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Titan Machinery
(NASDAQ:TITN)
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Rating:52Neutral
Price Target:
$23.00
▲(22.28% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weakened financial performance (current losses, margin compression, and soft revenue trend), partially offset by positive cash generation and improved debt positioning. Technically, the stock shows strong momentum above major moving averages, but overbought readings add near-term risk. Valuation is not supportive due to a negative P/E, while the earnings call was mixed—showing operational progress and reaffirmed guidance but ongoing cyclical and regional headwinds.
Positive Factors
Positive cash generation
Positive operating and free cash flow during a loss-making period shows that Titan is still converting operations and working-capital management into liquidity. Although cash flow has been volatile and recently declined, continued generation would support debt service, inventory management, and necessary investment through the downturn.
Negative Factors
Losses and margin compression
The move from strong prior-cycle profits to negative EBIT and net income indicates that current operating economics are not absorbing the company’s cost base. Lower gross margin and declining revenue reduce self-funded investment capacity and leave results more exposed to further demand weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Positive operating and free cash flow during a loss-making period shows that Titan is still converting operations and working-capital management into liquidity. Although cash flow has been volatile and recently declined, continued generation would support debt service, inventory management, and necessary investment through the downturn.
Read all positive factors
Titan Machinery (TITN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$521.25M
Dividend YieldN/A
Average Volume (3M)200.81K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth-10.67%
EPS Growth7.89%
CountryUS
Employees3,114
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-2.49
Shares Outstanding23,532,898
10 Day Avg. Volume214,266
30 Day Avg. Volume200,806
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.64
Price to Sales (P/S)0.15
P/FCF Ratio3.22
Enterprise Value/Market Cap2.39
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit3.28
Enterprise Value/Ebitda39.47
Forecast
1Y Price Target
$25.33Price Target Upside34.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.56
Revenue Forecast (FY)$2.10B
Titan Machinery Business Overview & Revenue Model
Company Description
Titan Machinery Inc. (TITN) operates an extensive network of retail outlets specializing in agricultural and construction machinery across both the United States and Europe. Its business is structured into three main segments: Agriculture, Constru...
How the Company Makes Money
Titan Machinery makes money primarily through a multi-stream dealership model centered on equipment lifecycle needs:
1) New equipment sales: A major portion of revenue comes from selling new agricultural and construction equipment to farmers, con...
Titan Machinery Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q2-2027)
| Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but largely constructive operational story: management reported significant progress on controllable items (inventory health, equipment margins, lower floorplan interest, stronger Construction and Australia revenue) and reaffirmed full-year guidance, but results were tempered by lower consolidated revenue, a widened net loss, weaker Domestic Agriculture equipment demand, and a material decline in Europe on a constant currency basis. Overall, positives around margin recovery, balance-sheet metrics and operational discipline are balanced by continued cyclical demand weaknesses and regional challenges.Positive Updates
Gross Margin and Equipment Margin Improvement
Consolidated gross margin expanded 150 basis points year-over-year to 18.6%, with equipment margins improving 190 basis points to 8.5%, driven by reduced aged inventory, improved inventory mix and a higher mix of parts & service revenue.
Negative Updates
Consolidated Revenue and Same-Store Sales Decline
Total revenue fell to $496.4 million from $546.4 million year-over-year; consolidated same-store sales decreased 6.2%, reflecting softer agricultural demand and timing shifts in equipment shipments.
Read all updates
Q2-2027 Updates
Positive
Negative
Gross Margin and Equipment Margin Improvement
Consolidated gross margin expanded 150 basis points year-over-year to 18.6%, with equipment margins improving 190 basis points to 8.5%, driven by reduced aged inventory, improved inventory mix and a higher mix of parts & service revenue.
Read all positive updates
Company Guidance
Management reaffirmed FY‑27 targets, guiding adjusted EBITDA of $17–$29 million and an adjusted diluted loss per share of $1.25–$1.75, with consolidated equipment margin expected at ~8.3% (FY‑26: 7.3%; 1H: 8.2%). They expect operating expenses of ~17.5–18.0% of sales and a ~30% year‑over‑year decline in floorplan/other interest expense. Segment revenue outlooks: Domestic Ag down 15–20% (now expected nearer 15%), Construction up 5–10%, Europe down 30–40% (≈$44M of the decline from the German wind‑down), and Australia up ~15–20% (likely near the high end, with FX translation contributing ~8% of growth). Balance sheet/working capital metrics cited include cash ≈$30M, adjusted debt-to-tangible-net-worth 1.6x (bank covenant 3.5x), and total inventory $931.5M (up $28M seasonally).Titan Machinery Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
52
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.31B | 2.43B | 2.70B | 2.76B | 2.21B | 1.71B |
| Gross Profit | 379.65M | 382.56M | 395.63M | 531.35M | 439.84M | 332.72M |
| EBITDA | 31.55M | 35.24M | 42.61M | 200.32M | 163.52M | 114.75M |
| Net Income | -56.74M | -54.17M | -36.91M | 110.92M | 101.87M | 66.05M |
Balance Sheet | ||||||
| Total Assets | 1.63B | 1.62B | 1.81B | 1.99B | 1.19B | 946.67M |
| Cash, Cash Equivalents and Short-Term Investments | 29.51M | 28.16M | 35.90M | 38.07M | 43.91M | 146.15M |
| Total Debt | 884.38M | 826.00M | 1.00B | 1.07B | 413.93M | 290.24M |
| Total Liabilities | 1.07B | 1.04B | 1.20B | 1.33B | 652.39M | 511.47M |
| Stockholders Equity | 557.82M | 579.30M | 614.08M | 657.64M | 536.31M | 435.20M |
Cash Flow | ||||||
| Free Cash Flow | 49.69M | 115.09M | 18.45M | -94.64M | -26.39M | 121.29M |
| Operating Cash Flow | 62.49M | 137.45M | 70.29M | -32.28M | 10.82M | 158.92M |
| Investing Cash Flow | -1.55M | -22.71M | -47.75M | -163.37M | -134.06M | -55.20M |
| Financing Cash Flow | -63.31M | -123.70M | -23.62M | 188.58M | 21.96M | -35.34M |
Titan Machinery Technical Analysis
Positive
18.81
Price Trends
22.19
Positive
21.00
Positive
19.77
Positive
Market Momentum
-0.09
Positive
49.39
Neutral
28.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TITN, the sentiment is Positive. The current price of 18.81 is below the 20-day moving average (MA) of 23.40, below the 50-day MA of 22.19, and below the 200-day MA of 19.77, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 28.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TITN.
Titan Machinery Risk Analysis
Titan Machinery disclosed 28 risk factors in its most recent earnings report. Titan Machinery reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Titan Machinery Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.75B | 29.74 | 18.27% | ― | 11.47% | 8.43% | |
75 Outperform | $1.71B | 20.04 | 26.97% | 2.45% | 8.43% | 29.47% | |
64 Neutral | $1.62B | 186.14 | 1.37% | 5.18% | 6.45% | 108.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $249.84M | 36.67 | 5.31% | 1.07% | 14.56% | 1.23% | |
57 Neutral | $42.87M | -1,737.38 | -0.11% | 10.25% | ― | ― | |
52 Neutral | $521.25M | -9.20 | -9.80% | ― | -10.67% | 7.89% |
* Industrials Sector Average
TITN
Titan Machinery
22.89
7.33
47.11%
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177.54
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51.52%
EVI
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20.13
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-28.11%
DSGR
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35.05
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15.75%
GIC
Global Industrial Company
44.88
11.09
32.84%
BRIA
BrilliA Inc. Class A
1.39
-0.52
-27.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.