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Tower International

DB:TWI
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TWI
DB
$641M
Market Cap
  1. Home
  2. DE
  3. Automobiles
Company description

Tower International, Inc. manufactures and sells engineered automotive structural metal components and assemblies primarily for original equipment manufacturers. The last earnings update was 67 days ago. More info.


Add to Portfolio Compare Print
  • Tower International has significant price volatility in the past 3 months.
TWI Share Price and Events
7 Day Returns
2%
DB:TWI
-1.6%
DE Auto Components
-0.8%
DE Market
1 Year Returns
8.4%
DB:TWI
-24.1%
DE Auto Components
-4.4%
DE Market
TWI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tower International (TWI) 2% 1.9% 66.6% 8.4% 36.4% 44.3%
DE Auto Components -1.6% 8.1% -4.7% -24.1% -35.5% -23.6%
DE Market -0.8% 2.7% -0.7% -4.4% 7.2% 18.1%
1 Year Return vs Industry and Market
  • TWI outperformed the Auto Components industry which returned -24.1% over the past year.
  • TWI outperformed the Market in Germany which returned -4.4% over the past year.
Price Volatility
TWI
Industry
5yr Volatility vs Market

TWI Value

 Is Tower International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tower International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tower International.

DB:TWI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in USD $ 0.48
Payout Ratio Company Filings (2019-06-30) 1903.8%
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TWI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.26
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.258 (1 + (1- 21%) (84.86%))
1.654
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.65
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.654 * 5.96%)
10.08%

Discounted Cash Flow Calculation for DB:TWI using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Tower International is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:TWI Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.48 / (10.08% - 0.23%)
$4.09
DB:TWI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TWI represents 0.91613x of NYSE:TOWR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91613x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 4.87 x 0.91613
€4.46
Value per share (EUR) From above. €4.46
Current discount Discount to share price of €28.40
= -1 x (€28.40 - €4.46) / €4.46
-536.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tower International is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tower International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tower International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TWI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $2.71
NYSE:TOWR Share Price ** NYSE (2019-09-30) in USD $31
Germany Auto Components Industry PE Ratio Median Figure of 10 Publicly-Listed Auto Components Companies 12.91x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 19.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tower International.

DB:TWI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TOWR Share Price ÷ EPS (both in USD)

= 31 ÷ 2.71

11.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tower International is good value based on earnings compared to the DE Auto Components industry average.
  • Tower International is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Tower International's expected growth come at a high price?
Raw Data
DB:TWI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
5.9%per year
Germany Auto Components Industry PEG Ratio Median Figure of 8 Publicly-Listed Auto Components Companies 0.56x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Tower International, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Tower International's assets?
Raw Data
DB:TWI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $15.31
NYSE:TOWR Share Price * NYSE (2019-09-30) in USD $31
Germany Auto Components Industry PB Ratio Median Figure of 13 Publicly-Listed Auto Components Companies 1.22x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:TWI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TOWR Share Price ÷ Book Value per Share (both in USD)

= 31 ÷ 15.31

2.02x

* Primary Listing of Tower International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tower International is overvalued based on assets compared to the DE Auto Components industry average.
X
Value checks
We assess Tower International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Tower International has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TWI Future Performance

 How is Tower International expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Tower International, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tower International expected to grow at an attractive rate?
  • Tower International's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Tower International's earnings growth is positive but not above the Germany market average.
  • Unable to compare Tower International's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:TWI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TWI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 5.9%
Germany Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 14.7%
Germany Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.9%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TWI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TWI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-09-30
DB:TWI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,493 108 56
2019-03-31 1,543 165 68
2018-12-31 1,572 173 77
2018-09-30 1,260 215 46
2018-06-30 1,198 214 39
2018-03-31 1,292 202 40
2017-12-31 1,382 154 40
2017-09-30 1,912 143 64
2017-06-30 1,907 108 67
2017-03-31 1,922 82 63
2016-12-31 1,319 158 13
2016-09-30 1,906 93 178

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tower International's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Tower International is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TWI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Tower International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TWI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-09-30
DB:TWI Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 2.71
2019-03-31 3.32
2018-12-31 3.75
2018-09-30 2.24
2018-06-30 1.88
2018-03-31 1.95
2017-12-31 1.93
2017-09-30 3.12
2017-06-30 3.28
2017-03-31 3.04
2016-12-31 0.62
2016-09-30 8.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Tower International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Tower International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tower International has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TWI Past Performance

  How has Tower International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tower International's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tower International's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Tower International's 1-year earnings growth exceeds its 5-year average (44.6% vs -3.2%)
  • Tower International's earnings growth has exceeded the DE Auto Components industry average in the past year (44.6% vs -6.3%).
Earnings and Revenue History
Tower International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tower International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TWI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,492.88 55.87 89.48
2019-03-31 1,543.36 68.34 94.30
2018-12-31 1,571.85 77.12 91.93
2018-09-30 1,260.32 46.08 73.83
2018-06-30 1,198.12 38.63 73.39
2018-03-31 1,292.12 40.05 79.55
2017-12-31 1,382.47 39.59 85.51
2017-09-30 1,912.16 63.82 121.66
2017-06-30 1,906.83 67.38 123.92
2017-03-31 1,922.04 62.86 127.45
2016-12-31 1,319.05 13.00 108.38
2016-09-30 1,906.29 178.01 129.98
2016-06-30 1,891.44 173.26 129.63
2016-03-31 1,835.83 177.12 127.88
2015-12-31 1,796.10 183.73 124.46
2015-09-30 1,843.50 43.56 123.30
2015-06-30 1,899.03 36.81 126.66
2015-03-31 1,997.97 32.18 127.96
2014-12-31 1,838.05 35.62 123.57
2014-09-30 1,946.73 43.51 134.50
2014-06-30 1,944.20 40.54 131.57
2014-03-31 1,951.62 -18.99 133.54
2013-12-31 1,966.49 -30.54 132.80
2013-09-30 2,093.36 -55.89 131.10
2013-06-30 2,090.29 -60.25 131.67
2013-03-31 2,089.36 -9.10 128.14
2012-12-31 1,925.80 -27.57 126.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tower International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tower International used its assets more efficiently than the DE Auto Components industry average last year based on Return on Assets.
  • Tower International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tower International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tower International has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TWI Health

 How is Tower International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tower International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tower International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tower International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tower International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tower International Company Filings, last reported 3 months ago.

DB:TWI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 316.82 250.40 155.72
2019-03-31 312.49 248.78 197.95
2018-12-31 300.91 303.64 68.07
2018-09-30 317.91 318.72 47.74
2018-06-30 297.70 375.52 72.11
2018-03-31 291.62 375.23 65.60
2017-12-31 269.87 359.67 96.31
2017-09-30 273.77 410.13 43.60
2017-06-30 255.20 430.34 54.79
2017-03-31 236.93 432.74 27.52
2016-12-31 213.94 386.96 62.79
2016-09-30 209.55 438.77 47.22
2016-06-30 210.84 420.47 51.78
2016-03-31 219.13 407.44 74.80
2015-12-31 206.72 440.24 121.59
2015-09-30 123.17 452.91 114.95
2015-06-30 118.78 453.77 136.00
2015-03-31 98.04 458.55 130.73
2014-12-31 99.78 475.67 148.56
2014-09-30 158.27 505.32 126.43
2014-06-30 167.38 531.39 169.22
2014-03-31 148.30 533.86 185.32
2013-12-31 136.87 492.56 134.88
2013-09-30 96.28 520.02 106.35
2013-06-30 80.13 591.35 118.18
2013-03-31 138.74 480.08 111.08
2012-12-31 140.87 484.54 113.94
  • Tower International's level of debt (79%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (317.5% vs 79% today).
  • Debt is well covered by operating cash flow (43.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess Tower International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tower International has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TWI Dividends

 What is Tower International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.68%
Current annual income from Tower International dividends. Estimated to be 1.55% next year.
If you bought €2,000 of Tower International shares you are expected to receive €34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tower International's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Tower International's dividend is below the markets top 25% of dividend payers in Germany (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TWI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Germany Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 4.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TWI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.48 1.00
2020-12-31 0.48 1.00
2019-12-31 0.48 1.00
2019-09-30
DB:TWI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-18 0.520 2.172
2019-01-24 0.520 2.117
2018-10-18 0.520 1.919
2018-07-17 0.480 1.540
2018-04-19 0.480 1.568
2018-01-26 0.480 1.716
2017-10-20 0.480 1.546
2017-07-21 0.440 1.813
2017-04-21 0.440 1.870
2017-01-27 0.440 1.659
2016-10-21 0.440 1.700
2016-07-22 0.400 1.715
2016-04-22 0.400 1.846
2015-10-16 0.400 1.564

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Tower International has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Tower International only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Tower International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.7x coverage).
X
Income/ dividend checks
We assess Tower International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tower International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tower International has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TWI Management

 What is the CEO of Tower International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
James Gouin
COMPENSATION $4,198,321
AGE 59
TENURE AS CEO 2.7 years
CEO Bio

Mr. James C. Gouin, also known as Jim, has been Chief Executive Officer of Tower International, Inc. since January 1, 2017. Mr. Gouin serves as Treasurer of Vista Maria. He served as the President of Tower International, Inc. from September 1, 2016 to January 19, 2017. He served as the Chief Financial Officer and Executive Vice President of Tower International, Inc. since November 1, 2007 until September 1, 2016. He served as Senior Advisor to clients in the automotive industry of FTI Consulting. Mr. Gouin has been Independent Director of Exterran Corporation since November 4, 2015. He served as Senior Managing Director for FTI Corporate Finance Segment at FTI Consulting, Inc. since June 27, 2007. He served at Tower Automotive LLC as Chief Financial Officer. He has financial expertise. He has spent more than 20 years in senior management positions while at Ford Motor Credit Company LLC. Mr. Gouin served as Vice President, Controller and Chief Accounting Officer for Ford's global operations. He served as Chief Financial Officer of Ford's North American Operations. He has held senior management positions in Ford's Marketing and Sales Operations, Latin American Automotive Operations and has executed merger and acquisition activity for Ford. He served as Chief Financial Officer and Vice President of Finance, Strategy and Business Development of Ford Motor Company, a holding company of Ford Motor Credit Co. LLC from August 2006 to 2007. Mr. Gouin served as Vice President and Controller of Ford Motor Co from August 1, 2003 to 2006 and also served as its Principal Accounting Officer. He focused specifically on growth in China, Asia, Australia and South Africa. He has been a Director of Tower International, Inc. since January 1, 2017. He joined Ford's Accounting team in 1979 as an Analyst in the Engine Division. Mr. Gouin also served on the Board of Trustees of the University of Detroit Mercy until October 2017, and currently serves as Chairman of the Board of Directors of Vista Maria, a non-profit corporation. He served as a Director of Ford Motor Credit Company LLC, Tower Automotive International Holdings B.V. and Tower Automotive Holdings Asia B.V. He has been an Independent Director of Azure Dynamics Corp. since April 17, 2008. He served as a Director of Volvo Car Corporation from 2003 to 2007 and Ford Motor Credit Corporation from 2005 to 2007. Mr. Gouin holds an MBA degree in Finance from the University of Detroit Mercy, a Bachelor's degree in Business Administration from Detroit Institute of Technology and an Accounting Diploma from St. Clair College, Windsor, Ontario. Mr. Gouin received a B.B.A. from the Detroit Institute of Technology.

CEO Compensation
  • James's compensation has been consistent with company performance over the past year, both up more than 20%.
  • James's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Tower International management team in years:

2.6
Average Tenure
53
Average Age
  • The tenure for the Tower International management team is about average.
Management Team

James Gouin

TITLE
CEO & Director
COMPENSATION
$4M
AGE
59
TENURE
2.7 yrs

Jeffrey Kersten

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
51
TENURE
3 yrs

Nanette Dudek

TITLE
Vice President of Legal Affairs & Compliance and Corporate Secretary
COMPENSATION
$444K
AGE
53
TENURE
2.5 yrs

Mark Flynn

TITLE
Senior Vice President of Global Human Resources
COMPENSATION
$777K
AGE
54
TENURE
1.8 yrs

Gregory Guastella

TITLE
Chief Accounting Officer
AGE
36
TENURE
1.5 yrs

Derek Fiebig

TITLE
Vice President of Investor Relations & Corporate Communications
TENURE
9.3 yrs

Doug Wagner

TITLE
Senior Vice President of Sales Operations
TENURE
0.3 yrs

Andreas Meyer

TITLE
Senior Vice President of Tower Europe
TENURE
2.7 yrs

Reid Southby

TITLE
Executive VP & GM of Tower North America
TENURE
0.3 yrs

Xu Peipei

TITLE
President of Tower China
TENURE
13.1 yrs
Board of Directors Tenure

Average tenure and age of the Tower International board of directors in years:

9
Average Tenure
60
Average Age
  • The tenure for the Tower International board of directors is about average.
Board of Directors

Tony Brown

TITLE
Chairman of the Board
COMPENSATION
$365K
AGE
63
TENURE
2.4 yrs

James Gouin

TITLE
CEO & Director
COMPENSATION
$4M
AGE
59
TENURE
2.7 yrs

Dev Kapadia

TITLE
Independent Director
COMPENSATION
$215K
AGE
47
TENURE
12.1 yrs

Jim Chapman

TITLE
Independent Director
COMPENSATION
$225K
AGE
57
TENURE
9 yrs

Mark Malcolm

TITLE
Director
COMPENSATION
$215K
AGE
65
TENURE
12.1 yrs

Frank English

TITLE
Independent Director
COMPENSATION
$215K
AGE
73
TENURE
9.1 yrs

Alison Davis-Blake

TITLE
Independent Director
COMPENSATION
$215K
AGE
60
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Tower International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tower International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TWI News

Simply Wall St News

TWI Company Info

Description

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 Brazil. The company provides body structures and assemblies, including structural metal components, which comprise 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.

Details
Name: Tower International, Inc.
TWI
Exchange: DB
Founded: 1993
$588,232,188
20,690,472
Website: http://www.towerinternational.com
Address: Tower International, Inc.
17672 Laurel Park Drive North,
Suite 400 E,
Livonia,
Michigan, 48152,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TOWR Common Stock New York Stock Exchange US USD 15. Oct 2010
DB TWI Common Stock Deutsche Boerse AG DE EUR 15. Oct 2010
Number of employees
Current staff
Staff numbers
5,700
Tower International employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/30 21:39
End of day share price update: 2019/09/30 00:00
Last estimates confirmation: 2019/09/30
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.