TIMKENSTEEL CORP (TMST) Stock Fundamental Analysis
NYSE:TMST - New York Stock Exchange, Inc. - US8873991033 - Common Stock - Currency: USD
TMST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. While TMST has a great health rating, its profitability is only average at the moment. TMST has a bad growth rate and is valued cheaply. These ratings could make TMST a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TMST was profitable.
TMST had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TMST reported negative net income in multiple years.
Each year in the past 5 years TMST had a positive operating cash flow.
1.2 Ratios
TMST has a Return On Assets of 5.90%. This is in the better half of the industry: TMST outperforms 78.34% of its industry peers.
TMST has a better Return On Equity (9.49%) than 77.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.54%, TMST is in the better half of the industry, outperforming 73.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMST is in line with the industry average of 8.63%.
The last Return On Invested Capital (7.54%) for TMST is above the 3 year average (7.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 9.49% | ||
| ROIC | 7.54% |
ROA(3y)8.89%
ROA(5y)2.06%
ROE(3y)14.9%
ROE(5y)2.59%
ROIC(3y)7.32%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.09%, TMST is doing good in the industry, outperforming 70.06% of the companies in the same industry.
The Operating Margin of TMST (7.48%) is better than 61.78% of its industry peers.
In the last couple of years the Operating Margin of TMST has grown nicely.
TMST has a Gross Margin (13.69%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TMST has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 5.09% | ||
| GM | 13.69% |
OM growth 3YN/A
OM growth 5Y33.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y93.89%
GM growth 5Y11.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMST is destroying value.
The number of shares outstanding for TMST has been reduced compared to 1 year ago.
TMST has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TMST has an improved debt to assets ratio.
2.2 Solvency
TMST has an Altman-Z score of 2.99. This is not the best score and indicates that TMST is in the grey zone with still only limited risk for bankruptcy at the moment.
TMST's Altman-Z score of 2.99 is in line compared to the rest of the industry. TMST outperforms 59.87% of its industry peers.
The Debt to FCF ratio of TMST is 0.18, which is an excellent value as it means it would take TMST, only 0.18 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.18, TMST belongs to the best of the industry, outperforming 91.72% of the companies in the same industry.
TMST has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.02, TMST is doing good in the industry, outperforming 68.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.86
WACC8.73%
2.3 Liquidity
A Current Ratio of 2.64 indicates that TMST has no problem at all paying its short term obligations.
With a Current ratio value of 2.64, TMST perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
TMST has a Quick Ratio of 1.73. This is a normal value and indicates that TMST is financially healthy and should not expect problems in meeting its short term obligations.
TMST's Quick ratio of 1.73 is in line compared to the rest of the industry. TMST outperforms 53.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.18% over the past year.
The Revenue has been growing slightly by 2.44% in the past year.
The Revenue has been decreasing by -3.29% on average over the past years.
EPS 1Y (TTM)36.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%104.24%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y17.93%
Revenue growth 5Y-3.29%
Sales Q2Q%33.7%
3.2 Future
The Earnings Per Share is expected to grow by 6.55% on average over the next years.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y-1.1%
EPS Next 2Y6.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.87%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.88, which indicates a correct valuation of TMST.
TMST's Price/Earnings ratio is rather cheap when compared to the industry. TMST is cheaper than 80.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, TMST is valued rather cheaply.
TMST is valuated reasonably with a Price/Forward Earnings ratio of 11.09.
Based on the Price/Forward Earnings ratio, TMST is valued cheaply inside the industry as 83.44% of the companies are valued more expensively.
TMST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
91.72% of the companies in the same industry are more expensive than TMST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TMST is valued cheaply inside the industry as 84.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
TMST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TMST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.4
+0.21 (+1.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners82.12%
Inst Owner Change-93.05%
Ins Owners2.73%
Ins Owner Change0%
Market Cap880.26M
Analysts43.33
Price Target28.56 (40%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)1.17%
Revenue beat(8)2
Avg Revenue beat(8)-4.13%
Revenue beat(12)5
Avg Revenue beat(12)-1.5%
Revenue beat(16)5
Avg Revenue beat(16)-4.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-6.08%
EPS NY rev (3m)-4.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.09 | ||
| P/S | 0.65 | ||
| P/FCF | 11.94 | ||
| P/OCF | 7.03 | ||
| P/B | 1.2 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)1.47
EY7.21%
EPS(NY)1.84
Fwd EY9.02%
FCF(TTM)1.71
FCFY8.37%
OCF(TTM)2.9
OCFY14.23%
SpS31.57
BVpS16.95
TBVpS16.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 9.49% | ||
| ROCE | 10.99% | ||
| ROIC | 7.54% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 10.79% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.09% | ||
| GM | 13.69% | ||
| FCFM | 5.41% |
ROA(3y)8.89%
ROA(5y)2.06%
ROE(3y)14.9%
ROE(5y)2.59%
ROIC(3y)7.32%
ROIC(5y)N/A
ROICexc(3y)10.21%
ROICexc(5y)N/A
ROICexgc(3y)10.29%
ROICexgc(5y)N/A
ROCE(3y)10.88%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y40.86%
ROICexc growth 3YN/A
ROICexc growth 5Y41.23%
OM growth 3YN/A
OM growth 5Y33.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y93.89%
GM growth 5Y11.73%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 90.69% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 48.52 | ||
| Cash Conversion | 78.9% | ||
| Profit Quality | 106.2% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 2.99 |
F-Score6
WACC8.73%
ROIC/WACC0.86
Cap/Depr(3y)52.17%
Cap/Depr(5y)46.47%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.39%
Profit Quality(3y)126.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%104.24%
EPS Next Y-1.1%
EPS Next 2Y6.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.44%
Revenue growth 3Y17.93%
Revenue growth 5Y-3.29%
Sales Q2Q%33.7%
Revenue Next Year1.87%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y92.63%
EBIT growth 3YN/A
EBIT growth 5Y29.11%
EBIT Next Year58.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.38%
FCF growth 3Y-22.22%
FCF growth 5YN/A
OCF growth 1Y-6.84%
OCF growth 3Y-10.28%
OCF growth 5Y46.61%