Timken Steel Stock Analysis, Valuation (NYSE:TMST)

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$13.21 $0.28 (2.08%) TMST stock closing price Aug 13, 2018 (Closing)

Investors can watch the Amigobulls Timken Steel stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for TMST stock.

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.

Timkensteel Corp Stock Rating 1.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TMST stock analysis. Timken Steel valuation forms a crucial part of our stock analysis. Our Timken Steel stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy TMST stock?

  • Timken Steel's revenue growth came in at 21.9% in 2018-06.
  • With a debt/equity ratio of 0.39, Timken Steel is comparatively less leveraged than its peers in the Basic Materials sector.
  • The lower PS ratio 0.4 for TMST stock versus Basic Materials sector average of 1.3 is a positive for the company.

Should you sell TMST stock?

  • Over the last twelve months, Timken Steel posted an average operating loss margin of -1.1.
  • Timken Steel registered an average TTM Net loss of -2.3%.
  • Operating cash flows are negative.
  • The lack of profits renders the PE ratio useless for TMST stock.
  • -1.1's negative ROIC of -1.1 indicates operational inefficiency.
  • Timken Steel has a negative return on equity of -5.9. This indicates that the firm is inefficient at generating profits.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -4.

Comments on this video and Timken Steel stock

Investors can use Amigobulls Timken Steel stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of TMST stock and helps investors in making good buy and sell decision.

Timken Steel revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.