Titan Machinery (TITN) AI Stock Analysis

• Market Cap: $482.42M
• Dividend Yield: N/A
• Average Volume (3M): 153.04K
• 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: 73
• Industry: Industrial - Distribution
• EPS (TTM): -0.26
• Shares Outstanding: 23,372,976
• 10 Day Avg. Volume: 221,262
• 30 Day Avg. Volume: 153,044
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.15
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 309.78
• 1Y Price Target: $21.00
• Price Target Upside: 1.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: $20.00 ▼(-3.10% Downside)

Titan Machinery's overall stock score is primarily influenced by its financial performance and valuation. The company faces operational challenges with declining revenue and profitability, reflected in a low financial performance score. The technical analysis provides a slightly positive outlook with stable trading patterns. However, the negative P/E ratio and lack of dividend yield weigh down the valuation score. The earnings call provides some positive insights into inventory management and European growth, but these are not enough to offset the broader financial challenges.

Positive Factors

Inventory Strategy

The company’s well-considered inventory reduction strategy provides optimism for the FY27+ outlook.

Revenue Performance

Revenue of $760M beat estimates behind an aggressive inventory reduction strategy.

Stock Performance

Stock performance is expected to improve as inventories decline, which should catalyze the shares.

Negative Factors

Earnings Outlook

A significant Q4’25 miss and soft FY26 outlook.

Industry Demand

The bleak outlook for agricultural equipment demand is at the root of the meaningful valuation discount that TITN is experiencing.

Profitability Concerns

Depressed gross margins and elevated interest expense will keep the company from realizing a level of profitability which would justify a materially higher valuation until at least FY27.

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 new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company's construction equipment comprises heavy construction machinery, light industrial machinery for commercial and residential construction, road and highway construction machinery, and energy and forestry operations equipment. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services, such as equipment transportation, global positioning system signal subscriptions and other precision farming products, farm data management products, and CNH Industrial finance and insurance products. The company operates in Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; and Bulgaria, Germany, Romania, and Ukraine, Europe. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.

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 financial challenges with declining revenue and profitability, as indicated by negative margins and net losses. The high leverage on the balance sheet presents financial risks if cash flow and profitability do not improve. While operating cash flow remains positive, sustaining free cash flow is a concern. The company needs to focus on reversing revenue decline and managing debt effectively to enhance financial stability.

Income Statement

Titan Machinery's TTM revenue shows a decline compared to the previous year, reflecting a negative growth trend. The gross profit margin is fairly stable, but the company is experiencing significant net losses, resulting in a negative net profit margin. The negative EBIT indicates operational challenges. Overall, the income statement suggests financial pressures and declining profitability.

Balance Sheet

The balance sheet shows high levels of debt, with a debt-to-equity ratio indicating significant leverage. The equity ratio is reasonable, but the return on equity has turned negative due to ongoing net losses. The financial stability is weakened by high liabilities relative to equity, posing risks if profitability does not improve.

Cash Flow

Cash flow from operations is positive, which is a strength. However, free cash flow has fluctuated, showing a decrease in the TTM period. The operating cash flow to net income ratio is favorable, highlighting good cash generation despite net losses, but the free cash flow to net income ratio reveals concerns over sustaining positive cash flows without profitability.

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: Positive
• Last Price: 20.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 20.64 is above the 20-day moving average (MA) of 20.00, above the 50-day MA of 19.95, and above the 200-day MA of 17.59, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 59.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.95B	23.74	20.33%	―	13.93%	48.25%
AIT	79 Outperform	$10.02B	26.22	22.24%	0.66%	1.88%	2.91%
GIC	79 Outperform	$1.46B	22.20	22.72%	2.72%	-1.58%	-5.62%
DSGR	71 Outperform	$1.48B	381.62	0.65%	―	13.48%	―
EVI	67 Neutral	$362.35M	57.78	4.71%	―	3.51%	33.35%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
TITN	53 Neutral	$482.42M	11.08	-9.63%	―	-8.12%	-204.81%

Titan Machinery Corporate Events

Titan Machinery Holds Annual Meeting, Elects Board Members

On June 2, 2025, Titan Machinery held its Annual Meeting where stockholders elected Class III nominees to the Board of Directors for a three-year term, approved executive compensation, and ratified Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending January 31, 2026. These decisions reflect the company’s ongoing governance and financial oversight strategies, potentially impacting its operational stability and stakeholder confidence.