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A Look At Twin Disc, Incorporated's (NASDAQ:TWIN) Exceptional Fundamentals

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Simply Wall St
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Attractive stocks have exceptional fundamentals. In the case of Twin Disc, Incorporated (NASDAQ:TWIN), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Twin Disc here.

Very undervalued with adequate balance sheet

TWIN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TWIN manages its cash and cost levels well, which is a crucial insight into the health of the company. With a debt-to-equity ratio of 24%, TWIN’s debt level is reasonable. This implies that TWIN has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. TWIN's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of TWIN's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the capital goods industry, TWIN is also trading below its peers, relative to earnings generated. This bolsters the proposition that TWIN's price is currently discounted.

NasdaqGS:TWIN Price Estimation Relative to Market, September 23rd 2019
NasdaqGS:TWIN Price Estimation Relative to Market, September 23rd 2019

Next Steps:

For Twin Disc, I've put together three important factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for TWIN’s future growth? Take a look at our free research report of analyst consensus for TWIN’s outlook.

  2. Historical Performance: What has TWIN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TWIN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.