TIMKENSTEEL CORP (TMST) Stock Fundamental Analysis
NYSE:TMST - New York Stock Exchange, Inc. - US8873991033 - Common Stock - Currency: USD
Taking everything into account, TMST scores 5 out of 10 in our fundamental rating. TMST was compared to 154 industry peers in the Metals & Mining industry. TMST has an excellent financial health rating, but there are some minor concerns on its profitability. TMST is cheap, but on the other hand it scores bad on growth. This makes TMST very considerable for value investing!
1. Profitability
1.1 Basic Checks
TMST had positive earnings in the past year.
TMST had a positive operating cash flow in the past year.
In multiple years TMST reported negative net income over the last 5 years.
Each year in the past 5 years TMST had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TMST (5.90%) is better than 78.34% of its industry peers.
TMST's Return On Equity of 9.49% is fine compared to the rest of the industry. TMST outperforms 77.71% of its industry peers.
The Return On Invested Capital of TMST (7.54%) is better than 73.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMST is below the industry average of 11.60%.
The 3 year average ROIC (7.32%) for TMST is below the current ROIC(7.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 9.49% | ||
| ROIC | 7.54% |
ROA(3y)8.89%
ROA(5y)2.06%
ROE(3y)14.9%
ROE(5y)2.59%
ROIC(3y)7.32%
ROIC(5y)N/A
1.3 Margins
TMST has a Profit Margin of 5.09%. This is in the better half of the industry: TMST outperforms 70.06% of its industry peers.
TMST has a better Operating Margin (7.48%) than 61.78% of its industry peers.
TMST's Operating Margin has improved in the last couple of years.
TMST has a Gross Margin (13.69%) which is comparable to the rest of the industry.
TMST's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 5.09% | ||
| GM | 13.69% |
OM growth 3YN/A
OM growth 5Y33.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y93.89%
GM growth 5Y11.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMST is destroying value.
TMST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TMST has been reduced compared to 5 years ago.
The debt/assets ratio for TMST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.99 indicates that TMST is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.99, TMST perfoms like the industry average, outperforming 59.87% of the companies in the same industry.
TMST has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
TMST has a Debt to FCF ratio of 0.18. This is amongst the best in the industry. TMST outperforms 91.72% of its industry peers.
TMST has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TMST (0.02) is better than 68.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.86
WACC8.73%
2.3 Liquidity
TMST has a Current Ratio of 2.64. This indicates that TMST is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.64, TMST is in line with its industry, outperforming 52.87% of the companies in the same industry.
TMST has a Quick Ratio of 1.73. This is a normal value and indicates that TMST is financially healthy and should not expect problems in meeting its short term obligations.
TMST has a Quick ratio (1.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
TMST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.18%, which is quite impressive.
Looking at the last year, TMST shows a small growth in Revenue. The Revenue has grown by 2.44% in the last year.
TMST shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.29% yearly.
EPS 1Y (TTM)36.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%104.24%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y17.93%
Revenue growth 5Y-3.29%
Sales Q2Q%33.7%
3.2 Future
TMST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
Based on estimates for the next years, TMST will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y-1.1%
EPS Next 2Y6.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.87%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TMST is valuated correctly with a Price/Earnings ratio of 13.88.
TMST's Price/Earnings ratio is rather cheap when compared to the industry. TMST is cheaper than 80.89% of the companies in the same industry.
TMST's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.35.
TMST is valuated reasonably with a Price/Forward Earnings ratio of 11.09.
Based on the Price/Forward Earnings ratio, TMST is valued cheaper than 83.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, TMST is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
91.72% of the companies in the same industry are more expensive than TMST, based on the Enterprise Value to EBITDA ratio.
TMST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TMST is cheaper than 84.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
TMST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TMST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.4
+0.21 (+1.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners82.12%
Inst Owner Change0.33%
Ins Owners2.73%
Ins Owner Change0%
Market Cap880.26M
Analysts43.33
Price Target28.56 (40%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)1.17%
Revenue beat(8)2
Avg Revenue beat(8)-4.13%
Revenue beat(12)5
Avg Revenue beat(12)-1.5%
Revenue beat(16)5
Avg Revenue beat(16)-4.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-6.08%
EPS NY rev (3m)-4.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.09 | ||
| P/S | 0.65 | ||
| P/FCF | 11.94 | ||
| P/OCF | 7.03 | ||
| P/B | 1.2 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)1.47
EY7.21%
EPS(NY)1.84
Fwd EY9.02%
FCF(TTM)1.71
FCFY8.37%
OCF(TTM)2.9
OCFY14.23%
SpS31.57
BVpS16.95
TBVpS16.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 9.49% | ||
| ROCE | 10.99% | ||
| ROIC | 7.54% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 10.79% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.09% | ||
| GM | 13.69% | ||
| FCFM | 5.41% |
ROA(3y)8.89%
ROA(5y)2.06%
ROE(3y)14.9%
ROE(5y)2.59%
ROIC(3y)7.32%
ROIC(5y)N/A
ROICexc(3y)10.21%
ROICexc(5y)N/A
ROICexgc(3y)10.29%
ROICexgc(5y)N/A
ROCE(3y)10.88%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y40.86%
ROICexc growth 3YN/A
ROICexc growth 5Y41.23%
OM growth 3YN/A
OM growth 5Y33.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y93.89%
GM growth 5Y11.73%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 90.69% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 48.52 | ||
| Cash Conversion | 78.9% | ||
| Profit Quality | 106.2% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 2.99 |
F-Score6
WACC8.73%
ROIC/WACC0.86
Cap/Depr(3y)52.17%
Cap/Depr(5y)46.47%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.39%
Profit Quality(3y)126.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%104.24%
EPS Next Y-1.1%
EPS Next 2Y6.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.44%
Revenue growth 3Y17.93%
Revenue growth 5Y-3.29%
Sales Q2Q%33.7%
Revenue Next Year1.87%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y92.63%
EBIT growth 3YN/A
EBIT growth 5Y29.11%
EBIT Next Year58.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.38%
FCF growth 3Y-22.22%
FCF growth 5YN/A
OCF growth 1Y-6.84%
OCF growth 3Y-10.28%
OCF growth 5Y46.61%