Peeling Back The Layers: Exploring Timken Through Analyst Insights

In the latest quarter, 6 analysts provided ratings for Timken TKR, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Timken, presenting an average target of $82.67, a high estimate of $92.00, and a low estimate of $74.00. A 14.77% drop is evident in the current average compared to the previous average price target of $97.00.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Timken. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Timken. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Timken compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Timken's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Timken's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Timken analyst ratings.

Discovering Timken: A Closer Look

The Timken Company is a manufacturer of bearings, gear belts, and chain-related products. The company sells its portfolio of bearings, including tapered, spherical and cylindrical roller bearings, and thrust and ball bearings, through a network of authorised dealers to end users or directly to original equipment manufacturers. End-market sectors include general industrial, automotive, rail, energy, heavy truck, defense, agriculture, metals, mining, civil aerospace, construction, pulp and paper, and cement industries. Its segments are Mobile Industries and Process industries. Timken generates its revenue in the United States of America.

Timken: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Timken's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 0.55%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Timken's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.69%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Timken's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.51%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Timken's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.41%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 0.93, Timken faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.