Rating Change #5
Titan Machinery Inc
(TITN - Get Report)
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 29.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 1173.32% to $57.35 million when compared to the same quarter last year. In addition, TITAN MACHINERY INC has also vastly surpassed the industry average cash flow growth rate of 49.68%.
- TITAN MACHINERY INC's earnings per share declined by 13.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TITAN MACHINERY INC reported lower earnings of $2.00 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $2.00).
- Looking at the price performance of TITN's shares over the past 12 months, there is not much good news to report: the stock is down 39.00%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
Titan Machinery Inc. owns and operates a network of full service agricultural and construction equipment stores in the United States and Europe. It engages in the sale of new and used equipment. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Titan Machinery has a market cap of $447.4 million and is part of the services sector and specialty retail industry. Shares are down 14.1% year to date as of the close of trading on Wednesday.
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