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Titan Machinery Inc. (TITN)
NASDAQ:TITN
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Titan Machinery
(NASDAQ:TITN)
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Rating:48Neutral
Price Target:
$19.00
▲(4.00% Upside)
Titan Machinery's overall stock score reflects significant challenges in financial performance, with declining revenue and profitability. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to negative earnings. While the earnings call provided some positive insights, such as inventory reduction and European segment growth, the overall financial pressure and lack of dividend yield weigh heavily on the stock's attractiveness.
Positive Factors
European Segment Growth
The strong growth in the European segment, driven by EU stimulus programs, suggests a robust market position in Europe, potentially offsetting domestic challenges.
Parts and Service Stability
The stability of parts and service revenue provides a reliable income stream, cushioning the company against cyclical downturns in equipment sales.
Inventory Reduction Progress
Effective inventory management enhances cash flow and reduces holding costs, improving financial flexibility and operational efficiency.
Negative Factors
Revenue and Profit Decline
The significant decline in revenue and profit margins indicates operational challenges and market pressures, affecting long-term profitability.
Domestic Agriculture Segment Weakness
Weakness in the domestic agriculture segment reflects soft retail demand, impacting revenue and profitability in a key market.
Construction Segment Challenges
Challenges in the construction segment due to economic uncertainty and lower sales could hinder growth and profitability in this sector.
Titan Machinery (TITN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$427.02M
Dividend YieldN/A
Average Volume (3M)178.78K
Price to Earnings (P/E)11.1
Beta (1Y)1.25
Revenue Growth-8.12%
EPS Growth-204.81%
CountryUS
Employees3,340
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-0.26
Shares Outstanding23,372,976
10 Day Avg. Volume207,424
30 Day Avg. Volume178,780
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.69
Price to Sales (P/S)0.16
P/FCF Ratio22.94
Enterprise Value/Market Cap3.56
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit4.39
Enterprise Value/Ebitda309.78
Forecast
1Y Price Target
$20.67Price Target Upside13.14% Upside
Rating ConsensusHold
Number of Analyst Covering4
Titan Machinery Business Overview & Revenue Model
Company DescriptionTitan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe. It operates through three segments: Agriculture, Construction, and International. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company's construction equipment comprises heavy construction machinery, light industrial machinery for commercial and residential construction, road and highway construction machinery, and energy and forestry operations equipment. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services, such as equipment transportation, global positioning system signal subscriptions and other precision farming products, farm data management products, and CNH Industrial finance and insurance products. The company operates in Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; and Bulgaria, Germany, Romania, and Ukraine, Europe. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.
How the Company Makes MoneyTitan Machinery generates revenue through multiple streams, primarily from the sales of new and used equipment, which includes tractors, combines, and various construction machinery. The company also earns significant income from aftermarket parts and service, which involves maintenance, repair, and parts sales for the equipment they sell. Additionally, Titan Machinery provides rental services for equipment, allowing customers to use machinery without the full investment of purchase. Key partnerships with leading manufacturers in the agricultural and construction sectors enhance their product offerings and provide access to advanced equipment technology, further contributing to their revenue. The company's ability to serve a diverse customer base and its focus on providing comprehensive solutions in the agriculture and construction markets play a crucial role in its financial performance.
Titan Machinery Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
The earnings call highlights progress in inventory reduction and strong performance in the European segment but faces significant challenges in other areas, such as revenue decline and depressed margins in core segments like domestic Agriculture and Construction. There is a strategic focus on inventory optimization and customer service stability through parts and services, but the financial performance is currently under pressure.Q2-2026 Updates
Positive Updates
Europe Segment Growth
The Europe segment showed a 44% increase in same-store sales to $98.1 million, with a 38.1% increase net of foreign currency impacts, driven by strong performance in Romania due to EU stimulus programs.
Inventory Reduction Progress
The company has made significant progress in inventory reduction, achieving a $365 million reduction from peak levels and is confident in exceeding the $100 million reduction target for the fiscal year.
Parts and Service Stability
Even as equipment sales face cyclical pressure, parts and service businesses are generating over half of gross profit dollars while representing about one-fourth of the revenue mix, providing stability.
Negative Updates
Revenue and Profit Decline
Total revenue decreased by 14% to $546.4 million, and gross profit declined from $112.4 million to $93.6 million, with a decrease in gross profit margin from 17.7% to 17.1%.
Domestic Agriculture Segment Weakness
The domestic Agriculture segment experienced an 18.7% decrease in same-store sales to $345.8 million, with a segment pretax loss of $12.3 million, reflecting softer margins due to weak retail demand.
Construction Segment Challenges
The Construction segment saw a 10.2% decrease in same-store sales to $72 million and a pretax loss of $1.2 million, driven by lower equipment sales and economic uncertainty.
Australian Segment Decline
Same-store sales in the Australia segment decreased by 50.1% to $30.6 million, primarily due to the normalization of sprayer deliveries after a backlog catch-up in the previous fiscal year.
Company Guidance
During the Titan Machinery Inc. Second Quarter Fiscal 2026 Earnings Call, the company provided updated guidance, reflecting a challenging market environment. They reaffirmed their commitment to reducing equipment inventory by $100 million for the full year and expressed confidence in exceeding this target, despite a modest inventory increase in the second quarter due to OEM shipment timing. Equipment margins are expected to remain subdued, influencing a narrowed EPS guidance range of a $1.50 to $2 loss per share. The company highlighted a 14% decrease in same-store sales, with total revenue at $546.4 million, and gross profit margin slightly declining to 17.1%. The domestic Agriculture segment saw an 18.7% decrease in same-store sales, while the Europe segment experienced a 44% increase, driven by EU stimulus programs. The company emphasized their focus on optimizing used equipment and enhancing customer experience, with parts and service businesses contributing over half of gross profit dollars, providing stability amid cyclical pressures.Titan Machinery Financial Statement Overview
Summary
Titan Machinery faces challenges with declining revenue and profitability, as indicated by a negative net profit margin and EBIT margin. The balance sheet shows manageable leverage but negative returns on equity, suggesting inefficiencies. However, the cash flow statement is strong, with significant free cash flow growth and good cash conversion metrics.Income Statement
Titan Machinery's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative net profit margin of -2.37% and a negative EBIT margin of -1.30%, reflecting operational challenges. Revenue growth has been negative recently, with a -3.27% decline in the TTM period. The company needs to address these issues to improve financial performance.45
Neutral
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.17 in the TTM period, indicating manageable leverage. However, the return on equity is negative at -9.81%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 32.49%, providing some stability, but the company must enhance its profitability to improve overall financial health.55
Neutral
Cash Flow
Titan Machinery's cash flow statement shows a positive trend in free cash flow growth, with a 38.66% increase in the TTM period. The operating cash flow to net income ratio is 0.17, indicating some ability to convert earnings into cash. The free cash flow to net income ratio is strong at 1.28, reflecting good cash generation relative to earnings. However, the company should focus on sustaining this positive cash flow trend.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.58B | 2.70B | 2.76B | 2.21B | 1.71B | 1.41B |
| Gross Profit | 346.08M | 395.63M | 531.35M | 439.84M | 332.72M | 261.36M |
| EBITDA | 4.90M | 42.61M | 200.32M | 167.38M | 124.63M | 73.17M |
| Net Income | -61.25M | -36.91M | 110.92M | 101.87M | 66.05M | 19.36M |
Balance Sheet | ||||||
| Total Assets | 1.88B | 1.81B | 1.99B | 1.19B | 946.67M | 815.79M |
| Cash, Cash Equivalents and Short-Term Investments | 32.67M | 35.90M | 38.07M | 43.91M | 146.15M | 78.99M |
| Total Debt | 1.11B | 1.00B | 1.08B | 413.93M | 281.26M | 296.67M |
| Total Liabilities | 1.27B | 1.20B | 1.33B | 652.39M | 511.47M | 444.51M |
| Stockholders Equity | 610.34M | 614.08M | 657.64M | 536.31M | 435.20M | 371.28M |
Cash Flow | ||||||
| Free Cash Flow | 214.67M | 18.45M | -94.64M | -26.39M | 121.29M | 152.91M |
| Operating Cash Flow | 167.55M | 70.29M | -32.28M | 10.82M | 158.92M | 173.00M |
| Investing Cash Flow | -51.13M | -47.75M | -163.37M | -134.06M | -55.20M | -20.30M |
| Financing Cash Flow | -115.99M | -23.62M | 188.58M | 21.96M | -35.34M | -117.94M |
Titan Machinery Technical Analysis
Negative
18.27
Price Trends
19.73
Negative
19.64
Negative
17.83
Positive
Market Momentum
-0.24
Positive
36.20
Neutral
6.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TITN, the sentiment is Negative. The current price of 18.27 is below the 20-day moving average (MA) of 20.02, below the 50-day MA of 19.73, and above the 200-day MA of 17.83, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 36.20 is Neutral, neither overbought nor oversold. The STOCH value of 6.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TITN.
Titan Machinery Risk Analysis
Titan Machinery disclosed 30 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 1.82B | 22.18 | 18.50% | ― | 13.93% | 48.25% | |
79 Outperform | 1.38B | 21.10 | 21.69% | 2.86% | -1.58% | -5.62% | |
75 Outperform | 9.83B | 25.72 | 21.31% | 0.67% | 1.88% | 2.91% | |
67 Neutral | 399.58M | 63.95 | 0.00% | ― | 10.26% | 29.40% | |
66 Neutral | 1.43B | 368.74 | 0.66% | ― | 13.48% | 0.00% | |
48 Neutral | $427.02M | 11.08 | -9.63% | ― | -8.12% | -204.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
TITN
Titan Machinery
18.27
4.75
35.13%
AIT
Applied Industrial Technologies
260.45
37.21
16.67%
DXPE
DXP Enterprises
116.12
63.40
120.26%
EVI
EVI Industries
31.31
12.37
65.31%
DSGR
Distribution Solutions Group
30.90
-7.01
-18.49%
GIC
Global Industrial Company
36.05
3.69
11.40%
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.