TIMKEN CO (TKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKR - US8873891043 - Common Stock
83.21 USD
+0.45 (+0.54%)
83.21 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years TKR always reported a positive cash flow from operatings.
1.2 Ratios
TKR has a Return On Assets (4.37%) which is comparable to the rest of the industry.
With a Return On Equity value of 9.48%, TKR perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
TKR's Return On Invested Capital of 7.75% is in line compared to the rest of the industry. TKR outperforms 57.69% 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 10.39%.
| 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's Profit Margin of 6.54% is in line compared to the rest of the industry. TKR outperforms 58.46% 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.
With a Gross Margin value of 31.40%, TKR perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
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
TKR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TKR has about the same amount of shares outstanding.
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
An Altman-Z score of 2.77 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKR's Altman-Z score of 2.77 is in line compared to the rest of the industry. TKR outperforms 48.46% 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.
TKR has a Debt to FCF ratio of 5.41. This is comparable to the rest of the industry: TKR outperforms 53.08% of its industry peers.
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 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.86
WACC9.05%
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.
The Current ratio of TKR (3.11) is better than 77.69% of its industry peers.
A Quick Ratio of 1.71 indicates that TKR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.71, TKR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
TKR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.83%.
The Earnings Per Share has been growing slightly by 4.71% on average over the past years.
TKR shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
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.
Based on estimates for the next years, TKR will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y-8.42%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
EPS Next 5Y4.17%
Revenue Next Year-0.67%
Revenue Next 2Y1.34%
Revenue Next 3Y1.8%
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
With a Price/Earnings ratio of 15.55, TKR is valued correctly.
TKR's Price/Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 82.31% of the companies in the same industry.
TKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 13.80, which indicates a correct valuation of TKR.
Based on the Price/Forward Earnings ratio, TKR is valued a bit cheaper than 79.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, TKR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
TKR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TKR is cheaper than 85.38% of the companies in the same industry.
81.54% 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 | 14.85 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.3
EPS Next 2Y2.05%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
TKR's Dividend Yield is rather good when compared to the industry average which is at 1.90. TKR pays more dividend than 82.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 2Y2.05%
EPS Next 3Y4.27%
83.21
+0.45 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change8.02%
Ins Owners3.48%
Ins Owner Change-1.13%
Market Cap5.80B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target89.35 (7.38%)
Short Float %3.6%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)3.77%
PT rev (3m)4.19%
EPS NQ rev (1m)-7.68%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.8 | ||
| P/S | 1.28 | ||
| P/FCF | 14.85 | ||
| P/OCF | 10.55 | ||
| P/B | 1.85 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 8.93 |
EPS(TTM)5.35
EY6.43%
EPS(NY)6.03
Fwd EY7.25%
FCF(TTM)5.6
FCFY6.74%
OCF(TTM)7.89
OCFY9.48%
SpS65.24
BVpS45
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.3
Graham Number73.6
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 | 2.77 |
F-Score6
WACC9.05%
ROIC/WACC0.86
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 5Y4.17%
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 5Y1.65%
EBIT growth 1Y-2.68%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.37%
EBIT Next 3Y13.19%
EBIT Next 5Y9.62%
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.