TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
76.41 USD
-1.44 (-1.85%)
76.41 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 an average financial health and profitability rating. 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. 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.
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
TKR has a Return On Assets (4.37%) which is in line with its industry peers.
TKR has a Return On Equity of 9.48%. This is comparable to the rest of the industry: TKR outperforms 56.15% of its industry peers.
TKR has a Return On Invested Capital (7.75%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TKR is in line with the industry average of 10.28%.
| 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
TKR's Profit Margin of 6.54% is in line compared to the rest of the industry. TKR outperforms 56.92% of its industry peers.
In the last couple of years the Profit Margin of TKR has declined.
Looking at the Operating Margin, with a value of 13.21%, TKR is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
TKR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 31.40%, TKR perfoms like the industry average, outperforming 51.54% 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
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.
TKR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TKR has an improved debt to assets ratio.
2.2 Solvency
TKR has an Altman-Z score of 2.72. 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 2.72. This is comparable to the rest of the industry: TKR outperforms 47.69% 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.
TKR has a Debt to FCF ratio of 5.41. This is comparable to the rest of the industry: TKR outperforms 52.31% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that TKR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, TKR is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.86
WACC9.05%
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.
TKR has a better Current ratio (3.11) than 78.46% of its industry peers.
A Quick Ratio of 1.71 indicates that TKR should not have too much problems paying its short term obligations.
TKR's Quick ratio of 1.71 is fine compared to the rest of the industry. TKR outperforms 71.54% 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.
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)-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
TKR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.67% yearly.
TKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y-8.42%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
EPS Next 5Y8.67%
Revenue Next Year-0.67%
Revenue Next 2Y1.34%
Revenue Next 3Y1.8%
Revenue Next 5Y2.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 14.28, which indicates a correct valuation of TKR.
TKR's Price/Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 82.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. TKR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.67, TKR is valued correctly.
Based on the Price/Forward Earnings ratio, TKR is valued cheaper than 83.85% of the companies 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
85.38% of the companies in the same industry are more expensive than TKR, based on the Enterprise Value to EBITDA ratio.
TKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TKR is cheaper than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.03
EPS Next 2Y2.05%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, TKR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.86, TKR pays a better dividend. On top of this TKR pays more dividend than 82.31% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, TKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 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, but earnings are growing more, so the dividend growth is sustainable.
DP32.9%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
76.41
-1.44 (-1.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change2.6%
Ins Owners4.43%
Ins Owner Change-0.4%
Market Cap5.32B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target85.91 (12.43%)
Short Float %4.25%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)0%
PT rev (3m)0.4%
EPS NQ rev (1m)-9.41%
EPS NQ rev (3m)-11.67%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.17 | ||
| P/FCF | 13.63 | ||
| P/OCF | 9.68 | ||
| P/B | 1.7 | ||
| P/tB | 8.45 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)5.35
EY7%
EPS(NY)6.03
Fwd EY7.89%
FCF(TTM)5.61
FCFY7.34%
OCF(TTM)7.89
OCFY10.33%
SpS65.26
BVpS45.01
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.03
Graham Number73.61
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 | 2.72 |
F-Score6
WACC9.05%
ROIC/WACC0.86
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-8.42%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
EPS Next 5Y8.67%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%2.69%
Revenue Next Year-0.67%
Revenue Next 2Y1.34%
Revenue Next 3Y1.8%
Revenue Next 5Y2.7%
EBIT growth 1Y-2.68%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.37%
EBIT Next 3Y13.19%
EBIT Next 5Y11.58%
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 6 / 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 -8.42% in the next year.