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Titan Machinery Inc. (TITN)
NASDAQ:TITN
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Titan Machinery
(NASDAQ:TITN)
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Rating:51Neutral
Price Target:
$17.00
▲(5.07% Upside)
Titan Machinery's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis provides some short-term bullish signals, but longer-term trends remain bearish. Valuation is poor due to negative earnings and lack of dividends. The earnings call offers some positive developments, but ongoing challenges temper the outlook.
Positive Factors
Improved Equipment Margins
Improved equipment margins indicate better pricing strategies and cost management, enhancing profitability and competitive positioning.
Strong European Performance
Strong performance in Europe, driven by strategic market positioning, supports revenue diversification and mitigates regional risks.
Inventory Reduction
Effective inventory management reduces holding costs and improves cash flow, providing financial flexibility for future investments.
Negative Factors
Declining Revenue
Declining revenue reflects challenges in market demand and competitiveness, potentially impacting long-term growth and profitability.
Challenges in Domestic Segments
Weakness in domestic segments suggests vulnerability to local market conditions, affecting overall revenue stability and growth potential.
Australia Segment Struggles
Significant sales decline in Australia indicates operational challenges and market saturation, impacting regional performance and profitability.
Titan Machinery (TITN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$378.13M
Dividend YieldN/A
Average Volume (3M)228.57K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-8.92%
EPS Growth-304.76%
CountryUS
Employees3,340
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.05
Shares Outstanding23,370,174
10 Day Avg. Volume226,155
30 Day Avg. Volume228,570
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.69
Price to Sales (P/S)0.16
P/FCF Ratio22.94
Enterprise Value/Market Cap3.52
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit3.84
Enterprise Value/Ebitda362.68
Forecast
1Y Price Target
$23.00Price Target Upside42.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Titan Machinery Business Overview & Revenue Model
Company DescriptionTitan 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 MoneyTitan Machinery generates revenue through multiple streams, primarily from the sale of new and used equipment. The company partners with major manufacturers such as Case IH and CASE Construction Equipment, which allows them to offer a diverse selection of high-quality machinery. In addition to equipment sales, Titan Machinery earns significant income from parts and service operations, which include maintenance, repair, and aftermarket support for the equipment they sell. Rental services also contribute to their revenue by allowing customers to access equipment for shorter periods without the upfront costs of purchase. Furthermore, the company benefits from financing options provided to customers through partnerships with financial institutions, helping to facilitate equipment sales and enhancing customer loyalty.
Titan Machinery Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in inventory reduction and equipment margin improvement, particularly driven by strong performance in the European segment. However, the company faces ongoing challenges with revenue declines in key segments like domestic ag and construction, as well as struggles in the Australia segment. The divestment in Germany also indicates operational challenges. While there are positive developments, the overall sentiment is tempered by continued difficulties in several areas.Q3-2026 Updates
Positive Updates
Significant Inventory Reduction
Titan Machinery Inc. reduced total inventory by $98 million in the first nine months of fiscal 2026, with a revised target of $150 million for the full year, surpassing the initial $100 million target.
Improved Equipment Margins
Equipment margins increased to 8.1% in Q3, significantly better than the 3.1% in the first half of the fiscal year, driven by improved inventory position and favorable sales mix.
Strong Performance in Europe
The Europe segment saw an 88% increase in same-store sales, driven by Romania's capitalization on EU subvention funds, contributing to a segment pretax income of $3.5 million from a $1.2 million loss in the prior year.
Negative Updates
Overall Revenue Decline
Total revenue for Q3 fiscal 2026 was $644.5 million, a decrease from $679.8 million in the prior year, reflecting a 4.8% decrease in same-store sales due to weaker demand in key segments.
Challenges in Domestic Ag and Construction Segments
Domestic ag segment saw a 12.3% decrease in same-store sales, and the construction segment experienced a 10.1% decrease, both affected by a challenging market environment.
Australia Segment Struggles
Australia segment's same-store sales decreased by 40%, reflecting a continued normalization of sprayer deliveries and a challenging domestic ag business environment.
Continuing Challenges in Germany
The company is divesting its German operations due to historical challenges and poor returns, which have negatively impacted the overall Europe segment performance.
Company Guidance
During the third quarter fiscal 2026 earnings call for Titan Machinery Inc., the company provided guidance on various metrics. They reported a total revenue of $644.5 million, a 4.8% decrease in same-store sales, and a gross profit margin expansion to 17.2%. The company achieved a $98 million inventory reduction year-to-date, surpassing their initial $100 million target, and set a new goal of $150 million for the full year. Equipment margins improved, reaching 8.1% in Q3, with expectations of moderating to 7% in Q4. The company also highlighted strategic initiatives, including divesting certain stores and focusing on high-performing markets, expecting a refined fiscal 2026 revenue performance with construction segment revenue down 5% to 10% and Europe segment revenue up 35% to 40%. Despite a challenging demand environment, Titan Machinery is positioning for improved financial performance in fiscal 2027, with adjusted diluted loss per share guidance reaffirmed in the range of a loss of $1.50 to $2.Titan Machinery Financial Statement Overview
Summary
Titan Machinery faces significant financial challenges with declining revenue and profitability. The income statement shows negative revenue growth and margins, while the balance sheet indicates improved leverage but negative returns. Cash flow generation is weak, with declining free cash flow growth.Income Statement
Titan Machinery's income statement shows declining revenue and profitability. The TTM data indicates a negative revenue growth rate of -1.37%, with a gross profit margin of 13.62% and a net profit margin of -2.43%. The EBIT and EBITDA margins are also negative, reflecting operational challenges. The annual data shows a consistent decline in margins and profitability over the past two years, indicating a need for strategic improvements.Balance Sheet
The balance sheet reveals a mixed financial position. The TTM debt-to-equity ratio is 0.18, indicating a low leverage compared to the previous year, which had a high ratio of 1.63. However, the return on equity is negative at -10.12%, reflecting poor profitability. The equity ratio is stable, suggesting a reasonable asset base relative to equity.Cash Flow
Cash flow analysis shows a decline in free cash flow growth by -20.37% in the TTM period. The operating cash flow to net income ratio is 0.23, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is 0.81, suggesting some ability to cover net losses with free cash flow, but overall cash flow performance is weak.| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.70B | 2.76B | 2.21B | 1.71B | 1.41B |
| Gross Profit | 395.63M | 531.35M | 439.84M | 332.72M | 261.36M |
| EBITDA | 42.61M | 200.32M | 163.52M | 124.63M | 73.17M |
| Net Income | -36.91M | 110.92M | 101.87M | 66.05M | 19.36M |
Balance Sheet | |||||
| Total Assets | 1.81B | 1.99B | 1.19B | 946.67M | 815.79M |
| Cash, Cash Equivalents and Short-Term Investments | 35.90M | 38.07M | 43.91M | 146.15M | 78.99M |
| Total Debt | 1.00B | 1.07B | 413.93M | 290.24M | 306.49M |
| Total Liabilities | 1.20B | 1.33B | 652.39M | 511.47M | 444.51M |
| Stockholders Equity | 614.08M | 657.64M | 536.31M | 435.20M | 371.28M |
Cash Flow | |||||
| Free Cash Flow | 18.45M | -94.64M | -26.39M | 121.29M | 152.91M |
| Operating Cash Flow | 70.29M | -32.28M | 10.82M | 158.92M | 173.00M |
| Investing Cash Flow | -47.75M | -163.37M | -134.06M | -55.20M | -20.30M |
| Financing Cash Flow | -23.62M | 188.58M | 21.96M | -35.34M | -117.94M |
Titan Machinery Technical Analysis
Positive
16.18
Price Trends
16.17
Positive
17.08
Negative
17.93
Negative
Market Momentum
-0.18
Negative
53.49
Neutral
67.47
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 16.18 is above the 20-day moving average (MA) of 15.77, above the 50-day MA of 16.17, and below the 200-day MA of 17.93, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.47 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.73B | 20.87 | 19.58% | ― | 12.76% | 36.11% | |
77 Outperform | $1.19B | 17.56 | 22.61% | 3.48% | 0.16% | 2.99% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.36B | -122.46 | -1.68% | ― | 14.46% | -588.82% | |
61 Neutral | $43.73M | ― | ― | 8.21% | ― | ― | |
54 Neutral | $375.89M | 65.13 | 3.77% | ― | 12.63% | -21.23% | |
51 Neutral | $378.13M | -5.94 | -9.63% | ― | -8.92% | -304.76% |
* Industrials Sector Average
TITN
Titan Machinery
16.18
1.41
9.55%
DXPE
DXP Enterprises
110.04
13.87
14.42%
EVI
EVI Industries
25.51
8.42
49.24%
DSGR
Distribution Solutions Group
29.39
-4.45
-13.15%
GIC
Global Industrial Company
30.89
7.26
30.72%
BRIA
BrilliA Inc. Class A
1.75
-1.68
-49.01%
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.