Twin Disc Story

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TWIN -- USA Stock  

USD 5.28  0.30  5.38%

Twin Disc Tangible Asset Value is quite stable at the moment as compared to the past year. The company's current Tangible Asset Value is estimated at 190.92 Million. Interest Coverage is expected to rise to 9.07 this year, although the value of Net Income Per Employee will most likely fall to about 11.1 K. The goal of this thesis is to give institutional investors our take on Twin Disc future value. We will inspect the reasons why it could be a game-changer for Twin Disc institutional investors.
Published over a month ago
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Will holding Twin Disc (NASDAQ:TWIN) be justified in September 2020?
Twin Disc Incorporated has a beta of 1.1614. Let's try to break down what Twin Disc's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Twin Disc will likely underperform. The beta indicator helps investors understand whether Twin Disc moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Twin Disc deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Twin Disc Incorporated. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Twin Disc

How important is Twin Disc's Liquidity

Twin Disc financial leverage refers to using borrowed capital as a funding source to finance Twin Disc Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Twin Disc financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Twin Disc's total debt and its cash.

How Twin Disc utilizes its cash?

To perform a cash flow analysis of Twin Disc, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Twin Disc is receiving and how much cash it distributes out in a given period. The Twin Disc cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Twin Disc Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 12.56 Million

Payment of 627 shares by Debbie Lange of Twin Disc subject to Rule 16b-3

Legal trades by Twin Disc insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Twin Disc insider trading alert for payment of common stock by Debbie Lange, Corporate Controller, on 17th of August 2020. This event was filed by Twin Disc Inc with SEC on 2020-08-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Twin Disc Indicators

Twin Disc Incorporated exhibits very low volatility with skewness of 0.29 and kurtosis of 0.62. However, we advise investors to further study Twin Disc Incorporated technical indicators to make sure all market info is available and is reliable.

Returns Breakdown

Return on Assets
Return on Equity
Return on Investment9.82
Return on Assets3.48
Return on Equity6.73
Return Capital(0.18)
Return on Sales(0.17)

Another small slide for Twin Disc

Variance is down to 23.18. It may entail a possible volatility slide. As of the 7th of August, Twin Disc has the risk adjusted performance of (0.015398), and Coefficient Of Variation of (7,375). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Twin Disc Incorporated, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Twin Disc Incorporated, which can be compared to its competition. Please validate Twin Disc Incorporated coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Twin Disc is priced more or less accurately, providing market reflects its prevalent price of 5.66 per share. Given that Twin Disc Incorporated has jensen alpha of (0.30), we advise you to double-check Twin Disc Incorporated's current market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Twin Disc

Whereas other companies in the specialty industrial machinery industry are either recovering or due for a correction, Twin Disc may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 7th of August 2020, we believe that at this point, Twin Disc is moderately volatile with below average chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our up-to-date 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Twin Disc Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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