Market Cap
US$4.0b
Last Updated
2020/02/20 00:41 UTC
Data Sources
Company Financials +
Executive Summary
The Timken Company designs, manufactures, and manages engineered bearings and power transmission products and services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with proven track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.0%
TKR
-1.4%
US Machinery
0.5%
US Market
1 Year Return
20.6%
TKR
9.4%
US Machinery
20.3%
US Market
Return vs Industry: TKR exceeded the US Machinery industry which returned 9.4% over the past year.
Return vs Market: TKR matched the US Market which returned 20.3% over the past year.
Shareholder returns
| TKR | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.0% | -1.4% | 0.5% |
| 30 Day | -8.5% | -1.7% | 2.0% |
| 90 Day | 0.2% | 1.4% | 9.4% |
| 1 Year | 23.5%20.6% | 11.4%9.4% | 22.8%20.3% |
| 3 Year | 30.7%21.6% | 37.8%29.0% | 50.1%40.4% |
| 5 Year | 40.4%23.0% | 61.4%42.3% | 73.1%54.1% |
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
3 days ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In The Timken Company (NYSE:TKR)4 days ago | Simply Wall St
There's A Lot To Like About The Timken Company's (NYSE:TKR) Upcoming US$0.28 Dividend1 week ago | Simply Wall St
Why The Timken Company (NYSE:TKR) Looks Like A Quality CompanyValuation
Is Timken undervalued compared to its fair value and its price relative to the market?
10.95x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TKR ($52.33) is trading above our estimate of fair value ($51.79)
Significantly Below Fair Value: TKR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TKR is good value based on its PE Ratio (10.9x) compared to the Machinery industry average (21.3x).
PE vs Market: TKR is good value based on its PE Ratio (10.9x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: TKR is poor value based on its PEG Ratio (9.8x)
Price to Book Ratio
PB vs Industry: TKR is good value based on its PB Ratio (2.1x) compared to the US Machinery industry average (2.2x).
Next Steps
Future Growth
How is Timken forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
1.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TKR's forecast earnings growth (1.1% per year) is below the savings rate (1.7%).
Earnings vs Market: TKR's earnings (1.1% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: TKR's earnings are forecast to grow, but not significantly.
Revenue vs Market: TKR's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: TKR's revenue (2.2% 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 (16.6%).
Next Steps
Past Performance
How has Timken performed over the past 5 years?
35.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TKR has high quality earnings.
Growing Profit Margin: TKR's current net profit margins (9.6%) are higher than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: TKR's earnings have grown significantly by 35.6% per year over the past 5 years.
Accelerating Growth: TKR's earnings growth over the past year (19.6%) is below its 5-year average (35.6% per year).
Earnings vs Industry: TKR earnings growth over the past year (19.6%) exceeded the Machinery industry 1.5%.
Return on Equity
High ROE: TKR's Return on Equity (19.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Timken's financial position?
Financial Position Analysis
Short Term Liabilities: TKR's short term assets ($1.9B) exceed its short term liabilities ($736.6M).
Long Term Liabilities: TKR's short term assets ($1.9B) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: TKR's debt to equity ratio (88.3%) is considered high.
Reducing Debt: TKR's debt to equity ratio has increased from 33.4% to 88.3% over the past 5 years.
Debt Coverage: TKR's debt is well covered by operating cash flow (31.9%).
Interest Coverage: TKR's interest payments on its debt are well covered by EBIT (8.1x coverage).
Balance Sheet
Inventory Level: TKR has a high level of physical assets or inventory.
Debt Coverage by Assets: TKR's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is Timken's current dividend yield, its reliability and sustainability?
2.14%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TKR's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: TKR's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 (23.4%), 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 (22.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Rich Kyle (53yo)
5.8yrs
Tenure
US$8,720,272
Compensation
Mr. Richard G. Kyle, also known as Rich, has been the Chief Executive Officer and President of The Timken Company since May 2014. Mr. Kyle served as the Chief Operating Officer of Bearings & Power Transmis ...
CEO Compensation Analysis
Compensation vs Market: Rich's total compensation ($USD8.72M) is above average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.8yrs | US$8.72m | 0.24% $9.5m | |
| Executive VP & CFO | 5.9yrs | US$2.65m | 0.077% $3.0m | |
| Executive Vice President of Human Resources | 2.3yrs | US$1.33m | 0.029% $1.1m | |
| Executive VP & Group President | 6.1yrs | US$2.63m | 0.13% $5.0m | |
| Vice President of Operations | 0yrs | no data | no data | |
| VP of Finance & Chief Accounting Officer | 3.3yrs | no data | 0.0042% $166.1k | |
| Vice President of Technology | 0.3yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data | |
| VP, General Counsel & Secretary | 0.8yrs | no data | 0.0019% $73.6k | |
| Vice President of Communications & Public Relations | 10.2yrs | no data | no data |
4.5yrs
Average Tenure
53yo
Average Age
Experienced Management: TKR's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.8yrs | US$8.72m | 0.24% $9.5m | |
| Chairman & MD of India | 0yrs | no data | no data | |
| Independent Director | 5.5yrs | US$226.76k | 0.018% $717.3k | |
| Independent Director | 16.3yrs | US$240.69k | 0.072% $2.9m | |
| Director | 18.1yrs | US$203.19k | 0.78% $30.7m | |
| Independent Director | 21.1yrs | US$228.19k | 0.082% $3.3m | |
| Independent Director | 4.5yrs | US$227.19k | 0.014% $557.6k | |
| Independent Chairman | 5.8yrs | US$303.19k | 2% $79.3m | |
| Independent Director | 20.1yrs | US$218.19k | 0.018% $730.0k | |
| Independent Director | 5.3yrs | US$219.48k | 0.019% $764.8k |
7.1yrs
Average Tenure
63yo
Average Age
Experienced Board: TKR's board of directors are considered experienced (7.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TKR insiders have only sold shares 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$3.954b
- Shares outstanding: 75.57m
- 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 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. It also provides power transmission systems and flight-critical components for civil and military aircraft, which comprise bearings, helicopter transmission systems, rotor-head assemblies, turbine engine components, gears, and housings. This segment sells it parts through a network of authorized automotive and heavy-truck distributors to individual end users, equipment owners, operators, and maintenance shops. The Process Industries segment supplies industrial bearings and assemblies; power transmission components, such as gears and gearboxes; and linear motion products, couplings, seals, lubricants, chains, belts, and related products and services to OEMs and end-users in various industries. It also supports aftermarket sales and service needs through its network of authorized industrial distributors; and offers repair and service for bearings and gearboxes, as well as electric motor rewind, repair, and services to end users. The company offers its products under the Timken, Philadelphia Gear, Drives, Cone Drive, Rollon, Lovejoy, Diamond, BEKA, and Groeneveld brands. The company was founded in 1899 and is headquartered in North Canton, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:41 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.