Twin Disc, Incorporated
Twin Disc, Incorporated Fundamental Analysis
Twin Disc, Incorporated (TWIN) shows moderate financial fundamentals with a PE ratio of 11.10, profit margin of 6.26%, and ROE of 13.25%. The company generates $0.4B in annual revenue with strong year-over-year growth of 15.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TWIN's fundamental strength across five key dimensions:
Efficiency Score
WeakTWIN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTWIN trades at attractive valuation levels.
Growth Score
ModerateTWIN shows steady but slowing expansion.
Financial Health Score
ExcellentTWIN maintains a strong and stable balance sheet.
Profitability Score
WeakTWIN struggles to sustain strong margins.
Key Financial Metrics
Is TWIN Expensive or Cheap?
P/E Ratio
TWIN trades at 11.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TWIN's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Twin Disc, Incorporated at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.63 times EBITDA. This signals the market has high growth expectations.
How Well Does TWIN Make Money?
Net Profit Margin
For every $100 in sales, Twin Disc, Incorporated keeps $6.26 as profit after all expenses.
Operating Margin
Core operations generate 3.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.25 in profit for every $100 of shareholder equity.
ROA
Twin Disc, Incorporated generates $5.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Twin Disc, Incorporated generates limited operating cash flow of $17.00M, signaling weaker underlying cash strength.
Free Cash Flow
Twin Disc, Incorporated generates weak or negative free cash flow of $-71.27K, restricting financial flexibility.
FCF Per Share
Each share generates $-0.00 in free cash annually.
FCF Yield
TWIN converts -0.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TWIN Stacks Against Its Sector Peers
| Metric | TWIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.10 | 26.76 | Better (Cheaper) |
| ROE | 13.25% | 1300.00% | Weak |
| Net Margin | 6.26% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.26 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.12 | 10.68 | Strong Liquidity |
| ROA | 5.68% | -1545134.00% (disorted) | Weak |
TWIN outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Twin Disc, Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.04%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
95.48%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
149.64%
Industry Style: Cyclical, Value, Infrastructure
High Growth