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Twin Disc Inc. (TWIN)
NASDAQ:TWIN
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Twin Disc
(NASDAQ:TWIN)
70Outperform
Twin Disc (TWIN) vs. S&P 500 (SPY)
Market Cap
$96.47M
Dividend Yield2.27%
Average Volume (3M)57.07K
Price to Earnings (P/E)10.2
Beta (1Y)0.82
Revenue Growth11.49%
EPS Growth-66.66%
CountryUS
Employees910
SectorIndustrials
Sector Strength83
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.11
Shares Outstanding14,145,862
10 Day Avg. Volume55,135
30 Day Avg. Volume57,067
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.67
Price to Sales (P/S)0.00
P/FCF Ratio7.37
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit1.44
Enterprise Value/Ebitda1.32
Forecast
1Y Price Target
$12.00Price Target Upside69.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Twin Disc Business Overview & Revenue Model
Company DescriptionTwin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. It operates through two segments, Manufacturing and Distribution. The company's products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. It also provides non-twin disc manufactured products. The company sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.
How the Company Makes MoneyTwin Disc generates revenue through the sale of its power transmission products and systems. The company's key revenue streams include marine products, such as transmissions and controls for boats and ships, and industrial products, which encompass power take-offs and hydraulic systems used in construction, agriculture, and energy sectors. Twin Disc also offers aftermarket services, including spare parts and maintenance support, which contribute to its revenue. The company's earnings are supported by its global distribution network and strategic partnerships with original equipment manufacturers (OEMs), enabling it to reach diverse markets and maintain strong customer relationships.
Twin Disc Financial Statement Overview
Summary
Twin Disc shows solid financial health with improved revenue and profitability. The balance sheet is stable with a low debt-to-equity ratio. Cash flow is robust, albeit with room for operational efficiency enhancements.Income Statement
Twin Disc has demonstrated solid revenue growth and profitability improvements. The TTM (Trailing-Twelve-Months) revenue of $321.4 million shows a notable increase from the previous year. The gross profit margin improved to 27.1%, and the net profit margin is now at 2.9%, reflecting better cost management. However, EBIT and EBITDA margins indicate room for further operational efficiency improvements.75
Positive
Balance Sheet
The debt-to-equity ratio stands at 0.28, indicating a conservative leverage profile. ROE for the TTM is 6.4%, showing profitability against equity. The equity ratio is 47.8%, highlighting a healthy balance between assets and equity. While there is stability, further enhancement in equity growth and asset utilization could strengthen the position.70
Positive
Cash Flow
Free cash flow has decreased in the TTM, but the operating cash flow to net income ratio is favorable at 1.88, indicating strong cash generation capabilities. The free cash flow to net income ratio is 1.28, showing effective cash conversion. Continued focus on capital expenditure and cash management will be crucial.68
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 321.40M | 295.13M | 276.96M | 242.91M | 218.58M | 246.84M | Gross Profit |
| 87.03M | 83.32M | 74.33M | 68.81M | 50.86M | 55.71M | EBIT |
| 11.07M | 11.48M | 16.06M | 11.04M | -8.30M | -9.14M | EBITDA |
| 22.27M | 27.05M | 22.23M | 21.34M | 4.16M | -30.13M | Net Income Common Stockholders |
| 9.38M | 10.99M | 10.38M | 8.10M | -20.70M | -39.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 23.84M | 20.07M | 13.26M | 12.52M | 12.34M | 10.69M | Total Assets |
| 288.75M | 312.06M | 289.18M | 276.52M | 275.41M | 294.13M | Total Debt |
| 36.81M | 48.22M | 29.44M | 47.12M | 44.97M | 56.08M | Net Debt |
| 12.96M | 28.15M | 16.18M | 34.60M | 32.63M | 45.39M | Total Liabilities |
| 141.81M | 157.00M | 143.66M | 145.34M | 144.75M | 154.17M | Stockholders Equity |
| 146.30M | 154.70M | 145.09M | 130.78M | 130.21M | 139.39M |
| Cash Flow | Free Cash Flow | ||||
| 13.55M | 25.01M | 14.98M | -13.04M | 2.06M | -1.08M | Operating Cash Flow |
| 21.98M | 33.72M | 22.90M | -8.31M | 6.53M | 9.62M | Investing Cash Flow |
| -31.58M | -32.07M | -408.00K | 5.90M | -2.74M | -10.62M | Financing Cash Flow |
| 2.66M | 2.75M | -19.51M | 4.05M | -4.32M | -1.05M |
Twin Disc Technical Analysis
Negative
7.06
Price Trends
7.45
Negative
9.16
Negative
10.72
Negative
Market Momentum
-0.11
Negative
48.48
Neutral
74.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWIN, the sentiment is Negative. The current price of 7.06 is above the 20-day moving average (MA) of 6.89, below the 50-day MA of 7.45, and below the 200-day MA of 10.72, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWIN.
Twin Disc Risk Analysis
Twin Disc disclosed 18 risk factors in its most recent earnings report. Twin Disc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Twin Disc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $96.47M | 10.21 | 2.77% | 2.27% | 11.49% | -66.66% | |
70 Neutral | $116.15M | 16.09 | 15.52% | ― | -1.02% | -7.87% | |
64 Neutral | $4.30B | 11.88 | 5.23% | 249.82% | 4.12% | -10.27% | |
61 Neutral | $33.48M | 28.14 | 2.00% | ― | -29.65% | -84.94% | |
47 Neutral | $93.05M | ― | -9.12% | 1.07% | -13.86% | -1497.93% | |
45 Neutral | $18.72M | ― | -7.36% | ― | 11.47% | 54.59% | |
39 Underperform | $42.33M | ― | 77.71% | ― | -8.18% | -20.81% |
* Industrials Sector Average
Performance Comparison
TWIN
Twin Disc
7.06
-7.48
-51.44%
BWEN
Broadwind Energy
1.62
-0.57
-26.03%
CVV
CVD Equipment
2.84
-2.20
-43.65%
HURC
Hurco Companies
14.96
-2.63
-14.95%
TAYD
Taylor Devices
37.03
-11.28
-23.35%
TPIC
TPI Composites
0.87
-3.01
-77.58%
Twin Disc Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: 3.52%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
Twin Disc experienced significant sales growth, particularly in the marine propulsion and industrial segments, supported by acquisitions and strong market demand. However, challenges such as declining gross profit margins and reduced performance in the oil and gas segment posed concerns. Overall, the sentiment remains balanced with both growth opportunities and financial pressures.Q2-2025 Updates
Positive Updates
Double-Digit Sales Growth
Second quarter sales reached $89.3 million, reflecting a 23.2% year-over-year increase, driven by strong performance in marine propulsion and industrial segments.
Marine Propulsion Segment Growth
Sales in the marine propulsion segment grew 23.9% year-over-year, driven by demand in North American projects and luxury yacht markets.
Industrial Segment Growth
The industrial segment grew 44.8% year-over-year, driven by the addition of Casa and a rebound in Lufkin orders.
Improved Cash Flow
Operating cash generation of $4.3 million was strong in the quarter, and EBITDA increased to $6.3 million, up 13.5% compared to the second quarter of 2024.
Negative Updates
Gross Profit Margin Decline
Gross profit margin decreased to 24.1% from 28.3% in the prior year, impacted by inventory write-downs and unfavorable product mix.
Oil and Gas Segment Decline
Oil and gas exports were down, with revenue from this segment comprising less than 8% of total revenue and down 24% year-over-year.
Increased Net Debt
Net debt increased by $12.3 million to $9 million due to the Casa acquisition, with a 24.3% decrease in cash balance compared to the prior year.
Company Guidance
During the fiscal second quarter of 2025, Twin Disc, Incorporated reported significant year-over-year growth, with sales reaching $89.9 million, reflecting a 23.2% increase. This growth was largely driven by a $10 million incremental benefit from the Casa acquisition and a 10.1% organic revenue increase. The marine propulsion segment saw a 23.9% rise in sales, while the land-based transmission and industrial segments grew by 19.8% and 44.8%, respectively. However, gross profit margins decreased from 28.3% to 24.1%, partly due to inventory rationalization and purchase accounting amortization expenses. The company maintained a healthy backlog, despite a sequential decrease due to high shipments and foreign exchange impacts, and ended the quarter with a net debt of $9 million. Twin Disc remains focused on strategic acquisitions, operational efficiencies, and advancing its technology portfolio, particularly in hybrid and electric propulsion systems, to sustain long-term growth and value creation.Twin Disc Corporate Events
Business Operations and StrategyFinancial Disclosures
Twin Disc Reports Q3 2025 Sales Increase
Neutral
May 7, 2025
Twin Disc reported a 9.5% increase in sales for the third quarter of fiscal 2025, reaching $81.2 million, driven by acquisitions and strength in its Marine and Propulsion Systems and Industrial segments. Despite a net loss of $1.5 million, the company saw a healthy backlog of $133.7 million and improved operational execution, with a focus on integrating recent acquisitions and advancing strategic priorities in hybrid and electric marine solutions.
Spark’s Take on TWIN Stock
According to Spark, TipRanks’ AI Analyst, TWIN is a Outperform.
Twin Disc’s strong financial performance and undervaluation present a compelling investment case, though technical indicators signal caution. Strategic acquisitions and earnings growth underscore long-term potential, balanced by current margin pressures and increased debt levels.
To see Spark’s full report on TWIN stock, click here.
Business Operations and StrategyFinancial Disclosures
Twin Disc to Present at Investor Meetings
Neutral
May 7, 2025
Twin Disc, a company involved in manufacturing, has announced that its executive officers will present materials at investor meetings and conferences starting May 7, 2025. These materials, which include non-GAAP financial information, are intended to provide investors with a deeper understanding of the company’s performance, although they are not a substitute for GAAP measures. The company emphasizes that these presentations should not be considered as an indication of the materiality of the information contained within them.
Spark’s Take on TWIN Stock
According to Spark, TipRanks’ AI Analyst, TWIN is a Outperform.
Twin Disc’s strong financial performance and undervaluation present a compelling investment case, though technical indicators signal caution. Strategic acquisitions and earnings growth underscore long-term potential, balanced by current margin pressures and increased debt levels.
To see Spark’s full report on TWIN stock, click here.
Private Placements and FinancingM&A Transactions
Twin Disc Acquires Kobelt to Enhance Product Portfolio
Positive
Feb 18, 2025
On February 14, 2025, Twin Disc entered into a new Credit Agreement with Bank of Montreal, refinancing a prior agreement, and acquired all shares of Kobelt Manufacturing Co. Ltd. The acquisition, completed for CAD $23,397,932, is expected to enhance Twin Disc’s product portfolio and expand its market reach in the marine and industrial sectors. Kobelt’s integration is anticipated to be immediately accretive to Twin Disc’s earnings and will benefit from Twin Disc’s global presence. Kobelt brings extensive after-sales services and specialized capabilities, contributing to Twin Disc’s positioning as an integrated systems supplier.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.