TIMKEN CO (TKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKR - US8873891043 - Common Stock
87.38 USD
-1.33 (-1.5%)
87.38 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 only an average score on both its financial health and profitability. TKR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TKR was profitable.
TKR had a positive operating cash flow in the past year.
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
The Return On Assets of TKR (4.37%) is comparable to the rest of the industry.
TKR's Return On Equity of 9.48% is in line compared to the rest of the industry. TKR outperforms 59.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.75%, TKR is in line with its industry, outperforming 57.69% of the companies in the same industry.
TKR had an Average Return On Invested Capital over the past 3 years of 9.74%. This is in line with the industry average of 10.46%.
| 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 57.69% of the companies in the same industry.
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.
Looking at the Gross Margin, with a value of 31.40%, TKR is in line with its industry, 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.
The number of shares outstanding for TKR has been reduced compared to 5 years ago.
TKR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.84 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.84, TKR perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.41, TKR is in line with its industry, outperforming 53.08% of the companies in the same industry.
TKR has a Debt/Equity ratio of 0.67. This is a neutral value indicating TKR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, TKR is doing worse than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.84
WACC9.19%
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.
With a decent Current ratio value of 3.11, TKR is doing good in the industry, outperforming 77.69% of the companies in the same industry.
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's Quick ratio of 1.71 is fine compared to the rest of the industry. TKR outperforms 70.77% 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%.
TKR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.71% yearly.
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.
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-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
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
Based on the Price/Earnings ratio of 16.33, the valuation of TKR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 82.31% of the companies listed in the same industry.
TKR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.52 indicates a correct valuation of TKR.
Based on the Price/Forward Earnings ratio, TKR is valued cheaper than 82.31% of the companies in the same industry.
TKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaper than 83.08% of the companies in the same industry.
80.00% 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 | 15.59 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.47
EPS Next 2Y1.96%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, 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 1.79. TKR pays more dividend than 82.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.27, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 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
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 2Y1.96%
EPS Next 3Y3.92%
87.38
-1.33 (-1.5%)
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 Cap6.09B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target89.35 (2.25%)
Short Float %3.6%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)4.42%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)-9.57%
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 | 16.33 | ||
| Fwd PE | 14.52 | ||
| P/S | 1.34 | ||
| P/FCF | 15.59 | ||
| P/OCF | 11.08 | ||
| P/B | 1.94 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)5.35
EY6.12%
EPS(NY)6.02
Fwd EY6.89%
FCF(TTM)5.6
FCFY6.41%
OCF(TTM)7.89
OCFY9.03%
SpS65.24
BVpS45
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.47
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 | 2.84 |
F-Score6
WACC9.19%
ROIC/WACC0.84
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 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.
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.