Twin Disc Story

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TWIN -- USA Stock  

USD 8.27  0.02  0.24%

Twin Disc is currently generating 1.076% in daily expected returns and assumes 4.6009% risk (volatility on return distribution) over the 60 days horizon. As many old-fashioned traders are trying to avoid industrials space, it makes sense to outline Twin Disc Incorporated a little further and try to understand its current volatility patterns. We will inspect why it could be a different year for Twin Disc shareholders. The latest above-average Twin Disc's volatility may impact the value of the stock as we project Twin Disc as currently overvalued. The real value, according to our calculations, is approaching 7.94 per share.
Published over three weeks ago
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Breaking down Twin Disc (NASDAQ:TWIN) volatility
Twin Disc Incorporated currently holds roughly 9.31 M in cash with 6.92 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.69.
Volatility is a rate at which the price of Twin Disc or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Twin Disc may increase or decrease. In other words, similar to Twin Disc's beta indicator, it measures the risk of Twin Disc and helps estimate the fluctuations that may happen in a short period of time. So if prices of Twin Disc fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Twin Disc's Liquidity

Twin Disc financial leverage refers to using borrowed capital as a funding source to finance Twin Disc 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 13.28 Million

Twin Disc Volatility Drivers

Twin Disc unsystematic risk is unique to Twin Disc and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Twin Disc you can also buy Schneider Electric. You can also mitigate this risk by investing in the specialty industrial machinery sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Twin Disc important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Twin Disc income statement and balance sheet. Here are more details about Twin Disc volatility.