TIMKEN CO (TKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKR - US8873891043 - Common Stock
87.38 USD
-1.33 (-1.5%)
87.38 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. Both the profitability and the financial health of TKR get a neutral evaluation. Nothing too spectacular is happening here. TKR is valued correctly, but it does not seem to be growing. Finally TKR also has an excellent dividend rating. With these ratings, TKR could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
TKR had positive earnings in the past year.
In the past year TKR had a positive cash flow from operations.
TKR had positive earnings in each of the past 5 years.
Each year in the past 5 years TKR had a positive operating cash flow.
1.2 Ratios
TKR has a Return On Assets of 4.37%. This is comparable to the rest of the industry: TKR outperforms 55.38% of its industry peers.
With a Return On Equity value of 9.48%, TKR perfoms like the industry average, outperforming 60.00% of the companies in the same 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 10.46%.
| 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
The Profit Margin of TKR (6.54%) is comparable to the rest of the industry.
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 66.15% of the companies in the same industry.
In the last couple of years the Operating Margin of TKR has remained more or less at the same level.
With a Gross Margin value of 31.40%, TKR perfoms like the industry average, outperforming 52.31% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKR is still creating some value.
Compared to 1 year ago, TKR has about the same amount of shares outstanding.
Compared to 5 years ago, TKR has less shares outstanding
TKR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.83 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKR has a Altman-Z score of 2.83. This is comparable to the rest of the industry: TKR outperforms 48.46% of its industry peers.
The Debt to FCF ratio of TKR is 5.41, which is a neutral value as it means it would take TKR, 5.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.41, TKR is in line with its industry, outperforming 53.08% of the companies in the same industry.
TKR has a Debt/Equity ratio of 0.67. This is a neutral value indicating TKR is somewhat dependend on debt financing.
TKR has a worse Debt to Equity ratio (0.67) than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.84
WACC9.19%
2.3 Liquidity
A Current Ratio of 3.11 indicates that TKR has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.11, TKR is doing good in the industry, outperforming 77.69% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that TKR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.71, TKR is doing good in the industry, outperforming 70.77% of the companies in the same industry.
| 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%.
TKR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.71% yearly.
The Revenue has decreased by -1.01% in the past year.
The Revenue has been growing slightly by 3.83% on average over the past years.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.17% yearly.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-8.06%
EPS Next 2Y1.96%
EPS Next 3Y3.92%
EPS Next 5Y4.17%
Revenue Next Year-0.41%
Revenue Next 2Y1.41%
Revenue Next 3Y1.85%
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.
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
A Price/Earnings ratio of 16.33 indicates a correct valuation of TKR.
Based on the Price/Earnings ratio, TKR is valued cheaply inside the industry as 82.31% 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 26.54.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of TKR can be described as correct.
TKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TKR to the average of the S&P500 Index (23.78), we can say TKR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 14.52 |
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 84.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TKR is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.47
EPS Next 2Y1.96%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.12, TKR pays a better dividend. On top of this TKR pays more dividend than 81.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.96, TKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of TKR has a limited annual growth rate of 4.12%.
TKR has been paying a dividend for at least 10 years, so it has 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
TKR pays out 32.90% of its income as dividend. This is a 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 2Y1.96%
EPS Next 3Y3.92%
87.38
-1.33 (-1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change8.02%
Ins Owners3.48%
Ins Owner Change-1.13%
Market Cap6.09B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target89.35 (2.25%)
Short Float %3.6%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)4.01%
PT rev (3m)4.56%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 14.52 | ||
| P/S | 1.34 | ||
| P/FCF | 15.59 | ||
| P/OCF | 11.08 | ||
| P/B | 1.94 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)5.35
EY6.12%
EPS(NY)6.02
Fwd EY6.89%
FCF(TTM)5.6
FCFY6.41%
OCF(TTM)7.89
OCFY9.03%
SpS65.24
BVpS45
TBVpS9.04
PEG (NY)N/A
PEG (5Y)3.47
Graham Number73.6
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 | 2.83 |
F-Score6
WACC9.19%
ROIC/WACC0.84
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-8.06%
EPS Next 2Y1.96%
EPS Next 3Y3.92%
EPS Next 5Y4.17%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%2.69%
Revenue Next Year-0.41%
Revenue Next 2Y1.41%
Revenue Next 3Y1.85%
Revenue Next 5Y1.65%
EBIT growth 1Y-2.68%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year24.25%
EBIT Next 3Y11.81%
EBIT Next 5Y9.62%
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 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.
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 -8.06% in the next year.