TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
74.55 USD
-0.27 (-0.36%)
74.55 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TKR. TKR was compared to 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 it does not seem to be growing. 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
In the past year TKR was profitable.
TKR had a positive operating cash flow in the past year.
Each year in the past 5 years TKR has been profitable.
Each year in the past 5 years TKR had a positive operating cash flow.
1.2 Ratios
TKR has a Return On Assets (4.37%) which is comparable to the rest of the industry.
TKR has a Return On Equity (9.48%) which is in line with its industry peers.
TKR's Return On Invested Capital of 7.75% is in line compared to the rest of the industry. TKR outperforms 56.92% of its industry peers.
TKR had an Average Return On Invested Capital over the past 3 years of 9.74%. This is in line with the industry average of 10.24%.
| 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
Looking at the Profit Margin, with a value of 6.54%, TKR is in line with its industry, outperforming 57.69% 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 65.38% of its industry peers.
In the last couple of years the Operating Margin of TKR has remained more or less at the same level.
TKR has a Gross Margin (31.40%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TKR has remained more or less at the same level.
| 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
TKR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TKR has about the same amount of shares outstanding.
The number of shares outstanding for TKR has been reduced compared to 5 years ago.
TKR has a better debt/assets ratio than last year.
2.2 Solvency
TKR has an Altman-Z score of 2.68. 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 2.68. 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 53.08% of its industry peers.
TKR has a Debt/Equity ratio of 0.67. This is a neutral value indicating 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 | 2.68 |
ROIC/WACC0.86
WACC9.05%
2.3 Liquidity
A Current Ratio of 3.11 indicates that TKR has no problem at all paying its short term obligations.
The Current ratio of TKR (3.11) is better 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 has a Quick ratio of 1.71. This is in the better half of the industry: TKR outperforms 70.77% 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%.
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.
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
The Earnings Per Share is expected to grow by 8.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.70% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 13.93, the valuation of TKR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 83.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. TKR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of TKR.
Based on the Price/Forward Earnings ratio, TKR is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TKR to the average of the S&P500 Index (34.08), we can say TKR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaper than 86.15% of the companies in the same industry.
83.08% of the companies in the same industry are more expensive than TKR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.3 | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.96
EPS Next 2Y2.05%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
TKR's Dividend Yield is rather good when compared to the industry average which is at 1.87. TKR pays more dividend than 81.54% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, 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 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.
TKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.9%
EPS Next 2Y2.05%
EPS Next 3Y4.27%
74.55
-0.27 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change8.02%
Ins Owners4.43%
Ins Owner Change-0.57%
Market Cap5.19B
Revenue(TTM)4.54B
Net Income(TTM)297.30M
Analysts71.76
Price Target85.91 (15.24%)
Short Float %3.61%
Short Ratio3.65
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)-9.1%
EPS NQ rev (3m)-10.94%
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 | 13.93 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.14 | ||
| P/FCF | 13.3 | ||
| P/OCF | 9.45 | ||
| P/B | 1.66 | ||
| P/tB | 8.25 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)5.35
EY7.18%
EPS(NY)6.03
Fwd EY8.09%
FCF(TTM)5.61
FCFY7.52%
OCF(TTM)7.89
OCFY10.59%
SpS65.26
BVpS45.01
TBVpS9.04
PEG (NY)N/A
PEG (5Y)2.96
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 | 2.68 |
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.