Titan Machinery to Expand into Southeast Idaho with Acquisition of Pioneer Farm Equipment, Estimating $60M in 2021 Revenue
December 26, 2022
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Titan Machinery Stock Fair Value – Titan Machinery ($NASDAQ:TITN) Inc. is a leading provider of agricultural, construction and consumer equipment, parts and services in the United States and Europe. Recently, Titan Machinery has announced its intent to acquire the assets of Pioneer Farm Equipment, a five full-line Case IH agriculture dealerships based in southeastern Idaho. Two of these locations also handle Case Construction Equipment. The acquisition will add two locations in Idaho Falls and Rexburg and three in Shelley, Rupert, and Burley. This move is expected to boost Titan Machinery’s presence in the region, allowing them to better serve customers and increase their market share in the area. The company plans to integrate the new locations with its existing operations and provide customers with access to its broad selection of new and used equipment.
In addition, Titan Machinery is leveraging its technology and data capabilities to improve the customer experience. The company is utilizing its data-driven approach to provide customers with tailored solutions for their specific needs, improve service quality, and optimize equipment performance. It is also leveraging its digital capabilities to simplify the buying process and make it easier for customers to purchase equipment. By strengthening its presence in southeastern Idaho, Titan Machinery is well positioned to capitalize on the increasing demand for agricultural and construction equipment in the region. With this acquisition, it is clear that Titan Machinery is committed to providing its customers with top-notch service and equipment.
Price History
The news has been largely positively received by the media, and investors are optimistic about the move. Tuesday saw TITAN MACHINERY stock open at $38.3 and close at $38.1, down by 0.9% from the prior closing price of 38.5. The expansion into Southeast Idaho will also increase their geographical presence in the region, giving them access to more customers and resources. This move is seen as a significant boost for the company and could lead to increased profits for the business.
They have improved their customer service, increased their product selection, and implemented various marketing campaigns to reach more potential customers. All of these measures have helped them continue to grow and remain competitive in the market. Titan Machinery‘s expansion into Southeast Idaho is a major development for the company, and it could lead to increased profits in 2021. It remains to be seen if the stock price will rebound in the coming weeks, but investors remain optimistic about the long-term prospects of the company. 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 |
| 2.13k | 105.21 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Titan Machinery. More…
| Operations | Investing | Financing |
| 79.51 | -150.16 | 30.31 |
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 |
| 1.12k | 613.48 | 20 |
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 |
| 17.5% | 76.8% | 6.9% |
| FCF Margin | ROE | ROA |
| 2.2% | 18.6% | 8.1% |
VI Analysis – Titan Machinery Stock Fair Value
Titan Machinery‘s fundamentals reflect its long term potential. The VI app offers a convenient and simplified way to analyse the company. According to the VI Line, the fair value of Titan Machinery’s share is estimated to be around $29.7. Presently, the stock is trading at $38.1, which is 28% higher than its fair value. This implies that the stock may be overvalued at the moment. Titan Machinery is a leading American company in the agricultural and construction equipment industry. It has a portfolio of products from world-renowned brands such as Case IH, New Holland, and Terex. The company operates in multiple countries and has been growing steadily over the past few years. It is also expanding its presence in the global markets through strategic acquisitions. The company has a strong balance sheet and a healthy cash flow. It has also been able to reduce its debt over the years, which is a positive sign of financial stability. Additionally, Titan Machinery has been consistently rewarding its shareholders through dividend payments and share buybacks. Overall, Titan Machinery is well-positioned to benefit from the growing demand for its products and services. With its strong fundamentals and attractive valuation, investors should consider taking a closer look at this company. More…
VI Peers
Its main competitors are Narasaki Sangyo Co Ltd, Finning International Inc, and Ferronordic AB. These companies are all leaders in the heavy equipment industry, and they all compete for market share.
– Narasaki Sangyo Co Ltd ($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
Investing in Titan Machinery is an attractive opportunity for investors looking to capitalize on the company’s recent expansion into Southeast Idaho. With the acquisition of Pioneer Farm Equipment, Titan Machinery stands to gain a substantial market share in the region. This move has been met with a largely positive response from industry analysts and investors, who see the potential for the company to increase its revenue significantly in 2021. Titan Machinery’s expansion into Idaho is just the latest in a series of impressive achievements for the company. Its current portfolio includes a variety of farm and construction equipment, as well as parts and services. This diversified approach has enabled the company to remain profitable even in times of economic uncertainty. The new acquisition will further extend Titan Machinery’s reach, allowing it to capitalize on a growing market in the region. The company’s strong financials, coupled with its promising growth prospects, make investing in Titan Machinery an attractive opportunity. Its low debt-to-equity ratio, solid profitability, and impressive cash flow make it an attractive choice for long-term investors.
Additionally, the company’s established presence in the region and its ability to quickly integrate new acquisitions give investors confidence that their investments will remain safe and profitable. Overall, investing in Titan Machinery is an attractive option for those looking to capitalize on the company’s growth potential. Its diverse portfolio of products and services, combined with its strong financial position and strategic acquisitions, make it a smart choice for long-term investors. With 2021 expected to be a year of significant growth for Titan Machinery, now is the time for investors to get on board and capitalize on this opportunity.
