Titan Machinery Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 7✗ 21▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / Book Value per Share0.9x

  ✓Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Price / 3-yr avg EPS73.6x

  ✗Graham<= 15x

  Price-to-Book Ratio0.9x

  ✓Graham<= 1.5x

  P/E x P/B67.00

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value-1.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-1.4%, ROC=-1.5%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)3.8x

  ✓Dreman< 8x

  Valuation ReasonablenessOE Yield=-3.2%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.9x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-390.7% (IV=$4.60 vs Price=$22.57)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low150% of trailing low ($15.04)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-10.68%; #4208/6340 (top 66.4%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+1.0502; #1397/6449 (top 21.7%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.14x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+62.1%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+4.3399; #610/5247 (top 11.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+11.35%; #1788/6202 (top 28.8%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 6✗ 29▾

  15 of 16 flag TITN's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)13/22 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)15/22 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)7.2%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-0.3% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$31.3M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-10.2%

  ✗Lynch> 15%

  EBIT / Enterprise Value-1.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-1.4%, ROC=-1.5%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-3.35%

  ✗PiotroskiROA > 0

  ROA Change YoY-2.03% -> -3.35% (delta: -1.32%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=8.50%, ROA=-3.35%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY14.6% -> 15.8%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-1.8%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-10.2%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.9x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity0.6% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-390.7% (IV=$4.60 vs Price=$22.57)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency15/21 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue-0.4%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-10.2%

  ✗Ackman>= 15%

  5-Year EPS CAGR79.0% CAGR over 3 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend6.1% (2023) -> -0.3% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 19.3% -> 15.8%, operating margin 6.1% -> -0.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-10.68%; #4208/6340 (top 66.4%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+23.31%; #1831/3702 (top 49.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-10.17%; #3419/5226 (top 65.4%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0489; #2554/5884 (top 43.4%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR55.1% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years6/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts13% pass✓ 2✗ 14▾

  Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (3/9)✗LynchFAIL (2/7)✗GreenblattRank #1887✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #988/2370 (Top 41.7%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth25% pass✓ 5✗ 8▾

  6 of 8 flag TITN's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -18.3% vs Rev: -10.7%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency15/21 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-2.0%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR79.0% CAGR over 3 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 19.3% -> 15.8%, operating margin 6.1% -> -0.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR11.5%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR55.1% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag TITN's cash flow — Lynch, Pabrai, Marks +4 more

  Free Cash Flow Proxy$31.3M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-9.8M

  ✗LynchPositive and growing

  Operating Cash Flow$137.5M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=8.50%, ROA=-3.35%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)3.8x

  ✓Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive6/12 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency12/18 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage33% pass✓ 7✗ 8▾

  8 of 12 flag TITN's debt & leverage — Buffett, Lynch, Piotroski +5 more

  Debt Levels0.31

  ✓MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  LT Debt vs Net Current AssetsLT Debt $147.5M vs NCA $283.0M

  ✓GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.31, IC: -0.2x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.31

  ✓Lynch< 0.33

  Cash - Long-term Debt$-118.0M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change8.70% -> 9.81%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.35

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.31

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Interest Coverage & Debt/EBITDAIC=-0.2x, D/EBITDA=5.8x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.31

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.3108; #2031/4210 (top 48.2%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models33% pass✓ 1✗ 2▾

  Models split on TITN at $22.57 — fair values range $9.09–$22.97

  Akre fair value$22.97

  ✓Akre+1.7% margin vs $22.57

  Marks fair value$11.51

  ✗Marks-96.1% margin vs $22.57

  Templeton fair value$9.09

  ✗Templeton-148.3% margin vs $22.57
• Efficiency38% pass✓ 5✗ 6▾

  5 of 8 flag TITN's efficiency — Graham, Greenblatt, Dreman +2 more

  Current Ratio1.35

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)11.1%

  ✓Buffett> 10%

  ROIC - WACC+1.1%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-1.5%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.35 -> 1.41

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.49x -> 1.50x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.35

  ✗Dreman> 1.5

  Return on Invested Capital-1.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=17.2%; FY2024: ROIC=0.4%; FY2025: ROIC=-0.7%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)3/5 years above 12% (latest -0.7%)

  ✓SleepROIC > 12% in a majority of years