TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
78.2 USD
-0.7 (-0.89%)
78.2 USD
0 (0%)
Taking everything into account, TKR scores 5 out of 10 in our fundamental rating. TKR was compared to 130 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 on the other hand it scores bad on growth. 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.
Each year in the past 5 years TKR has been profitable.
Each year in the past 5 years TKR had a positive operating cash flow.
1.2 Ratios
TKR's Return On Assets of 4.37% is in line compared to the rest of the industry. TKR outperforms 53.08% of its industry peers.
TKR has a Return On Equity (9.48%) which is comparable to the rest of the industry.
TKR's Return On Invested Capital of 7.75% is in line compared to the rest of the industry. TKR outperforms 56.15% of its industry peers.
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 10.27%.
| 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 56.92% 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 65.38% 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 has a Gross Margin of 31.40%. This is comparable to the rest of the industry: TKR outperforms 51.54% 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.
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 2.72. 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 (2.72) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 5.41, TKR perfoms like the industry average, outperforming 52.31% 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 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.85
WACC9.09%
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 78.46% of the companies in the same industry.
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.
TKR's Quick ratio of 1.71 is fine compared to the rest of the industry. TKR outperforms 71.54% 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.
The Revenue has decreased by -1.01% in the past 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
TKR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.67% yearly.
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
With a Price/Earnings ratio of 14.62, TKR is valued correctly.
Based on the Price/Earnings ratio, TKR is valued cheaper than 83.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. TKR is valued slightly cheaper when compared to this.
TKR is valuated correctly with a Price/Forward Earnings ratio of 12.97.
83.08% 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 rather cheap valuation when compared to the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 12.97 |
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.
Based on the Price/Free Cash Flow ratio, TKR is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.1
EPS Next 2Y2.05%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.80%.
Compared to an average industry Dividend Yield of 1.85, 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 2.36, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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.
The dividend of TKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.9%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
78.2
-0.7 (-0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change2.6%
Ins Owners4.43%
Ins Owner Change-0.4%
Market Cap5.45B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target85.91 (9.86%)
Short Float %4.25%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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%
PT rev (3m)0.4%
EPS NQ rev (1m)-9.41%
EPS NQ rev (3m)-11.67%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 12.97 | ||
| P/S | 1.2 | ||
| P/FCF | 13.95 | ||
| P/OCF | 9.91 | ||
| P/B | 1.74 | ||
| P/tB | 8.65 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)5.35
EY6.84%
EPS(NY)6.03
Fwd EY7.71%
FCF(TTM)5.61
FCFY7.17%
OCF(TTM)7.89
OCFY10.09%
SpS65.26
BVpS45.01
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.1
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 | 2.72 |
F-Score6
WACC9.09%
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.