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Twin Disc Inc. (TWIN) Fundamental Analysis & AI Grade 2026

TWIN Nasdaq General Industrial Machinery & Equipment WI CIK: 0000100378
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-27
Combined AI Grade
C
68% Confidence
N/A
C
68% Conf
Pending
Analysis scheduled

📊 TWIN Key Takeaways

Revenue: $266.9M
Net Margin: 9.4%
Free Cash Flow: $-8.0M
Current Ratio: 2.09x
Debt/Equity: 0.24x
EPS: $1.76
AI Grade: C with 68% confidence
Twin Disc Inc. (TWIN) receives a C fundamental grade with 68% confidence from our AI analysis based on SEC 10-K filings. With revenue of $266.9M, net profit margin of 9.4%, and return on equity (ROE) of 13.6%, Twin Disc Inc. demonstrates mixed fundamentals in the Industrial sector. Below is our complete TWIN stock analysis for 2026.

Is Twin Disc Inc. (TWIN) a Good Investment?

Claude

Twin Disc exhibits deteriorating fundamentals with negative free cash flow of -$8.0M despite positive net income, indicating poor cash conversion quality and sustainability concerns. Zero revenue growth combined with a dramatic 117.7% EPS decline suggests operational headwinds in a mature industrial machinery market with insufficient cash reserves ($16.1M) to fund operations and capex.

Twin Disc Inc. Key Strengths (TWIN)

Claude
  • + Conservative capital structure with Debt/Equity of 0.24x limits financial distress risk
  • + Strong interest coverage ratio of 7.0x demonstrates ability to service existing debt obligations
  • + Current ratio of 2.09x provides adequate short-term liquidity buffer for working capital needs

TWIN Stock Risks: Twin Disc Inc. Investment Risks

Claude
  • ! Negative free cash flow of -$8.0M signals unsustainable cash burn despite positive net income
  • ! Massive disconnect between net income ($25.2M) and operating cash flow ($2.3M) raises earnings quality concerns
  • ! Flat revenue growth (0% YoY) and declining EPS (-117.7% YoY) indicate operational deterioration without growth catalysts

Key Metrics to Watch

Claude
  • * Operating cash flow trend and working capital movements to assess cash conversion quality
  • * Revenue growth rate and order book visibility for signs of market recovery
  • * Free cash flow sustainability given -$8.0M current level and required capex of ~$10.3M

Twin Disc Inc. (TWIN) Financial Metrics & Key Ratios

Revenue
$266.9M
Net Income
$25.2M
EPS (Diluted)
$1.76
Free Cash Flow
$-8.0M
Total Assets
$391.0M
Cash Position
$16.1M

💡 AI Analyst Insight

Strong liquidity with a 2.09x current ratio provides a solid financial cushion.

TWIN Profit Margin, ROE & Profitability Analysis

Gross Margin 27.1%
Operating Margin 3.8%
Net Margin 9.4%
ROE 13.6%
ROA 6.4%
FCF Margin -3.0%

TWIN vs Industrial Sector: How Twin Disc Inc. Compares

How Twin Disc Inc. compares to Industrial sector averages

Net Margin
TWIN 9.4%
vs
Sector Avg 10.0%
TWIN Sector
ROE
TWIN 13.6%
vs
Sector Avg 15.0%
TWIN Sector
Current Ratio
TWIN 2.1x
vs
Sector Avg 1.8x
TWIN Sector
Debt/Equity
TWIN 0.2x
vs
Sector Avg 0.7x
TWIN Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Twin Disc Inc. Stock Overvalued? TWIN Valuation Analysis 2026

Based on fundamental analysis, Twin Disc Inc. has mixed fundamental signals relative to the Industrial sector in 2026.

Return on Equity
13.6%
Sector avg: 15%
Net Profit Margin
9.4%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.24x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Twin Disc Inc. Balance Sheet: TWIN Debt, Cash & Liquidity

Current Ratio
2.09x
Quick Ratio
0.81x
Debt/Equity
0.24x
Debt/Assets
52.3%
Interest Coverage
7.03x
Long-term Debt
$45.1M

TWIN Revenue & Earnings Growth: 5-Year Financial Trend

TWIN 5-year financial data: Year 2021: Revenue $246.8M, Net Income -$39.8M, EPS $-3.03. Year 2022: Revenue $242.9M, Net Income -$29.7M, EPS $-2.24. Year 2023: Revenue $277.0M, Net Income $10.5M, EPS $0.78. Year 2024: Revenue $295.1M, Net Income $10.4M, EPS $0.75. Year 2025: Revenue $340.7M, Net Income $11.0M, EPS $0.79.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Twin Disc Inc.'s revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.79 reflects profitable operations.

TWIN Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-3.0%
Free cash flow / Revenue

TWIN Quarterly Earnings & Performance

Quarterly financial performance data for Twin Disc Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $81.2M -$1.5M $-0.11
Q2 2026 $89.9M $919.0K $0.07
Q1 2026 $72.9M -$518.0K $-0.04
Q3 2025 $74.2M -$1.5M $-0.11
Q2 2025 $73.0M -$243.0K $-0.02
Q1 2025 $63.6M -$1.2M $-0.09
Q3 2024 $73.8M $3.3M $0.24
Q2 2024 $63.4M -$243.0K $0.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Twin Disc Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$2.3M
Cash generated from operations
Capital Expenditures
$10.3M
Investment in assets
Dividends Paid
$1.7M
Returned to shareholders

TWIN SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Twin Disc Inc. (CIK: 0000100378)

📋 Recent SEC Filings

Date Form Document Action
May 6, 2026 10-Q twin20260327_10q.htm View →
May 6, 2026 8-K twin20260501c_8k.htm View →
May 6, 2026 8-K twin20260501_8k.htm View →
May 1, 2026 4 xslF345X06/rdgdoc.xml View →
May 1, 2026 4 xslF345X06/rdgdoc.xml View →

Frequently Asked Questions about TWIN

What is the AI rating for TWIN?

Twin Disc Inc. (TWIN) has an AI grade of C with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TWIN's key strengths?

Claude: Conservative capital structure with Debt/Equity of 0.24x limits financial distress risk. Strong interest coverage ratio of 7.0x demonstrates ability to service existing debt obligations.

What are the risks of investing in TWIN?

Claude: Negative free cash flow of -$8.0M signals unsustainable cash burn despite positive net income. Massive disconnect between net income ($25.2M) and operating cash flow ($2.3M) raises earnings quality concerns.

What is TWIN's revenue and growth?

Twin Disc Inc. reported revenue of $266.9M.

Does TWIN pay dividends?

Twin Disc Inc. pays dividends, with $1.7M distributed to shareholders in the trailing twelve months.

Where can I find TWIN SEC filings?

Official SEC filings for Twin Disc Inc. (CIK: 0000100378) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TWIN's EPS?

Twin Disc Inc. has a diluted EPS of $1.76.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TWIN's fundamental grade?

Based on our AI fundamental analysis in June 2026, Twin Disc Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TWIN stock overvalued or undervalued?

Valuation metrics for TWIN: ROE of 13.6% (sector avg: 15%), net margin of 9.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is TWIN's AI grade for 2026?

Our dual AI analysis gives Twin Disc Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TWIN's free cash flow?

Twin Disc Inc.'s operating cash flow is $2.3M, with capital expenditures of $10.3M. FCF margin is -3.0%.

How does TWIN compare to other Industrial stocks?

Vs Industrial sector averages: Net margin 9.4% (avg: 10%), ROE 13.6% (avg: 15%), current ratio 2.09 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-27 | Powered by Claude AI