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Timken Co (TKR) Fundamental Analysis & AI Grade 2026

TKR NYSE Ball & Roller Bearings OH CIK: 0000098362
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 TKR Key Takeaways

Revenue: $1.2B
Net Margin: 8.0%
Free Cash Flow: $500.0K
Current Ratio: 2.88x
Debt/Equity: 0.64x
EPS: $1.40
AI Grade: C with 72% confidence
Timken Co (TKR) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.2B, net profit margin of 8.0%, and return on equity (ROE) of 3.1%, Timken Co demonstrates mixed fundamentals in the Market sector. Below is our complete TKR stock analysis for 2026.

Is Timken Co (TKR) a Good Investment?

Claude

Timken exhibits deteriorating fundamentals with flat revenue growth (+0.2% YoY), declining earnings (net income -9.1%, EPS -17.6%), and critically weak free cash flow generation ($500K) that represents only 0.5% of net income, signaling severe earnings quality concerns and sustainability issues despite surface-level profitability.

Timken Co Key Strengths (TKR)

Claude
  • + Strong liquidity position with 2.88x current ratio and $345M cash on hand
  • + Moderate leverage at 0.64x debt/equity provides some financial flexibility
  • + Solid operating margin of 13.7% reflects reasonable operational efficiency in industrial bearings

TKR Stock Risks: Timken Co Investment Risks

Claude
  • ! Severe cash flow conversion problem: $500K free cash flow versus $98M net income indicates poor earnings quality and sustainability
  • ! Declining profitability trajectory with net income down 9.1% and diluted EPS down 17.6% year-over-year
  • ! Interest coverage ratio of 1.7x is dangerously low, leaving minimal cushion for debt service if operations deteriorate
  • ! Stagnant revenue growth at +0.2% YoY in mature industrial market with no visible acceleration
  • ! Suspicious gross margin of 104.6% exceeds 100%, indicating potential data quality or accounting anomalies

Key Metrics to Watch

Claude
  • * Operating cash flow trend and working capital dynamics driving cash conversion gap
  • * Revenue growth rate and market demand indicators in bearing segments
  • * Interest coverage ratio improvement as debt capacity is constrained
  • * Free cash flow sustainability and capital allocation decisions

Timken Co (TKR) Financial Metrics & Key Ratios

Revenue
$1.2B
Net Income
$98.2M
EPS (Diluted)
$1.40
Free Cash Flow
$500.0K
Total Assets
$6.9B
Cash Position
$344.7M

💡 AI Analyst Insight

The relatively thin 0.0% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.88x current ratio provides a solid financial cushion.

TKR Profit Margin, ROE & Profitability Analysis

Gross Margin 104.6%
Operating Margin 13.7%
Net Margin 8.0%
ROE 3.1%
ROA 1.4%
FCF Margin 0.0%

TKR vs Market Sector: How Timken Co Compares

How Timken Co compares to Market sector averages

Net Margin
TKR 8.0%
vs
Sector Avg 12.0%
TKR Sector
ROE
TKR 3.1%
vs
Sector Avg 15.0%
TKR Sector
Current Ratio
TKR 2.9x
vs
Sector Avg 1.8x
TKR Sector
Debt/Equity
TKR 0.6x
vs
Sector Avg 0.7x
TKR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Timken Co Stock Overvalued? TKR Valuation Analysis 2026

Based on fundamental analysis, Timken Co has mixed fundamental signals relative to the Market sector in 2026.

Return on Equity
3.1%
Sector avg: 15%
Net Profit Margin
8.0%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.64x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Timken Co Balance Sheet: TKR Debt, Cash & Liquidity

Current Ratio
2.88x
Quick Ratio
1.55x
Debt/Equity
0.64x
Debt/Assets
42.2%
Interest Coverage
1.74x
Long-term Debt
$2.0B

TKR Revenue & Earnings Growth: 5-Year Financial Trend

TKR 5-year financial data: Year 2021: Revenue $4.1B, Net Income $362.1M, EPS $4.71. Year 2022: Revenue $4.5B, Net Income $284.5M, EPS $3.72. Year 2023: Revenue $4.8B, Net Income $369.1M, EPS $4.79. Year 2024: Revenue $4.8B, Net Income $407.4M, EPS $5.48. Year 2025: Revenue $4.8B, Net Income $394.1M, EPS $5.47.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Timken Co's revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.47 reflects profitable operations.

TKR Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
0.0%
Free cash flow / Revenue

TKR Quarterly Earnings & Performance

Quarterly financial performance data for Timken Co including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.1B $78.3M $1.11
Q3 2025 $1.1B $69.3M $0.99
Q2 2025 $1.2B $78.5M $1.12
Q1 2025 $1.1B $78.3M $1.11
Q3 2024 $1.1B $81.8M $1.16
Q2 2024 $1.2B $96.2M $1.36
Q1 2024 $1.2B $103.5M $1.46
Q3 2023 $1.1B $87.0M $1.18

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Timken Co Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$39.3M
Cash generated from operations
Stock Buybacks
$28.0M
Shares repurchased (TTM)
Capital Expenditures
$38.8M
Investment in assets
Dividends Paid
$25.3M
Returned to shareholders

TKR SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Timken Co (CIK: 0000098362)

📋 Recent SEC Filings

Date Form Document Action
May 29, 2026 4 xslF345X06/wk-form4_1780085796.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779135341.xml View →
May 12, 2026 4 xslF345X06/wk-form4_1778617980.xml View →
May 12, 2026 4 xslF345X06/wk-form4_1778617712.xml View →
May 12, 2026 4 xslF345X06/wk-form4_1778617530.xml View →

Frequently Asked Questions about TKR

What is the AI rating for TKR?

Timken Co (TKR) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TKR's key strengths?

Claude: Strong liquidity position with 2.88x current ratio and $345M cash on hand. Moderate leverage at 0.64x debt/equity provides some financial flexibility.

What are the risks of investing in TKR?

Claude: Severe cash flow conversion problem: $500K free cash flow versus $98M net income indicates poor earnings quality and sustainability. Declining profitability trajectory with net income down 9.1% and diluted EPS down 17.6% year-over-year.

What is TKR's revenue and growth?

Timken Co reported revenue of $1.2B.

Does TKR pay dividends?

Timken Co pays dividends, with $25.3M distributed to shareholders in the trailing twelve months.

Where can I find TKR SEC filings?

Official SEC filings for Timken Co (CIK: 0000098362) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TKR's EPS?

Timken Co has a diluted EPS of $1.40.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TKR's fundamental grade?

Based on our AI fundamental analysis in June 2026, Timken Co has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TKR stock overvalued or undervalued?

Valuation metrics for TKR: ROE of 3.1% (sector avg: 15%), net margin of 8.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is TKR's AI grade for 2026?

Our dual AI analysis gives Timken Co a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TKR's free cash flow?

Timken Co's operating cash flow is $39.3M, with capital expenditures of $38.8M. FCF margin is 0.0%.

How does TKR compare to other Market stocks?

Vs Default sector averages: Net margin 8.0% (avg: 12%), ROE 3.1% (avg: 15%), current ratio 2.88 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI