TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
78.46 USD
+2.17 (+2.84%)
78.46 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. TKR has an average financial health and profitability rating. TKR is valued correctly, but it does not seem to be growing. Finally TKR also has an excellent dividend rating. This makes TKR very considerable 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.
TKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKR's Return On Assets of 4.37% is in line compared to the rest of the industry. TKR outperforms 51.54% of its industry peers.
TKR has a Return On Equity (9.48%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.75%, TKR is in line with its industry, outperforming 55.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TKR 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
TKR has a Profit Margin (6.54%) which is comparable to the rest of the industry.
TKR's Profit Margin has declined in the last couple of years.
TKR's Operating Margin of 13.21% is fine compared to the rest of the industry. TKR outperforms 64.62% of its industry peers.
TKR's Operating Margin has been stable in the last couple of years.
The Gross Margin of TKR (31.40%) 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKR is still creating some value.
The number of shares outstanding for TKR remains at a similar level compared to 1 year ago.
The number of shares outstanding for TKR has been reduced compared to 5 years ago.
Compared to 1 year ago, TKR has an improved debt to assets ratio.
2.2 Solvency
TKR has an Altman-Z score of 2.70. 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.
TKR has a Altman-Z score of 2.70. This is comparable to the rest of the industry: TKR outperforms 45.38% of its industry peers.
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 49.23% 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 Debt to Equity ratio of 0.67. This is in the lower half of the industry: TKR underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.85
WACC9.1%
2.3 Liquidity
A Current Ratio of 3.11 indicates that TKR has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.11, TKR is doing good in the industry, outperforming 77.69% 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 better Quick ratio (1.71) than 73.08% 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.
The Revenue has decreased by -1.01% in the past year.
TKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.83% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 14.67, which indicates a correct valuation of TKR.
Based on the Price/Earnings ratio, TKR is valued cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, TKR is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.01, which indicates a correct valuation of TKR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 85.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, TKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than TKR, based on the Enterprise Value to EBITDA ratio.
83.08% of the companies in the same industry are more expensive than TKR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.11
EPS Next 2Y2.05%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.84%.
Compared to an average industry Dividend Yield of 1.82, TKR pays a better dividend. On top of this TKR pays more dividend than 82.31% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 more than its dividend. This makes the dividend growth sustainable.
DP32.9%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
78.46
+2.17 (+2.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change-0.44%
Ins Owners4.43%
Ins Owner Change0.44%
Market Cap5.46B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target85.91 (9.5%)
Short Float %4.25%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)0.53%
PT rev (3m)7.9%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-5.08%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 13.01 | ||
| P/S | 1.2 | ||
| P/FCF | 14 | ||
| P/OCF | 9.94 | ||
| P/B | 1.74 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)5.35
EY6.82%
EPS(NY)6.03
Fwd EY7.68%
FCF(TTM)5.61
FCFY7.15%
OCF(TTM)7.89
OCFY10.06%
SpS65.26
BVpS45.01
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.11
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 | 2.7 |
F-Score6
WACC9.1%
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-8.42%
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.