TIMKEN CO (TKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKR - US8873891043 - Common Stock
91.17 USD
+0.57 (+0.63%)
91.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TKR. TKR was compared to 132 industry peers in the Machinery industry. TKR has only an average score on both its financial health and profitability. TKR has a valuation in line with the averages, but it does not seem to be growing. Finally TKR also has an excellent dividend rating. These ratings would make TKR suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TKR was profitable.
In the past year TKR had a positive cash flow from operations.
In the past 5 years TKR has always been profitable.
In the past 5 years TKR always reported a positive cash flow from operatings.
1.2 Ratios
TKR has a Return On Assets (4.37%) which is in line with its industry peers.
TKR has a Return On Equity of 9.48%. This is comparable to the rest of the industry: TKR outperforms 59.85% of its industry peers.
TKR has a Return On Invested Capital (7.75%) which is comparable to the rest of the industry.
TKR had an Average Return On Invested Capital over the past 3 years of 9.74%. This is in line with the industry average of 10.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 9.48% | ||
| ROIC | 7.75% |
ROA(3y)6.19%
ROA(5y)6.27%
ROE(3y)15.23%
ROE(5y)15%
ROIC(3y)9.74%
ROIC(5y)9.38%
1.3 Margins
TKR has a Profit Margin of 6.54%. This is comparable to the rest of the industry: TKR outperforms 57.58% of its industry peers.
In the last couple of years the Profit Margin of TKR has declined.
With a decent Operating Margin value of 13.21%, TKR is doing good in the industry, outperforming 65.15% of the companies in the same industry.
TKR's Operating Margin has been stable in the last couple of years.
TKR's Gross Margin of 31.40% is in line compared to the rest of the industry. TKR outperforms 52.27% of its industry peers.
In the last couple of years the Gross Margin of TKR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.21% | ||
| PM (TTM) | 6.54% | ||
| GM | 31.4% |
OM growth 3Y1.88%
OM growth 5Y-0.66%
PM growth 3Y-4.77%
PM growth 5Y-4.19%
GM growth 3Y5.7%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKR is still creating some value.
Compared to 1 year ago, TKR has about the same amount of shares outstanding.
TKR has less shares outstanding than it did 5 years ago.
TKR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.87 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKR has a Altman-Z score (2.87) which is comparable to the rest of the industry.
TKR has a debt to FCF ratio of 5.41. This is a neutral value as TKR would need 5.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.41, TKR is in line with its industry, outperforming 53.03% of the companies in the same industry.
TKR has a Debt/Equity ratio of 0.67. This is a neutral value indicating TKR is somewhat dependend on debt financing.
TKR has a worse Debt to Equity ratio (0.67) than 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.85
WACC9.06%
2.3 Liquidity
TKR has a Current Ratio of 3.11. This indicates that TKR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.11, TKR is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that TKR should not have too much problems paying its short term obligations.
TKR has a Quick ratio of 1.71. This is in the better half of the industry: TKR outperforms 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for TKR have decreased strongly by -10.83% in the last year.
Measured over the past 5 years, TKR shows a small growth in Earnings Per Share. The EPS has been growing by 4.71% on average per year.
TKR shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
Measured over the past years, TKR shows a small growth in Revenue. The Revenue has been growing by 3.83% on average per year.
EPS 1Y (TTM)-10.83%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%11.38%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%2.69%
3.2 Future
TKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.17% yearly.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-8%
EPS Next 2Y2.12%
EPS Next 3Y4.36%
EPS Next 5Y4.17%
Revenue Next Year-0.43%
Revenue Next 2Y1.42%
Revenue Next 3Y1.97%
Revenue Next 5Y1.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TKR is valuated rather expensively with a Price/Earnings ratio of 17.04.
TKR's Price/Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 82.58% of the companies in the same industry.
TKR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of TKR can be described as correct.
TKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 84.85% of the companies in the same industry.
TKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaply inside the industry as 85.61% of the companies are valued more expensively.
TKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TKR is cheaper than 80.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.62
EPS Next 2Y2.12%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.80, TKR pays a better dividend. On top of this TKR pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, TKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of TKR has a limited annual growth rate of 4.12%.
TKR has been paying a dividend for at least 10 years, so it has a reliable track record.
TKR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.12%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
TKR pays out 32.90% of its income as dividend. This is a sustainable payout ratio.
TKR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.9%
EPS Next 2Y2.12%
EPS Next 3Y4.36%
91.17
+0.57 (+0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change0.12%
Ins Owners3.47%
Ins Owner Change-1.13%
Market Cap6.35B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target90.37 (-0.88%)
Short Float %3.39%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend1.37
Dividend Growth(5Y)4.12%
DP32.9%
Div Incr Years11
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.18%
Min EPS beat(2)3.22%
Max EPS beat(2)9.15%
EPS beat(4)3
Avg EPS beat(4)6.04%
Min EPS beat(4)-4.26%
Max EPS beat(4)16.07%
EPS beat(8)6
Avg EPS beat(8)5.02%
EPS beat(12)8
Avg EPS beat(12)4.35%
EPS beat(16)11
Avg EPS beat(16)6.95%
Revenue beat(2)2
Avg Revenue beat(2)1.78%
Min Revenue beat(2)1.16%
Max Revenue beat(2)2.4%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)2.4%
Revenue beat(8)5
Avg Revenue beat(8)0.85%
Revenue beat(12)6
Avg Revenue beat(12)-0.12%
Revenue beat(16)9
Avg Revenue beat(16)0.25%
PT rev (1m)1.14%
PT rev (3m)5.2%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-8.31%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.1 | ||
| P/S | 1.4 | ||
| P/FCF | 16.27 | ||
| P/OCF | 11.56 | ||
| P/B | 2.03 | ||
| P/tB | 10.09 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)5.35
EY5.87%
EPS(NY)6.04
Fwd EY6.62%
FCF(TTM)5.6
FCFY6.15%
OCF(TTM)7.89
OCFY8.65%
SpS65.24
BVpS45
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.62
Graham Number73.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 9.48% | ||
| ROCE | 10.14% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.41% | ||
| ROICexgc | 15.56% | ||
| OM | 13.21% | ||
| PM (TTM) | 6.54% | ||
| GM | 31.4% | ||
| FCFM | 8.59% |
ROA(3y)6.19%
ROA(5y)6.27%
ROE(3y)15.23%
ROE(5y)15%
ROIC(3y)9.74%
ROIC(5y)9.38%
ROICexc(3y)10.58%
ROICexc(5y)10.18%
ROICexgc(3y)19.94%
ROICexgc(5y)18.77%
ROCE(3y)12.82%
ROCE(5y)12.4%
ROICexgc growth 3Y-1.39%
ROICexgc growth 5Y-2.05%
ROICexc growth 3Y-3.49%
ROICexc growth 5Y-2.51%
OM growth 3Y1.88%
OM growth 5Y-0.66%
PM growth 3Y-4.77%
PM growth 5Y-4.19%
GM growth 3Y5.7%
GM growth 5Y0.9%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 70.1% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.42% | ||
| Profit Quality | 131.32% | ||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.87 |
F-Score6
WACC9.06%
ROIC/WACC0.85
Cap/Depr(3y)92.91%
Cap/Depr(5y)87.97%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.73%
Profit Quality(3y)82.47%
Profit Quality(5y)94.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.83%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%11.38%
EPS Next Y-8%
EPS Next 2Y2.12%
EPS Next 3Y4.36%
EPS Next 5Y4.17%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%2.69%
Revenue Next Year-0.43%
Revenue Next 2Y1.42%
Revenue Next 3Y1.97%
Revenue Next 5Y1.65%
EBIT growth 1Y-2.68%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year24.16%
EBIT Next 3Y11.99%
EBIT Next 5Y9.62%
FCF growth 1Y-16.51%
FCF growth 3Y8.55%
FCF growth 5Y-5.68%
OCF growth 1Y-16.52%
OCF growth 3Y7.09%
OCF growth 5Y-2.86%
TIMKEN CO / TKR FAQ
What is the ChartMill fundamental rating of TIMKEN CO (TKR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TKR.
Can you provide the valuation status for TIMKEN CO?
ChartMill assigns a valuation rating of 5 / 10 to TIMKEN CO (TKR). This can be considered as Fairly Valued.
Can you provide the profitability details for TIMKEN CO?
TIMKEN CO (TKR) has a profitability rating of 5 / 10.
Can you provide the financial health for TKR stock?
The financial health rating of TIMKEN CO (TKR) is 5 / 10.
Can you provide the expected EPS growth for TKR stock?
The Earnings per Share (EPS) of TIMKEN CO (TKR) is expected to decline by -8% in the next year.