TIMKENSTEEL CORP (TMST) Stock Fundamental Analysis
NYSE:TMST - New York Stock Exchange, Inc. - US8873991033 - Common Stock - Currency: USD
Overall TMST gets a fundamental rating of 5 out of 10. We evaluated TMST against 156 industry peers in the Metals & Mining industry. TMST is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TMST is valued quite cheap, but it does not seem to be growing. These ratings could make TMST a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TMST was profitable.
In the past year TMST had a positive cash flow from operations.
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
TMST has a Return On Assets of 5.90%. This is in the better half of the industry: TMST outperforms 78.34% of its industry peers.
TMST has a Return On Equity of 9.49%. This is in the better half of the industry: TMST outperforms 77.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.54%, TMST is in the better half of the industry, outperforming 73.89% of the companies in the same industry.
TMST had an Average Return On Invested Capital over the past 3 years of 7.32%. This 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.
In the last couple of years the Operating Margin of TMST has grown nicely.
TMST has a Gross Margin of 13.69%. This is comparable to the rest of the industry: TMST outperforms 49.04% of its industry peers.
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.
Compared to 5 years ago, TMST has less shares outstanding
Compared to 1 year ago, TMST has an improved debt to assets ratio.
2.2 Solvency
TMST has an Altman-Z score of 2.99. This is not the best score and indicates that TMST is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.99, TMST is in line with its industry, 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's Debt to FCF ratio of 0.18 is amongst the best of 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.
TMST's Current ratio of 2.64 is in line compared to the rest of the industry. TMST outperforms 52.87% of its industry peers.
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.
The Quick ratio of TMST (1.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.18% over the past year.
The Revenue has been growing slightly by 2.44% in the past year.
The Revenue has been decreasing by -3.29% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.55% on average over the next years.
TMST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
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.
Based on the Price/Earnings ratio, TMST is valued cheaper than 80.89% of the companies in the same industry.
TMST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
A Price/Forward Earnings ratio of 11.09 indicates a reasonable valuation of TMST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMST indicates a rather cheap valuation: TMST is cheaper than 83.44% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. TMST is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMST is valued cheaply inside the industry as 91.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TMST is valued 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
No dividends for TMST!.
| 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 Change0.39%
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%