Assessing Timken: Insights From 5 Financial Analysts

Analysts' ratings for Timken TKR over the last quarter vary from bullish to bearish, as provided by 5 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $97.2, along with a high estimate of $104.00 and a low estimate of $87.00. Marking an increase of 7.28%, the current average surpasses the previous average price target of $90.60.

Exploring Analyst Ratings: An In-Depth Overview

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Timken. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, 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.

Capture valuable insights into Timken's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Timken analyst ratings.

Delving into Timken's Background

The Timken Company is a manufacturer of bearings, gear belts, industrial motion products 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 authorized 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 Engineered Bearings and Industrial Motion. Timken generates majority of its revenue in the United States of America.

Timken: Financial Performance Dissected

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Timken faced challenges, resulting in a decline of approximately -5.74% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.7%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Timken's ROE excels beyond industry benchmarks, reaching 3.99%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.58%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Timken's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.96, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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