TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
73.17 USD
-0.87 (-1.18%)
73.17 USD
0 (0%)
TKR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 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 correct valuation and a medium growth rate. TKR also has an excellent dividend rating. This makes TKR very considerable for dividend investing!
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.
TKR had positive earnings in each of the past 5 years.
Each year in the past 5 years TKR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.55%, TKR perfoms like the industry average, outperforming 52.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.01%, TKR is in line with its industry, outperforming 55.81% of the companies in the same industry.
TKR has a Return On Invested Capital of 7.19%. This is comparable to the rest of the industry: TKR outperforms 55.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TKR is in line with the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 10.01% | ||
| ROIC | 7.19% |
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 (6.86%) is comparable to the rest of the industry.
TKR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.38%, TKR is in the better half of the industry, outperforming 65.12% 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.
With a Gross Margin value of 30.76%, TKR perfoms like the industry average, outperforming 48.06% of the companies in the same 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 | 12.38% | ||
| PM (TTM) | 6.86% | ||
| GM | 30.76% |
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.
TKR has about the same amout of shares outstanding than it did 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 2.62. 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 (2.62) which is in line with its industry peers.
TKR has a debt to FCF ratio of 6.98. This is a slightly negative value and a sign of low solvency as TKR would need 6.98 years to pay back of all of its debts.
TKR has a Debt to FCF ratio (6.98) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.69 indicates that TKR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, TKR is not doing good in the industry: 68.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.8
WACC8.98%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TKR has no problem at all paying its short term obligations.
TKR has a better Current ratio (3.13) than 78.29% of its industry peers.
A Quick Ratio of 1.72 indicates that TKR should not have too much problems paying its short term obligations.
The Quick ratio of TKR (1.72) is better than 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
TKR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.56%.
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 -2.01%.
TKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.83% yearly.
EPS 1Y (TTM)-17.56%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%-12.88%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
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 12.66% yearly.
Based on estimates for the next years, TKR will show a small growth in Revenue. The Revenue will grow by 3.72% on average per year.
EPS Next Y-8.35%
EPS Next 2Y2.27%
EPS Next 3Y5.11%
EPS Next 5Y12.66%
Revenue Next Year-1.15%
Revenue Next 2Y0.95%
Revenue Next 3Y1.81%
Revenue Next 5Y3.72%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.04, the valuation of TKR can be described as correct.
Based on the Price/Earnings ratio, TKR is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.40. TKR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.08 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 88.37% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, TKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 82.95% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TKR is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.19 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.98
EPS Next 2Y2.27%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, TKR has a reasonable but not impressive dividend return.
TKR's Dividend Yield is rather good when compared to the industry average which is at 1.82. TKR pays more dividend than 82.17% of the companies 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 | 1.88% |
5.2 History
The dividend of TKR has a limited annual growth rate of 4.12%.
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)4.12%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
TKR pays out 31.38% 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.
DP31.38%
EPS Next 2Y2.27%
EPS Next 3Y5.11%
73.17
-0.87 (-1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change-0.11%
Ins Owners4.43%
Ins Owner Change0.44%
Market Cap5.10B
Analysts71.76
Price Target85.91 (17.41%)
Short Float %4.52%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend1.37
Dividend Growth(5Y)4.12%
DP31.38%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-4.26%
Max EPS beat(2)3.22%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-11.49%
Max EPS beat(4)16.07%
EPS beat(8)5
Avg EPS beat(8)3.41%
EPS beat(12)8
Avg EPS beat(12)4.66%
EPS beat(16)10
Avg EPS beat(16)6.36%
Revenue beat(2)2
Avg Revenue beat(2)0.59%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.16%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.19%
PT rev (1m)0.4%
PT rev (3m)8.67%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.59%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 12.08 | ||
| P/S | 1.13 | ||
| P/FCF | 16.19 | ||
| P/OCF | 10.8 | ||
| P/B | 1.65 | ||
| P/tB | 9.05 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)5.21
EY7.12%
EPS(NY)6.06
Fwd EY8.28%
FCF(TTM)4.52
FCFY6.18%
OCF(TTM)6.77
OCFY9.26%
SpS64.82
BVpS44.44
TBVpS8.09
PEG (NY)N/A
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 10.01% | ||
| ROCE | 9.4% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 14.32% | ||
| OM | 12.38% | ||
| PM (TTM) | 6.86% | ||
| GM | 30.76% | ||
| FCFM | 6.97% |
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%
ROICexcg growth 3Y-1.39%
ROICexcg 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 69.86% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.2% | ||
| Profit Quality | 101.61% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.62 |
F-Score6
WACC8.98%
ROIC/WACC0.8
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)-17.56%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%-12.88%
EPS Next Y-8.35%
EPS Next 2Y2.27%
EPS Next 3Y5.11%
EPS Next 5Y12.66%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
Revenue Next Year-1.15%
Revenue Next 2Y0.95%
Revenue Next 3Y1.81%
Revenue Next 5Y3.72%
EBIT growth 1Y-12.71%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.37%
EBIT Next 3Y13.19%
EBIT Next 5Y13.43%
FCF growth 1Y-24.11%
FCF growth 3Y8.55%
FCF growth 5Y-5.68%
OCF growth 1Y-22.58%
OCF growth 3Y7.09%
OCF growth 5Y-2.86%