It's been a rough year for most companies that have much to do with the agriculture, earthmoving, or mining vehicle industries. Deere (DE) is up a little, Caterpillar (CAT) is down a little, Joy Global (JOY) is down a little more and the two Titans (Titan Machinery (TITN) and Titan International (TWI)) are down even more. Although AGCO (AGCO) and CNH Global (CNH)
are up pretty strongly over the past year, they're more the exception
and perhaps benefiting from less reliance on North America.
In any
case, Titan International is the stock I'm interested in for this
article. This company has had an up-and-down history, with management
having something of a history of "I confess … it's not our fault!"
excuses for operational issues, but also a cogent plan for building
strong share in a variety of growth markets like Eastern Europe and
Brazil. Calling a bottom in a stock always runs the risk of making you
look stupid later on, and I do see risks that the ag and mining markets
could get worse. Even so, unless Titan seriously drops the ball and
actually loses share over the coming decade, I think the shares are
undervalued today.
Read the full article here:
Is Titan Bottoming Out?
Showing posts with label Titan International. Show all posts
Showing posts with label Titan International. Show all posts
Thursday, September 19, 2013
Wednesday, February 27, 2013
Seeking Alpha: Titan International Deflates After Disappointing Results
The CEO of Titan International (TWI) is hardly a wallflower, and that makes for the occasional interesting headline or entertaining press release. But whatever the entertainment value, Wall Street is a brutally results-oriented place and Titan's fourth quarter earnings didn't pass muster.
While investors have reason to be concerned about the extent to which a weak global construction market and a "weak everything" market in Europe will hurt results over the next year or two, and what the company's long-term free cash flow generation will look like, this pullback could be an opportunity to add shares of an increasingly global off-highway wheel and tire business.
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Titan International Deflates After Disappointing Results
Friday, September 28, 2012
Investopedia: Machinery Markets Catch Cold; Titan Gets The Flu
There are plenty of examples of small companies growing through tough
times in their sectors, often by grabbing share with new and innovative
approaches to old problems. Nevertheless, it is still generally the case
that when the big boys catch a sniffle, the smaller companies suffer
even more.
With major construction and agriculture equipment original equipment manufacturers (OEMs) such as Caterpillar (NYSE:CAT) and Deere (NYSE:DE) looking a little weaker (and their managements sounding more cautious), it's not so surprising that the shares of Titan International (NYSE:TWI), a maker of wheels and tires for off-road commercial vehicles, have weakened. Titan remains an ambitious and aggressive company, however, and these shares look quite interesting as a more aggressive play on long-term growth in sectors such as mining, construction and agriculture.
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http://www.investopedia.com/
With major construction and agriculture equipment original equipment manufacturers (OEMs) such as Caterpillar (NYSE:CAT) and Deere (NYSE:DE) looking a little weaker (and their managements sounding more cautious), it's not so surprising that the shares of Titan International (NYSE:TWI), a maker of wheels and tires for off-road commercial vehicles, have weakened. Titan remains an ambitious and aggressive company, however, and these shares look quite interesting as a more aggressive play on long-term growth in sectors such as mining, construction and agriculture.
To read the full article, continue here:
http://www.investopedia.com/
Friday, May 4, 2012
Seeking Alpha: Even In A Tough Market, Commercial Vehicle Continues To Recover
The great thing about turnaround and greenfield growth stories is that
they can both succeed even if their core addressed markets are facing
some challenges. Take the case of trucks and off-road vehicles. While
Caterpillar (CAT), Cummins (CMI), and Eaton (ETN)
have all worried investors to some extent about the health of their
respective markets (particularly in China and Brazil), parts and
components companies like Titan (TWI) and Commercial Vehicle Group (CVGI) continue to out-execute their plans.
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Even In A Tough Market, Commercial Vehicle Continues To Recover
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Even In A Tough Market, Commercial Vehicle Continues To Recover
Thursday, March 15, 2012
Seeking Alpha: Caterpillars, Deer(e)s, And CNH - Oh My
Cyclical industries have this way of making investors look stupid, as the "it's different this time" crowd goes hand-to-hand with the "doom is just around the corner" contingent. Luckily for CNH Global (CNH) investors, the company is so well-diversified around the globe that a slowdown in one area can be offset by stronger conditions in another.
Like Deere (DE), CNH management has been a little conservative/cautious of late, and sell-side analysts seem to be getting a little more nervous about the health of the North American farm equipment market and the global construction equipment market. That said, CNH's overseas position is intriguing, particularly if management can start to execute better.
Read more here:
Caterpillars, Deer(E)s, And CNH - Oh My
Like Deere (DE), CNH management has been a little conservative/cautious of late, and sell-side analysts seem to be getting a little more nervous about the health of the North American farm equipment market and the global construction equipment market. That said, CNH's overseas position is intriguing, particularly if management can start to execute better.
Read more here:
Caterpillars, Deer(E)s, And CNH - Oh My
Tuesday, February 28, 2012
Investopedia: Titan More Than Just Going Along For The Ride
It's good to be a manufacturer of agricultural, construction, and/or mining equipment today. Not surprisingly, it's also good to be a manufacturer of the parts and components that these OEMs need to build their machines. With major share of the North American off-highway wheel market and growing opportunities overseas and in follow-on markets like mining, Titan International (NYSE:TWI) may not be a giant, but the growth it's delivering to shareholders is hardly lilliputian.
Closing the Year on a Roll
Titan reported 73% revenue growth to end its fiscal year, boosted in part by the acquisition of Goodyear's (NYSE:GT) Latin Am farm tire business, but also by strong overall demand. Agriculture sales rose 39% this quarter, while earthmoving/construction sales jumped 59%. Consumer sales were also a strong contributor to this quarter's total, with year-on-year comparisons being of negligible value.
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Closing the Year on a Roll
Titan reported 73% revenue growth to end its fiscal year, boosted in part by the acquisition of Goodyear's (NYSE:GT) Latin Am farm tire business, but also by strong overall demand. Agriculture sales rose 39% this quarter, while earthmoving/construction sales jumped 59%. Consumer sales were also a strong contributor to this quarter's total, with year-on-year comparisons being of negligible value.
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Monday, December 19, 2011
Investopedia: Slower Doesn't Mean Stop For Joy Global
It is easy to understand how commodity and resource play investors are feeling nervous these days. The prices for major industrial commodities like coal, iron and copper have certainly come off their highs and ongoing attempts to tamp down inflation in China risks spoiling that story. Certainly the commodity markets are due for a pause, and investors with a few grey hairs probably already know that there are many ups and downs within broader commodity super-cycles. All of that said, while the fattest of the fat times may be in the past for Joy Global (NYSE:JOY) and the stock may have rougher sailing in the short term, the overall mining infrastructure play is not over yet.
Not Enough Joy to End the Year
It seems pretty safe to bet that many analyst write-ups on Joy Global's quarter will focus on the company missing estimates, even though the misses were modest. On the top line, the company reported 27% overall growth and nearly 18% organic growth, missing the average estimate by a trivial amount. Growth was once again well-balanced, with surface equipment sales rising almost 21% and underground sales rising about 15%.
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Not Enough Joy to End the Year
It seems pretty safe to bet that many analyst write-ups on Joy Global's quarter will focus on the company missing estimates, even though the misses were modest. On the top line, the company reported 27% overall growth and nearly 18% organic growth, missing the average estimate by a trivial amount. Growth was once again well-balanced, with surface equipment sales rising almost 21% and underground sales rising about 15%.
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Friday, September 2, 2011
Investopedia: Will China Extend Joy Global's Cycle?
In many respects it looks like the bloom is well off the rose when it comes to the industrial equipment rebound. A range of companies - Caterpillar (NYSE:CAT), Emerson (NYSE:EMR) and Donaldson (NYSE:DCI) just to name three - have posted solid results in recent weeks, but suggested that growth is going to get harder in markets like North America and Europe (where most of these companies still garner the majority of their revenue).
What, if anything, does that mean for Joy Global (Nasdaq:JOYG)? As one of the leading providers of heavy machinery to the mining industry, it is clearly a cyclical business and this up-cycle in equipment demand has been going on for a while now. Will a slowdown in economic growth lead to mining companies pulling back on projects and curtailing demand, or will acquisitions like China's IMM give it enough emerging market exposure to temper the down-cycle?
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What, if anything, does that mean for Joy Global (Nasdaq:JOYG)? As one of the leading providers of heavy machinery to the mining industry, it is clearly a cyclical business and this up-cycle in equipment demand has been going on for a while now. Will a slowdown in economic growth lead to mining companies pulling back on projects and curtailing demand, or will acquisitions like China's IMM give it enough emerging market exposure to temper the down-cycle?
Read more of this article at Investopedia:
http://stocks.investopedia.
Monday, July 18, 2011
Investopedia: Digging Into A Joy Global Rumor
About a month ago I reviewed mining equipment company Joy Global's (Nasdaq:JOYG) earnings and speculated that "It might also be worth wondering, though, whether the company would consider additional deals - say like the acquisition of International Mining Machinery, China's leading mining equipment company - to expand into particular regional markets." Now Bloomberg, Reuters, and several other sources are reporting rumors that the two companies are in advanced merger discussions.
The Deal That May Be
Prior to these rumors leading to a halt in trading of International Mining Machinery's (Nasdaq:ICMHF.PK) shares on the Hong Kong exchange, the company carried a $1.1 billion market valuation. Although IMM's share price has been depressed a bit on fears of a slowdown in economic activity and the widespread expectation that major owner Jordan (which owns 41% of shares) will be selling shares, Joy Global will likely need to offer something on the order of $1.3 billion to get a deal done.
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The Deal That May Be
Prior to these rumors leading to a halt in trading of International Mining Machinery's (Nasdaq:ICMHF.PK) shares on the Hong Kong exchange, the company carried a $1.1 billion market valuation. Although IMM's share price has been depressed a bit on fears of a slowdown in economic activity and the widespread expectation that major owner Jordan (which owns 41% of shares) will be selling shares, Joy Global will likely need to offer something on the order of $1.3 billion to get a deal done.
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Monday, March 21, 2011
Investopedia: Heavily Shorted Stocks Near Their Highs
Virtually every stock of any real size is going to have a certain amount of short interest. When a stock's short interest reaches double-digits, though, investors should pay a little attention. By and large, retail investors do not short stocks and neither do most mutual funds. Moreover, the rules and hassles of short selling combined with the theoretically unlimited loss potential often mean that short positions are not entered into lightly.
While some short positions are simply a byproduct of a fund manager's belief that a stock is simply overvalued, often it is a bet on the notion that there is something more fundamentally wrong with the basic business. Accordingly, it is interesting to see that there are a number of stocks with high short interests trading near their 52-week highs. Is this simply a product of a bull market that has gone on too long, or is there something worse lurking beneath the surface? (For more, see Stocks With Increasing Short Interest.)
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While some short positions are simply a byproduct of a fund manager's belief that a stock is simply overvalued, often it is a bet on the notion that there is something more fundamentally wrong with the basic business. Accordingly, it is interesting to see that there are a number of stocks with high short interests trading near their 52-week highs. Is this simply a product of a bull market that has gone on too long, or is there something worse lurking beneath the surface? (For more, see Stocks With Increasing Short Interest.)
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Thursday, March 3, 2011
Investopedia: Joy Global's Mixed Quarter
With the stock markets in the middle of a "high oil prices will kill growth" snit, once-hot commodity plays have cooled off rapidly. That's not the best time, then, for mining pure-play Joy Global (Nasdaq:JOYG) to offer up a mixed quarter. While the global mining boom almost certainly still has legs, it looks like this entire sector has lost some momentum for the time being.
A Mixed First Quarter
Joy Global's fiscal first quarter gives investors a lot to chew on and try to interpret. Revenue was up 19% from the year-ago quarter, but down 17% sequentially and off a bit from the average analyst guess. Underground machinery and original equipment both appeared to be weaker than analysts hoped, though they were up 21% and 12% respectively (and investors should note that there is overlap in these two categories). (For more, see Joy Global A Mix Of Performance And Scarcity.)
Profitability was also disappointing on a relative basis. Gross margin was up more than a point and a half, and operating income jumped 31%, but expectations were generally higher. So while it is certainly true that operating margins in the high teens for both underground and surface equipment are not bad in their own right, the reality is that stocks trade largely on expectations and Joy Global did not meet them this time around.
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