Titan Machinery Intrinsic Value – Titan Machinery Reports Strong Annual Results, But Not a Good Time to Buy
April 7, 2023
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However, despite the positive news, the company’s stock is not offering a good buying opportunity at present. Titan Machinery ($NASDAQ:TITN) is a publically traded company on the NASDAQ stock exchange and is well-known for its agricultural and construction equipment retailer outlets located in North America and Europe. The company offers an extensive range of products and services, including new and used machinery, parts, and service. The company also provides financing and leasing options to its customers.
Price History
Despite these impressive results, shares of Titan Machinery did not react favorably on Thursday as the stock opened at $27.0 and closed at $26.9, down by 0.2% from the previous closing price of 26.9. This could be an indication that now may not be the best time to buy Titan Machinery stock despite its strong performance in the past year. Investors may want to wait until the stock shows more consistent performance before making an investment. 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 |
| 2.21k | 101.87 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Titan Machinery. More…
| Operations | Investing | Financing |
| 10.82 | -134.06 | 21.96 |
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 |
| 1.19k | 652.39 | 22.52 |
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 |
| 19.2% | 76.6% | 6.4% |
| FCF Margin | ROE | ROA |
| -1.2% | 17.0% | 7.5% |
Analysis – Titan Machinery Intrinsic Value
At GoodWhale, we have conducted an analysis of TITAN MACHINERY‘s fundamentals to provide investors with an in-depth understanding of the company. Our proprietary Valuation Line has determined that the fair value of TITAN MACHINERY share is around $32.9. However, the stock is currently being traded at $26.9, which is below its fair value and represents a potential 18.3% investment opportunity. We believe that TITAN MACHINERY is undervalued and represents an attractive investment opportunity for investors. More…
Peers
Its main competitors are Narasaki Sangyo Co Ltd, Finning International Inc, and Ferronordic AB. These companies are all leaders in the heavy equipment industry, and they all compete for market share.
– Narasaki Sangyo Co Ltd ($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, a agricultural and construction equipment retailer, recently released its annual financial results which revealed solid performance. Despite the good results, analysts do not recommend buying Titan Machinery’s stock as the company faces increased competition and its expanding product lines could slow down its growth rate. In addition, the stock is also trading at high valuations compared to its peers in the industry leading to a lower upside potential.
