Titan Machinery (TITN) AI Stock Analysis

• Market Cap: $358.78M
• Dividend Yield: N/A
• Average Volume (3M): 228.57K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.29
• Revenue Growth: -8.12%
• EPS Growth: -204.81%
• Country: US
• Employees: 3,340
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): -0.26
• Shares Outstanding: 23,372,976
• 10 Day Avg. Volume: 226,155
• 30 Day Avg. Volume: 228,570
• PEG Ratio: 0.09
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 22.94
• Enterprise Value/Market Cap: 4.23
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 309.78
• 1Y Price Target: $21.50
• Price Target Upside: 39.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 47 Neutral
• Price Target: $15.50 ▲(0.52% Upside)

Titan Machinery's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. Technical analysis indicates bearish momentum, further weighing on the score. Valuation is poor due to negative earnings, and while the earnings call shows some strategic progress, significant hurdles remain. The strong cash flow is a positive aspect but not enough to offset other weaknesses.

Positive Factors

European Segment Growth

Strong growth in the European segment driven by EU stimulus programs indicates a robust market position and potential for sustained revenue in this region.

Inventory Reduction Progress

Effective inventory management enhances cash flow and operational efficiency, positioning the company to better manage market fluctuations.

Parts and Service Stability

The stability provided by parts and service revenue helps cushion against cyclical pressures in equipment sales, supporting long-term profitability.

Negative Factors

Revenue and Profit Decline

A significant decline in revenue and profit margins indicates operational challenges that could impact long-term financial health if not addressed.

Domestic Agriculture Segment Weakness

Weakness in the domestic agriculture segment reflects softer retail demand, which could hinder recovery and growth in a key market area.

Construction Segment Challenges

Challenges in the construction segment due to economic uncertainty could limit growth opportunities and strain profitability in this core business area.

Titan Machinery Business Overview & Revenue Model

Company Description

Titan Machinery Inc. is a leading retailer and service provider of agricultural and construction equipment in the United States and Europe. The company operates a network of dealerships that offer a wide range of equipment, including tractors, combines, excavators, and other machinery from well-known brands. In addition to equipment sales, Titan Machinery provides parts, service, and rental solutions, catering to the needs of farmers, contractors, and other professionals in the agriculture and construction industries.

How the Company Makes Money

Titan Machinery generates revenue through multiple streams, primarily from the sales of new and used equipment, which includes tractors, combines, and various construction machinery. The company also earns significant income from aftermarket parts and service, which involves maintenance, repair, and parts sales for the equipment they sell. Additionally, Titan Machinery provides rental services for equipment, allowing customers to use machinery without the full investment of purchase. Key partnerships with leading manufacturers in the agricultural and construction sectors enhance their product offerings and provide access to advanced equipment technology, further contributing to their revenue. The company's ability to serve a diverse customer base and its focus on providing comprehensive solutions in the agriculture and construction markets play a crucial role in its financial performance.

Titan Machinery Financial Statement Overview

Summary

Titan Machinery faces challenges with declining revenue and profitability, as indicated by a negative net profit margin and EBIT margin. The balance sheet shows manageable leverage but negative returns on equity, suggesting inefficiencies. However, the cash flow statement is strong, with significant free cash flow growth and good cash conversion metrics.

Income Statement

Titan Machinery's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative net profit margin of -2.37% and a negative EBIT margin of -1.30%, reflecting operational challenges. Revenue growth has been negative recently, with a -3.27% decline in the TTM period. The company needs to address these issues to improve financial performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.17 in the TTM period, indicating manageable leverage. However, the return on equity is negative at -9.81%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 32.49%, providing some stability, but the company must enhance its profitability to improve overall financial health.

Cash Flow

Titan Machinery's cash flow statement shows a positive trend in free cash flow growth, with a 38.66% increase in the TTM period. The operating cash flow to net income ratio is 0.17, indicating some ability to convert earnings into cash. The free cash flow to net income ratio is strong at 1.28, reflecting good cash generation relative to earnings. However, the company should focus on sustaining this positive cash flow trend.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.58B	2.70B	2.76B	2.21B	1.71B	1.41B
Gross Profit	346.08M	395.63M	531.35M	439.84M	332.72M	261.36M
EBITDA	4.90M	42.61M	200.32M	167.38M	124.63M	73.17M
Net Income	-61.25M	-36.91M	110.92M	101.87M	66.05M	19.36M
Balance Sheet
Total Assets	1.88B	1.81B	1.99B	1.19B	946.67M	815.79M
Cash, Cash Equivalents and Short-Term Investments	32.67M	35.90M	38.07M	43.91M	146.15M	78.99M
Total Debt	1.11B	1.00B	1.08B	413.93M	281.26M	296.67M
Total Liabilities	1.27B	1.20B	1.33B	652.39M	511.47M	444.51M
Stockholders Equity	610.34M	614.08M	657.64M	536.31M	435.20M	371.28M
Cash Flow
Free Cash Flow	214.67M	18.45M	-94.64M	-26.39M	121.29M	152.91M
Operating Cash Flow	167.55M	70.29M	-32.28M	10.82M	158.92M	173.00M
Investing Cash Flow	-51.13M	-47.75M	-163.37M	-134.06M	-55.20M	-20.30M
Financing Cash Flow	-115.99M	-23.62M	188.58M	21.96M	-35.34M	-117.94M

Titan Machinery Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TITN, the sentiment is Negative. The current price of 15.42 is below the 20-day moving average (MA) of 16.00, below the 50-day MA of 18.23, and below the 200-day MA of 18.03, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 33.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TITN.

Titan Machinery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXPE	80 Outperform	$1.85B	22.09	20.33%	―	13.93%	48.25%
GIC	79 Outperform	$1.35B	20.55	22.72%	2.96%	-1.58%	-5.62%
DSGR	65 Neutral	$1.38B	352.74	0.65%	―	13.48%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EVI	54 Neutral	$338.58M	54.19	4.59%	―	10.26%	29.40%
TITN	47 Neutral	$358.78M	11.08	-9.63%	―	-8.12%	-204.81%

Titan Machinery Corporate Events

Titan Machinery’s Earnings Call: Mixed Signals Amid Challenges

Titan Machinery’s recent earnings call painted a mixed picture of the company’s current financial health. While there were positive developments, such as progress in inventory reduction and robust performance in the European segment, significant challenges remain. The company is grappling with revenue decline and depressed margins in its core domestic Agriculture and Construction segments. Despite these hurdles, Titan Machinery is strategically focusing on inventory optimization and maintaining customer service stability through its parts and services division. However, the overall financial performance is under pressure.

Titan Machinery Reports Q2 Results Amid Challenging Market

Titan Machinery Inc., headquartered in West Fargo, North Dakota, operates a network of full-service agricultural and construction equipment dealer locations across North America, Europe, and Australia, providing services to farmers, ranchers, and commercial applicators.