# The Timken Company (TKR) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Industrials / Machinery. Price $115.66, market value $8.0 billion.

## Valuation
- **P/E (trailing): 31.3×** (5-yr avg 14.8×, 3-yr avg 16.1×). The Timken Company trades at 31.3× trailing earnings, well above its own five-year average of 14.8×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 15.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.7×**. Each dollar of revenue is priced at 1.7×.
- **Price / book: 2.5×**. The shares trade at 2.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.0×**. Enterprise value is 13.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.8%** (5-yr avg 6.0%). Free cash flow equals 4.8% of the market value, below its five-year average of 6.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Operating margin: 10.5%**. 10.5% of revenue is left after running the business.
- **Net margin: 6.3%**. 6.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.1%**. 9.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 8.4%**. Return on all capital, debt included, is 8.4%.
- **Return on assets: 3.9%**. Each dollar of assets produces 3.9% of profit.

## Growth
- **Revenue growth (1 yr): 0.2%** (3-yr 0.6%/yr, 5-yr 5.5%/yr). Revenue grew 0.2% over the last year, against 5.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -17.6%** (3-yr -9.1%/yr, 5-yr 2.0%/yr). Earnings per share fell 17.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 12.5%/yr**. Free cash flow has compounded at 12.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.60**. Debt is 0.60 times equity, moderate leverage.
- **Net debt / EBITDA: 2.1×**. It would take 2.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 2.82** (quick 2.82). Current assets cover the next year's liabilities 2.82 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.24%** ($1.41 per share, trailing). The Timken Company yields 1.24%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 34%** (26% of free cash flow). 34% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 16**. 16 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.2%/yr** (1-yr 3.0%). The dividend has grown 4.2% a year over five years.

## Analyst view
- **Analyst consensus: buy** (11 analysts). 11 analysts cover The Timken Company; the consensus is buy, with an average price target of $144.20 (+25% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 46.2%** (YTD 35.9%, 3-mo -19.9%). The shares are up 46.2% over twelve months including dividends.
- **From 52-week high: -21.0%** (57.1% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 1.40** (volatility 34%). Beta of 1.40 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TKR · Page: https://foliofundamentals.com/stocks/tkr

Not investment advice.