Timken Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>TKR</div>
TKR -- USA Stock  

USD 56.82  0.77  1.34%

Timken Invested Capital Average is relatively stable at the moment as compared to the past year. Timken reported last year Invested Capital Average of 2.6 Billion. As of 08/02/2020, Market Capitalization is likely to grow to about 2.9 B, while Free Cash Flow is likely to drop slightly above 213.8 M. As many millenniums are excited about industrials space, it is only fair to sum up Timken Company. We will cover the possibilities of making Timken into a steady grower in September. This post is to show some fundamental factors affecting Timken's products and services. I will also report how it may impact the investing outlook for Timken in September.
Published over a month ago
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Should you hold on to your Timken position?
Over 80.0% of Timken shares are owned by institutional investors. Institutional ownership of Timken Company refers to the amount of Timken Company equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Timken, including its current ownership diagnostics.

And What about dividends?

A dividend is the distribution of a portion of Timken earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Timken dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Timken one year expected dividend income is about $0.75 per share.
Timken Dividend Yield is relatively stable at the moment as compared to the past year. Timken reported last year Dividend Yield of 0.0234. As of 09/18/2020, Dividends per Basic Common Share is likely to grow to 1.32, while Payment of Dividends and Other Cash Distributions is likely to drop (101.2 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-93.8 M-101.2 M
Dividend Yield 0.0234  0.0332 
Dividends per Basic Common Share 0.94  1.32 
Investing in dividend-paying stocks, such as Timken Company is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Timken must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Timken. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Timken's Liquidity

Timken financial leverage refers to using borrowed capital as a funding source to finance Timken Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Timken financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Timken's total debt and its cash.

How Timken utilizes its cash?

To perform a cash flow analysis of Timken, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Timken is receiving and how much cash it distributes out in a given period. The Timken cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Timken Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Timken reported last year Net Cash Flow from Operations of 550.1 Million

What is driving Timken Investor Appetite?

Timken maintains a total of 75.07 Million outstanding shares. The majority of Timken Company outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Timken to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Timken Company. Please pay attention to any change in the institutional holdings of Timken Company as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
 2015 2016 2019 2020 (projected)
Interest Expense33.4 M33.5 M38.52 M43.22 M
Gross Profit793.9 M694.8 M799.02 M951.21 M

Ownership Breakdown

Retail Investors
7.7%
Insiders
12.67%
Institutions
79.63%
Retail Investors7.7
Insiders12.67
Institutions79.63

Is Timken showing record of lower volatility?

Latest downside variance is at 12.12. Timken Company shows above-average downside volatility for the selected time horizon. We advise investors to inspect Timken Company further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Timken future alpha.

Our Final Take On Timken

While some firms in the tools & accessories industry are either recovering or due for a correction, Timken may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take over nor sell any shares of Timken at this time. The Timken Company risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Timken.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Timken Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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