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
Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

5

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.
TKR Yearly Net Income VS EBIT VS OCF VS FCFTKR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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 RankSector 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%
TKR Yearly ROA, ROE, ROICTKR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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 RankSector 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%
TKR Yearly Profit, Operating, Gross MarginsTKR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

5

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.
TKR Yearly Shares OutstandingTKR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
TKR Yearly Total Debt VS Total AssetsTKR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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 RankSector Rank
Debt/Equity 0.67
Debt/FCF 5.41
Altman-Z 2.89
ROIC/WACC0.84
WACC9.22%
TKR Yearly LT Debt VS Equity VS FCFTKR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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 RankSector Rank
Current Ratio 3.11
Quick Ratio 1.71
TKR Yearly Current Assets VS Current LiabilitesTKR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

3

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.
TKR Yearly Revenue VS EstimatesTKR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
TKR Yearly EPS VS EstimatesTKR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

5

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 RankSector Rank
PE 17.42
Fwd PE 15.44
TKR Price Earnings VS Forward Price EarningsTKR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 16.63
EV/EBITDA 9.81
TKR Per share dataTKR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)3.7
EPS Next 2Y2.09%
EPS Next 3Y4.7%

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 RankSector 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
TKR Yearly Dividends per shareTKR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
TKR Yearly Income VS Free CF VS DividendTKR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TKR Dividend Payout.TKR Dividend Payout, showing the Payout Ratio.TKR Dividend Payout.PayoutRetained Earnings

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.