TIMKEN CO (TKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKR - US8873891043 - Common Stock
86.02 USD
-0.07 (-0.08%)
86.02 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TKR. TKR was compared to 132 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 is valued correctly, but it does not seem to be growing. TKR also has an excellent dividend rating. These ratings would make TKR suitable for dividend investing!
1. Profitability
1.1 Basic Checks
TKR had positive earnings in the past year.
In the past year TKR had a positive cash flow from operations.
Each year in the past 5 years TKR has been profitable.
In the past 5 years TKR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.37%, TKR is in line with its industry, outperforming 55.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.48%, TKR is in line with its industry, outperforming 59.85% 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 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TKR is in line with the industry average of 10.27%.
| 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
With a Profit Margin value of 6.54%, TKR perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of TKR has declined.
TKR's Operating Margin of 13.21% is fine compared to the rest of the industry. TKR outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of TKR has remained more or less at the same level.
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.
TKR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TKR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.81 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKR has a Altman-Z score (2.81) which is in line with 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.
The Debt to FCF ratio of TKR (5.41) is comparable to the rest of the industry.
TKR has a Debt/Equity ratio of 0.67. This is a neutral value indicating TKR is somewhat dependend on debt financing.
TKR's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. TKR is outperformed by 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.86
WACC9.03%
2.3 Liquidity
A Current Ratio of 3.11 indicates that TKR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.11, TKR is in the better half of 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 has a better Quick ratio (1.71) than 71.21% of its industry peers.
| 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%.
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.
TKR shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
TKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.83% yearly.
EPS 1Y (TTM)-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.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-8.06%
EPS Next 2Y1.96%
EPS Next 3Y3.92%
EPS Next 5Y4.17%
Revenue Next Year-0.41%
Revenue Next 2Y1.41%
Revenue Next 3Y1.85%
Revenue Next 5Y1.65%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 16.08, which indicates a correct valuation of TKR.
Compared to the rest of the industry, the Price/Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 82.58% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, TKR is valued a bit cheaper.
TKR is valuated correctly with a Price/Forward Earnings ratio of 14.29.
TKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 84.85% of the companies in the same industry.
TKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
82.58% 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 | 15.35 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.41
EPS Next 2Y1.96%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, 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 1.04. TKR pays more dividend than 82.58% of the companies in the same industry.
TKR's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 their dividend for at least 10 years, which is a reliable track record.
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.9%
EPS Next 2Y1.96%
EPS Next 3Y3.92%
86.02
-0.07 (-0.08%)
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 Cap5.99B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price TargetN/A
Short Float %3.94%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)4.01%
PT rev (3m)4.56%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-9.3%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.29 | ||
| P/S | 1.32 | ||
| P/FCF | 15.35 | ||
| P/OCF | 10.9 | ||
| P/B | 1.91 | ||
| P/tB | 9.52 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)5.35
EY6.22%
EPS(NY)6.02
Fwd EY7%
FCF(TTM)5.6
FCFY6.52%
OCF(TTM)7.89
OCFY9.17%
SpS65.24
BVpS45
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.41
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 | 2.81 |
F-Score6
WACC9.03%
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-8.06%
EPS Next 2Y1.96%
EPS Next 3Y3.92%
EPS Next 5Y4.17%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%2.69%
Revenue Next Year-0.41%
Revenue Next 2Y1.41%
Revenue Next 3Y1.85%
Revenue Next 5Y1.65%
EBIT growth 1Y-2.68%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year24.25%
EBIT Next 3Y11.81%
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 -8.06% in the next year.