One-glance verdict
Overvalued
$15.68 our estimate vs market $24.47
Wall Street consensus: $30.00 (91.3% higher than our fair-value estimate)
56% above our estimate, beyond the bull case
Fundamentals snapshot
Twin Disc, Incorporated
TWIN · NMS · Industrials · Specialty Industrial Machinery
Current price
$24.47
52-week range
$14.22 - $29.24
Market cap
$355.77M
Balance sheet
Watch
5.95x Adequate
Net debt $34.53M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 11.9% last year.
- Reward Returns 13.2% on equity, ahead of 50% of its peers.
- Risk Forward P/E (21.5x) is higher than trailing (13.2x) - earnings are expected to drop.
- Risk Net debt grew 79.3% over 3 years.
What this company does
Twin Disc, Incorporated
Twin Disc designs and makes parts for boats and heavy-duty vehicles that help transfer power, like transmissions and clutches, with most of its money coming from selling these parts to customers in commercial, military, and industrial markets. This business matters because these specialized parts are essential for the smooth operation of ships and large equipment, and Twin Disc's success hinges on its ability to meet the demands of these industries.
How the company got here
Twin Disc was founded in 1918, initially making clutches for farm tractors. The company's early years were rocky due to agricultural market fluctuations, prompting it to diversify into industries like logging and mining. A major turning point came during World War II when Twin Disc became a key supplier of marine transmissions for landing craft, which significantly expanded its global reach. This wartime success led to a post-war boom, with the company playing a role in the construction of highways and expanding its presence internationally, particularly in Japan during the 1950s. Over the decades, Twin Disc has navigated economic downturns and shifts in customer needs, such as when customers began building their own transmissions, by focusing on innovation and its experienced workforce.
What it actually does
Twin Disc designs, manufactures, and sells power transmission equipment. Think of this as the crucial parts that connect an engine to whatever it's powering, like wheels on a vehicle or a propeller on a boat. Their products are essential for machines that need to move heavy loads in demanding conditions. These components help control and transfer power efficiently and reliably, ensuring that equipment operates smoothly and effectively in tough environments. Twin Disc's solutions are found in a wide variety of applications, from construction machinery to marine vessels.
Manufacturing
This segment is where Twin Disc designs and builds its core products. These include a wide range of power transmission components such as marine transmissions (gears that connect a boat's engine to its propeller), azimuth drives (rotatable propulsion units for boats), surface drives, propellers, and boat management systems. For land-based applications, they produce power-shift transmissions (allowing gear changes without stopping), hydraulic torque converters (which help transfer power smoothly), industrial clutches, and control systems. This is the largest part of Twin Disc's business, where the company's engineering expertise is directly applied to create the physical products.
Distribution
The Distribution segment handles selling and delivering Twin Disc's manufactured products, as well as those made by third parties. This involves managing a global network of sales offices and distributors to get products to customers. It also includes providing aftermarket services, such as replacement parts and repairs for equipment that is already in use. This segment is vital for ensuring that customers have access to Twin Disc's products and ongoing support, helping to maintain the long-term performance of the equipment.
What management is betting on now
Twin Disc's leadership is focused on transforming the company into a leading provider of hybrid and electric power transmission solutions for specialized marine and land-based applications. They are strategically expanding their product offerings, particularly with their Veth Propulsion line, to reach new markets and geographies. Management is also working to improve efficiency by streamlining their global operations and increasing their focus on integrated control systems rather than just individual components. Acquisitions in the industrial and marine technology sectors, especially those related to hybrid technology, are a key part of their growth strategy to reach a target of $500 million in revenue by 2030.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-6.71M
FY2025 Q2
$5.88M
FY2025 Q3
$906.00K
FY2025 Q4
$8.74M
FY2026 Q1
$-10.95M
FY2026 Q2
$1.24M
FY2026 Q3
$1.75M
FY2026 Q4
$17.16M
Revenue
$114.40M
Net income
$9.36M
Diluted EPS
0.64
Operating cash flow
$20.56M
Free cash flow
$17.16M
Fetching…
Sources
Revenue
$96.69M
Net income
$3.33M
Diluted EPS
0.23
Operating cash flow
$5.31M
Free cash flow
$1.75M
Fetching…
Sources
Revenue
$90.18M
Net income
$14.91M
Diluted EPS
1.04
Operating cash flow
$4.55M
Free cash flow
$1.24M
Fetching…
Sources
Revenue
$80.00M
Net income
$-518.00K
Diluted EPS
-0.04
Operating cash flow
$-7.52M
Free cash flow
$-10.95M
Fetching…
Sources
Revenue
$96.68M
Net income
$2.62M
Diluted EPS
0.19
Operating cash flow
$16.45M
Free cash flow
$8.74M
Fetching…
Sources
Revenue
$81.24M
Net income
$-1.47M
Diluted EPS
-0.11
Operating cash flow
$3.22M
Free cash flow
$906.00K
Fetching…
Sources
Revenue
$89.92M
Net income
$919.00K
Diluted EPS
0.07
Operating cash flow
$8.66M
Free cash flow
$5.88M
Fetching…
Sources
Revenue
$72.90M
Net income
$-2.77M
Diluted EPS
-0.20
Operating cash flow
$-4.34M
Free cash flow
$-6.71M
Fetching…
Sources
Is it cheap or expensive?
Fair value $15.68 vs current price $24.47
Wall Street consensus is the average analyst price target: $30.00 (91.3% higher than our fair-value estimate).
Our most-likely fair value is $15.68 a share — about 35.9% below today's price of $24.47, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $34.5M. Interest coverage 6.0x.
Net debt
$34.53M
Interest coverage
5.95x
Twin Disc, Incorporated's profit covers its interest bill about 6.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
TWIN
BASELINE
Twin Disc, Incorporated
Total debt $50.55M Interest coverage 5.95x This is the baseline the peer rows are being compared against.
Total debt $1.10B Interest coverage 8.04x +35% vs TWIN Carries about 1.3x more debt cushion than TWIN.
Total debt $4.19B Interest coverage 9.88x +66% vs TWIN Carries about 1.7x more debt cushion than TWIN.
Total debt $899.00M Interest coverage 2.92x -51% vs TWIN Carries about 2.0x less debt cushion than TWIN.
Total debt $2.36B Interest coverage 4.19x -30% vs TWIN Carries about 1.4x less debt cushion than TWIN.
Total debt $704.00M Interest coverage 1.72x -71% vs TWIN Carries about 3.5x less debt cushion than TWIN.
What you should know
The case for and against TWIN
3 Rewards
2 Risks
Rewards
-
Revenue grew 11.9% last year.
-
Returns 13.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Forward P/E (21.5x) is higher than trailing (13.2x) - earnings are expected to drop.
-
Net debt grew 79.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.16x
Forward P/E
21.46x
P/B
1.61x
P/S
0.93x
EV/EBITDA
13.35x
PEG ratio
3.16x
Profitability
How much profit each dollar creates
Gross margin
26.9%
Operating margin
6.5%
Net margin
7.1%
ROE
13.2%
ROA
2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.23x
Current ratio
2.35x
Quick ratio
0.70x
Total debt
$50.55M
Total cash
$16.03M
Growth
How the business has been compounding
Revenue TTM
$381.27M
Revenue 5Y CAGR
9.4%
EPS TTM
1.86
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$22.90M
Free CF TTM
$9.19M
FCF margin
2.4%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
8.6%
Last ex-div date
2026-08-18