| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
TKR Overview
The Timken Company designs, manufactures, and manages engineered bearings and power transmission products and services worldwide.
Timken Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$67.42 |
| 52 Week High | US$52.51 |
| 52 Week Low | US$92.39 |
| Beta | 1.72 |
| 1 Month Change | -8.16% |
| 3 Month Change | -14.29% |
| 1 Year Change | 20.89% |
| 3 Year Change | 29.41% |
| 5 Year Change | 102.71% |
| Change since IPO | 355.16% |
Recent News & Updates
Is Now The Time To Put Timken (NYSE:TKR) On Your Watchlist?
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Timken Company: Poised On Infrastructure Efforts Made Efficient And Profitable Is Seen Underpriced By Market-Makers
Once again big institutional buy trades are the tip-off of likely price gains coming in a diffused focus industry of machinery. TKR roller-bearings are pervasive. The need for quick, quiet buys in an otherwise irregularly-traded stock urge Market-Maker supply (by shorting) as a demand balance to newly-interested big funds. An average full day’s trade of under 1/2 million shares sets this stock up as an easy block trade for the MMs to supply balance to lumpy demands. Best of it, the hedge-deal to protect the MM’s temporary exposure as a principal in the trade defines what are the institutional customer’s price-gain expectations. Just another quick moment at the trillion-$-a-day corner of Broad & Wall, NYC.
Shareholder Returns
| TKR | US Machinery | US Market | |
|---|---|---|---|
| 7D | -4.2% | -1.7% | -0.6% |
| 1Y | 20.9% | 31.4% | 33.8% |
Return vs Industry: TKR underperformed the US Machinery industry which returned 31.4% over the past year.
Return vs Market: TKR underperformed the US Market which returned 33.8% over the past year.
Price Volatility
| TKR volatility | |
|---|---|
| TKR Beta | 1.72 |
| Industry Beta | 1.25 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1899 | 17,000 | Rich Kyle | https://www.timken.com |
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 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.
Valuation
Is Timken undervalued compared to its fair value and its price relative to the market?
33.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TKR ($67.42) is trading below our estimate of fair value ($101.3)
Significantly Below Fair Value: TKR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TKR is good value based on its PE Ratio (14.3x) compared to the US Machinery industry average (29.4x).
PE vs Market: TKR is good value based on its PE Ratio (14.3x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: TKR is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: TKR is good value based on its PB Ratio (2.2x) compared to the US Machinery industry average (2.8x).
Future Growth
How is Timken forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
15.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TKR's forecast earnings growth (15.4% per year) is above the savings rate (2%).
Earnings vs Market: TKR's earnings (15.4% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: TKR's earnings are forecast to grow, but not significantly.
Revenue vs Market: TKR's revenue (6.1% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: TKR's revenue (6.1% 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 (18.1%).
Past Performance
How has Timken performed over the past 5 years?
19.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TKR has high quality earnings.
Growing Profit Margin: TKR's current net profit margins (9.3%) are higher than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: TKR's earnings have grown by 19.8% per year over the past 5 years.
Accelerating Growth: TKR's earnings growth over the past year (12.4%) is below its 5-year average (19.8% per year).
Earnings vs Industry: TKR earnings growth over the past year (12.4%) underperformed the Machinery industry 22.1%.
Return on Equity
High ROE: TKR's Return on Equity (15.6%) is considered low.
Financial Health
How is Timken's financial position?
Financial Position Analysis
Short Term Liabilities: TKR's short term assets ($2.2B) exceed its short term liabilities ($857.3M).
Long Term Liabilities: TKR's short term assets ($2.2B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: TKR's debt to equity ratio (63.8%) is considered high.
Reducing Debt: TKR's debt to equity ratio has increased from 46.6% to 63.8% over the past 5 years.
Debt Coverage: TKR's debt is well covered by operating cash flow (30%).
Interest Coverage: TKR's interest payments on its debt are well covered by EBIT (9.5x coverage).
Balance Sheet
Dividend
What is Timken current dividend yield, its reliability and sustainability?
1.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TKR's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: TKR's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 low payout ratio (24.4%), 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 (19.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Rich Kyle (55 yo)
7.33yrs
Tenure
US$11,264,263
Compensation
Mr. Richard G. Kyle, also known as Rich, has been the Chief Executive Officer and President of The Timken Company since May 2014. Mr. Kyle served as the Chief Operating Officer of Bearings and Power Transm...
CEO Compensation Analysis
Compensation vs Market: Rich's total compensation ($USD11.26M) is above average for companies of similar size in the US market ($USD6.44M).
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 (5.5 years average tenure).
Board Members
Experienced Board: TKR's board of directors are considered experienced (7.5 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 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$5.141b
- Shares outstanding: 76.26m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:03 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| 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.