Titan International Inc (TWI) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Titan International's EV/EBITDA of 9.9 is above its 5-year median of 8.0.

P/B below the industry

Titan International's price-to-book of 0.73 is below the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 1.75.

Trading below fair value

The share price of $5.14 is below our fair value estimate of $7.15.

Margin of safety over 20%

The price is 28.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -5.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 22.1% over the last twelve months; the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median is 9.8%.

Guidance issued

The latest outlook (third quarter sales, Jul 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 13.8% over the last twelve months, against 13.9% a year earlier.

Return on equity under 15%

Return on equity was -22.9% over the last twelve months and averaged 17.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 0.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Titan International's return on equity of -22.9% is below the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 3.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -5.7% over the last twelve months, against a 5-year average of 2.3%.

Net margin below the industry

Titan International's net margin of -5.7% is below the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 4.0%.

High debt

Debt is 124% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 259% five years ago to 124%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 4.0% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 0.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.16 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.90; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Titan International has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.