One-glance verdict
Within fair range
$94.31 our estimate vs market $113.67
Wall Street consensus: $144.20 (52.9% higher than our fair-value estimate)
21% above our estimate
Fundamentals snapshot
The Timken Company
TKR · NYQ · Industrials · Tools & Accessories
Current price
$113.67
52-week range
$73.62 - $146.37
Market cap
$7.88B
Balance sheet
Watch
5.13x Adequate
Net debt $1.80B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.9% last year.
- Reward Returns 8.5% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 97.7% above its 5-year average P/E.
What this company does
The Timken Company
The Timken Company makes highly engineered parts, mainly bearings, which are essential components that help machinery move smoothly and efficiently in everything from wind turbines to construction equipment. The company earns money by selling these necessary parts and related industrial products to a wide range of industries, so its success isn't tied to the fortunes of any single customer group. This broad customer base can help make its revenue (the total money brought in from sales) more consistent over time.
How the company got here
In 1898, founder Henry Timken patented a new tapered roller bearing designed to handle friction better than existing options, especially for vehicles like carriages. The company was founded the next year and moved to Canton, Ohio, in 1901 to be closer to the growing auto industry. It became a key supplier for early cars and even made its own steel to ensure quality. A major turning point was the 2003 acquisition of a competitor, The Torrington Company, which doubled Timken's size. In 2014, the company split into two, separating its steel-making business from its core bearing and industrial motion operations.
What it actually does
Timken makes highly specialized parts that help machinery move efficiently and reliably by reducing friction. Think of the tiny metal balls or rollers inside the wheels of a car or a factory conveyor belt; Timken makes advanced versions of those, called bearings. They also produce a wide range of other critical industrial parts like gears, belts, chains, and automatic lubrication systems that keep large equipment running smoothly. You won't find their products on a store shelf, but they are essential components inside everything from farm tractors and wind turbines to airplanes and robotic surgical equipment.
Engineered Bearings
This is the company's original and largest business, making up the majority of its sales. It designs and manufactures a huge variety of bearings, which are crucial components that allow parts to spin with less wear and tear. Customers are other large manufacturers (known as original equipment manufacturers, or OEMs) in industries like aerospace, renewable energy, and heavy industry who build these bearings into their own products, such as wind turbines and construction equipment. This segment also sells replacement bearings to end-users for maintenance and repair.
Industrial Motion
This part of the company sells a broader portfolio of products that help manage power and motion in industrial machinery. This includes items like gear drives, clutches, brakes, automatic lubrication systems, belts, and chains. These products are often sold to the same types of industrial customers as the bearings, helping them build and maintain entire systems. For example, a food processing plant might use Timken's corrosion-resistant bearings on its conveyors and also use its specialized gear drives and chains to move products through the facility. This segment has been growing, partly through the acquisition (buying) of other specialized companies.
What management is betting on now
The company is focused on growing by designing and selling more complete industrial motion systems, not just individual parts. They are also concentrating on key growth markets like automation, renewable energy (like wind and solar), and aerospace. A major priority is to increase the company's profitability, specifically its adjusted EBITDA margin (a measure of how much cash profit is made from each dollar of sales, before accounting for interest, taxes, and certain non-cash expenses). They also aim to expand their business in specific geographic regions like Europe, China, and India, and are continuously looking to acquire other companies that fit into their strategy.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$88.20M
FY2024 Q4
$125.00M
FY2025 Q1
$23.40M
FY2025 Q2
$78.20M
FY2025 Q3
$163.80M
FY2025 Q4
$140.70M
FY2026 Q1
$500.00K
FY2026 Q2
$80.50M
Revenue
$1.26B
Net income
$28.90M
Diluted EPS
0.41
Operating cash flow
$107.10M
Free cash flow
$80.50M
Fetching…
Sources
Revenue
$1.23B
Net income
$98.20M
Diluted EPS
1.40
Operating cash flow
$39.30M
Free cash flow
$500.00K
Fetching…
Sources
Revenue
$1.11B
Net income
$62.30M
Diluted EPS
0.89
Operating cash flow
$183.30M
Free cash flow
$140.70M
Fetching…
Sources
Revenue
$1.16B
Net income
$69.30M
Diluted EPS
0.99
Operating cash flow
$201.10M
Free cash flow
$163.80M
Fetching…
Sources
Revenue
$1.17B
Net income
$78.50M
Diluted EPS
1.12
Operating cash flow
$111.30M
Free cash flow
$78.20M
Fetching…
Sources
Revenue
$1.14B
Net income
$78.30M
Diluted EPS
1.11
Operating cash flow
$58.60M
Free cash flow
$23.40M
Fetching…
Sources
Revenue
$1.07B
Net income
$71.20M
Diluted EPS
1.01
Operating cash flow
$178.60M
Free cash flow
$125.00M
Fetching…
Sources
Revenue
$1.13B
Net income
$81.80M
Diluted EPS
1.16
Operating cash flow
$123.20M
Free cash flow
$88.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $94.31 vs current price $113.67
Wall Street consensus is the average analyst price target: $144.20 (52.9% higher than our fair-value estimate).
Our most-likely fair value is $94.31 a share — about 17.0% away from today's price of $113.67, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.8B. Interest coverage 5.1x.
Net debt
$1.80B
Interest coverage
5.13x
The Timken Company's profit covers its interest bill about 5.1 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
TKR
BASELINE
The Timken Company
Total debt $2.20B Interest coverage 5.13x This is the baseline the peer rows are being compared against.
Total debt — Interest coverage 7.63x +49% vs TKR Carries about 1.5x more debt cushion than TKR.
Total debt $4.77B Interest coverage 1.96x -62% vs TKR Carries about 2.6x less debt cushion than TKR.
Total debt $878.10M Interest coverage 8.67x +69% vs TKR Carries about 1.7x more debt cushion than TKR.
Total debt $2.36B Interest coverage 4.19x -18% vs TKR Carries about 1.2x less debt cushion than TKR.
Total debt $9.53B Interest coverage 0.84x -84% vs TKR Carries about 6.1x less debt cushion than TKR.
What you should know
The case for and against TKR
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.9% last year.
-
Returns 8.5% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 97.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.80x
Forward P/E
15.62x
P/B
2.47x
P/S
1.65x
EV/EBITDA
10.63x
PEG ratio
1.26x
Profitability
How much profit each dollar creates
Gross margin
32.7%
Operating margin
20.5%
Net margin
5.4%
ROE
8.5%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
3.10x
Quick ratio
1.52x
Total debt
$2.20B
Total cash
$399.10M
Growth
How the business has been compounding
Revenue TTM
$4.76B
Revenue 5Y CAGR
2.6%
EPS TTM
3.69
EPS 5Y CAGR
-9.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$530.80M
Free CF TTM
$406.10M
FCF margin
8.5%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
38.2%
Last ex-div date
2026-08-18