1 / 14

Finance and Investment Club at UC Davis

TITAN MACHINERY. Finance and Investment Club at UC Davis. 20/20 Foresight Chad Eatinger Malek Helo David Liu Kevin Yip. Company Profile. American company founded in 1980 and located in North Dakota. Operates in the Services sector and the Specialty Retail (other) industry.

greta
Download Presentation

Finance and Investment Club at UC Davis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TITAN MACHINERY Finance and Investment Club at UC Davis 20/20 Foresight Chad Eatinger Malek Helo David Liu Kevin Yip

  2. Company Profile • American company founded in 1980 and located in North Dakota • Operates in the Services sector and the Specialty Retail (other) industry. • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation Sell and rent construction and agricultural equipment Titan Machinery Sell parts Service equipment at retail stores

  3. Company Overview (cont.) • Supplied primarily by CNH Global. CNH manufactures Titan’s construction and agricultural equipment. • Titan offers many auxiliary services: • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Around-the-clock servicing • Customer training programs • Notifying customers of periodic service requirements • Renting • Equipment transportation • GPS signal subscriptions • Financing/insurance • On-site repairs

  4. Industry Analysis Industry: Agriculture Equipment Retailer • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  5. Industry Analysis • S&P 500 6 Mo • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Dow Jones 6 Mo

  6. Industry Analysis • This industry, due to increase in demand for agricultural products worldwide, has been doing very well lately. • Strong Growth potential, as India and China continue to increase their demand for food. • As food prices continue to soar, agricultural producers are more willing to invest in more machinery to match the increase in demand with a higher supply. • Typically, a high debt to equity ratio. • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  7. Key Statistics • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  8. The Earnings Game… • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Fiscal 2008 Fourth Quarter Results: • Equipment sales up 66% • Part sales up 56% • Servicing revenue up 17% • Revenue up 61% • Gross Profit up 76% Unfortunately, Titan announced it would sell 3.5 million of its shares that very same day

  9. Technical Analysis Strong RSI • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation W formation showing double bottom Healthy MACD

  10. SWOT Analysis - Strengths • Titan’s financials • Titan’s Price Earnings Ratio compared to industry and main competitor ~37.36 Titan ~18.69 Deere and Co. ~Industry is at 18.06 -Fast Growing -60.90% per quarter: 17.50% Deere and Co. -5.10% industry • Ag is HOT!! • Farmers will always need new Equipment- They are developing new TECH all day. Not only do they sell to Large farmers, but they supply to small households. • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  11. SWOT Analysis - Weaknesses • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation • Low market capacity - 334.46M compared to Deere- Main competitor at 35.27 billion • 5.07M net income 1.95B net income • Low inventory turnover compared to industry • Small presence in the international market • Only in the USA. • Small market share.

  12. SWOT Analysis - Opportunities • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation -Expansion on the horizon: -In May 2008, the Company acquired Quad County Implement, Inc., a farm equipment dealership of CaseIH and brands in Blairstown, Iowa. -They have the makings to expand their market. -Agriculture is hot right now. -Growth in the International market

  13. SWOT Analysis - Threats • Debt comes back to haunt them in the long run • Low penetration into the international market. • Titan has a small market share, they cant overcome the dominance of Deere & Co. Deere will always be over their shoulder like a hawk. • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

  14. Recommendation We rate TITN a Moderate Buy at its current levels. With quarterly revenue growth over 60%, TITN is undertaking tremendous growth. The demand for agriculture equipment is at an all time high, and TITN is well positioned within its US market to take advantage of such strong demand. However, TITN remains susceptible to market fluctuations which is evident in the stock’s movements over the past month. • Company Profile • Industry Analysis • Key Statistics • Technical Analysis • SWOT Analysis • Recommendation

More Related