TIMKEN CO (TKR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TKR • US8873891043
94.065 USD
+0.88 (+0.94%)
Last: Feb 2, 2026, 11:41 AM
TKR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. TKR has an average financial health and profitability rating. 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 could make TKR a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year TKR was profitable.
- 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 4.37%. This is comparable to the rest of the industry: TKR outperforms 56.82% of 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 in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for TKR is in line with the industry average of 10.18%.
| 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.
- 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.
- In the last couple of years the Operating Margin of TKR has remained more or less at the same level.
- TKR's Gross Margin of 31.40% is in line compared to the rest of the industry. TKR outperforms 51.52% of its industry peers.
- TKR's Gross Margin has been stable in the last couple of years.
| 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.
- TKR has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TKR has less shares outstanding
- The debt/assets ratio for TKR has been reduced compared to a year ago.
2.2 Solvency
- TKR has an Altman-Z score of 2.89. This is not the best score and indicates that TKR is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of TKR (2.89) 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.
- TKR has a Debt to FCF ratio (5.41) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.67 indicates that TKR is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.67, TKR is doing worse than 65.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.84
WACC9.25%
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.
- With a decent Current ratio value of 3.11, TKR is doing good in 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's Quick ratio of 1.71 is fine compared to the rest 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.
- The Earnings Per Share has been growing slightly by 4.71% on average over the past years.
- Looking at the last year, TKR shows a decrease in Revenue. The Revenue has decreased by -1.01% in the last year.
- 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
- The Earnings Per Share is expected to grow by 4.17% on average over the next years.
- TKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-7.96%
EPS Next 2Y2.09%
EPS Next 3Y4.7%
EPS Next 5Y4.17%
Revenue Next Year-0.43%
Revenue Next 2Y1.38%
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
- The Price/Earnings ratio is 17.58, which indicates a rather expensive current valuation of TKR.
- TKR's Price/Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 81.06% of the companies in the same industry.
- TKR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.59, the valuation of TKR can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 83.33% of the companies listed in the same industry.
- TKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
- TKR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TKR is cheaper than 84.85% of the companies in the same industry.
- 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 | 16.78 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.73
EPS Next 2Y2.09%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.49%, TKR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.01, TKR pays a better dividend. On top of this TKR pays more dividend than 81.82% of the companies listed in the same industry.
- TKR's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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 2Y2.09%
EPS Next 3Y4.7%
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 -7.96% in the next year.