TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
77.475 USD
-0.04 (-0.05%)
Taking everything into account, TKR scores 5 out of 10 in our fundamental rating. TKR was compared to 128 industry peers in the Machinery industry. TKR has an average financial health and profitability rating. TKR has a valuation in line with the averages, but it does not seem to be growing. Finally TKR also has an excellent dividend rating. This makes TKR very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TKR was profitable.
TKR had a positive operating cash flow in the past year.
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 has a Return On Assets (4.55%) which is in line with its industry peers.
TKR has a Return On Equity of 10.01%. This is comparable to the rest of the industry: TKR outperforms 55.47% of its industry peers.
The Return On Invested Capital of TKR (7.19%) is comparable to the rest of the 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 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 10.01% | ||
| ROIC | 7.19% |
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
Looking at the Profit Margin, with a value of 6.86%, TKR is in line with its industry, outperforming 56.25% 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 12.38% is fine compared to the rest of the industry. TKR outperforms 63.28% of its industry peers.
TKR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.76%, TKR is in line with its industry, outperforming 48.44% 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 | 12.38% | ||
| PM (TTM) | 6.86% | ||
| GM | 30.76% |
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.
TKR has about the same amout of shares outstanding than it did 1 year ago.
TKR has less shares outstanding than it did 5 years ago.
TKR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKR has a Altman-Z score (2.66) which is comparable to the rest of the industry.
TKR has a debt to FCF ratio of 6.98. This is a slightly negative value and a sign of low solvency as TKR would need 6.98 years to pay back of all of its debts.
TKR's Debt to FCF ratio of 6.98 is in line compared to the rest of the industry. TKR outperforms 42.97% of its industry peers.
TKR has a Debt/Equity ratio of 0.69. This is a neutral value indicating TKR is somewhat dependend on debt financing.
The Debt to Equity ratio of TKR (0.69) is worse than 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.76
WACC9.42%
2.3 Liquidity
TKR has a Current Ratio of 3.13. This indicates that TKR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.13, TKR is in the better half of the industry, outperforming 78.91% of the companies in the same industry.
TKR has a Quick Ratio of 1.72. 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 1.72, TKR is doing good in the industry, outperforming 74.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The earnings per share for TKR have decreased strongly by -17.56% in the last year.
The Earnings Per Share has been growing slightly by 4.71% on average over the past years.
Looking at the last year, TKR shows a decrease in Revenue. The Revenue has decreased by -2.01% in the last year.
Measured over the past years, TKR shows a small growth in Revenue. The Revenue has been growing by 3.83% on average per year.
EPS 1Y (TTM)-17.56%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%-12.88%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
3.2 Future
TKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y-7.93%
EPS Next 2Y2.62%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y0.98%
Revenue Next 3Y1.83%
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 stable.
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 14.87, which indicates a correct valuation of TKR.
83.59% of the companies in the same industry are more expensive than TKR, based on the Price/Earnings ratio.
TKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 12.71 indicates a correct 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 86.72% of the companies listed in the same industry.
TKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 12.71 |
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 82.81% of the companies listed in the same industry.
TKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TKR is cheaper than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.16
EPS Next 2Y2.62%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 1.74, TKR pays a better dividend. On top of this TKR pays more dividend than 81.25% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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
31.38% of the earnings are spent on dividend by TKR. This is a low number and sustainable payout ratio.
The dividend of TKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.38%
EPS Next 2Y2.62%
EPS Next 3Y5.31%
NYSE:TKR (9/15/2025, 2:52:10 PM)
77.475
-0.04 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change-1.18%
Ins Owners4.95%
Ins Owner Change4.86%
Market Cap5.40B
Analysts72.5
Price Target85.45 (10.29%)
Short Float %4.06%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend1.37
Dividend Growth(5Y)4.12%
DP31.38%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-4.26%
Max EPS beat(2)3.22%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-11.49%
Max EPS beat(4)16.07%
EPS beat(8)5
Avg EPS beat(8)3.41%
EPS beat(12)8
Avg EPS beat(12)4.66%
EPS beat(16)10
Avg EPS beat(16)6.36%
Revenue beat(2)2
Avg Revenue beat(2)0.59%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.16%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.19%
PT rev (1m)-0.13%
PT rev (3m)8.1%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 12.71 | ||
| P/S | 1.2 | ||
| P/FCF | 17.14 | ||
| P/OCF | 11.44 | ||
| P/B | 1.74 | ||
| P/tB | 9.58 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)5.21
EY6.72%
EPS(NY)6.1
Fwd EY7.87%
FCF(TTM)4.52
FCFY5.83%
OCF(TTM)6.77
OCFY8.74%
SpS64.82
BVpS44.44
TBVpS8.09
PEG (NY)N/A
PEG (5Y)3.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 10.01% | ||
| ROCE | 9.4% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 14.32% | ||
| OM | 12.38% | ||
| PM (TTM) | 6.86% | ||
| GM | 30.76% | ||
| FCFM | 6.97% |
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%
ROICexcg growth 3Y-1.39%
ROICexcg 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 69.86% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.2% | ||
| Profit Quality | 101.61% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.66 |
F-Score6
WACC9.42%
ROIC/WACC0.76
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)-17.56%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%-12.88%
EPS Next Y-7.93%
EPS Next 2Y2.62%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
Revenue Next Year-1.13%
Revenue Next 2Y0.98%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
EBIT growth 1Y-12.71%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.73%
EBIT Next 3Y13.62%
EBIT Next 5YN/A
FCF growth 1Y-24.11%
FCF growth 3Y8.55%
FCF growth 5Y-5.68%
OCF growth 1Y-22.58%
OCF growth 3Y7.09%
OCF growth 5Y-2.86%