Titan America SA (TTAM) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 0.52%
• Average Volume (3M): 418.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 2,742
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Construction Materials
• EPS (TTM): 0.28
• Shares Outstanding: 184,362,470
• 10 Day Avg. Volume: 262,852
• 30 Day Avg. Volume: 418,737
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 8.75
• Enterprise Value/Ebitda: 9.92
• 1Y Price Target: $14.88
• Price Target Upside: -4.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $15.50 ▼(-0.06% Downside)

Titan America SA has a strong financial foundation with robust profitability and stable cash flow, making it a solid player in the construction materials industry. Technical analysis suggests some caution with potential medium-term resistance and overbought signals. While the valuation appears reasonable with a decent dividend yield, the lack of a P/E ratio leaves some uncertainty in valuation assessment. Overall, the stock presents a balanced outlook with strong financials tempered by mixed technical signals.

Positive Factors

Financial Performance

TTAM has industry-high EBITDA margins in cement at over 30% and generates best-in-class returns with a ROIC of 18.5%.

Growth Prospects

As a standalone entity, TTAM becomes a more attractive acquisition candidate, enhancing its growth prospects including potential M&A activity.

Valuation

TTAM offers good value with its current trading at a 30% discount to its peers, which is expected to narrow.

Negative Factors

Cost Pressures

Natural gas is up ~100% over the past year (key cost in cement production) and housing permits in Florida were down 10%.

Market Conditions

A slowing housing market risks the 2H weighted outlook, with higher rates and rising risks across Titan’s geographic footprint.

Market Exposure

Titan derives substantial revenue from residential and private/non-residential construction, which is considered to be in a recession.

Titan America SA Business Overview & Revenue Model

Company Description

Titan America SA manufactures building materials. The Company produces and sells cement, ready-mix concrete, aggregates, dry mortars, building blocks, and other concrete products. Titan America serves customers worldwide.

How the Company Makes Money

Titan America generates revenue primarily through the sale of its core products, including cement, ready-mix concrete, and a range of aggregates. The company operates on a business-to-business model, supplying these materials to contractors, builders, and other construction-related businesses. Key revenue streams include long-term contracts with large construction firms, spot sales to smaller contractors, and regional distribution agreements. Additionally, Titan America has formed strategic partnerships with construction companies and local governments, enhancing its market presence and stability. The company also benefits from fluctuations in the construction market, as rising demand for infrastructure projects often leads to increased sales volumes.

Titan America SA Financial Statement Overview

Summary

Titan America SA exhibits strong financial health characterized by steady revenue growth, robust profitability margins, and a solid balance sheet. The company effectively utilizes its resources to generate cash, supporting its operations and growth prospects in the construction materials industry. While the financials are strong, continued focus on optimizing cost structures could enhance profitability further.

Income Statement

Titan America SA shows robust financial performance with consistent revenue growth over the years. The gross profit margin stands at 25.5%, net profit margin at 10.2%, and EBIT margin at 15.4% for 2024, indicating strong operational efficiency. The revenue growth rate from 2023 to 2024 is 2.7%, signifying steady expansion. However, the margins suggest room for improvement in cost management to enhance profitability further.

Balance Sheet

The balance sheet of Titan America SA is solid, with a debt-to-equity ratio of 0.61, showing a balanced approach to leverage. The return on equity is impressive at 22.1%, reflecting effective use of shareholder funds. The equity ratio is 47.9%, suggesting a stable financial position with a good proportion of equity financing.

Cash Flow

The cash flow of Titan America SA is healthy, with a free cash flow growth rate of 2.4% year over year. The operating cash flow to net income ratio is 1.49, and the free cash flow to net income ratio is 0.67, indicating efficient cash conversion from earnings. The consistent generation of cash flow supports potential reinvestment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.21B	1.63B	1.59B	1.36B
Gross Profit	299.82M	416.65M	363.49M	221.27M
EBITDA	264.43M	348.71M	315.40M	188.81M
Net Income	121.03M	166.07M	155.24M	62.72M
Balance Sheet
Total Assets	1.79B	1.57B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	148.91M	12.12M	22.04M	29.84M
Total Debt	471.76M	460.18M	409.41M	462.09M
Total Liabilities	847.61M	816.24M	779.03M	854.50M
Stockholders Equity	944.03M	750.01M	719.77M	592.73M
Cash Flow
Free Cash Flow	49.06M	111.03M	108.38M	50.10M
Operating Cash Flow	157.07M	248.04M	227.13M	178.37M
Investing Cash Flow	-102.42M	-135.80M	-117.65M	-127.30M
Financing Cash Flow	88.37M	-123.33M	-117.78M	-21.66M

Titan America SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	78 Outperform	$601.42M	10.13	16.29%	7.39%	3.95%	27.28%
USLM	77 Outperform	$3.61B	28.87	24.95%	0.19%	21.97%	44.87%
TTAM	76 Outperform	$2.86B	―		0.52%	―	―
CX	75 Outperform	$13.48B	8.92	7.12%	0.92%	-9.62%	795.20%
TGLS	71 Outperform	$3.41B	18.66	27.89%	0.77%	16.89%	24.91%
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
LOMA	58 Neutral	$1.09B	16.62	8.93%	―	-33.46%	-32.34%