Stock on Focus: Tower International, Inc. (TOWR)

Company Profile:

Tower International, Inc. manufactures and sells engineered automotive structural metal components and assemblies primarily for original equipment manufacturers. It operates in two segments, North America and Europe. The company offers body structures and assemblies comprising structural metal components, including body pillars, roof rails, and side sills; and Class A surfaces and assemblies that consist of body sides, hoods, doors, fenders, and pickup truck boxes. It also offers lower vehicle frames and structures, such as pickup truck and sport utility vehicle (SUV) full frames, automotive engine and rear suspension cradles, floor pan components, and cross members. In addition, the company offers complex body-in-white assemblies comprising various components and sub-assemblies. Its products have applications in small and large cars, crossovers, pickups, and SUVs. The company was formerly known as Tower Automotive, LLC and changed its name to Tower International, Inc. in October 2010. Tower International, Inc. was founded in 1993 and is headquartered in Livonia, Michigan.

Recent News:

The company reported revenue for the second quarter was $490 million compared with $505 million in the second quarter of 2016. Net income was $19.2 million or 92 cents per diluted share, compared with net loss of $4.8 million or 23 cents per share in the second quarter last year.

Revenue for the first quarter was $497.6 million, up 2 percent from $489.2 million in the first quarter 2016.Net income in the first quarter was $17.3 million or $0.83 per diluted share, compared with $8.4 million or $0.39 per diluted share last year.

The Board of Directors declared a regular quarterly dividend of 11 cents per share on the Company’s common stock, payable June 9, 2017 to shareholders of record on May 10, 2017.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TOWR’s strengths can be seen in its strong growth, better profitability and better efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI(14) stands at 50.56 with positive bias. We rate Tower International, Inc. (TOWR) a STRONG BUY.

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