Titan Machinery Inc. (TITN) Stock Analysis
Titan Machinery Inc. (TITN) Stock Analysis
Analysis from 10-Q filed 2025-12-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
Titan Machinery Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -3.6% | Below expectations |
| FCF Margin | 8.3% | Healthy cash flow |
| Debt/Equity | 0.3x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Titan Machinery Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Titan Machinery Inc. earns -3.6% ROIC
Titan Machinery Inc.'s trailing-twelve-month ROIC of -3.6% (sector median: 8.5%), driven by NOPAT margin of -1.2% combined with asset turnover of 1.4x. Source: 10-Q filed 2025-12-04. Gross margin of 13.6% with operating margin at -1.6% reflects a competitive pricing environment.
| Metric | TITN | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -3.6% | Red flag | Below sector median of 8.5% |
| Return on Equity (ROE) | -10.0% | Red flag | Moderate equity returns |
| Gross Margin | 13.6% | Warning | Competitive pricing environment |
| Operating Margin | -1.6% | Warning | Moderate operational efficiency |
Cash Flow: Titan Machinery Inc. generates $210.4M FCF at 8.3% margin, positive NaN/8 quarters
Titan Machinery Inc. generated $210.4M in free cash flow (TTM), a 8.3% FCF margin, a margin that ranks Top 25% in Consumer Discretionary. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-12-04.
| Metric | TITN | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 8.3% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $210.4M | Good | Positive cash generation |
| OCF/Net Income | -3.4x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Titan Machinery Inc. at 0.3x leverage
Titan Machinery Inc.'s debt-to-equity ratio of 0.3x reflects conservative leverage. Total debt of $176.6M offset by $48.8M in cash. Source: 10-Q filed 2025-12-04.
| Metric | TITN | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.3x | Excellent | Conservative capital structure |
| Net Cash Position | $-127.8M | Adequate | Net debt position |
Valuation: Titan Machinery Inc. trades at -6.0x earnings
Titan Machinery Inc. trades at a P/E of -6.0x. Free cash flow yield of 56.5% offers attractive cash returns relative to price.
| Metric | TITN | Rating | Context |
|---|---|---|---|
| P/E Ratio | -6.0x | Red flag | Reasonable valuation |
| EV/Sales | 0.2x | Excellent | Attractive revenue multiple |
| FCF Yield | 56.5% | Excellent | Attractive cash return |
Capital Allocation: Titan Machinery Inc. returns 0.0% shareholder yield
Titan Machinery Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-12-04.
| Metric | TITN | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -3.6% | Bottom 10% | -0.4x below |
| Free Cash Flow Margin | 8.3% | Top 25% | 3.1x above |
| Gross Margin | 13.6% | Bottom 25% | 0.3x below |
| Operating Margin | -1.6% | Top 5% | -0.4x below |
| Return on Equity (ROE) | -10.0% | Bottom 50% | -1.0x below |
Financial Scorecard
| Metric | TITN | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -3.6% | Red flag | Below cost of capital |
| Free Cash Flow Margin | 8.3% | Adequate | Top 25% of sector (median: 2.7%) |
| Gross Margin | 13.6% | Warning | Bottom 25% of sector (median: 39.1%) |
| Debt to Equity Ratio | 28.8% | Excellent | Conservative capital structure |
| Free Cash Flow Yield | 56.5% | Excellent | High cash return |
Frequently Asked Questions
Q: What is Titan Machinery Inc.'s Return on Invested Capital (ROIC)?
Titan Machinery Inc. (TITN) has a trailing twelve-month Return on Invested Capital (ROIC) of -3.6%. This compares below the sector median of 8.5%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Titan Machinery Inc.'s Free Cash Flow Margin?
Titan Machinery Inc. (TITN) has a free cash flow margin of 8.3%, generating $210.4 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is Titan Machinery Inc. stock overvalued or undervalued?
Titan Machinery Inc. (TITN) trades at a P/E ratio of -6.0x, which is above the sector median of N/A. The EV/Sales multiple is 0.2x. Free cash flow yield is 56.5%, which represents an attractive cash return to investors.
Q: What is Titan Machinery Inc.'s revenue and earnings growth?
Titan Machinery Inc. (TITN) declined revenue by 8.9% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does Titan Machinery Inc. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, Titan Machinery Inc. (TITN) shows: ROIC of -3.6% is below the sector median of 8.5% (-0.4x median). FCF margin of 8.3% exceeds the sector median of 2.7% (Top 21% of sector). Gross margin at 13.6% is 25.5 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with Titan Machinery Inc.?
Investors in Titan Machinery Inc. (TITN) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-12-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.