TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
75.83 USD
-0.93 (-1.21%)
75.83 USD
0 (0%)
Taking everything into account, TKR scores 5 out of 10 in our fundamental rating. TKR was compared to 129 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 decent growth rate and is not valued too expensively. 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.
In the past 5 years TKR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.55%, TKR perfoms like the industry average, outperforming 52.71% of the companies in the same industry.
The Return On Equity of TKR (10.01%) is comparable to the rest of the industry.
TKR has a Return On Invested Capital (7.19%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TKR is in line with the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 10.01% | ||
| ROIC | 7.19% |
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
TKR's Profit Margin of 6.86% is in line compared to the rest of the industry. TKR outperforms 57.36% of its industry peers.
TKR's Profit Margin has declined in the last couple of years.
TKR has a better Operating Margin (12.38%) than 64.34% of its industry peers.
TKR's Operating Margin has been stable in the last couple of years.
TKR's Gross Margin of 30.76% is in line compared to the rest of the industry. TKR outperforms 48.06% of its industry peers.
TKR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.38% | ||
| PM (TTM) | 6.86% | ||
| GM | 30.76% |
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.
The number of shares outstanding for TKR remains at a similar level compared to 1 year ago.
TKR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TKR has been reduced compared to a year ago.
2.2 Solvency
TKR has an Altman-Z score of 2.65. 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 (2.65) which is comparable to the rest of the industry.
The Debt to FCF ratio of TKR is 6.98, which is on the high side as it means it would take TKR, 6.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.98, TKR is in line with its industry, outperforming 44.19% of the companies in the same industry.
TKR has a Debt/Equity ratio of 0.69. This is a neutral value indicating TKR is somewhat dependend on debt financing.
TKR has a Debt to Equity ratio of 0.69. This is in the lower half of the industry: TKR underperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.78
WACC9.21%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TKR has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.13, TKR is doing good in the industry, outperforming 78.29% of the companies in the same industry.
TKR has a Quick Ratio of 1.72. This is a normal value and indicates that TKR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.72, TKR is doing good in the industry, outperforming 73.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
TKR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.56%.
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 -2.01% 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)-17.56%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%-12.88%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
3.2 Future
Based on estimates for the next years, TKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.66% on average per year.
The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y-8.35%
EPS Next 2Y2.27%
EPS Next 3Y5.11%
EPS Next 5Y12.66%
Revenue Next Year-1.15%
Revenue Next 2Y0.95%
Revenue Next 3Y1.81%
Revenue Next 5Y3.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.55, the valuation of TKR can be described as correct.
Based on the Price/Earnings ratio, TKR is valued cheaper than 85.27% of the companies in the same industry.
TKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.76.
TKR is valuated correctly with a Price/Forward Earnings ratio of 12.52.
Based on the Price/Forward Earnings ratio, TKR is valued cheaply inside the industry as 86.82% of the companies are valued more expensively.
TKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaply inside the industry as 82.17% of the companies are valued more expensively.
77.52% 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 | 16.78 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.09
EPS Next 2Y2.27%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.84%. 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 1.77. TKR pays more dividend than 81.40% 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 | 1.84% |
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 31.38% 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.
DP31.38%
EPS Next 2Y2.27%
EPS Next 3Y5.11%
75.83
-0.93 (-1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change0.01%
Ins Owners4.43%
Ins Owner Change0.44%
Market Cap5.28B
Analysts71.76
Price Target85.91 (13.29%)
Short Float %4.52%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.37
Dividend Growth(5Y)4.12%
DP31.38%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-4.26%
Max EPS beat(2)3.22%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-11.49%
Max EPS beat(4)16.07%
EPS beat(8)5
Avg EPS beat(8)3.41%
EPS beat(12)8
Avg EPS beat(12)4.66%
EPS beat(16)10
Avg EPS beat(16)6.36%
Revenue beat(2)2
Avg Revenue beat(2)0.59%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.16%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.19%
PT rev (1m)0.4%
PT rev (3m)8.67%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 12.52 | ||
| P/S | 1.17 | ||
| P/FCF | 16.78 | ||
| P/OCF | 11.2 | ||
| P/B | 1.71 | ||
| P/tB | 9.37 | ||
| EV/EBITDA | 9.06 |
EPS(TTM)5.21
EY6.87%
EPS(NY)6.06
Fwd EY7.99%
FCF(TTM)4.52
FCFY5.96%
OCF(TTM)6.77
OCFY8.93%
SpS64.82
BVpS44.44
TBVpS8.09
PEG (NY)N/A
PEG (5Y)3.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 10.01% | ||
| ROCE | 9.4% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 14.32% | ||
| OM | 12.38% | ||
| PM (TTM) | 6.86% | ||
| GM | 30.76% | ||
| FCFM | 6.97% |
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%
ROICexcg growth 3Y-1.39%
ROICexcg 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 69.86% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.2% | ||
| Profit Quality | 101.61% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.65 |
F-Score6
WACC9.21%
ROIC/WACC0.78
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)-17.56%
EPS 3Y7.12%
EPS 5Y4.71%
EPS Q2Q%-12.88%
EPS Next Y-8.35%
EPS Next 2Y2.27%
EPS Next 3Y5.11%
EPS Next 5Y12.66%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
Revenue Next Year-1.15%
Revenue Next 2Y0.95%
Revenue Next 3Y1.81%
Revenue Next 5Y3.72%
EBIT growth 1Y-12.71%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.37%
EBIT Next 3Y13.19%
EBIT Next 5Y13.43%
FCF growth 1Y-24.11%
FCF growth 3Y8.55%
FCF growth 5Y-5.68%
OCF growth 1Y-22.58%
OCF growth 3Y7.09%
OCF growth 5Y-2.86%