Timken Valuation
| TKR Stock | USD 77.45 0.65 0.85% |
At this time, the company appears to be undervalued. Timken Company has a current Real Value of $84.14 per share. The regular price of the company is $77.45. Our model measures the value of Timken Company from inspecting the company fundamentals such as Return On Equity of 0.13, shares outstanding of 70.12 M, and Operating Margin of 0.12 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Timken's valuation include:
Price Book 1.8358 | Enterprise Value 7.3 B | Enterprise Value Ebitda 9.0247 | Price Sales 1.183 | Forward PE 11.4286 |
Undervalued
Today
Please note that Timken's price fluctuation is very steady at this time. Calculation of the real value of Timken Company is based on 3 months time horizon. Increasing Timken's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Timken stock is determined by what a typical buyer is willing to pay for full or partial control of Timken Company. Since Timken is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Timken Stock. However, Timken's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 77.45 | Real 84.14 | Target 89.78 | Hype 77.44 | Naive 82.15 |
The intrinsic value of Timken's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Timken's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Timken Company helps investors to forecast how Timken stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Timken more accurately as focusing exclusively on Timken's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Timken's intrinsic value based on its ongoing forecasts of Timken's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Timken's closest peers.
Timken Cash |
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Timken Valuation Trend
Timken's real value is important for investors to make better decisions and a more accurate overall view of Timken's financial worth over time. Using both Timken's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Timken Revenue by Product
Timken Total Value Analysis
Timken Company is at this time forecasted to have company total value of 7.32 B with market capitalization of 5.43 B, debt of 2.5 B, and cash on hands of 331.6 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Timken fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
7.32 B | 5.43 B | 2.5 B | 331.6 M |
Timken Investor Information
About 87.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.84. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Timken Company has Price/Earnings To Growth (PEG) ratio of 0.95. The entity last dividend was issued on the 19th of November 2024. The firm had 1397:1000 split on the 1st of July 2014. Based on the analysis of Timken's profitability, liquidity, and operating efficiency, Timken Company is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 345.1 M | 545.2 M |
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Timken Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Timken has an asset utilization ratio of 72.9 percent. This connotes that the Company is making $0.73 for each dollar of assets. An increasing asset utilization means that Timken Company is more efficient with each dollar of assets it utilizes for everyday operations.Timken Ownership Allocation
Timken Company shows a total of 70.12 Million outstanding shares. The majority of Timken Company outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Timken to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Timken Company. Please pay attention to any change in the institutional holdings of Timken Company as this could imply that something significant has changed or is about to change at the company. Please note that on September 18, 2024, Representative Michael McCaul of US Congress acquired under $15k worth of Timken Company's common stock.Timken Profitability Analysis
The company reported the last year's revenue of 4.77 B. Total Income to common stockholders was 394.1 M with profit before taxes, overhead, and interest of 1.28 B.Timken Past Distributions to stockholders
About Timken Valuation
The stock valuation mechanism determines Timken's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Timken Company based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Timken. We calculate exposure to Timken's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Timken's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.8 B | 5 B | |
| Pretax Profit Margin | 0.11 | 0.12 | |
| Operating Profit Margin | 0.14 | 0.14 | |
| Net Profit Margin | 0.08 | 0.09 | |
| Gross Profit Margin | 0.30 | 0.29 |
A single share of Timken represents a small ownership stake in the entity. As a stockholder of Timken, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Timken Dividends Analysis For Valuation
As of 11/30/2024, Dividend Payout Ratio is likely to grow to 0.41, though Dividends Paid is likely to grow to (89.3 M). . As of 11/30/2024, Retained Earnings is likely to drop to about 1.3 B. In addition to that, Retained Earnings Total Equity is likely to drop to about 1.4 B
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -94 M | -89.3 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.24 | 0.41 | |
| Dividend Paid And Capex Coverage Ratio | 1.93 | 1.14 |
There are various types of dividends Timken can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Timken shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Timken Company directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Timken pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Timken by the value of the dividends paid out.
Timken Growth Indicators
Investing in growth stocks can be very risky. If the company such as Timken does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 72.1 M | |
| Quarterly Earnings Growth Y O Y | -0.057 | |
| Forward Price Earnings | 11.4286 |
Timken Current Valuation Indicators
Timken's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Timken's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Timken, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Timken's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Timken's worth.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.