TIMKEN CO (TKR) Stock Fundamental Analysis
USA - NYSE:TKR - US8873891043 - Common Stock
77.51 USD
-1.65 (-2.08%)
77.51 USD
0 (0%)
Taking everything into account, TKR scores 5 out of 10 in our fundamental rating. TKR was compared to 128 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. 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 has a Return On Assets (4.55%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.01%, TKR is in line with its industry, outperforming 55.47% of the companies in the same industry.
TKR's Return On Invested Capital of 7.19% is in line compared to the rest of the industry. TKR outperforms 55.47% 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 10.02%.
| 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 56.25% of its industry peers.
In the last couple of years the Profit Margin of TKR has declined.
TKR has a Operating Margin of 12.38%. This is in the better half of the industry: TKR outperforms 63.28% 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.
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 | 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.
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 2.66. 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.
The Altman-Z score of TKR (2.66) 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 (6.98) which is comparable to the rest of the industry.
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 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.76
WACC9.42%
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 78.91% 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 has a better Quick ratio (1.72) than 74.22% 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%.
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.
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
The Earnings Per Share is expected to grow by 5.31% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.88, TKR is valued correctly.
83.59% of the companies in the same industry are more expensive than TKR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TKR is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.71 indicates a correct valuation of TKR.
86.72% of the companies in the same industry are more expensive than TKR, based on the Price/Forward Earnings ratio.
TKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKR is valued cheaper than 82.81% of the companies in the same industry.
TKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TKR is cheaper than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.15 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.16
EPS Next 2Y2.62%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, TKR has a reasonable but not impressive dividend return.
TKR's Dividend Yield is rather good when compared to the industry average which is at 1.74. TKR pays more dividend than 81.25% of the companies in the same industry.
TKR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 2Y2.62%
EPS Next 3Y5.31%
77.51
-1.65 (-2.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change-1.18%
Ins Owners4.95%
Ins Owner Change4.86%
Market Cap5.40B
Analysts72.5
Price Target85.45 (10.24%)
Short Float %4.06%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-0.13%
PT rev (3m)8.1%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 12.71 | ||
| P/S | 1.2 | ||
| P/FCF | 17.15 | ||
| P/OCF | 11.44 | ||
| P/B | 1.74 | ||
| P/tB | 9.58 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)5.21
EY6.72%
EPS(NY)6.1
Fwd EY7.87%
FCF(TTM)4.52
FCFY5.83%
OCF(TTM)6.77
OCFY8.74%
SpS64.82
BVpS44.44
TBVpS8.09
PEG (NY)N/A
PEG (5Y)3.16
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 | 2.66 |
F-Score6
WACC9.42%
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%