TIMKEN CO (TKR)
US8873891043 - Common Stock
TKR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. TKR scores excellent on profitability, but there are some minor concerns on its financial health. TKR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TKR had positive earnings in the past year.
TKR had a positive operating cash flow in the past year.
In the past 5 years TKR has always been profitable.
Each year in the past 5 years TKR had a positive operating cash flow.
1.2 Ratios
TKR has a Return On Assets of 5.74%. This is in the better half of the industry: TKR outperforms 63.85% of its industry peers.
With a decent Return On Equity value of 14.39%, TKR is doing good in the industry, outperforming 68.46% of the companies in the same industry.
TKR has a Return On Invested Capital of 9.61%. This is in the better half of the industry: TKR outperforms 66.15% of its industry peers.
TKR had an Average Return On Invested Capital over the past 3 years of 10.03%. This is in line with the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 14.39% | ||
| ROIC | 9.61% |
ROA(3y)6.74%
ROA(5y)6.66%
ROE(3y)16.43%
ROE(5y)16.38%
ROIC(3y)10.03%
ROIC(5y)9.63%
1.3 Margins
The Profit Margin of TKR (7.99%) is better than 63.85% of its industry peers.
TKR's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 14.33%, TKR is doing good in the industry, outperforming 73.85% of the companies in the same industry.
In the last couple of years the Operating Margin of TKR has grown nicely.
TKR has a Gross Margin of 31.72%. This is in the better half of the industry: TKR outperforms 60.77% of its industry peers.
In the last couple of years the Gross Margin of TKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 7.99% | ||
| GM | 31.72% |
OM growth 3Y2.82%
OM growth 5Y2.8%
PM growth 3Y0.68%
PM growth 5Y-0.46%
GM growth 3Y3.25%
GM growth 5Y1.73%
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 has been reduced compared to 1 year ago.
TKR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TKR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.75 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKR (2.75) is comparable to the rest of the industry.
The Debt to FCF ratio of TKR is 7.37, which is on the high side as it means it would take TKR, 7.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.37, TKR is in line with its industry, outperforming 46.15% of the companies in the same industry.
TKR has a Debt/Equity ratio of 0.78. This is a neutral value indicating TKR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, TKR is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 7.37 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.11
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.87 indicates that TKR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, TKR perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that TKR should not have too much problems paying its short term obligations.
The Quick ratio of TKR (1.02) is worse than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
TKR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.08%.
Measured over the past years, TKR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.93% on average per year.
The Revenue has been growing slightly by 1.33% in the past year.
TKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
EPS 1Y (TTM)3.08%
EPS 3Y19.63%
EPS 5Y10.93%
EPS growth Q2Q-15.31%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y10.72%
Revenue growth 5Y5.9%
Revenue growth Q2Q-5.74%
3.2 Future
Based on estimates for the next years, TKR will show a small growth in Earnings Per Share. The EPS will grow by 3.55% on average per year.
The Revenue is expected to grow by 1.48% on average over the next years.
EPS Next Y-12.98%
EPS Next 2Y-0.63%
EPS Next 3Y3.55%
EPS Next 5YN/A
Revenue Next Year-2.99%
Revenue Next 2Y0.56%
Revenue Next 3Y1.48%
Revenue Next 5YN/A
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 decreasing.
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
A Price/Earnings ratio of 13.53 indicates a correct valuation of TKR.
80.77% of the companies in the same industry are more expensive than TKR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.60, TKR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.07, the valuation of TKR can be described as correct.
76.92% of the companies in the same industry are more expensive than TKR, based on the Price/Forward Earnings ratio.
TKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued a bit cheaper than 80.00% of the companies in the same industry.
TKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TKR is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.59 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
TKR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y-0.63%
EPS Next 3Y3.55%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.50%.
TKR's Dividend Yield is a higher than the industry average which is at 1.66.
Compared to the average S&P500 Dividend Yield of 2.32, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of TKR has a limited annual growth rate of 3.39%.
TKR has paid a dividend for at least 10 years, which is 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)3.39%
Div Incr Years10
Div Non Decr Years14
5.3 Sustainability
25.29% of the earnings are spent on dividend by TKR. This is a low number and sustainable payout ratio.
The dividend of TKR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP25.29%
EPS Next 2Y-0.63%
EPS Next 3Y3.55%
TIMKEN CO
NYSE:TKR (5/17/2024, 7:04:00 PM)
After market: 90.63 0 (0%)90.63
-0.16 (-0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 13.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 14.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.33% | ||
| PM (TTM) | 7.99% | ||
| GM | 31.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.08%
EPS 3Y19.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.33%
Revenue growth 3Y10.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y