Titan Machinery, headquartered in West Fargo, North Dakota, manages agricultural and construction equipment stores, employing 3,338 staff and operating in segments including Europe and Australia. Founded in 2007, it offers sales, repair, and rental services for a variety of equipment.
Based on our analysis, Titan Machinery is currently rated as undervalued with a score of 5 out of 5 stars by Cashu. Several key financial ratios illustrate why this assessment is warranted.
The company's price-to-earnings (PE) ratio stands at 12.79, significantly lower than the sector average of 20.52. A lower PE ratio suggests that investors may be paying less for each dollar of earnings compared to peers, highlighting potential undervaluation.
Additionally, Titan Machinery's price-to-book (PB) ratio is 0.93, well below the sector average of 2.48. A PB ratio under 1 indicates that the company's stock is trading for less than its book value, further suggesting it may be undervalued in the market.
The net profit margin of Titan Machinery is 4.08, compared to the sector average of 0.92. This higher margin indicates that Titan is more efficient in converting revenue into actual profit, which is a positive signal for potential investors.
Moreover, the company's return on equity (ROE) is an impressive 17.10, far exceeding the sector average of 2.33. A higher ROE demonstrates that Titan is effective at utilizing shareholders' equity to generate profits.
Lastly, Titan Machinery’s return on assets (ROA) ratio of 5.64, compared to the sector average of 0.47, shows that the company is proficient in using its assets to create earnings.
These ratios collectively suggest that Titan Machinery is performing well relative to its sector, yet its stock price does not reflect this strong performance, leading to an undervalued rating.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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