TIMKEN CO (TKR)
US8873891043 - Common Stock
Overall TKR gets a fundamental rating of 5 out of 10. We evaluated TKR against 132 industry peers in the Machinery industry. TKR has an average financial health and profitability rating. TKR is cheap, 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 value and 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.
In the past 5 years TKR has always been profitable.
TKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.03%, TKR is in line with its industry, outperforming 57.69% of the companies in the same industry.
The Return On Equity of TKR (11.60%) is better than 63.08% of its industry peers.
The Return On Invested Capital of TKR (8.00%) is comparable to the rest of the industry.
TKR had an Average Return On Invested Capital over the past 3 years of 10.03%. This is in line with the industry average of 11.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 11.6% | ||
| ROIC | 8% |
ROA(3y)6.74%
ROA(5y)6.66%
ROE(3y)16.43%
ROE(5y)16.38%
ROIC(3y)10.03%
ROIC(5y)9.63%
1.3 Margins
With a decent Profit Margin value of 7.41%, TKR is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of TKR has remained more or less at the same level.
TKR has a better Operating Margin (13.44%) than 69.23% of its industry peers.
In the last couple of years the Operating Margin of TKR has grown nicely.
Looking at the Gross Margin, with a value of 31.52%, TKR is in line with its industry, outperforming 54.62% of the companies in the same industry.
TKR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.44% | ||
| PM (TTM) | 7.41% | ||
| GM | 31.52% |
OM growth 3Y2.82%
OM growth 5Y2.8%
PM growth 3Y0.68%
PM growth 5Y-0.46%
GM growth 3Y3.25%
GM growth 5Y1.73%
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.
The number of shares outstanding for TKR has been reduced compared to 1 year ago.
Compared to 5 years ago, TKR has less shares outstanding
Compared to 1 year ago, TKR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKR (2.59) is comparable to the rest of the industry.
TKR has a debt to FCF ratio of 8.74. This is a slightly negative value and a sign of low solvency as TKR would need 8.74 years to pay back of all of its debts.
TKR has a Debt to FCF ratio of 8.74. This is comparable to the rest of the industry: TKR outperforms 44.62% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that TKR is somewhat dependend on debt financing.
The Debt to Equity ratio of TKR (0.76) is worse than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.94
WACC8.55%
2.3 Liquidity
TKR has a Current Ratio of 3.00. This indicates that TKR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TKR (3.00) is better than 76.15% of its industry peers.
A Quick Ratio of 1.62 indicates that TKR should not have too much problems paying its short term obligations.
TKR has a better Quick ratio (1.62) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for TKR have decreased strongly by -12.66% in the last year.
Measured over the past years, TKR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.93% on average per year.
TKR shows a decrease in Revenue. In the last year, the revenue decreased by -3.55%.
TKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
EPS 1Y (TTM)-12.66%
EPS 3Y19.63%
EPS 5Y10.93%
EPS Q2Q%-20.65%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y10.72%
Revenue growth 5Y5.9%
Sales Q2Q%-1.39%
3.2 Future
TKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.90% yearly.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-19.13%
EPS Next 2Y-4.09%
EPS Next 3Y1.05%
EPS Next 5Y3.9%
Revenue Next Year-3.51%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.27%
Revenue Next 5Y1.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 11.94, the valuation of TKR can be described as very reasonable.
Based on the Price/Earnings ratio, TKR is valued cheaper than 85.38% of the companies in the same industry.
TKR is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.09, which indicates a very decent 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 90.00% of the companies listed in the same industry.
TKR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKR indicates a somewhat cheap valuation: TKR is cheaper than 74.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.61 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
The decent profitability rating of TKR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y-4.09%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, TKR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.71, TKR pays a better dividend. On top of this TKR pays more dividend than 86.92% of the companies listed in the same industry.
TKR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of TKR has a limited annual growth rate of 3.39%.
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)3.39%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
28.04% of the earnings are spent on dividend by TKR. This is a low number and 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.
DP28.04%
EPS Next 2Y-4.09%
EPS Next 3Y1.05%
TIMKEN CO
NYSE:TKR (12/20/2024, 8:04:00 PM)
After market: 71.63 0 (0%)71.63
+0.87 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.81%
Inst Owner Change0.12%
Ins Owners6.06%
Ins Owner Change-5.09%
Market Cap5.02B
Analysts68.75
Price Target88.74 (23.89%)
Short Float %1.89%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Dividend Growth(5Y)3.39%
DP28.04%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.46%
Min EPS beat(2)-11.49%
Max EPS beat(2)0.58%
EPS beat(4)3
Avg EPS beat(4)3.99%
Min EPS beat(4)-11.49%
Max EPS beat(4)15.8%
EPS beat(8)5
Avg EPS beat(8)3.5%
EPS beat(12)8
Avg EPS beat(12)7.25%
EPS beat(16)9
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.19%
Revenue beat(4)2
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)2.52%
Revenue beat(8)3
Avg Revenue beat(8)-0.59%
Revenue beat(12)6
Avg Revenue beat(12)0.07%
Revenue beat(16)10
Avg Revenue beat(16)0.45%
PT rev (1m)-6.25%
PT rev (3m)-7.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.15%
EPS NY rev (1m)-3.63%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 11.09 | ||
| P/S | 1.09 | ||
| P/FCF | 19.61 | ||
| P/OCF | 11.81 | ||
| P/B | 1.71 | ||
| P/tB | 12.3 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)6
EY8.38%
EPS(NY)6.46
Fwd EY9.02%
FCF(TTM)3.65
FCFY5.1%
OCF(TTM)6.07
OCFY8.47%
SpS65.47
BVpS41.83
TBVpS5.82
PEG (NY)N/A
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 11.6% | ||
| ROCE | 10.53% | ||
| ROIC | 8% | ||
| ROICexc | 8.63% | ||
| ROICexgc | 16.06% | ||
| OM | 13.44% | ||
| PM (TTM) | 7.41% | ||
| GM | 31.52% | ||
| FCFM | 5.58% |
ROA(3y)6.74%
ROA(5y)6.66%
ROE(3y)16.43%
ROE(5y)16.38%
ROIC(3y)10.03%
ROIC(5y)9.63%
ROICexc(3y)10.9%
ROICexc(5y)10.41%
ROICexgc(3y)20.14%
ROICexgc(5y)19.1%
ROCE(3y)13.25%
ROCE(5y)12.76%
ROICexcg growth 3Y12.52%
ROICexcg growth 5Y6.03%
ROICexc growth 3Y7.91%
ROICexc growth 5Y3.8%
OM growth 3Y2.82%
OM growth 5Y2.8%
PM growth 3Y0.68%
PM growth 5Y-0.46%
GM growth 3Y3.25%
GM growth 5Y1.73%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.74 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 77.7% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.96% | ||
| Profit Quality | 75.28% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.59 |
F-Score6
WACC8.55%
ROIC/WACC0.94
Cap/Depr(3y)96.82%
Cap/Depr(5y)90.15%
Cap/Sales(3y)3.83%
Cap/Sales(5y)3.73%
Profit Quality(3y)75.16%
Profit Quality(5y)99.77%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.66%
EPS 3Y19.63%
EPS 5Y10.93%
EPS Q2Q%-20.65%
EPS Next Y-19.13%
EPS Next 2Y-4.09%
EPS Next 3Y1.05%
EPS Next 5Y3.9%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y10.72%
Revenue growth 5Y5.9%
Sales Q2Q%-1.39%
Revenue Next Year-3.51%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.27%
Revenue Next 5Y1.86%
EBIT growth 1Y-12.76%
EBIT growth 3Y13.85%
EBIT growth 5Y8.87%
EBIT Next Year12.01%
EBIT Next 3Y8.57%
EBIT Next 5Y10.3%
FCF growth 1Y62.29%
FCF growth 3Y-7.8%
FCF growth 5Y10.2%
OCF growth 1Y30.89%
OCF growth 3Y-1.91%
OCF growth 5Y10.4%