| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
TKR Stock Overview
The Timken Company designs, manufactures, and manages engineered bearings and power transmission products worldwide.
Timken Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$59.85 |
| 52 Week High | US$78.52 |
| 52 Week Low | US$50.85 |
| Beta | 1.59 |
| 1 Month Change | -10.42% |
| 3 Month Change | 9.06% |
| 1 Year Change | -11.79% |
| 3 Year Change | 39.51% |
| 5 Year Change | 23.28% |
| Change since IPO | 304.05% |
Recent News & Updates
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.
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
| TKR | US Machinery | US 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
| TKR volatility | |
|---|---|
| TKR Average Weekly Movement | 4.5% |
| Machinery Industry Average Movement | 5.3% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.8% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1899 | 18,000 | Rich Kyle | https://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
| TKR fundamental statistics | |
|---|---|
| Market Cap | US$4.40b |
| Earnings (TTM) | US$374.20m |
| Revenue (TTM) | US$4.32b |
11.7x
P/E Ratio1.0x
P/S RatioIs TKR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TKR income statement (TTM) | |
|---|---|
| Revenue | US$4.32b |
| Cost of Revenue | US$3.15b |
| Gross Profit | US$1.17b |
| Other Expenses | US$800.10m |
| Earnings | US$374.20m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.09 |
| Gross Margin | 27.16% |
| Net Profit Margin | 8.66% |
| Debt/Equity Ratio | 79.2% |
How did TKR perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield24%
Payout RatioValuation
Is TKR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6Valuation 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.
| What is TKR's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$4.40b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.4x |
| Enterprise Value/EBITDA | 8.1x |
| PEG Ratio | 1.3x |
Price to Earnings Ratio vs Peers
How does TKR's PE Ratio compare to its peers?
| TKR PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 29.8x | ||
AQUA Evoqua Water Technologies | 71.9x | 25.6% | 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 | 16.3x | 14.8% | US$5.5b |
TKR Timken | 11.7x | 8.8% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 11.7x |
| Fair PE Ratio | 18.6x |
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
1/6Future 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
2/6Past 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.
Discover strong past performing companies
Financial Health
How is Timken's financial position?
Financial Health Score
3/6Financial 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
Discover healthy companies
Dividend
What is Timken current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend 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
| Date | Value | Name | Entity | Role | Shares | Max Price |
|---|---|---|---|---|---|---|
| 26 May 22 | SellUS$171,285 | Jacqueline Woods | Individual | 2,860 | US$59.89 | |
| 18 Feb 22 | SellUS$341,600 | Philip Fracassa | Individual | 5,000 | US$68.32 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
| Ownership | Name | Shares | Current Value | Change % | Portfolio % | |
|---|---|---|---|---|---|---|
| 6,420,124 | $384.2m | 0.74% | 0.01% | |||
| 5,884,451 | $352.2m | 1.93% | 0.01% | |||
| 4,652,481 | $278.5m | 0% | no data | |||
| 3,041,080 | $182.0m | -8.07% | 0.03% | |||
| 2,825,949 | $169.1m | -4.62% | 0.13% | |||
| 2,437,565 | $145.9m | -0.11% | 0.04% | |||
| 2,133,011 | $127.7m | 2.13% | 0.06% | |||
| 2,029,440 | $121.5m | -3.53% | 0.8% | |||
| 1,813,789 | $108.6m | -2.47% | 0.01% | |||
| 1,784,884 | $106.8m | 0.1% | 0.29% | |||
| 1,459,788 | $87.4m | -3.03% | 0.03% | |||
| 1,367,562 | $81.8m | 8.21% | 0.03% | |||
| 1,167,792 | $69.9m | -2.91% | 0.15% | |||
| 892,000 | $53.4m | -3.01% | 0.01% | |||
| 880,792 | $52.7m | 42.61% | 0.06% | |||
| 866,313 | $51.8m | 0% | no data | |||
| 855,932 | $51.2m | -6.46% | 0.01% | |||
| 840,674 | $50.3m | 2.94% | 0.04% | |||
| 840,370 | $50.3m | 1.39% | 6.23% | |||
| 828,255 | $49.6m | 1.97% | 0.01% | |||
| 765,232 | $45.8m | 0% | 0.08% | |||
| 703,221 | $42.1m | 33.18% | 0.01% | |||
| 653,373 | $39.1m | 29.41% | no data | |||
| 611,340 | $36.6m | 19.12% | 14.57% | |||
| 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
| 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 |
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/09/24 00:00 |
| End of Day Share Price | 2022/09/23 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.