TIMKEN CO (TKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKR - US8873891043 - Common Stock
77.48 USD
+2.93 (+3.93%)
77.48 USD
0 (0%)
Overall TKR gets a fundamental rating of 5 out of 10. We evaluated TKR against 130 industry peers in the Machinery industry. Both the profitability and the financial health of TKR get a neutral evaluation. Nothing too spectacular is happening here. TKR has a valuation in line with the averages, but on the other hand it scores bad on growth. TKR also has an excellent dividend rating. These ratings would make TKR suitable for dividend investing!
1. Profitability
1.1 Basic Checks
TKR had positive earnings in the past year.
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's Return On Assets of 4.37% is in line compared to the rest of the industry. TKR outperforms 54.62% of its industry peers.
Looking at the Return On Equity, with a value of 9.48%, TKR is in line with its industry, outperforming 59.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.75%, TKR is in line with its industry, outperforming 57.69% of the companies in the same 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 10.24%.
| 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
The Profit Margin of TKR (6.54%) is comparable to the rest of the industry.
TKR's Profit Margin has declined in the last couple of years.
The Operating Margin of TKR (13.21%) is better than 65.38% of its industry peers.
TKR's Operating Margin has been stable in the last couple of years.
TKR has a Gross Margin (31.40%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TKR is creating some value.
The number of shares outstanding for TKR remains at a similar level compared to 1 year ago.
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 2.71 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKR (2.71) is comparable to the rest of the industry.
The Debt to FCF ratio of TKR is 5.41, which is a neutral value as it means it would take TKR, 5.41 years of fcf income to pay off 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 53.08% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that TKR is somewhat dependend on debt financing.
TKR has a worse Debt to Equity ratio (0.67) than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.86
WACC9%
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.
TKR has a better Current ratio (3.11) than 78.46% of its industry peers.
TKR has a Quick Ratio of 1.71. This is a normal value and indicates that TKR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TKR (1.71) is better than 70.77% 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.
TKR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.71% yearly.
TKR shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
The Revenue has been growing slightly by 3.83% on average over the past years.
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
Based on estimates for the next years, TKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.67% on average per year.
TKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y-8.42%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
EPS Next 5Y8.67%
Revenue Next Year-0.67%
Revenue Next 2Y1.34%
Revenue Next 3Y1.8%
Revenue Next 5Y2.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.48, the valuation of TKR can be described as correct.
Based on the Price/Earnings ratio, TKR is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
TKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
A Price/Forward Earnings ratio of 12.85 indicates a correct valuation of TKR.
Based on the Price/Forward Earnings ratio, TKR is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.46. TKR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 83.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.82 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.08
EPS Next 2Y2.05%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.95, TKR pays a better dividend. On top of this TKR pays more dividend than 81.54% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
32.90% of the earnings are spent on dividend by TKR. This is a low number and sustainable payout ratio.
TKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.9%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
77.48
+2.93 (+3.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change8.02%
Ins Owners4.43%
Ins Owner Change-0.4%
Market Cap5.40B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target89.15 (15.06%)
Short Float %3.61%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend1.37
Dividend Growth(5Y)4.12%
DP32.9%
Div Incr Years11
Div Non Decr Years15
Ex-Date
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)3.77%
PT rev (3m)4.19%
EPS NQ rev (1m)-7.6%
EPS NQ rev (3m)-10.04%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 12.85 | ||
| P/S | 1.19 | ||
| P/FCF | 13.82 | ||
| P/OCF | 9.82 | ||
| P/B | 1.72 | ||
| P/tB | 8.57 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)5.35
EY6.91%
EPS(NY)6.03
Fwd EY7.78%
FCF(TTM)5.61
FCFY7.24%
OCF(TTM)7.89
OCFY10.19%
SpS65.26
BVpS45.01
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.08
Graham Number73.61
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 | 2.71 |
F-Score6
WACC9%
ROIC/WACC0.86
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-8.42%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
EPS Next 5Y8.67%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%2.69%
Revenue Next Year-0.67%
Revenue Next 2Y1.34%
Revenue Next 3Y1.8%
Revenue Next 5Y2.7%
EBIT growth 1Y-2.68%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.37%
EBIT Next 3Y13.19%
EBIT Next 5Y11.58%
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.
What is the valuation status of TIMKEN CO (TKR) stock?
ChartMill assigns a valuation rating of 6 / 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.
How financially healthy is TIMKEN CO?
The financial health rating of TIMKEN CO (TKR) is 5 / 10.
What is the earnings growth outlook for TIMKEN CO?
The Earnings per Share (EPS) of TIMKEN CO (TKR) is expected to decline by -8.42% in the next year.