Twin Disc, Incorporated
$18.01
+2.3%Twin 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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -128.6).
Valuation inputs: P/E -128.6, earnings yield N/A, momentum +2.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -1.1%, ROIC -3.8%).
Profitability stack: net margin -0.6%, ROE -1.1%, ROIC -3.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +53.8%, momentum +2.3%, net margin -0.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Twin Disc, Incorporated Market vs Earnings Trajectory
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Twin Disc, Incorporated Fair Value Envelope
Twin Disc, Incorporated Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
Twin Disc, Incorporated Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Twin Disc, Incorporated Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Twin Disc, Incorporated Street Expectations Map
No Target Data
No analyst price targets available for twin.
Twin Disc, Incorporated Insider Positioning
During the last 12 months, insiders have purchased $521K and sold $883K worth of TWIN shares, resulting in $362K of net selling activity.
3 Months
0
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0
0.00
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3-6 Months
0
0.00
0
0.00
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6-9 Months
33.6K
500.29K
25.3K
333.12K
+167K
+$167K
9-12 Months
2.2K
20.31K
61.6K
549.55K
-529K
-$529K
Top Buyers
Doar Michael
Director
$112K
Johnson David W
Director
$88K
Smiley Michael C
Director
$80K
Giesselman Janet Plaut
Director
$80K
Olsen Kevin M.
Director
$80K
Top Sellers
Knutson Jeffrey Scott
Officer: Vp Finance, Cfo, Secr & Trea
$485K
Batten John H
Director, 10 Percent Owner, Officer: President And Ceo
$397K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $362K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Insider Participation
5 insider buyers vs. 2 sellers. Broad-based buying across management team suggests widespread confidence.
twin Dividend History
Learning Layer
Related Guides
Build conviction on TWIN by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.