Timken Stock Analysis, Valuation (NYSE:TKR)
Take a look at Amigobulls Timken stock analysis video. Our analyst opinion covering the buy and sell arguments for TKR stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Timken Co Stock Rating 3.1/5
Amigobulls TKR stock analysis takes into account various financial ratios like relative valuation, Timken revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Timken dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Timken valuation analysis. Timken stock rating is our opinion about the business fundamentals of the company.
Should you buy TKR stock?
- The TTM operating margin was good at 10.73 for Timken.
- The Timken stock currently trades at a price to earnings ratio of 15.5, compared to the sector average of 21.3. We rate this as a positive.
- When compared with the Industrial Products sector average PS ratio of 1.5, the price-to-sales ratio of 1.2 for TKR stock is attractive.
- Timken's return on invested capital of 10.5 is good.
- The LTM ROE of 16.9 for Timken is attractive.
Should you sell TKR stock?
- Revenue declined at a CAGR of -7.3 over the last 5 years.
- The company's operations consume more cash than it generates. This is not a healthy sign.
- The company has a negative free cash flow margin of -7.
Investors can make use of the Amigobulls Timken stock analysis to ascertain how TKR stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.
While doing a study of the company financials, Timken revenue growth and profit or net income are two main metrics which help in identifying whether TKR stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Timken stock.