The Timken Company (NYSE:TKR) has a beta of 1.75, a 12-month trailing P/E ratio of 20.58, and a growth ratio of 1.58. The stock’s Relative Strength Index (RSI) is 43.81, with weekly volatility at 2.52% and ATR at 2.25. The TKR stock’s 52-week price range has touched low of $41.33 and a $92.39 high. Its shares traded lower over the last trading session, losing -2.61% on 06/10/21. The shares fell to a low of $84.91 before closing at $85.12. Intraday shares traded counted 0.45 million, which was 13.35% higher than its 30-day average trading volume of 524.92K. TKR’s previous close was $87.40 while the outstanding shares total 75.82M.
Investors have identified the Tools & Accessories company The Timken Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.41 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Timken Company (TKR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TKR, the company has in raw cash 303.1 million on their books with 10.8 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.14 billion total, with 916.8 million as their total liabilities.
TKR were able to record 2.3 million as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by -18.0 million. In cash movements, the company had a total of 31.7 million as operating cash flow.
Potential earnings growth for The Timken Company (TKR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/29/2021 quarter of the year, The Timken Company recorded a total of 1.03 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.95% coming in sequential stages and their sales for the 07/29/2021 quarter increasing by 13.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 726.2 million trying to sell their products during the last quarter, with the result yielding a gross income of 299.2 million. This allows shareholders to hold on to 75.82M with the recently reported earning now reading 1.53 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (1.38 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.01 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TKR sounds very interesting.
Is the stock of TKR attractive?
In related news, Director, WOODS JACQUELINE F sold 2,300 shares of the company’s stock in a transaction that recorded on May 27. The sale was performed at an average price of 87.22, for a total value of 200,606. As the sale deal closes, the President and CEO, Kyle Richard G now sold 37,635 shares of the company’s stock, valued at 3,348,148. Also, EVP & CFO, Fracassa Philip D. sold 5,000 shares of the company’s stock in a deal that was recorded on May 14. The shares were price at an average price of 89.17 per share, with a total market value of 445,850. Following this completion of acquisition, the Group Vice President, Landin Bo Hans Olof now holds 2,500 shares of the company’s stock, valued at 222,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.00%.
9 out of 12 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on The Timken Company. 0 analysts has assigned a Sell rating on the TKR stock. The 12-month mean consensus price target for the company’s shares has been set at $99.10.