What Analysts Are Saying About Timken Stock

6 analysts have expressed a variety of opinions on Timken TKR over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Timken, presenting an average target of $85.67, a high estimate of $102.00, and a low estimate of $70.00. A decline of 0.19% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

The standing of Timken among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Timken. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Timken compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Timken's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Timken analyst ratings.

Get to Know Timken Better

The Timken Co designs and manages a portfolio of engineered bearings and industrial motion products, and provides related services. The Company sells products and services to customers in the following market sectors: industrial distribution, renewable energy, automation, automotive original equipment (OE), agriculture/turf, rail, aerospace, auto/truck aftermarket, construction, etc. The company has two reportable segment: The Engineered Bearings portfolio features bearings with precision tolerances, proprietary internal geometries and quality materials. The Industrial Motion portfolio features products such as drives, breathers, seals, automatic lubrication systems, linear motion products, chain, belts, couplings, etc. Key revenue is generated from Engineered Bearings.

Timken's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Timken faced challenges, resulting in a decline of approximately -1.61% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.63%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Timken's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.47%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Timken's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.08%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Timken's debt-to-equity ratio stands notably higher than the industry average, reaching 0.77. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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