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Twin Disc, Incorporated ( Twin Disc , or the Company ) was incorporated under the laws of the state of Wisconsin in 1918. Twin Disc designs, manufactures and sells marine and heavy duty off highway power transmission equipment.
Operating margin is thin at 2.23%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 15.5%, still solid. Free cash flow declined 65% despite revenue growth, conversion is weakening.
Free cash flow declined 65% versus the prior year, cash generation momentum has weakened. Net debt of $39M represents 4.5x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$364M
▲ +15.5% YoY
Net Income (TTM)
$27M
▼ -117.2% YoY
Op. Margin
3.63%
▼ -1.7pp YoY
ROIC
4.39%
▼ -1.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$774K
▼ -64.7% YoY
Op. Cash Flow (TTM)
$19M
▼ -28.9% YoY
Net Debt
$51M
Cash & Equiv.
$16M
5Y CAGR: +6.7%
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