Twin Disc (TWIN) AI Stock Analysis

• Market Cap: $136.95M
• Dividend Yield: 1.69%
• Average Volume (3M): 124.18K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.91
• Revenue Growth: 11.49%
• EPS Growth: -66.66%
• Country: US
• Employees: 910
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): -0.11
• Shares Outstanding: 14,147,661
• 10 Day Avg. Volume: 259,273
• 30 Day Avg. Volume: 124,180
• PEG Ratio: 0.56
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.12
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: $12.00
• Price Target Upside: 23.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $10.00 ▲(3.31%Upside)

Twin Disc's overall stock score reflects strong financial performance and positive technical momentum, tempered by a high valuation and overbought technical indicators. The absence of earnings call insights and corporate events does not impact the score due to proportional weight redistribution.

Twin Disc Business Overview & Revenue Model

Company Description

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. It operates through two segments, Manufacturing and Distribution. The company's products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. It also provides non-twin disc manufactured products. The company sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.

How the Company Makes Money

Twin Disc makes money primarily by designing, manufacturing, and selling power transmission equipment to various industries. Its key revenue streams come from the sales of marine transmissions, surface drives, and related components to the marine industry, as well as industrial products to sectors like oil and gas, construction, and agriculture. Additionally, Twin Disc generates revenue through aftermarket services, which include repair, maintenance, and spare parts. The company also benefits from strategic partnerships and collaborations with leading original equipment manufacturers (OEMs) and distributors globally, which help expand its market reach and enhance sales opportunities.

Twin Disc Financial Statement Overview

Summary

Twin Disc's financial position is solid, with improvements in revenue, profitability, and balance sheet stability. The company has managed to increase its income and maintain a conservative leverage level. Cash flow management remains robust, supporting operational activities. However, there is potential for improvement in operational efficiencies and capital allocation to enhance overall financial strength.

Income Statement

Twin Disc has demonstrated solid revenue growth and profitability improvements. The TTM (Trailing-Twelve-Months) revenue of $321.4 million shows a notable increase from the previous year. The gross profit margin improved to 27.1%, and the net profit margin is now at 2.9%, reflecting better cost management. However, EBIT and EBITDA margins indicate room for further operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio stands at 0.28, indicating a conservative leverage profile. ROE for the TTM is 6.4%, showing profitability against equity. The equity ratio is 47.8%, highlighting a healthy balance between assets and equity. While there is stability, further enhancement in equity growth and asset utilization could strengthen the position.

Cash Flow

Free cash flow has decreased in the TTM, but the operating cash flow to net income ratio is favorable at 1.88, indicating strong cash generation capabilities. The free cash flow to net income ratio is 1.28, showing effective cash conversion. Continued focus on capital expenditure and cash management will be crucial.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	321.40M	295.13M	276.96M	242.91M	218.58M	246.84M
Gross Profit	87.03M	83.32M	74.33M	68.81M	50.86M	55.71M
EBITDA	22.27M	27.05M	22.23M	21.34M	4.16M	-30.13M
Net Income	9.38M	10.99M	10.38M	8.10M	-20.70M	-39.57M
Balance Sheet
Total Assets	307.36M	312.06M	289.18M	276.52M	275.41M	294.13M
Cash, Cash Equivalents and Short-Term Investments	15.91M	20.07M	13.26M	12.52M	12.34M	10.69M
Total Debt	41.34M	48.22M	29.44M	47.12M	44.97M	56.08M
Total Liabilities	159.73M	157.00M	143.66M	145.34M	144.75M	154.17M
Stockholders Equity	147.02M	154.70M	145.09M	130.78M	130.21M	139.39M
Cash Flow
Free Cash Flow	13.55M	25.01M	14.98M	-13.04M	2.06M	-1.08M
Operating Cash Flow	21.98M	33.72M	22.90M	-8.31M	6.53M	9.62M
Investing Cash Flow	-31.58M	-32.07M	-408.00K	5.90M	-2.74M	-10.62M
Financing Cash Flow	2.66M	2.75M	-19.51M	4.05M	-4.32M	-1.05M

Twin Disc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWIN, the sentiment is Positive. The current price of 9.68 is above the 20-day moving average (MA) of 8.33, above the 50-day MA of 7.63, and below the 200-day MA of 9.78, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 73.07 is Negative, neither overbought nor oversold. The STOCH value of 88.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TWIN.

Twin Disc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAYD	70 Neutral	$139.46M	19.32	15.52%	―	-1.02%	-7.87%
TWIN	65 Neutral	$136.95M	33.22	2.77%	1.69%	11.49%	-66.66%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
BWEN	57 Neutral	$41.74M	30.96	-1.24%	―	-25.94%	-108.22%
CVV	57 Neutral	$20.92M	―	-0.26%	―	48.84%	98.75%
HURC	44 Neutral	$130.01M	―	-9.30%	1.15%	-12.36%	-569.47%
TPIC	40 Underperform	$47.57M	―	77.71%	―	1.71%	-3.55%

Twin Disc Corporate Events

Twin Disc Reports Q3 2025 Sales Increase

Twin Disc reported a 9.5% increase in sales for the third quarter of fiscal 2025, reaching $81.2 million, driven by acquisitions and strength in its Marine and Propulsion Systems and Industrial segments. Despite a net loss of $1.5 million, the company saw a healthy backlog of $133.7 million and improved operational execution, with a focus on integrating recent acquisitions and advancing strategic priorities in hybrid and electric marine solutions.

Twin Disc to Present at Investor Meetings

Twin Disc, a company involved in manufacturing, has announced that its executive officers will present materials at investor meetings and conferences starting May 7, 2025. These materials, which include non-GAAP financial information, are intended to provide investors with a deeper understanding of the company’s performance, although they are not a substitute for GAAP measures. The company emphasizes that these presentations should not be considered as an indication of the materiality of the information contained within them.