Market Cap
US$5.9b
Last Updated
2021/02/26 23:52 UTC
Data Sources
Company Financials +
Executive Summary
The Timken Company designs, manufactures, and manages engineered bearings and power transmission products and services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and good value.
Similar Companies
Share Price & News
How has Timken's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TKR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: TKR's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
4.5%
TKR
0.9%
US Machinery
-4.6%
US Market
1 Year Return
74.7%
TKR
48.3%
US Machinery
38.5%
US Market
Return vs Industry: TKR exceeded the US Machinery industry which returned 47.5% over the past year.
Return vs Market: TKR exceeded the US Market which returned 38.9% over the past year.
Shareholder returns
| TKR | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | 0.9% | -4.6% |
| 30 Day | 3.3% | 8.3% | 0.6% |
| 90 Day | 4.9% | 10.6% | 1.9% |
| 1 Year | 78.3%74.7% | 51.9%48.3% | 41.5%38.5% |
| 3 Year | 93.0%80.1% | 50.5%39.8% | 56.7%46.7% |
| 5 Year | 179.8%147.9% | 152.4%126.4% | 123.5%98.6% |
Long-Term Price Volatility Vs. Market
How volatile is Timken's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Investigate The Timken Company (NYSE:TKR) At US$74.84?1 month ago | Simply Wall St
Shareholders of Timken (NYSE:TKR) Must Be Delighted With Their 304% Total Return1 month ago | Simply Wall St
Is The Timken Company's(NYSE:TKR) Recent Stock Performance Tethered To Its Strong Fundamentals?Valuation
Is Timken undervalued compared to its fair value and its price relative to the market?
9.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TKR ($78.35) is trading below our estimate of fair value ($86.3)
Significantly Below Fair Value: TKR is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TKR is good value based on its PE Ratio (20.8x) compared to the US Machinery industry average (34x).
PE vs Market: TKR is good value based on its PE Ratio (20.8x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: TKR is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: TKR is good value based on its PB Ratio (2.8x) compared to the US Machinery industry average (3.1x).
Next Steps
Future Growth
How is Timken forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
18.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TKR's forecast earnings growth (18% per year) is above the savings rate (2%).
Earnings vs Market: TKR's earnings (18% per year) are forecast to grow slower than the US market (20.2% per year).
High Growth Earnings: TKR's earnings are forecast to grow, but not significantly.
Revenue vs Market: TKR's revenue (5.8% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: TKR's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TKR's Return on Equity is forecast to be low in 3 years time (16.9%).
Next Steps
Past Performance
How has Timken performed over the past 5 years?
20.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TKR has high quality earnings.
Growing Profit Margin: TKR's current net profit margins (8.1%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: TKR's earnings have grown significantly by 20.9% per year over the past 5 years.
Accelerating Growth: TKR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TKR had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Machinery industry average (-13.1%).
Return on Equity
High ROE: TKR's Return on Equity (13.1%) is considered low.
Next Steps
Financial Health
How is Timken's financial position?
Financial Position Analysis
Short Term Liabilities: TKR's short term assets ($2.0B) exceed its short term liabilities ($848.0M).
Long Term Liabilities: TKR's short term assets ($2.0B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: TKR's debt to equity ratio (70.1%) is considered high.
Reducing Debt: TKR's debt to equity ratio has increased from 48.9% to 70.1% over the past 5 years.
Debt Coverage: TKR's debt is well covered by operating cash flow (37%).
Interest Coverage: TKR's interest payments on its debt are well covered by EBIT (7.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Timken current dividend yield, its reliability and sustainability?
1.48%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TKR's dividend (1.48%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: TKR's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (3.72%).
Stability and Growth of Payments
Stable Dividend: TKR's dividends per share have been stable in the past 10 years.
Growing Dividend: TKR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.9%), TKR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TKR's dividends in 3 years are forecast to be well covered by earnings (20.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Rich Kyle (54 yo)
6.75yrs
Tenure
US$11,879,251
Compensation
Mr. Richard G. Kyle, also known as Rich, has been the Chief Executive Officer and President of The Timken Company since May 2014. Mr. Kyle served as the Chief Operating Officer of Bearings & Power Transmis...
CEO Compensation Analysis
Compensation vs Market: Rich's total compensation ($USD11.88M) is above average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Rich's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.75yrs | US$11.88m | 0.39% $ 23.2m | |
| Executive VP | 6.92yrs | US$4.08m | 0.12% $ 6.9m | |
| Executive Vice President of Human Resources | 3.25yrs | US$1.77m | 0.042% $ 2.5m | |
| Executive VP & Group President | 7.08yrs | US$4.19m | 0.12% $ 7.2m | |
| Vice President of Operations | no data | no data | no data | |
| Vice President of Technology | 1.33yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| VP, General Counsel & Secretary | 1.75yrs | no data | 0.0060% $ 358.3k | |
| Vice President of Communications & Public Relations | 11.17yrs | no data | no data | |
| Vice President of Global Marketing | 4.92yrs | no data | no data | |
| Chief Engineer of Oil & Gas - Steel Segment | no data | no data | no data | |
| Chairman & MD of India | no data | no data | no data |
5.8yrs
Average Tenure
54.5yo
Average Age
Experienced Management: TKR's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.75yrs | US$11.88m | 0.39% $ 23.2m | |
| Chairman & MD of India | no data | no data | no data | |
| Independent Director | 6.5yrs | US$232.16k | 0.021% $ 1.3m | |
| Independent Director | 17.25yrs | US$225.51k | 0.075% $ 4.5m | |
| Director | 19.08yrs | US$203.01k | 0.99% $ 58.8m | |
| Independent Director | 22.08yrs | US$221.58k | 0.086% $ 5.1m | |
| Independent Director | 5.5yrs | US$241.18k | 0.017% $ 1.0m | |
| Independent Chairman | 6.75yrs | US$303.01k | 1.16% $ 69.0m | |
| Independent Director | 21.08yrs | US$218.01k | 0.019% $ 1.2m | |
| Independent Director | 7yrs | US$225.51k | 0.024% $ 1.4m | |
| Independent Director | 6.25yrs | US$235.96k | 0.023% $ 1.3m | |
| Independent Director | 3.5yrs | US$219.58k | 0.0095% $ 561.8k |
7.0yrs
Average Tenure
63yo
Average Age
Experienced Board: TKR's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Timken Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Timken Company
- Ticker: TKR
- Exchange: NYSE
- Founded: 1899
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$5.932b
- Shares outstanding: 75.71m
- Website: https://www.timken.com
Number of Employees
Location
- The Timken Company
- 4500 Mount Pleasant Street NW
- North Canton
- Ohio
- 44720-5450
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TKR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| TKH | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| TKR * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
Biography
The Timken Company designs, manufactures, and manages engineered bearings and power transmission products and services worldwide. It operates in two segments, Mobile Industries and Process Industries. The ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/26 23:52 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.