factors in its most recent earnings report. Titan Machinery reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Titan Machinery Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.28B | 15.56 | 23.59% | 3.48% | 0.16% | 2.99% | |
75 Outperform | $2.42B | 19.31 | 18.67% | ― | 12.76% | 36.11% | |
65 Neutral | $44.00M | ― | ― | 8.21% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $289.66M | 33.19 | 3.77% | ― | 12.63% | -21.23% | |
56 Neutral | $1.28B | 152.18 | 1.29% | ― | 14.46% | -588.82% | |
55 Neutral | $462.42M | -6.84 | -9.00% | ― | -8.92% | -304.76% |
* Industrials Sector Average
TITN
Titan Machinery
19.98
3.87
24.02%
DXPE
DXP Enterprises
154.62
74.30
92.50%
EVI
EVI Industries
22.18
6.15
38.34%
DSGR
Distribution Solutions Group
27.18
0.15
0.55%
GIC
Global Industrial Company
33.29
11.73
54.42%
BRIA
BrilliA Inc. Class A
1.73
-0.07
-4.17%
Titan Machinery Corporate Events
Executive/Board Changes
Titan Machinery Announces Board Leadership Transition and Refresh
Neutral
Mar 13, 2026
On March 11, 2026, Titan Machinery Inc. announced the retirement of former Class II director and Lead Independent Director Stan Erickson from its Board of Directors, a move aligned with a previously granted waiver to the company’s age-based ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.