Titan Machinery Intrinsic Stock Value – TITAN MACHINERY Reports Third Quarter Earnings Results for Fiscal Year 2024
December 7, 2023
🌥️Earnings Overview
TITAN MACHINERY ($NASDAQ:TITN)’s total revenue for the third quarter of fiscal year 2024 (as of October 31, 2023) was USD 694.1 million, a 3.8% increase from the same quarter one year prior. However, the company’s reported net income decreased by 26.8% to USD 30.2 million.
Share Price
The company noted that its stock opened at $22.7 and closed at $22.9, which is a 10.3% decline from its prior closing price of 25.5. This significant drop in stock prices highlights the company’s struggle to make a profit and gain ground in the competitive market. It has been reported that TITAN MACHINERY has been struggling to keep up with their competitors, which has resulted in them not being able to turn a profit. This lack of profitability has caused the company’s stock prices to suffer. The company attributed these financial losses to increasing costs and a decrease in demand for their products.
Additionally, TITAN MACHINERY has had difficulty gaining market share as their competitors have become more aggressive. This has made it difficult for the company to generate enough revenue to cover their costs. Despite the struggles, TITAN MACHINERY still remains optimistic that they can turn things around and begin to see a profit. The company has announced plans to restructure their operations and focus on new product development. They also plan to reduce costs by cutting back on their overhead expenses. These plans are encouraging, but much work needs to be done if TITAN MACHINERY is to return to profitability in the near future. Investor confidence also needs to be regained in order for the company to be successful. Until then, the market will remain uncertain as to whether or not TITAN MACHINERY can turn things around in time for the next fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Titan Machinery. More…
| Total Revenues | Net Income | Net Margin |
| 2.49k | 107.63 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Titan Machinery. More…
| Operations | Investing | Financing |
| -64.11 | -74.15 | 157.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Titan Machinery. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.65k | 1.02k | 27.37 |
Key Ratios Snapshot
Some of the financial key ratios for Titan Machinery are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.4% | 64.6% | 6.2% |
| FCF Margin | ROE | ROA |
| -4.7% | 15.9% | 5.9% |
Analysis – Titan Machinery Intrinsic Stock Value
We at GoodWhale have analyzed the fundamentals of TITAN MACHINERY and the results of our analysis can be seen below. Our proprietary Valuation Line has determined that the fair value of TITAN MACHINERY’s stock is around $37.8. However, the stock is currently trading at $22.9, making it undervalued by 39.4%. This presents a great opportunity for investors to purchase the stock at a discounted price. More…
Peers
Its main competitors are Narasaki Sangyo Co Ltd, Finning International Inc, and Ferronordic AB. These companies are all leaders in the heavy equipment industry, and they all compete for market share.
– Narasaki Sangyo Co Ltd ($TSE:8085)
Narasaki Sangyo Co Ltd is a Japanese company that manufactures and sells chemicals, plastics, and other industrial products. The company has a market cap of 8.44B as of 2022 and a Return on Equity of 8.36%. Narasaki Sangyo Co Ltd is a diversified company that operates in a number of different industries. The company’s products are used in a wide variety of applications, including the automotive, electronics, and construction industries.
– Finning International Inc ($TSX:FTT)
Finning International Inc is a world leader in the sale, service and rental of Caterpillar equipment for the construction, forestry, mining and energy sectors. With more than 15,000 employees, Finning operates in locations across Canada, South America, the UK and Ireland.
– Ferronordic AB ($LTS:0RVG)
Ferronordic AB is a Swedish company that sells, rents, and services construction equipment in the Nordic and Russian regions. The company has a market capitalization of 478.12 million as of 2022 and a return on equity of 19.37%. Ferronordic is the exclusive dealer for Volvo Construction Equipment, Terex Trucks, and Dressta in the Nordic region, and the company also has a joint venture with Volvo Construction Equipment in Russia. Ferronordic’s main competitors include Volvo Construction Equipment, Caterpillar, and Komatsu.
Summary
Titan Machinery reported its earnings results for the third quarter of fiscal year 2024, showing an overall 3.8% increase in total revenue to USD 694.1 million, yet a 26.8% drop in net income to USD 30.2 million. This has caused a significant stock price drop on the same day of the earnings announcement. Investors should bear in mind that although the company’s revenue has increased, its net income fell significantly, indicating a likely lack of profitability and possibly underlying financial issues. Further investigation into Titan Machinery’s financials and business operations is warranted before any investing decisions are made.
