Timken Company Stock Fundamentals
| TKR Stock | USD 76.55 1.17 1.51% |
Timken Company fundamentals help investors to digest information that contributes to Timken's financial success or failures. It also enables traders to predict the movement of Timken Stock. The fundamental analysis module provides a way to measure Timken's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Timken stock.
At this time, Timken's Gross Profit is relatively stable compared to the past year. As of 11/28/2024, Operating Income is likely to grow to about 690 M, while Total Revenue is likely to drop slightly above 3.4 B. Timken | Select Account or Indicator |
Timken Company Company Return On Equity Analysis
Timken's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Timken Return On Equity | 0.13 |
Most of Timken's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Timken Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Timken Total Stockholder Equity
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Based on the latest financial disclosure, Timken Company has a Return On Equity of 0.1273. This is 71.07% lower than that of the Machinery sector and 98.67% lower than that of the Industrials industry. The return on equity for all United States stocks is 141.06% lower than that of the firm.
Timken Company Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Timken's current stock value. Our valuation model uses many indicators to compare Timken value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Timken competition to find correlations between indicators driving Timken's intrinsic value. More Info.Timken Company is rated fourth in return on equity category among its peers. It is rated fifth in return on asset category among its peers reporting about 0.44 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Timken Company is roughly 2.28 . At this time, Timken's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Timken by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Timken Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Timken's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Timken could also be used in its relative valuation, which is a method of valuing Timken by comparing valuation metrics of similar companies.Timken is currently under evaluation in return on equity category among its peers.
Timken Current Valuation Drivers
We derive many important indicators used in calculating different scores of Timken from analyzing Timken's financial statements. These drivers represent accounts that assess Timken's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Timken's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 4.3B | 5.8B | 5.3B | 5.2B | 5.7B | 6.0B | |
| Enterprise Value | 5.9B | 7.2B | 6.5B | 6.9B | 7.8B | 8.2B |
Timken ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Timken's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Timken's managers, analysts, and investors.Environmental | Governance | Social |
Timken Fundamentals
| Return On Equity | 0.13 | ||||
| Return On Asset | 0.0559 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | 0.12 % | ||||
| Current Valuation | 7.32 B | ||||
| Shares Outstanding | 70.12 M | ||||
| Shares Owned By Insiders | 10.56 % | ||||
| Shares Owned By Institutions | 86.64 % | ||||
| Number Of Shares Shorted | 1.23 M | ||||
| Price To Earning | 14.32 X | ||||
| Price To Book | 1.83 X | ||||
| Price To Sales | 1.17 X | ||||
| Revenue | 4.77 B | ||||
| Gross Profit | 1.28 B | ||||
| EBITDA | 657.1 M | ||||
| Net Income | 394.1 M | ||||
| Cash And Equivalents | 331.6 M | ||||
| Cash Per Share | 4.14 X | ||||
| Total Debt | 2.5 B | ||||
| Debt To Equity | 0.86 % | ||||
| Current Ratio | 2.03 X | ||||
| Book Value Per Share | 41.83 X | ||||
| Cash Flow From Operations | 545.2 M | ||||
| Short Ratio | 1.97 X | ||||
| Earnings Per Share | 4.82 X | ||||
| Price To Earnings To Growth | 0.95 X | ||||
| Target Price | 87.0 | ||||
| Number Of Employees | 19 K | ||||
| Beta | 1.43 | ||||
| Market Capitalization | 5.39 B | ||||
| Total Asset | 6.54 B | ||||
| Retained Earnings | 2.23 B | ||||
| Working Capital | 1.16 B | ||||
| Current Asset | 1.21 B | ||||
| Current Liabilities | 505.3 M | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 2.15 % | ||||
| Net Asset | 6.54 B | ||||
| Last Dividend Paid | 1.34 |
About Timken Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Timken Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Timken using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Timken Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 45.4 M | 43.1 M | |
| Total Revenue | 4.8 B | 3.4 B | |
| Cost Of Revenue | 3.3 B | 2.6 B | |
| Stock Based Compensation To Revenue | 0.01 | 0.01 | |
| Sales General And Administrative To Revenue | 0.16 | 0.12 | |
| Research And Ddevelopement To Revenue | 0.01 | 0.01 | |
| Capex To Revenue | 0.04 | 0.06 | |
| Revenue Per Share | 66.81 | 70.15 | |
| Ebit Per Revenue | 0.14 | 0.14 |
Pair Trading with Timken
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Timken position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Timken will appreciate offsetting losses from the drop in the long position's value.Moving together with Timken Stock
Moving against Timken Stock
| 0.71 | KMT | Kennametal | PairCorr |
| 0.69 | RBC | RBC Bearings | PairCorr |
| 0.66 | DIST | Distoken Acquisition | PairCorr |
| 0.6 | AL | Air Lease | PairCorr |
| 0.56 | R | Ryder System | PairCorr |
The ability to find closely correlated positions to Timken could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Timken when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Timken - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Timken Company to buy it.
The correlation of Timken is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Timken moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Timken Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Timken can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Timken Stock Analysis
When running Timken's price analysis, check to measure Timken's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Timken is operating at the current time. Most of Timken's value examination focuses on studying past and present price action to predict the probability of Timken's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Timken's price. Additionally, you may evaluate how the addition of Timken to your portfolios can decrease your overall portfolio volatility.