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
Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

5

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.
TKR Yearly Net Income VS EBIT VS OCF VS FCFTKR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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 RankSector 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%
TKR Yearly ROA, ROE, ROICTKR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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 RankSector 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%
TKR Yearly Profit, Operating, Gross MarginsTKR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

5

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.
TKR Yearly Shares OutstandingTKR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
TKR Yearly Total Debt VS Total AssetsTKR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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 RankSector Rank
Debt/Equity 0.67
Debt/FCF 5.41
Altman-Z 2.89
ROIC/WACC0.84
WACC9.25%
TKR Yearly LT Debt VS Equity VS FCFTKR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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 RankSector Rank
Current Ratio 3.11
Quick Ratio 1.71
TKR Yearly Current Assets VS Current LiabilitesTKR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

3

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.
TKR Yearly Revenue VS EstimatesTKR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
TKR Yearly EPS VS EstimatesTKR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

5

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 RankSector Rank
PE 17.58
Fwd PE 15.59
TKR Price Earnings VS Forward Price EarningsTKR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 16.78
EV/EBITDA 9.81
TKR Per share dataTKR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)3.73
EPS Next 2Y2.09%
EPS Next 3Y4.7%

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 RankSector 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
TKR Yearly Dividends per shareTKR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
TKR Yearly Income VS Free CF VS DividendTKR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TKR Dividend Payout.TKR Dividend Payout, showing the Payout Ratio.TKR Dividend Payout.PayoutRetained Earnings

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.