TIMKEN CO (TKR)
US8873891043 - Common Stock
TKR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 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 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.
Each year in the past 5 years TKR has been profitable.
TKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKR has a Return On Assets (5.03%) which is in line with its industry peers.
TKR has a better Return On Equity (11.60%) than 62.99% of its industry peers.
With a Return On Invested Capital value of 8.00%, TKR perfoms like the industry average, outperforming 59.06% of the companies in the same 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 11.01%.
| 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
TKR's Profit Margin of 7.41% is fine compared to the rest of the industry. TKR outperforms 61.42% of its industry peers.
In the last couple of years the Profit Margin of TKR has remained more or less at the same level.
TKR's Operating Margin of 13.44% is fine compared to the rest of the industry. TKR outperforms 69.29% of its industry peers.
TKR's Operating Margin has improved in the last couple of years.
TKR has a Gross Margin of 31.52%. This is comparable to the rest of the industry: TKR outperforms 56.69% of its industry peers.
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
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 has been reduced compared to 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 a worse debt to assets ratio.
2.2 Solvency
TKR has an Altman-Z score of 2.63. 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 of 2.63. This is comparable to the rest of the industry: TKR outperforms 42.52% of its industry peers.
The Debt to FCF ratio of TKR is 8.74, which is on the high side as it means it would take TKR, 8.74 years of fcf income to pay off all of its debts.
TKR has a Debt to FCF ratio (8.74) which is in line with its industry peers.
TKR has a Debt/Equity ratio of 0.76. This is a neutral value indicating TKR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, TKR is doing worse than 75.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.92
WACC8.68%
2.3 Liquidity
A Current Ratio of 3.00 indicates that TKR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.00, TKR is in the better half of the industry, outperforming 76.38% of the companies in the same industry.
TKR has a Quick Ratio of 1.62. This is a normal value and indicates that TKR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.62, TKR is doing good in the industry, outperforming 69.29% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 10.93% on average over the past years. This is quite good.
Looking at the last year, TKR shows a decrease in Revenue. The Revenue has decreased by -3.55% in the last year.
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
Based on estimates for the next years, TKR will show a small growth in Earnings Per Share. The EPS will grow by 2.42% on average per year.
TKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
EPS Next Y-16.09%
EPS Next 2Y-1.98%
EPS Next 3Y2.42%
EPS Next 5YN/A
Revenue Next Year-3.41%
Revenue Next 2Y0.09%
Revenue Next 3Y1.51%
Revenue Next 5YN/A
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 decreasing.
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
TKR is valuated correctly with a Price/Earnings ratio of 12.60.
Based on the Price/Earnings ratio, TKR is valued cheaply inside the industry as 85.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TKR to the average of the S&P500 Index (28.96), we can say TKR is valued rather cheaply.
A Price/Forward Earnings ratio of 11.21 indicates a reasonable valuation of TKR.
TKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 89.76% of the companies in the same industry.
TKR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.21 |
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 82.68% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKR indicates a somewhat cheap valuation: TKR is cheaper than 73.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.69 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The decent profitability rating of TKR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y-1.98%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.81%. 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 1.54. TKR pays more dividend than 87.40% of the companies in the same industry.
TKR's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of TKR has a limited annual growth rate of 3.39%.
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)3.39%
Div Incr Years10
Div Non Decr Years14
5.3 Sustainability
TKR pays out 28.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of TKR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.04%
EPS Next 2Y-1.98%
EPS Next 3Y2.42%
TIMKEN CO
NYSE:TKR (11/22/2024, 2:00:03 PM)
75.58
+0.36 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 11.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.44% | ||
| PM (TTM) | 7.41% | ||
| GM | 31.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-12.66%
EPS 3Y19.63%
EPS 5Y
EPS Q2Q%
EPS Next Y-16.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y10.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y