TIMKEN CO (TKR)
US8873891043 - Common Stock
Overall TKR gets a fundamental rating of 5 out of 10. We evaluated TKR against 132 industry peers in the Machinery industry. TKR has an excellent profitability rating, but there are some minor concerns on its financial health. TKR has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years TKR has been profitable.
TKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKR has a better Return On Assets (5.74%) than 62.79% of its industry peers.
TKR has a better Return On Equity (14.39%) than 68.99% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.61%, TKR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TKR had an Average Return On Invested Capital over the past 3 years of 10.03%. This is in line with the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 14.39% | ||
| ROIC | 9.61% |
ROA(3y)6.74%
ROA(5y)6.66%
ROE(3y)16.43%
ROE(5y)16.38%
ROIC(3y)10.03%
ROIC(5y)9.63%
1.3 Margins
TKR has a better Profit Margin (7.99%) than 64.34% of its industry peers.
In the last couple of years the Profit Margin of TKR has remained more or less at the same level.
The Operating Margin of TKR (14.33%) is better than 74.42% of its industry peers.
In the last couple of years the Operating Margin of TKR has grown nicely.
The Gross Margin of TKR (31.72%) is better than 60.47% of its industry peers.
TKR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 7.99% | ||
| GM | 31.72% |
OM growth 3Y2.82%
OM growth 5Y2.8%
PM growth 3Y0.68%
PM growth 5Y-0.46%
GM growth 3Y3.25%
GM growth 5Y1.73%
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.
The number of shares outstanding for TKR has been reduced compared to 1 year ago.
Compared to 5 years ago, TKR has less shares outstanding
Compared to 1 year ago, TKR has a worse debt to assets ratio.
2.2 Solvency
TKR has an Altman-Z score of 2.71. 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 2.71 is in line compared to the rest of the industry. TKR outperforms 44.19% of its industry peers.
TKR has a debt to FCF ratio of 7.37. This is a slightly negative value and a sign of low solvency as TKR would need 7.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.37, TKR is in line with its industry, outperforming 46.51% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that TKR is somewhat dependend on debt financing.
TKR has a Debt to Equity ratio of 0.78. This is in the lower half of the industry: TKR underperforms 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 7.37 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.1
WACC8.71%
2.3 Liquidity
TKR has a Current Ratio of 1.87. This is a normal value and indicates that TKR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, TKR is in line with its industry, outperforming 41.09% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that TKR should not have too much problems paying its short term obligations.
The Quick ratio of TKR (1.02) is worse than 64.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
TKR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.08%.
Measured over the past years, TKR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.93% on average per year.
TKR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.33%.
Measured over the past years, TKR shows a small growth in Revenue. The Revenue has been growing by 5.90% on average per year.
EPS 1Y (TTM)3.08%
EPS 3Y19.63%
EPS 5Y10.93%
EPS Q2Q%-15.31%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y10.72%
Revenue growth 5Y5.9%
Sales Q2Q%-5.74%
3.2 Future
Based on estimates for the next years, TKR will show a small growth in Earnings Per Share. The EPS will grow by 4.49% on average per year.
The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y-10.41%
EPS Next 2Y0.66%
EPS Next 3Y4.49%
EPS Next 5YN/A
Revenue Next Year-2.38%
Revenue Next 2Y0.9%
Revenue Next 3Y1.81%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
TKR is valuated correctly with a Price/Earnings ratio of 12.97.
Based on the Price/Earnings ratio, TKR is valued cheaper than 83.72% of the companies in the same industry.
TKR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 12.22, the valuation of TKR can be described as correct.
TKR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TKR is cheaper than 77.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TKR to the average of the S&P500 Index (20.07), we can say TKR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaper than 80.62% of the companies in the same industry.
TKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TKR is cheaper than 71.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.78 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The decent profitability rating of TKR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y0.66%
EPS Next 3Y4.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.57%, TKR has a reasonable but not impressive dividend return.
TKR's Dividend Yield is a higher than the industry average which is at 1.70.
TKR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of TKR has a limited annual growth rate of 3.39%.
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)3.39%
Div Incr Years10
Div Non Decr Years14
5.3 Sustainability
TKR pays out 25.29% of its income as dividend. This is a sustainable payout ratio.
TKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.29%
EPS Next 2Y0.66%
EPS Next 3Y4.49%
TIMKEN CO
NYSE:TKR (5/31/2024, 7:09:24 PM)
After market: 86.89 0 (0%)86.89
+0.46 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 12.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 14.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.33% | ||
| PM (TTM) | 7.99% | ||
| GM | 31.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.08%
EPS 3Y19.63%
EPS 5Y
EPS Q2Q%
EPS Next Y-10.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.33%
Revenue growth 3Y10.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y