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Yahoo
5 days ago
- Business
- Yahoo
3 Industrials Stocks in the Doghouse
Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 10.4% over the past six months. This performance was worse than the S&P 500's 1.9% loss. A cautious approach is imperative when dabbling in these companies as the losers can be left for dead when the cycle naturally turns and the winners consolidate. Taking that into account, here are three industrials stocks we're passing on. Market Cap: $34.45 billion With its name deriving from the Commonwealth of Virginia's nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight. Why Does ODFL Fall Short? Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Free cash flow margin dropped by 5.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up Old Dominion Freight Line's stock price of $164 implies a valuation ratio of 28.9x forward P/E. Check out our free in-depth research report to learn more about why ODFL doesn't pass our bar. Market Cap: $484.2 million Acquiring Goodyear's farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles. Why Do We Pass on TWI? Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.4% annually over the last two years High input costs result in an inferior gross margin of 14% that must be offset through higher volumes Sales were less profitable over the last two years as its earnings per share fell by 93.4% annually, worse than its revenue declines Titan International is trading at $7.60 per share, or 21x forward P/E. Dive into our free research report to see why there are better opportunities than TWI. Market Cap: $2.29 billion The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services Why Do We Think Twice About AIR? Sales trends were unexciting over the last five years as its 3.9% annual growth was below the typical industrials company Low free cash flow margin of 0.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Underwhelming 6.3% return on capital reflects management's difficulties in finding profitable growth opportunities At $64.50 per share, AAR trades at 14.9x forward P/E. Read our free research report to see why you should think twice about including AIR in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
TWI Q1 Earnings Call: Tariff Impacts, Strategic Positioning, and Product Expansion Shape Outlook
Agricultural and farm machinery company Titan (NSYE:TWI) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 1.8% year on year to $490.7 million. On the other hand, next quarter's revenue guidance of $475 million was less impressive, coming in 2.1% below analysts' estimates. Its non-GAAP profit of $0.01 per share was 81.8% below analysts' consensus estimates. Is now the time to buy TWI? Find out in our full research report (it's free). Revenue: $490.7 million vs analyst estimates of $464.2 million (1.8% year-on-year growth, 5.7% beat) Adjusted EPS: $0.01 vs analyst expectations of $0.06 (81.8% miss) Adjusted EBITDA: $30.82 million vs analyst estimates of $27.54 million (6.3% margin, 11.9% beat) Revenue Guidance for Q2 CY2025 is $475 million at the midpoint, below analyst estimates of $485.3 million EBITDA guidance for Q2 CY2025 is $30 million at the midpoint, below analyst estimates of $30.71 million Operating Margin: 2.5%, down from 6.5% in the same quarter last year Free Cash Flow was -$53.62 million compared to -$14.6 million in the same quarter last year Market Capitalization: $494.3 million Titan International's first quarter performance was influenced by shifting global trade dynamics, evolving demand in agricultural markets, and ongoing cost management efforts. Management highlighted the company's diversified manufacturing footprint and ability to pivot production in response to changing customer needs—particularly as tariffs and supply chain disruptions affect competitors. CEO Paul Reitz noted that Titan's broad product portfolio and U.S. manufacturing base are providing flexibility during this period of volatility, while the successful integration of Carlstar is contributing to improved margins in the consumer segment. When discussing forward-looking guidance, management focused on the ongoing uncertainty in global agriculture and industrial markets, as well as the impact of tariffs on sourcing strategies. CFO David Martin explained that Titan is closely monitoring working capital and expects cash flow to improve in the second half of the year. The company's cautious approach to capital investments and continued emphasis on debt reduction were underscored as key priorities in light of the current market climate. Management's remarks centered on how Titan International's operational flexibility and geographic reach are enabling it to weather market fluctuations and capitalize on sector-specific opportunities. The discussion provided insight into the company's responses to recent industry headwinds and the actions being taken to support long-term growth. Tariff navigation and sourcing: Management detailed how Titan is leveraging its domestic manufacturing base and diversified global supply chain to mitigate tariff impacts. The company primarily sources rubber from West Africa, which faces lower tariffs than some Asian suppliers, and contracts allow for cost pass-through to OEM customers with periodic adjustments. Ag market demand shifts: While U.S. agriculture orders remain subdued due to farmer caution and trade-related uncertainty, Titan is seeing increased demand in Brazil. Management attributes this to Brazilian farmers benefiting from shifts in global grain trade, particularly increased exports to China. The diversified presence in both hemispheres positions Titan to capture demand as cycles shift. Consumer segment resilience: The consumer products segment, which includes aftermarket products for users such as landscapers and golf courses, remained a gross margin leader. Management cited its higher proportion of aftermarket sales and shorter replacement cycles as contributing factors to segment profitability. Operational flexibility versus peers: Titan highlighted its ability to maintain production capabilities and workforce, while competitors have resorted to employee buyouts and workforce reductions. Management believes this positions the company to respond rapidly when demand rebounds, especially in the U.S. market. Goodyear licensing expansion: The recently announced expansion of Goodyear licensing rights into new product segments, including light construction and lawn and garden tires, was emphasized as a meaningful growth lever. Management expects this to accelerate sales synergies from the Carlstar acquisition and open doors in additional markets. Looking ahead, management's outlook is shaped by the evolving tariff landscape, stabilization in international agricultural demand, and a focus on disciplined capital allocation and operational execution. Tariff policy and supply chain: The company expects its diversified sourcing and domestic manufacturing to provide a competitive advantage as global tariff policies remain uncertain. Management believes consistently applied trade policy will benefit Titan over time, but acknowledges short-term volatility. Agricultural cycle timing: Titan anticipates continued strength in Brazil's agricultural sector, while U.S. demand may remain muted until farmer sentiment and equipment replacement cycles improve. The timing of a recovery in the U.S. market is viewed as a key variable for future growth. Operational discipline: Management is prioritizing debt reduction and targeted investment in product development. The company expects tighter working capital management and reduced capital spending to support improved free cash flow in the latter half of the year. Michael Shlisky (D.A. Davidson): Asked how tariffs on rubber and steel are affecting sourcing and whether Titan can pass through these costs. Management replied that most rubber is sourced from West Africa with minimal tariff impact and cost adjustments are built into OEM contracts. Michael Shlisky (D.A. Davidson): Inquired about global agricultural market health, particularly Brazil versus the U.S. Management noted strong demand in Brazil driven by grain exports and highlighted Titan's ability to shift production to meet regional demand. Michael Shlisky (D.A. Davidson): Questioned the improvement in visibility for future demand from OEM customers. CEO Paul Reitz acknowledged that while visibility has not returned to pre-downturn levels, Titan is prepared to adapt as inventory cycles normalize. Steve Ferazani (Sidoti): Sought insight into lessons learned from previous trade disruptions and how Titan's aftermarket business is positioned. Management emphasized operational flexibility, a broad manufacturing footprint, and the ability to shift production to meet changing customer needs. Derek Soderberg (Cantor Fitzgerald): Asked about the potential for Titan to gain market share as competitors reduce workforce. Management indicated that Titan is fielding more inquiries from customers seeking U.S.-produced products and sees opportunity for share gains during periods of dislocation. In the coming quarters, the StockStory team will be monitoring (1) Titan's ability to manage raw material and tariff-related cost pressures through its diversified sourcing strategy, (2) the pace of demand recovery in U.S. and European agricultural and construction markets, and (3) the early impact of expanded Goodyear licensing and new product launches on sales growth. Progress in working capital management and free cash flow generation will also be important signposts for evaluating execution against stated priorities. Titan International currently trades at a forward P/E ratio of 21×. Should you double down or take your chips? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
02-05-2025
- Business
- Yahoo
What Does Titan International, Inc.'s (NYSE:TWI) Share Price Indicate?
Titan International, Inc. (NYSE:TWI), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$9.22 and falling to the lows of US$6.27. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Titan International's current trading price of US$6.35 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Titan International's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The stock seems fairly valued at the moment according to our valuation model. It's trading around 14.65% above our intrinsic value, which means if you buy Titan International today, you'd be paying a relatively reasonable price for it. And if you believe that the stock is really worth $5.54, there's only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Titan International's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Titan International Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted revenue growth of 0.9% expected in the upcoming year, short term growth doesn't seem like a key driver for a buy decision for Titan International. Are you a shareholder? It seems like the market has already priced in TWI's future outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping an eye on TWI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Titan International, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
3 Reasons to Avoid TWI and 1 Stock to Buy Instead
Titan International trades at $6.51 per share and has stayed right on track with the overall market, losing 10.5% over the last six months while the S&P 500 is down 11%. This might have investors contemplating their next move. Is now the time to buy Titan International, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the more favorable entry price, we're cautious about Titan International. Here are three reasons why there are better opportunities than TWI and a stock we'd rather own. Acquiring Goodyear's farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Titan International's sales grew at a tepid 5% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector. At StockStory, we prefer high gross margin businesses because they indicate the company has pricing power or differentiated products, giving it a chance to generate higher operating profits. Titan International has bad unit economics for an industrials business, signaling it operates in a competitive market. As you can see below, it averaged a 14% gross margin over the last five years. Said differently, Titan International had to pay a chunky $86.00 to its suppliers for every $100 in revenue. While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business. Sadly for Titan International, its EPS declined by more than its revenue over the last two years, dropping 63.8%. This tells us the company struggled to adjust to shrinking demand. We cheer for all companies making their customers lives easier, but in the case of Titan International, we'll be cheering from the sidelines. After the recent drawdown, the stock trades at 43.4× forward price-to-earnings (or $6.51 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. We'd recommend looking at our favorite semiconductor picks and shovels play. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Iraq Business
10-04-2025
- Business
- Iraq Business
Turkiye Wealth Fund, Iraq Development Fund sign MoU
By John Lee. A Memorandum of Understanding (MoU) has been signed between the Turkiye Wealth Fund and the Iraq Development Fund, marking what TWI describes as a significant step toward deepening economic cooperation between the two countries at the sovereign wealth fund level. The agreement aims to foster innovation-driven investments across priority sectors including energy, ICT, infrastructure, logistics, automotive, agriculture, and fintech. It also provides a framework for collaboration in knowledge sharing, technology transfer, and efficient resource management. The Türkiye Wealth Fund reaffirmed its commitment to strategic equity investments that support Türkiye's economic goals, while seeking impactful partnerships on both regional and global fronts. (Source: Turkiye Wealth Fund)
