TIMKEN CO (TKR) Stock Fundamental Analysis
NYSE:TKR - US8873891043 - Common Stock
78.99 USD
+3.67 (+4.87%)
78.99 USD
0 (0%)
Taking everything into account, TKR scores 5 out of 10 in our fundamental rating. TKR was compared to 127 industry peers in the Machinery industry. TKR has an average financial health and profitability rating. TKR is valued correctly, but it does not seem to be growing. Finally TKR also has an excellent dividend rating. This makes TKR very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
TKR had positive earnings in the past year.
TKR had a positive operating cash flow in the past year.
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's Return On Assets of 4.55% is in line compared to the rest of the industry. TKR outperforms 51.97% of its industry peers.
Looking at the Return On Equity, with a value of 10.01%, TKR is in line with its industry, outperforming 55.12% of the companies in the same industry.
TKR has a Return On Invested Capital (7.19%) which is comparable to the rest of the industry.
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 10.54%.
| 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
Looking at the Profit Margin, with a value of 6.86%, TKR is in line with its industry, outperforming 55.91% of the companies in the same industry.
In the last couple of years the Profit Margin of TKR has declined.
With a decent Operating Margin value of 12.38%, TKR is doing good in the industry, outperforming 62.20% of the companies in the same industry.
TKR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.76%, TKR is in line with its industry, outperforming 48.82% 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 | 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.
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
An Altman-Z score of 2.68 indicates that TKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKR (2.68) is comparable to the rest of the industry.
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 40.94% 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.
With a Debt to Equity ratio value of 0.69, TKR is not doing good in the industry: 69.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.76
WACC9.41%
2.3 Liquidity
TKR has a Current Ratio of 3.13. This indicates that TKR is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.13, TKR is doing good in the industry, outperforming 78.74% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that TKR should not have too much problems paying its short term obligations.
TKR's Quick ratio of 1.72 is fine compared to the rest of the industry. TKR outperforms 74.02% of its industry peers.
| 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.
The Revenue has decreased by -2.01% 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)-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 small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
Based on estimates for the next years, TKR will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-7.93%
EPS Next 2Y2.62%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y0.98%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
TKR is valuated correctly with a Price/Earnings ratio of 15.16.
Based on the Price/Earnings ratio, TKR is valued cheaply inside the industry as 83.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TKR to the average of the S&P500 Index (27.24), we can say TKR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.95, the valuation of TKR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TKR indicates a rather cheap valuation: TKR is cheaper than 85.04% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TKR to the average of the S&P500 Index (35.82), we can say TKR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaper than 81.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TKR is valued a bit cheaper than the industry average as 75.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 9.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.22
EPS Next 2Y2.62%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
TKR has a Yearly Dividend Yield of 1.86%. 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 81.10% of the companies in the same industry.
TKR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y2.62%
EPS Next 3Y5.31%
78.99
+3.67 (+4.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change-1.2%
Ins Owners4.95%
Ins Owner Change2.86%
Market Cap5.50B
Analysts72.5
Price Target85.57 (8.33%)
Short Float %4.14%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)7.47%
PT rev (3m)9.03%
EPS NQ rev (1m)-4.67%
EPS NQ rev (3m)-8.97%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 12.95 | ||
| P/S | 1.22 | ||
| P/FCF | 17.47 | ||
| P/OCF | 11.66 | ||
| P/B | 1.78 | ||
| P/tB | 9.77 | ||
| EV/EBITDA | 9.26 |
EPS(TTM)5.21
EY6.6%
EPS(NY)6.1
Fwd EY7.72%
FCF(TTM)4.52
FCFY5.72%
OCF(TTM)6.77
OCFY8.58%
SpS64.82
BVpS44.44
TBVpS8.09
PEG (NY)N/A
PEG (5Y)3.22
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 | 2.68 |
F-Score6
WACC9.41%
ROIC/WACC0.76
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-7.93%
EPS Next 2Y2.62%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y3.43%
Revenue growth 5Y3.83%
Sales Q2Q%-0.75%
Revenue Next Year-1.13%
Revenue Next 2Y0.98%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
EBIT growth 1Y-12.71%
EBIT growth 3Y5.37%
EBIT growth 5Y3.14%
EBIT Next Year25.73%
EBIT Next 3Y13.62%
EBIT Next 5YN/A
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%