NYSE:TMST

Stock Analysis Report

Executive Summary

TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products worldwide.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has TimkenSteel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.2%

TMST

2.0%

US Metals and Mining

1.0%

US Market


1 Year Return

-51.8%

TMST

-10.3%

US Metals and Mining

6.7%

US Market

Return vs Industry: TMST underperformed the US Metals and Mining industry which returned -10.3% over the past year.

Return vs Market: TMST underperformed the US Market which returned 6.7% over the past year.


Share holder returns

TMSTIndustryMarket
7 Day-3.2%2.0%1.0%
30 Day-22.2%-4.1%-1.8%
90 Day-22.4%-5.1%-1.8%
1 Year-51.8%-51.8%-7.6%-10.3%9.1%6.7%
3 Year-42.9%-42.9%14.7%8.5%46.1%36.6%
5 Year-83.6%-83.9%-1.5%-8.9%66.9%48.6%

Price Volatility Vs. Market

How volatile is TimkenSteel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TimkenSteel undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TMST ($5.83) is trading below our estimate of fair value ($23.43)

Significantly Undervalued: TMST is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TMST is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: TMST is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate TMST's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: TMST is good value based on its PB Ratio (0.4x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is TimkenSteel expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

127.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TMST is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TMST is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TMST is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TMST's revenue (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TMST's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if TMST's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TimkenSteel performed over the past 5 years?

-42.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TMST is unprofitable, and losses have increased over the past 5 years at a rate of -42.2% per year.

Accelerating Growth: Unable to compare TMST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TMST is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (26.6%).


Return on Equity

High ROE: TMST has a negative Return on Equity (-6.32%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TMST is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TMST is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is TimkenSteel's financial position?


Financial Position Analysis

Short Term Liabilities: TMST's short term assets ($482.3M) exceeds its short term liabilities ($155.0M)

Long Term Liabilities: TMST's short term assets (482.3M) exceeds its long term liabilities (417.3M)


Debt to Equity History and Analysis

Debt Level: TMST's debt to equity ratio (36.4%) is considered satisfactory

Reducing Debt: TMST's debt to equity ratio has increased from 16.3% to 36.4% over the past 5 years.


Balance Sheet

Inventory Level: TMST has a high level of physical assets or inventory.

Debt Coverage by Assets: TMST's debt is covered by short term assets (assets are 2.179390x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TMST has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TMST has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is TimkenSteel's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate TMST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TMST's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TMST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TMST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TMST is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TMST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of TimkenSteel's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Terry Dunlap (60yo)

0yrs

Tenure

US$206,702

Compensation

Mr. Terry L. Dunlap has been a Director of Principal of Sweetwater LLC since January 2015. He serves as Interim Chief Executive Officer and President at TimkenSteel Corporation in October 2019. Mr. Dunlap  ...


Management Age and Tenure

0.9yrs

Average Tenure

57.5yo

Average Age

Experienced Management: TMST's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: TMST's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: TMST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$10,46710 Sep 19
Gabelli & Company Investment Advisers, Inc.
EntityCompany
Shares1,500
Max PriceUS$6.98
SellUS$262,64510 Sep 19
GAMCO Investors, Inc.
EntityCompany
Shares95,509
Max PriceUS$9.15
BuyUS$39,33810 Sep 19
GAMCO Investors, Inc.
EntityCompany
Shares37,300
Max PriceUS$6.88
SellUS$010 Sep 19
Teton Advisors, Inc
EntityCompany
Shares215,900
Max PriceUS$7.24
BuyUS$211,57705 Sep 19
Ward Timken
EntityIndividual
Shares40,000
Max PriceUS$5.83
BuyUS$6,36304 Sep 19
Frank DiPiero
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,250
Max PriceUS$5.09
BuyUS$184,52406 Aug 19
Ward Timken
EntityIndividual
Shares30,000
Max PriceUS$6.15
BuyUS$48,87806 Aug 19
Kristopher Westbrooks
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,350
Max PriceUS$6.65
BuyUS$75,19623 May 19
Ronald Rice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$7.52

Ownership Breakdown


Management Team

  • Terry Dunlap (60yo)

    Interim CEO

    • Tenure: 0yrs
    • Compensation: US$206.70k
  • Elaine M. Reolfi

    Executive Vice President of HR & Corporate Relations

    • Tenure: 0.8yrs
  • Frank DiPiero (63yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.06m
  • Jennifer Beeman

    Senior Manager of Communications & Investor Relations

    • Tenure: 0yrs
  • Tom Moline (56yo)

    Executive Vice President of Commercial Operations

    • Tenure: 0yrs
    • Compensation: US$678.59k
  • Kris Westbrooks (41yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$593.64k
  • Kevin Raketich

    Executive Vice President of Strategy and Corporate Development

    • Tenure: 2.8yrs
  • Bill Bryan (59yo)

    Executive Vice President of Manufacturing

    • Tenure: 0yrs
    • Compensation: US$688.96k
  • Ray Fryan

    Vice President of Technology

    • Tenure: 0yrs
  • Nicholas Yacobozzi (34yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 0.2yrs

Board Members

  • Ron Rice (56yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$206.70k
  • Terry Dunlap (60yo)

    Interim CEO

    • Tenure: 0yrs
    • Compensation: US$206.70k
  • Diane Creel (71yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$209.20k
  • John Reilly (75yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$236.70k
  • Randy Wotring (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$206.70k
  • Joe Carrabba (66yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$199.20k
  • Don Misheff (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$221.70k
  • Marvin Riley (44yo)

    Additional Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$155.82k
  • Randall Edwards (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$206.70k

Company Information

TimkenSteel Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TimkenSteel Corporation
  • Ticker: TMST
  • Exchange: NYSE
  • Founded: 1899
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$261.279m
  • Shares outstanding: 44.82m
  • Website: https://www.timkensteel.com

Number of Employees


Location

  • TimkenSteel Corporation
  • 1835 Dueber Avenue SW
  • Canton
  • Ohio
  • 44706
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMSTNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 2014
ZS2DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2014

Biography

TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products worldwide. The company offers carbon, micro-alloy, and alloy steel ingots, bars, tubes, and billets; an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:05
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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