TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
79.25 USD
+2.03 (+2.63%)
79.25 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 only an average score on both its financial health and profitability. TKR has a correct valuation and a medium growth rate. 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
In the past year TKR was profitable.
TKR had a positive operating cash flow in the past year.
In the past 5 years TKR has always been profitable.
TKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.55%, TKR perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
TKR has a Return On Equity of 10.01%. This is comparable to the rest of the industry: TKR outperforms 56.15% of its industry peers.
TKR has a Return On Invested Capital of 7.19%. This is comparable to the rest of the industry: TKR outperforms 55.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TKR is in line with the industry average of 10.00%.
| 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 has a Profit Margin (6.86%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TKR has declined.
TKR has a better Operating Margin (12.38%) than 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 (30.76%) which is in line with 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKR is still creating some value.
TKR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TKR has less shares outstanding
Compared to 1 year ago, TKR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 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 2.66. This is comparable to the rest of the industry: TKR outperforms 45.38% of its industry peers.
TKR has a debt to FCF ratio of 6.98. This is a slightly negative value and a sign of low solvency as TKR would need 6.98 years to pay back of all of its debts.
TKR has a Debt to FCF ratio of 6.98. This is comparable to the rest of the industry: TKR outperforms 45.38% of its industry peers.
TKR has a Debt/Equity ratio of 0.69. This is a neutral value indicating TKR is somewhat dependend on debt financing.
The Debt to Equity ratio of TKR (0.69) is worse than 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.8
WACC9.03%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TKR has no problem at all paying its short term obligations.
TKR's Current ratio of 3.13 is fine compared to the rest of the industry. TKR outperforms 78.46% of its industry peers.
A Quick Ratio of 1.72 indicates that TKR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, TKR is in the better half of the industry, outperforming 73.85% 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%.
TKR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.71% yearly.
Looking at the last year, TKR shows a decrease in Revenue. The Revenue has decreased by -2.01% in the last 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
TKR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.66% yearly.
The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y-8.78%
EPS Next 2Y2.14%
EPS Next 3Y5.18%
EPS Next 5Y12.66%
Revenue Next Year-1.15%
Revenue Next 2Y0.97%
Revenue Next 3Y1.9%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.21 indicates a correct valuation of TKR.
Compared to the rest of the industry, the Price/Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 83.85% of the companies listed in the same industry.
TKR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.12, which indicates a correct valuation of TKR.
TKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKR is cheaper than 88.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. TKR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 13.12 |
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 83.08% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKR indicates a somewhat cheap valuation: TKR is cheaper than 76.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.53 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.23
EPS Next 2Y2.14%
EPS Next 3Y5.18%
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.
Compared to an average industry Dividend Yield of 1.78, TKR pays a better dividend. On top of this TKR pays more dividend than 81.54% of the companies listed in the same industry.
TKR's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| 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 paid a dividend for at least 10 years, which is 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
31.38% of the earnings are spent on dividend by TKR. This is a low number and sustainable payout ratio.
TKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.38%
EPS Next 2Y2.14%
EPS Next 3Y5.18%
79.25
+2.03 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change-0.04%
Ins Owners4.43%
Ins Owner Change0.44%
Market Cap5.52B
Revenue(TTM)4.51B
Net Income(TTM)309.80M
Analysts71.76
Price Target85.91 (8.4%)
Short Float %4.25%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)0.53%
PT rev (3m)7.9%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-6.09%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.22 | ||
| P/FCF | 17.53 | ||
| P/OCF | 11.7 | ||
| P/B | 1.78 | ||
| P/tB | 9.8 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)5.21
EY6.57%
EPS(NY)6.04
Fwd EY7.62%
FCF(TTM)4.52
FCFY5.7%
OCF(TTM)6.77
OCFY8.55%
SpS64.82
BVpS44.44
TBVpS8.09
PEG (NY)N/A
PEG (5Y)3.23
Graham Number72.18
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%
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 Turnover0.66
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 | 2.66 |
F-Score6
WACC9.03%
ROIC/WACC0.8
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-8.78%
EPS Next 2Y2.14%
EPS Next 3Y5.18%
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 2Y0.97%
Revenue Next 3Y1.9%
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%
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 -8.78% in the next year.