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Titan International (TWI)
NYSE:TWI
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Titan International
(NYSE:TWI)
Rating:60Neutral
Price Target:
$7.50
▼(-1.32%Downside)
Positive Factors
Market Expansion
The Carlstar acquisition expands Titan International's product portfolio, allowing them to serve a broader range of customers.
Stable Revenue Base
About 40% of Titan International's sales are in the less-cyclical aftermarket, providing a stable revenue base.
Technological Advantage
The Low Sidewall technology offers significant benefits to farmers, potentially increasing their profits.
Negative Factors
Comparison with Peers
Unlike many Ag Equipment peers trading at or near all-time highs, TWI's shares are barely up off the bottom despite evidence that end-market conditions are turning in the coming quarters.
Market Conditions
TWI, the leader in Agricultural and other tires & wheels, has seen its stock decline nearly 50% YTD as core end-markets deteriorated, but a return to growth could be less than a year away as US farm incomes may inflect in 2025.
Stock Price Decline
Titan International's stock price has declined nearly 50% as core end-markets have deteriorated.
Titan International (TWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$461.86M
Dividend YieldN/A
Average Volume (3M)530.58K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth5.64%
EPS Growth-124.05%
CountryUS
Employees8,303
SectorIndustrials
Sector Strength92
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.01
Shares Outstanding63,704,210
10 Day Avg. Volume395,339
30 Day Avg. Volume530,579
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.83
Price to Sales (P/S)0.00
P/FCF Ratio12.14
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit3.93
Enterprise Value/Ebitda2.31
Forecast
1Y Price Target
$10.67Price Target Upside40.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Titan International Business Overview & Revenue Model
Company DescriptionTitan International, Inc. (TWI) is a leading global manufacturer and supplier in the off-highway tire and wheel industry. The company specializes in the production of wheels, tires, and undercarriage systems, primarily serving the agricultural, construction, and mining sectors. With a strong presence in North America and selected international markets, Titan International delivers durable and high-performance products designed to withstand the rigorous demands of industrial applications.
How the Company Makes MoneyTitan International generates revenue through the manufacture and sale of its diverse range of products, including wheels, tires, and undercarriage systems, predominantly catering to the agricultural, construction, and mining industries. The company's revenue streams are largely driven by its extensive product portfolio and its ability to provide customized solutions that meet the specific needs of its clients. Significant earnings are also derived from its strategic partnerships with leading original equipment manufacturers (OEMs), which integrate Titan's products into their machinery and vehicles. Additionally, Titan International capitalizes on aftermarket sales, providing replacement parts and services to its broad customer base, further enhancing its revenue potential.
Titan International Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 3.40%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong financial performance and strategic positioning offset by challenges in the US market and tariff uncertainties. While international operations, especially in Brazil, show positive trends, the domestic ag market and tariff impacts create significant headwinds.Q1-2025 Updates
Positive Updates
Strong Revenue and Adjusted EBITDA
Q1 revenues were $491 million with adjusted EBITDA of $31 million, both at the higher end of guidance ranges.
Gross Margin Improvement
Gross margin improved to 14% in Q1 from 10.7% in Q4, indicating positive leverage with increased sales.
Brazil Market Strength
Business in Brazil continues to strengthen, with Titan well-positioned as the largest manufacturer of ag tires and undercarriage in the region.
Expansion of Goodyear Licensing
Titan announced the expansion of Goodyear licensing rights into new product segments, enhancing brand leverage.
Negative Updates
Challenging US Ag Market
US agriculture orders remain muted due to uncertainty, affecting equipment demand in the short run.
Impact of Tariffs on Global Operations
The evolving tariff situation adds uncertainty, impacting production decisions and customer inquiries.
Increased SG&A Expenses
SG&A expenses increased to $49.9 million, up from $39 million in the prior year, partly due to the Carlstar acquisition.
High Effective Tax Rate
Q1 saw an income tax expense of $4.2 million with an effective rate of almost 100%, due to geographic distribution of profits.
Company Guidance
During Titan International Inc.'s first quarter 2025 earnings call, the company provided guidance that showcased its strong financial performance despite challenging market conditions. Titan reported revenues of $491 million and an adjusted EBITDA of $31 million, with a gross margin of 14%, up from 10.7% in the previous quarter. The company anticipates second-quarter revenues of $450 million to $500 million and an adjusted EBITDA of $25 million to $35 million, indicating stability. Titan's strong U.S. manufacturing presence and diversified global operations help mitigate risks associated with tariffs and fluctuating market demands. The agriculture segment in Brazil has seen strengthening business, while European activities are impacted by geopolitical factors. Despite muted agriculture orders in the U.S., Titan remains well-positioned to leverage its broad product portfolio and production capabilities for future growth.Titan International Financial Statement Overview
Summary
Titan International presents a mixed financial picture. The company has shown revenue growth but faces profitability challenges, as indicated by declining net margins and inconsistent free cash flow. The balance sheet reflects moderate leverage, though increasing, which could pose risks if income generation does not improve. Maintaining operational efficiency and improving leverage metrics are key areas for future focus.Income Statement
Titan International's income statement reflects a mixed performance. The company has demonstrated a consistent revenue growth trajectory, although the recent TTM period shows a decline in net income. The gross profit margin has remained stable, but the net profit margin has deteriorated, indicating challenges in managing costs or generating sufficient income from operations. The decline in EBIT and EBITDA margins over time suggests potential operational inefficiencies or increased cost pressures.65
Positive
Balance Sheet
The balance sheet of Titan International shows a moderate financial position with a reasonable debt-to-equity ratio, although it has been increasing, indicating a rising leverage trend. The equity ratio is stable, reflecting a balanced asset structure. However, the declining return on equity over the periods suggests that the company is generating less profit from its equity base, which could impact future financial flexibility.70
Positive
Cash Flow
Titan International's cash flow statement reveals stable operating cash flows, although free cash flow has shown variability, potentially affecting liquidity. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to reported profits. However, the negative trend in free cash flow growth highlights challenges in maintaining consistent cash surplus after capital expenditures.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.85B | 1.85B | 1.82B | 2.17B | 1.78B | 1.26B | Gross Profit |
| 249.08M | 257.80M | 305.85M | 360.71M | 237.54M | 114.32M | EBIT |
| 19.91M | 33.18M | 148.73M | 205.80M | 85.17M | -16.55M | EBITDA |
| 92.44M | 105.40M | 170.97M | 274.05M | 130.26M | 26.02M | Net Income Common Stockholders |
| -15.41M | -5.56M | 78.76M | 176.30M | 49.59M | -65.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 174.43M | 195.97M | 220.25M | 159.58M | 98.11M | 117.43M | Total Assets |
| 1.72B | 1.58B | 1.29B | 1.28B | 1.18B | 1.03B | Total Debt |
| 705.08M | 683.46M | 437.26M | 445.62M | 484.95M | 464.70M | Net Debt |
| 530.65M | 487.49M | 217.01M | 286.04M | 386.84M | 347.27M | Total Liabilities |
| 1.18B | 1.09B | 821.83M | 901.49M | 955.51M | 855.62M | Stockholders Equity |
| 534.25M | 496.07M | 467.06M | 381.24M | 229.30M | 179.26M |
| Cash Flow | Free Cash Flow | ||||
| 36.85M | 75.86M | 118.55M | 113.70M | -28.08M | 35.55M | Operating Cash Flow |
| 100.89M | 141.49M | 179.35M | 160.68M | 10.73M | 57.23M | Investing Cash Flow |
| -57.66M | -201.60M | -56.92M | -36.75M | -37.60M | 33.22M | Financing Cash Flow |
| -62.54M | 64.55M | -56.02M | -61.31M | 13.95M | -38.56M |
Titan International Technical Analysis
Positive
7.60
Price Trends
7.34
Positive
7.83
Negative
7.65
Negative
Market Momentum
0.02
Negative
56.61
Neutral
73.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWI, the sentiment is Positive. The current price of 7.6 is above the 20-day moving average (MA) of 7.26, above the 50-day MA of 7.34, and below the 200-day MA of 7.65, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TWI.
Titan International Risk Analysis
Titan International disclosed 29 risk factors in its most recent earnings report. Titan International reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Titan International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $699.70M | 7.04 | 21.56% | 3.57% | -0.32% | -35.10% | |
73 Outperform | $367.19M | 8.55 | 7.21% | ― | -2.75% | 65.38% | |
65 Neutral | $4.44B | 12.22 | 5.28% | 248.14% | 4.08% | -12.12% | |
63 Neutral | $364.10M | 806.20 | 0.18% | 1.92% | -4.08% | ― | |
61 Neutral | $426.62M | 55.98 | -0.58% | 1.88% | -2.02% | -80.76% | |
60 Neutral | $461.86M | ― | -2.65% | ― | 5.64% | -124.05% | |
48 Neutral | $357.99M | ― | -15.01% | 3.74% | -25.44% | -135.47% |
* Industrials Sector Average
Performance Comparison
TWI
Titan International
7.57
-0.46
-5.73%
CMCO
Columbus Mckinnon
14.88
-21.70
-59.32%
MTW
Manitowoc Company
10.78
-1.12
-9.41%
SHYF
Shyft Group
10.88
-1.88
-14.73%
WNC
Wabash National
9.16
-11.14
-54.88%
HY
Hyster-Yale Materials Handling
41.33
-29.70
-41.81%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.