Market Cap
US$3.5b
Last Updated
2019/10/22 23:44 UTC
Data Sources
Company Financials +
Executive Summary
The Timken Company engineers, manufactures, and markets engineered bearings and power transmission products worldwide.
Snowflake
Fundamentals
Good value average dividend payer.
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
Market Performance
7 Day Return
4.7%
TKR
3.3%
US Machinery
0.07%
US Market
1 Year Return
16.1%
TKR
15.1%
US Machinery
8.9%
US Market
Return vs Industry: TKR exceeded the US Machinery industry which returned 15.1% over the past year.
Return vs Market: TKR exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| TKR | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 3.3% | 0.07% |
| 30 Day | 4.1% | 3.5% | -0.3% |
| 90 Day | -8.0% | -0.5% | -1.6% |
| 1 Year | 19.2%16.1% | 17.5%15.1% | 11.3%8.9% |
| 3 Year | 43.3%33.0% | 55.1%45.1% | 46.3%36.8% |
| 5 Year | 25.6%9.9% | 56.6%37.5% | 62.1%44.3% |
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
2 weeks ago | Simply Wall St
Is Timken (NYSE:TKR) A Risky Investment?3 weeks ago | Simply Wall St
Why The Timken Company (NYSE:TKR) Is A Top Dividend Stock1 month ago | Simply Wall St
Is The Timken Company (NYSE:TKR) Trading At A 39% Discount?Valuation
Is Timken undervalued compared to its fair value and its price relative to the market?
32.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TKR ($46.01) is trading below our estimate of fair value ($68.2)
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 (11.1x) compared to the Machinery industry average (20.6x).
PE vs Market: TKR is good value based on its PE Ratio (11.1x) compared to the US market (17.8x).
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 (2x) compared to the US Machinery industry average (2.3x).
Next Steps
Future Growth
How is Timken forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
8.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TKR's forecast earnings growth (8.9% per year) is above the savings rate (2.7%).
Earnings vs Market: TKR's earnings (8.9% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: TKR's earnings are forecast to grow, but not significantly.
Revenue vs Market: TKR's revenue (1.2% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: TKR's revenue (1.2% 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 (18%).
Next Steps
Past Performance
How has Timken performed over the past 5 years?
29.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: TKR's earnings have grown significantly by 29% per year over the past 5 years.
Accelerating Growth: TKR's earnings growth over the past year (24.5%) is below its 5-year average (29% per year).
Earnings vs Industry: TKR earnings growth over the past year (24.5%) exceeded the Machinery industry 16.7%.
Return on Equity
High ROE: TKR's Return on Equity (18.1%) is considered low.
Return on Assets
ROA vs Industry: TKR has a higher Return on Assets than the Machinery industry average last year.
Return on Capital Employed
ROCE Improving: TKR has not improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Timken's financial position?
Financial Position Analysis
Short Term Liabilities: TKR's short term assets ($1.9B) exceeds its short term liabilities ($696.3M)
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 (94.5%) is considered high
Reducing Debt: TKR's debt to equity ratio has increased from 27.3% to 94.5% over the past 5 years.
Debt Coverage: TKR's debt is well covered by operating cash flow (28.7%).
Interest Coverage: TKR's interest payments on its debt are well covered by EBIT (7.9x 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 1.107170x debt).
Next Steps
Dividend
What is Timken's current dividend yield, its reliability and sustainability?
2.43%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: TKR's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: TKR's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: TKR's dividend payments have been volatile 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 (27.1%), 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
What is the CEO of Timken's salary, the management and board of directors tenure and is there insider trading?
4.5yrs
Average management tenure
CEO
Rich Kyle (53yo)
5.4yrs
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 about average for companies of similar size in the US market ($USD5.11M).
Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.5yrs
Average Tenure
55.5yo
Average Age
Experienced Management: TKR's management team is considered experienced (4.5 years average tenure).
Board Age and Tenure
6.8yrs
Average Tenure
63yo
Average Age
Experienced Board: TKR's board of directors are considered experienced (6.8 years average tenure).
Insider Trading
Insider Buying: TKR insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman |
| Shares | 5,000 |
| Max Price | US$38.04 |
| Entity | Individual |
| Role | Chief Accounting Officer VP of Finance & Chief Accounting Officer |
| Shares | 2,400 |
| Max Price | US$51.44 |
| Entity | Individual |
| Role | Head of Human Resources Executive Vice President of Human Resources |
| Shares | 8,168 |
| Max Price | US$51.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$41.05 |
Ownership Breakdown
Management Team
Philip Fracassa (51yo)
Executive VP & CFO
- Tenure: 5.6yrs
- Compensation: US$2.65m
Michael Connors
Vice President of Global Marketing
- Tenure: 3.6yrs
Christopher Coughlin (58yo)
Executive VP & Group President
- Tenure: 5.8yrs
- Compensation: US$2.63m
Rich Kyle (53yo)
President
- Tenure: 5.4yrs
- Compensation: US$8.72m
Kari Groh
Vice President of Communications & Public Relations
- Tenure: 9.8yrs
Ronald Myers (60yo)
Executive Vice President of Human Resources
- Tenure: 1.9yrs
- Compensation: US$1.33m
Richard Boyer
Vice President of Operations
- Tenure: 0yrs
Shelly Chadwick
VP of Finance & Chief Accounting Officer
- Tenure: 2.9yrs
Jason Hershiser
Manager of Investor Relations
- Tenure: 0yrs
Hansal Patel
Vice President of Legal & Corporate Secretary
- Tenure: 0.4yrs
Board Members
Ajita Rajendra (67yo)
Independent Director
- Tenure: 5.2yrs
- Compensation: US$226.76k
Frank Sullivan (58yo)
Independent Director
- Tenure: 15.9yrs
- Compensation: US$240.69k
Tim Timken (51yo)
Director
- Tenure: 17.8yrs
- Compensation: US$203.19k
John Luke (70yo)
Independent Director
- Tenure: 20.8yrs
- Compensation: US$228.19k
James Palmer (69yo)
Independent Director
- Tenure: 4.2yrs
- Compensation: US$227.19k
John Timken (67yo)
Independent Chairman
- Tenure: 5.4yrs
- Compensation: US$303.19k
Jacqueline Woods (71yo)
Independent Director
- Tenure: 19.8yrs
- Compensation: US$218.19k
Rich Kyle (53yo)
President
- Tenure: 5.4yrs
- Compensation: US$8.72m
Maria Crowe (59yo)
Independent Director
- Tenure: 4.9yrs
- Compensation: US$219.48k
Sanjay Koul (54yo)
Chairman & MD of India
- Tenure: 0yrs
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$3.499b
- Shares outstanding: 76.04m
- Website: https://www.timken.com
Number of Employees
Location
- The Timken Company
- 4500 Mount Pleasant Street NW
- North Canton
- Ohio
- 44720
- 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 engineers, manufactures, and markets engineered bearings and power transmission products worldwide. It operates in two segments, Mobile Industries and Process Industries. The Mobile Indu ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:44 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.