Timken Company Stock Beta

TKR Stock

USD 75.96 0.74 0.98%

Timken Company fundamentals help investors to digest information that contributes to Timken's financial success or failures. It also enables traders to predict the movement of Timken Stock. The fundamental analysis module provides a way to measure Timken's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Timken stock.

Short Long Term Debt Total Total Assets

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Timken Company Company Beta Analysis

Timken's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Beta

Covariance

Variance

More About Beta | All Equity Analysis

Current Timken Beta

1.43

Most of Timken's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Timken Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Timken Beta Driver Correlations

Understanding the fundamental principles of building solid financial models for Timken is extremely important. It helps to project a fair market value of Timken Stock properly, considering its historical fundamentals such as Beta. Since Timken's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Timken's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Timken's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Accounts Payable	Intangible Assets	Common Stock	Long Term Debt	Good Will	Treasury Stock	Property Plant Equipment	Current Deferred Revenue	Short Term Investments	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.88	0.56	0.64	0.96	0.96	0.95	0.38	0.85	0.66	-0.64	0.64	0.72	0.27	0.31	0.02	0.6	0.11	0.59	-0.39	0.77	0.24	0.33	0.73	0.74	0.65	-0.57
Total Stockholder Equity	0.88		0.2	0.82	0.81	0.72	0.91	0.32	0.65	0.34	-0.48	0.27	0.42	0.43	0.55	0.39	0.45	0.32	0.24	-0.34	0.63	-0.05	0.17	0.55	0.46	0.39	-0.41
Net Debt	0.56	0.2		-0.11	0.56	0.71	0.35	0.63	0.72	0.98	-0.74	0.97	0.96	-0.02	-0.22	-0.68	0.46	-0.33	0.98	-0.58	0.67	0.68	0.72	0.71	0.91	0.84	-0.76
Retained Earnings	0.64	0.82	-0.11		0.59	0.46	0.75	0.14	0.24	0.02	0.0	-0.04	0.06	0.11	0.44	0.48	-0.01	0.32	-0.07	0.13	0.35	-0.19	-0.03	0.12	0.1	0.0	0.04
Net Receivables	0.96	0.81	0.56	0.59		0.95	0.93	0.27	0.85	0.64	-0.57	0.66	0.7	0.11	0.12	0.03	0.57	-0.01	0.58	-0.31	0.7	0.3	0.25	0.65	0.68	0.64	-0.51
Total Liab	0.96	0.72	0.71	0.46	0.95		0.87	0.37	0.88	0.77	-0.66	0.79	0.82	0.15	0.14	-0.19	0.62	-0.02	0.74	-0.38	0.76	0.38	0.39	0.76	0.82	0.73	-0.6
Total Current Assets	0.95	0.91	0.35	0.75	0.93	0.87		0.27	0.77	0.48	-0.52	0.46	0.54	0.34	0.37	0.25	0.54	0.2	0.41	-0.32	0.56	0.08	0.22	0.59	0.56	0.51	-0.46
Short Term Debt	0.38	0.32	0.63	0.14	0.27	0.37	0.27		0.38	0.7	-0.64	0.5	0.65	0.31	0.1	-0.33	0.13	0.09	0.63	-0.73	0.43	0.41	0.95	0.56	0.66	0.39	-0.72
Accounts Payable	0.85	0.65	0.72	0.24	0.85	0.88	0.77	0.38		0.77	-0.79	0.79	0.84	0.33	0.23	-0.12	0.85	-0.11	0.74	-0.59	0.7	0.39	0.4	0.76	0.81	0.85	-0.75
Intangible Assets	0.66	0.34	0.98	0.02	0.64	0.77	0.48	0.7	0.77		-0.79	0.96	0.99	0.1	-0.11	-0.55	0.5	-0.25	0.98	-0.66	0.69	0.6	0.77	0.75	0.93	0.84	-0.81
Common Stock	-0.64	-0.48	-0.74	0.0	-0.57	-0.66	-0.52	-0.64	-0.79	-0.79		-0.73	-0.83	-0.56	-0.18	0.36	-0.69	-0.07	-0.77	0.91	-0.54	-0.49	-0.68	-0.94	-0.89	-0.82	0.98
Long Term Debt	0.64	0.27	0.97	-0.04	0.66	0.79	0.46	0.5	0.79	0.96	-0.73		0.96	0.02	-0.16	-0.61	0.55	-0.31	0.98	-0.53	0.67	0.61	0.61	0.73	0.91	0.9	-0.74
Good Will	0.72	0.42	0.96	0.06	0.7	0.82	0.54	0.65	0.84	0.99	-0.83	0.96		0.15	-0.03	-0.52	0.59	-0.22	0.97	-0.67	0.75	0.59	0.71	0.8	0.96	0.88	-0.84
Treasury Stock	0.27	0.43	-0.02	0.11	0.11	0.15	0.34	0.31	0.33	0.1	-0.56	0.02	0.15		0.74	0.25	0.54	0.55	0.09	-0.67	0.07	-0.32	0.25	0.49	0.3	0.29	-0.55
Property Plant Equipment	0.31	0.55	-0.22	0.44	0.12	0.14	0.37	0.1	0.23	-0.11	-0.18	-0.16	-0.03	0.74		0.39	0.38	0.6	-0.13	-0.2	0.27	-0.51	-0.07	0.22	0.08	0.11	-0.15
Current Deferred Revenue	0.02	0.39	-0.68	0.48	0.03	-0.19	0.25	-0.33	-0.12	-0.55	0.36	-0.61	-0.52	0.25	0.39		0.02	0.16	-0.65	0.24	-0.2	-0.64	-0.48	-0.35	-0.51	-0.43	0.39
Short Term Investments	0.6	0.45	0.46	-0.01	0.57	0.62	0.54	0.13	0.85	0.5	-0.69	0.55	0.59	0.54	0.38	0.02		-0.13	0.51	-0.56	0.46	0.15	0.17	0.65	0.62	0.73	-0.64
Net Tangible Assets	0.11	0.32	-0.33	0.32	-0.01	-0.02	0.2	0.09	-0.11	-0.25	-0.07	-0.31	-0.22	0.55	0.6	0.16	-0.13		-0.26	-0.13	-0.03	-0.42	-0.04	0.09	-0.11	-0.19	-0.04
Long Term Debt Total	0.59	0.24	0.98	-0.07	0.58	0.74	0.41	0.63	0.74	0.98	-0.77	0.98	0.97	0.09	-0.13	-0.65	0.51	-0.26		-0.62	0.63	0.61	0.74	0.75	0.94	0.87	-0.8
Capital Surpluse	-0.39	-0.34	-0.58	0.13	-0.31	-0.38	-0.32	-0.73	-0.59	-0.66	0.91	-0.53	-0.67	-0.67	-0.2	0.24	-0.56	-0.13	-0.62		-0.32	-0.38	-0.75	-0.78	-0.71	-0.62	0.94
Deferred Long Term Liab	0.77	0.63	0.67	0.35	0.7	0.76	0.56	0.43	0.7	0.69	-0.54	0.67	0.75	0.07	0.27	-0.2	0.46	-0.03	0.63	-0.32		0.26	0.32	0.62	0.72	0.67	-0.5
Long Term Investments	0.24	-0.05	0.68	-0.19	0.3	0.38	0.08	0.41	0.39	0.6	-0.49	0.61	0.59	-0.32	-0.51	-0.64	0.15	-0.42	0.61	-0.38	0.26		0.51	0.47	0.54	0.45	-0.49
Short Long Term Debt	0.33	0.17	0.72	-0.03	0.25	0.39	0.22	0.95	0.4	0.77	-0.68	0.61	0.71	0.25	-0.07	-0.48	0.17	-0.04	0.74	-0.75	0.32	0.51		0.58	0.72	0.45	-0.76
Cash And Equivalents	0.73	0.55	0.71	0.12	0.65	0.76	0.59	0.56	0.76	0.75	-0.94	0.73	0.8	0.49	0.22	-0.35	0.65	0.09	0.75	-0.78	0.62	0.47	0.58		0.91	0.8	-0.89
Net Invested Capital	0.74	0.46	0.91	0.1	0.68	0.82	0.56	0.66	0.81	0.93	-0.89	0.91	0.96	0.3	0.08	-0.51	0.62	-0.11	0.94	-0.71	0.72	0.54	0.72	0.91		0.89	-0.88
Net Working Capital	0.65	0.39	0.84	0.0	0.64	0.73	0.51	0.39	0.85	0.84	-0.82	0.9	0.88	0.29	0.11	-0.43	0.73	-0.19	0.87	-0.62	0.67	0.45	0.45	0.8	0.89		-0.82
Capital Stock	-0.57	-0.41	-0.76	0.04	-0.51	-0.6	-0.46	-0.72	-0.75	-0.81	0.98	-0.74	-0.84	-0.55	-0.15	0.39	-0.64	-0.04	-0.8	0.94	-0.5	-0.49	-0.76	-0.89	-0.88	-0.82

Click cells to compare fundamentals

In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Competition

Predict Timken

In accordance with the recently published financial statements, Timken Company has a Beta of 1.427. This is 4.16% higher than that of the Machinery sector and 21.97% higher than that of the Industrials industry. The beta for all United States stocks is notably lower than that of the firm.

Timken Beta Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Timken's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Timken could also be used in its relative valuation, which is a method of valuing Timken by comparing valuation metrics of similar companies.

Timken is currently under evaluation in beta category among its peers.

Timken Current Valuation Drivers

We derive many important indicators used in calculating different scores of Timken from analyzing Timken's financial statements. These drivers represent accounts that assess Timken's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Timken's important valuation drivers and their relationship over time.

	2019	2020	2021	2022	2023	2024 (projected)
Market Cap	4.3B	5.8B	5.3B	5.2B	5.7B	6.0B
Enterprise Value	5.9B	7.2B	6.5B	6.9B	7.8B	8.2B

Timken ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Timken's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Timken's managers, analysts, and investors.

Environmental

Governance

Social

Timken Institutional Holders

Institutional Holdings refers to the ownership stake in Timken that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Timken's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Timken's value.

		Shares
Fuller & Thaler Asset Management Inc	2024-09-30	1.2 M
Fiduciary Management, Inc. Of Milwaukee	2024-09-30	1.1 M
Geode Capital Management, Llc	2024-09-30	1.1 M
Brown Advisory Holdings Inc	2024-09-30	875.1 K
Macquarie Group Ltd	2024-06-30	844.3 K
Principal Financial Group Inc	2024-09-30	753.1 K
Norges Bank	2024-06-30	753 K
Bank Of New York Mellon Corp	2024-06-30	728.5 K
Charles Schwab Investment Management Inc	2024-09-30	650 K
Vanguard Group Inc	2024-09-30	6.4 M
Blackrock Inc	2024-06-30	5.7 M

As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Timken will likely underperform.

Timken Fundamentals

	Return On Equity	0.13
	Return On Asset	0.0559
	Profit Margin	0.07 %
	Operating Margin	0.12 %
	Current Valuation	7.26 B
	Shares Outstanding	70.12 M
	Shares Owned By Insiders	10.56 %
	Shares Owned By Institutions	86.60 %
	Number Of Shares Shorted	1.44 M
	Price To Earning	14.32 X
	Price To Book	1.82 X
	Price To Sales	1.16 X
	Revenue	4.77 B
	Gross Profit	1.28 B
	EBITDA	657.1 M
	Net Income	394.1 M
	Cash And Equivalents	331.6 M
	Cash Per Share	4.14 X
	Total Debt	2.5 B
	Debt To Equity	0.86 %
	Current Ratio	2.03 X
	Book Value Per Share	41.83 X
	Cash Flow From Operations	545.2 M
	Short Ratio	3.71 X
	Earnings Per Share	4.82 X
	Price To Earnings To Growth	0.94 X
	Target Price	87.0
	Number Of Employees	19 K
	Beta	1.43
	Market Capitalization	5.33 B
	Total Asset	6.54 B
	Retained Earnings	2.23 B
	Working Capital	1.16 B
	Current Asset	1.21 B
	Current Liabilities	505.3 M
	Annual Yield	0.02 %
	Five Year Return	2.15 %
	Net Asset	6.54 B
	Last Dividend Paid	1.34

About Timken Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Timken Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Timken using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Timken Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with Timken

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Timken position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Timken will appreciate offsetting losses from the drop in the long position's value.

Moving together with Timken Stock

0.82

EML

Eastern

Pair Corr

Moving against Timken Stock

0.73	G	Genpact Limited	Pair Corr
0.61	KMT	Kennametal	Pair Corr
0.6	RBC	RBC Bearings	Pair Corr
0.48	SNA	Snap On	Pair Corr
0.38	MKTAY	Makita Corp	Pair Corr

The ability to find closely correlated positions to Timken could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Timken when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Timken - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Timken Company to buy it.

The correlation of Timken is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Timken moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Timken Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Timken can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for Timken Stock Analysis

When running Timken's price analysis, check to measure Timken's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Timken is operating at the current time. Most of Timken's value examination focuses on studying past and present price action to predict the probability of Timken's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Timken's price. Additionally, you may evaluate how the addition of Timken to your portfolios can decrease your overall portfolio volatility.

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