TWINTwin Disc, Incorporated
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TWIN?
Twin Disc, Incorporated earns 6.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.9 points below what the capital costs: growth destroys value
- Operating margin
- 4.7%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q4 2026
- Cash conversion
- 1.61×
Cash conversion · 2.74× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −5.6% |
| FY2022 | 4.5% |
| FY2023 | 5.8% |
| FY2024 | 3.9% |
| FY2025 | 3.3% |
| FY2026 | 4.7% |
Details›
- Gross margin12 months to Q4 2026
- 27%
- Operating margin12 months to Q4 2026
- 4.7%
- Net margin12 months to Q4 2026
- 7.1%
- Free cash flow margin
- 2.4%
- Revenue, trailing twelve months
- $381M
- Free cash flow, trailing twelve months
- $9.2M
- Net income, trailing twelve months
- $27M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
Ranks #19 of 33 by RyuScore