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TKR

Timken NYSE:TKR Stock Report

Last Price

US$59.85

Market Cap

US$4.4b

7D

-3.4%

1Y

-11.8%

Updated

24 Sep, 2022

Data

Company Financials +

Timken Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Timken
Historical stock prices
Current Share PriceUS$59.85
52 Week HighUS$78.52
52 Week LowUS$50.85
Beta1.59
1 Month Change-10.42%
3 Month Change9.06%
1 Year Change-11.79%
3 Year Change39.51%
5 Year Change23.28%
Change since IPO304.05%

Recent News & Updates

Sep 05

The Timken Company: Even More Attractive Than Before

Summary The Timken Company has done well in the current environment, with sales rising and profits somewhat mixed but mostly positive. Despite seeing its share prices rise, the stock is now affordable than it was previously. Add in how cheap shares are on an absolute basis, and it should make for a solid prospect.

Aug 23
Should You Investigate The Timken Company (NYSE:TKR) At US$65.12?

Should You Investigate The Timken Company (NYSE:TKR) At US$65.12?

While The Timken Company ( NYSE:TKR ) might not be the most widely known stock at the moment, it led the NYSE gainers...

Shareholder Returns

TKRUS MachineryUS Market
7D-3.4%-5.4%-5.2%
1Y-11.8%-19.5%-23.1%

Return vs Industry: TKR exceeded the US Machinery industry which returned -19.5% over the past year.

Return vs Market: TKR exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is TKR's price volatile compared to industry and market?
TKR volatility
TKR Average Weekly Movement4.5%
Machinery Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: TKR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TKR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189918,000Rich Kylehttps://www.timken.com

The Timken Company designs, manufactures, and manages engineered bearings and power transmission products worldwide. It operates in two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, and lubrication devices and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches, brakes, and related products and maintenance services to original equipment manufacturers (OEMs) and end-users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment, and power sports markets; and on-highway vehicles, including passenger cars, light trucks, and medium- and heavy-duty trucks, as well as rail cars and locomotives.

Timken Fundamentals Summary

How do Timken's earnings and revenue compare to its market cap?
TKR fundamental statistics
Market CapUS$4.40b
Earnings (TTM)US$374.20m
Revenue (TTM)US$4.32b

11.7x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TKR income statement (TTM)
RevenueUS$4.32b
Cost of RevenueUS$3.15b
Gross ProfitUS$1.17b
Other ExpensesUS$800.10m
EarningsUS$374.20m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.09
Gross Margin27.16%
Net Profit Margin8.66%
Debt/Equity Ratio79.2%

How did TKR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TKR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TKR?

Other financial metrics that can be useful for relative valuation.

TKR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA8.1x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does TKR's PE Ratio compare to its peers?

TKR PE Ratio vs Peers
The above table shows the PE ratio for TKR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.8x
AQUA Evoqua Water Technologies
71.9x25.6%US$4.1b
WTS Watts Water Technologies
19.4x-0.3%US$4.1b
CR Crane Holdings
9.5x-14.4%US$4.8b
ITT ITT
16.3x14.8%US$5.5b
TKR Timken
11.7x8.8%US$4.4b

Price-To-Earnings vs Peers: TKR is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (29.8x).


Price to Earnings Ratio vs Industry

How does TKR's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: TKR is good value based on its Price-To-Earnings Ratio (11.7x) compared to the US Machinery industry average (18.4x)


Price to Earnings Ratio vs Fair Ratio

What is TKR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TKR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: TKR is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).


Share Price vs Fair Value

What is the Fair Price of TKR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TKR ($59.85) is trading below our estimate of fair value ($145.56)

Significantly Below Fair Value: TKR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Timken forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKR's forecast earnings growth (8.8% per year) is above the savings rate (1.9%).

Earnings vs Market: TKR's earnings (8.8% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: TKR's earnings are forecast to grow, but not significantly.

Revenue vs Market: TKR's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TKR's revenue (2.8% 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 (16.2%).


Discover growth companies

Past Performance

How has Timken performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TKR has high quality earnings.

Growing Profit Margin: TKR's current net profit margins (8.7%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: TKR's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: TKR's earnings growth over the past year (3.9%) is below its 5-year average (12.3% per year).

Earnings vs Industry: TKR earnings growth over the past year (3.9%) underperformed the Machinery industry 9.4%.


Return on Equity

High ROE: TKR's Return on Equity (16.9%) is considered low.


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Financial Health

How is Timken's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TKR's short term assets ($2.5B) exceed its short term liabilities ($920.5M).

Long Term Liabilities: TKR's short term assets ($2.5B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: TKR's net debt to equity ratio (65.8%) is considered high.

Reducing Debt: TKR's debt to equity ratio has increased from 70.5% to 79.2% over the past 5 years.

Debt Coverage: TKR's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: TKR's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


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Dividend

What is Timken current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TKR's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: TKR's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (4.57%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.3%), TKR's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (74.3%), TKR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Rich Kyle (56 yo)

8.33yrs

Tenure

US$9,665,330

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 and Power Transm...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD9.67M) is above average for companies of similar size in the US market ($USD6.95M).

Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TKR's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: TKR's board of directors are considered experienced (9.1 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

NYSE:TKR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 May 22SellUS$171,285Jacqueline WoodsIndividual2,860US$59.89
18 Feb 22SellUS$341,600Philip FracassaIndividual5,000US$68.32

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 63.12% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.74%
The Vanguard Group, Inc.
6,420,124$384.2m0.74%0.01%
8.01%
BlackRock, Inc.
5,884,451$352.2m1.93%0.01%
6.33%
Timken Foundation of Canton, Endowment Arm
4,652,481$278.5m0%no data
4.14%
J.P. Morgan Asset Management, Inc.
3,041,080$182.0m-8.07%0.03%
3.85%
American Century Investment Management Inc
2,825,949$169.1m-4.62%0.13%
3.32%
Dimensional Fund Advisors LP
2,437,565$145.9m-0.11%0.04%
2.9%
Franklin Resources, Inc.
2,133,011$127.7m2.13%0.06%
2.76%
EARNEST Partners, LLC
2,029,440$121.5m-3.53%0.8%
2.47%
State Street Global Advisors, Inc.
1,813,789$108.6m-2.47%0.01%
2.43%
Thrivent Investment Management, Inc.
1,784,884$106.8m0.1%0.29%
1.99%
Invesco Ltd.
1,459,788$87.4m-3.03%0.03%
1.86%
AllianceBernstein L.P.
1,367,562$81.8m8.21%0.03%
1.59%
LSV Asset Management
1,167,792$69.9m-2.91%0.15%
1.21%
FMR LLC
892,000$53.4m-3.01%0.01%
1.2%
First Trust Advisors LP
880,792$52.7m42.61%0.06%
1.18%
Ward Timken
866,313$51.8m0%no data
1.17%
Geode Capital Management, LLC
855,932$51.2m-6.46%0.01%
1.14%
Principal Global Investors, LLC
840,674$50.3m2.94%0.04%
1.14%
SouthernSun Asset Management, LLC
840,370$50.3m1.39%6.23%
1.13%
BNY Mellon Asset Management
828,255$49.6m1.97%0.01%
1.04%
Brown Advisory Incorporated
765,232$45.8m0%0.08%
0.96%
Massachusetts Financial Services Company
703,221$42.1m33.18%0.01%
0.89%
John Timken
653,373$39.1m29.41%no data
0.83%
Atlantic Investment Management, Inc.
611,340$36.6m19.12%14.57%
0.82%
T. Rowe Price Group, Inc.
601,816$36.0m-34.84%no data

Company Information

The Timken Company's 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
  • Implied Market Cap: US$4.396b
  • Shares outstanding: 73.45m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TKRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
TKHDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
TKR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.