TWI is now undervalued and could go up 317%
Titan International, headquartered in Quincy, Illinois, manufactures wheels, tires, and undercarriage systems across agricultural, earthmoving, and consumer segments, employing 6,900 people and selling under brands like Goodyear and Titan Tire. The company produces various products for agricultural equipment, off-the-road vehicles, and consumer markets in Latin America and Russia.
Based on our analysis, Titan International has received an undervalued rating of 4 out of 5 stars from Cashu. Several key financial metrics indicate that the company is performing well relative to its sector, suggesting potential for growth and value.
The Price-to-Book (PB) ratio for Titan is 1.97, significantly lower than the sector average of 2.38. A lower PB ratio can indicate that the company is undervalued compared to its book value, making it an attractive option for investors seeking value.
Titan’s net profit margin stands at 4.32%, which is substantially higher than the sector average of 0.85%. This indicates that Titan is effectively converting sales into actual profit, showcasing strong operational efficiency.
Furthermore, the company boasts a robust Return on Equity (ROE) of 16.86%, compared to the sector average of 1.77%. A higher ROE signifies that Titan is generating more profit per dollar of equity, reflecting strong management performance and effective use of shareholder funds.
Additionally, the Return on Assets (ROA) ratio of 6.11% is also impressive against the sector's 0.45%, indicating that Titan is efficiently using its assets to generate earnings.
However, it is worth noting that Titan does not currently offer a dividend, with a yield of 0.00%, while the sector averages 1.15%. This may deter some yield-seeking investors but highlights reinvestment into the company.
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.