TIMKEN CO (TKR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TKR • US8873891043
93.19 USD
-0.96 (-1.02%)
At close: Jan 30, 2026
93.19 USD
0 (0%)
After Hours: 1/30/2026, 8:21:22 PM
Overall TKR gets a fundamental rating of 5 out of 10. We evaluated TKR against 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally TKR also has an excellent dividend rating. These ratings could make TKR a good candidate for 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.
- TKR had positive earnings in each of the past 5 years.
- TKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TKR's Return On Assets of 4.37% is in line compared to the rest of the industry. TKR outperforms 56.82% of its industry peers.
- The Return On Equity of TKR (9.48%) is comparable to the rest of the industry.
- TKR has a Return On Invested Capital (7.75%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for TKR is in line with the industry average of 10.18%.
| 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 57.58% 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 65.15% of its industry peers.
- TKR's Operating Margin has been stable in the last couple of years.
- TKR has a Gross Margin of 31.40%. This is comparable to the rest of the industry: TKR outperforms 51.52% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TKR is 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.
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.
- TKR's Altman-Z score of 2.89 is in line compared to the rest of the industry. TKR outperforms 48.48% of its industry peers.
- 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.
- The Debt to FCF ratio of TKR (5.41) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.67 indicates that TKR is somewhat dependend on debt financing.
- TKR has a worse Debt to Equity ratio (0.67) than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.84
WACC9.22%
2.3 Liquidity
- A Current Ratio of 3.11 indicates that TKR has no problem at all paying its short term obligations.
- TKR has a Current ratio of 3.11. This is in the better half of the industry: TKR outperforms 78.03% of its industry peers.
- TKR has a Quick Ratio of 1.71. This is a normal value and indicates that TKR is financially healthy and should not expect problems in meeting its short term obligations.
- TKR has a Quick ratio of 1.71. This is in the better half of the industry: TKR outperforms 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.
- The Revenue has decreased by -1.01% in the past year.
- 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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.42, TKR is valued on the expensive side.
- Based on the Price/Earnings ratio, TKR is valued cheaply inside the industry as 81.06% of the companies are valued more expensively.
- TKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 15.44, the valuation of TKR can be described as correct.
- Based on the Price/Forward Earnings ratio, TKR is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
- 84.85% of the companies in the same industry are more expensive than TKR, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, TKR is valued cheaper than 80.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.7
EPS Next 2Y2.09%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
- TKR has a Yearly Dividend Yield of 1.49%.
- TKR's Dividend Yield is rather good when compared to the industry average which is at 1.01. TKR pays more dividend than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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 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
- 32.90% 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.
DP32.9%
EPS Next 2Y2.09%
EPS Next 3Y4.7%
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.