Timken Company (TKR) AI Stock Analysis

• Market Cap: $5.31B
• Dividend Yield: 1.77%
• Average Volume (3M): 557.19K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.13
• Revenue Growth: -1.01%
• EPS Growth: -12.13%
• Country: US
• Employees: 19,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.37
• Shares Outstanding: 69,655,590
• 10 Day Avg. Volume: 721,621
• 30 Day Avg. Volume: 557,193
• PEG Ratio: -1.57
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 16.39
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: 9.23
• 1Y Price Target: $86.83
• Price Target Upside: 11.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.26
• Revenue Forecast (FY): $4.54B

• Rating: 76 Outperform
• Price Target: $90.00 ▲(15.46% Upside)

Timken Company's stock score is driven by strong financial performance and positive earnings call outcomes, highlighting revenue growth and margin expansion. Technical indicators support a bullish trend, while valuation remains fair. Caution is advised due to trade uncertainties and segment-specific challenges.

Positive Factors

Cash Generation Ability

Strong cash flow generation supports financial flexibility, enabling reinvestment and debt management, crucial for long-term growth.

Market Growth in EMEA and Renewables

Growth in EMEA and renewables indicates potential for market expansion, aligning with global energy trends and diversifying revenue streams.

Margin Expansion

Margin expansion reflects effective cost management and operational efficiency, enhancing profitability and competitive positioning.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates challenges in expanding sales, potentially impacting long-term financial performance and market share.

Industrial Motion Segment Challenges

Declining sales in Industrial Motion suggest sector-specific challenges, affecting overall revenue and necessitating strategic adjustments.

Tariff Impacts

Tariff impacts add cost pressures, reducing profitability and complicating international operations, affecting long-term strategic planning.

Timken Company Business Overview & Revenue Model

Company Description

The Timken Company designs, manufactures, and manages engineered bearings and power transmission products worldwide. It operates in two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, and lubrication devices and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches, brakes, and related products and maintenance services to original equipment manufacturers (OEMs) and end-users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment, and power sports markets; and on-highway vehicles, including passenger cars, light trucks, and medium- and heavy-duty trucks, as well as rail cars and locomotives. It also provides power transmission systems and flight-critical components for civil and military aircraft, which include bearings, rotor-head assemblies, helicopter transmission systems, turbine engine components, gears, and housings. This segment sells its parts through a network of authorized automotive and heavy-truck distributors to individual end-users, equipment owners, operators, and maintenance shops. The Process Industries segment provides industrial bearings and assemblies; power transmission components, such as gears and gearboxes; and linear motion products, couplings, seals, lubricants, chains, belts, and related products and services to OEMs and end-users in various industries. It also offers aftermarket sales and service needs through a network of authorized industrial distributors; and repair and service for bearings and gearboxes, as well as electric motor rewind, repair, and services to end-users. The company offers its products under the Timken, Philadelphia Gear, Drives, Cone Drive, Rollon, Lovejoy, Diamond, BEKA, and Groeneveld brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.

How the Company Makes Money

Timken Company generates revenue primarily through the sale of its engineered bearings and related products. The company's revenue model is built on multiple key streams, including the sale of bearings for various applications, power transmission products, and aftermarket services. Timken's extensive distribution network and strong brand reputation allow it to secure contracts with large industrial clients, contributing significantly to its earnings. Additionally, the company invests in research and development to innovate and improve existing products, which helps maintain its competitive edge. Strategic partnerships with other manufacturers and suppliers also play a critical role in expanding its market reach and enhancing product offerings, further driving revenue growth.

Timken Company Financial Statement Overview

Summary

Timken Company demonstrates solid financial health with strong cash flow and operational efficiency. Despite revenue volatility and declining gross profit margins, the balance sheet remains stable, and cash flow metrics are strong, supporting a positive outlook.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is significantly lower than previous years, indicating potential cost pressures. However, the EBIT and EBITDA margins remain strong, suggesting operational efficiency. Revenue growth has been volatile, with a notable decline in the most recent annual report, but a strong rebound in the TTM period.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio that has improved in the TTM period. Return on equity has decreased, indicating a decline in profitability relative to equity. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with strong free cash flow growth in the TTM period. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is robust, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.54B	4.57B	4.77B	4.50B	4.13B	3.51B
Gross Profit	1.39B	1.45B	1.52B	1.34B	1.16B	1.02B
EBITDA	780.10M	834.30M	915.10M	838.20M	713.80M	661.70M
Net Income	297.30M	352.70M	394.10M	407.40M	369.10M	284.50M
Balance Sheet
Total Assets	6.80B	6.41B	6.54B	5.77B	5.17B	5.04B
Cash, Cash Equivalents and Short-Term Investments	449.10M	389.10M	450.50M	370.80M	314.00M	357.90M
Total Debt	2.21B	2.18B	2.50B	2.05B	1.57B	1.67B
Total Liabilities	3.51B	3.43B	3.84B	3.42B	2.79B	2.82B
Stockholders Equity	3.13B	2.83B	2.58B	2.27B	2.29B	2.15B
Cash Flow
Free Cash Flow	390.40M	305.70M	357.40M	285.40M	239.00M	456.00M
Operating Cash Flow	549.60M	475.70M	545.20M	463.80M	387.30M	577.60M
Investing Cash Flow	-161.70M	-304.60M	-806.50M	-573.30M	-173.80M	-153.50M
Financing Cash Flow	-347.40M	-194.80M	347.10M	206.80M	-269.30M	-331.10M

Timken Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKR, the sentiment is Positive. The current price of 77.95 is above the 20-day moving average (MA) of 76.08, above the 50-day MA of 76.47, and above the 200-day MA of 73.93, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 22.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKR.

Timken Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	77 Outperform	$13.51B	52.63	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$5.31B	18.05	9.80%	1.77%	-1.01%	-12.13%
LECO	75 Outperform	$12.38B	24.12	38.11%	1.32%	3.27%	10.89%
SNA	75 Outperform	$17.62B	17.75	17.96%	2.50%	0.24%	-1.85%
KMT	72 Outperform	$1.68B	18.49	7.36%	3.49%	-2.63%	-4.46%
SWK	64 Neutral	$10.32B	23.05	4.92%	4.86%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Timken Company Corporate Events

Timken’s Q3 2025 Earnings: Sales Growth and Strong Cash Flow

The Timken Company is a global technology leader specializing in engineered bearings and industrial motion, providing innovative solutions to enhance reliability and efficiency across diverse industries.

Timken Seeks to Cease Reporting Issuer Status in Canada

Timken Company has applied to the Ontario Securities Commission to cease being a ‘reporting issuer’ in Ontario, the only Canadian jurisdiction where it holds this status. If approved, Timken will no longer need to file certain financial reports in Canada, aligning its reporting obligations with those in the United States, while ensuring Canadian shareholders continue to receive all necessary disclosures as per U.S. securities laws and NYSE rules.

The most recent analyst rating on (TKR) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Timken Company stock, see the TKR Stock Forecast page.

Timken Company Appoints New CEO Lucian Boldea

On August 22, 2025, The Timken Company announced that Lucian Boldea will become its new President and CEO effective September 1, 2025, succeeding Richard G. Kyle. Boldea, with extensive leadership experience at Honeywell and Eastman Chemical Company, will guide Timken through a transition period ending November 14, 2025, with Kyle continuing as an advisor. Boldea’s compensation package includes a base salary, short-term and long-term incentives, and a severance agreement, reflecting the company’s commitment to securing experienced leadership to enhance its market position.

The most recent analyst rating on (TKR) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Timken Company stock, see the TKR Stock Forecast page.

Timken Appoints New CFO Michael A. Discenza

On August 14, 2025, Timken Company announced the appointment of Michael A. Discenza as Vice President and Chief Financial Officer, succeeding Philip D. Fracassa. Discenza, with over 25 years of experience at Timken, will receive a comprehensive compensation package, including a base salary, short-term incentives, and long-term equity incentives, reflecting the company’s commitment to leadership stability and strategic growth.

The most recent analyst rating on (TKR) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Timken Company stock, see the TKR Stock Forecast page.

Timken’s Earnings Call: Balancing Challenges and Growth

Timken’s recent earnings call presented a balanced view of the company’s current performance, highlighting both strengths and challenges. While the company faces hurdles such as a slight decline in sales and a reduced earnings outlook, it is effectively managing tariff impacts and experiencing growth in its backlog and automation sector. Strategic pricing actions and robust capital allocation are positioning Timken well for future improvements.

Timken’s Q2 2025 Earnings Reflect Resilient Performance

The Timken Company, a global leader in engineered bearings and industrial motion, designs innovative products for various industries, leveraging over 125 years of expertise to enhance reliability and efficiency.