Latest Ratios: P/E Ratio 33.6x · EV/EBITDA 14.3x · ROE 9.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.6B | $5.9B | $5.0B | $5.8B | $5.3B | $5.3B | $5.9B | $4.3B | $2.9B | $3.9B | $3.1B |
| Enterprise Value | $11.4B | $7.7B | $6.9B | $7.9B | $7.0B | $6.7B | $7.3B | $6.0B | $4.5B | $4.7B | $3.7B |
| P/E Ratio → | 33.59 | 20.47 | 14.30 | 14.65 | 12.90 | 14.47 | 20.80 | 11.96 | 9.64 | 19.05 | 20.68 |
| P/S Ratio | 2.09 | 1.29 | 1.10 | 1.21 | 1.17 | 1.29 | 1.68 | 1.14 | 0.82 | 1.29 | 1.18 |
| P/B Ratio | 2.90 | 1.77 | 1.69 | 2.14 | 2.23 | 2.24 | 2.66 | 2.22 | 1.78 | 2.63 | 2.41 |
| P/FCF | 23.63 | 14.55 | 16.52 | 16.16 | 18.40 | 22.33 | 12.96 | 10.57 | 13.29 | 29.36 | 11.89 |
| P/OCF | 17.31 | 10.66 | 10.61 | 10.60 | 11.32 | 13.78 | 10.23 | 7.87 | 8.79 | 16.38 | 7.82 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.68 | 1.52 | 1.66 | 1.56 | 1.63 | 2.09 | 1.59 | 1.25 | 1.57 | 1.37 |
| EV / EBITDA | 14.30 | 9.67 | 8.33 | 9.25 | 9.12 | 9.89 | 11.85 | 8.89 | 7.45 | 10.79 | 9.71 |
| EV / EBIT | 20.12 | 14.92 | 11.33 | 11.12 | 10.43 | 12.30 | 14.73 | 11.30 | 9.60 | 16.33 | 18.62 |
| EV / FCF | — | 18.96 | 22.70 | 22.21 | 24.63 | 28.13 | 16.08 | 14.69 | 20.34 | 35.70 | 13.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.7% | 28.7% | 31.6% | 32.0% | 29.9% | 28.0% | 29.0% | 30.2% | 29.0% | 27.0% | 26.5% |
| Operating Margin | 12.4% | 12.4% | 13.4% | 13.8% | 13.5% | 12.4% | 12.9% | 13.6% | 12.7% | 10.0% | 9.2% |
| Net Profit Margin | 6.3% | 6.3% | 7.7% | 8.3% | 9.1% | 8.9% | 8.1% | 9.6% | 8.5% | 6.8% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.1% | 9.1% | 12.4% | 15.6% | 17.2% | 16.0% | 13.6% | 20.1% | 19.4% | 14.6% | 10.6% |
| ROA | 4.4% | 4.4% | 5.4% | 6.4% | 7.4% | 7.2% | 5.7% | 7.8% | 7.7% | 6.6% | 5.1% |
| ROIC | 8.5% | 8.5% | 9.4% | 11.0% | 11.5% | 10.4% | 9.4% | 11.3% | 12.4% | 10.9% | 9.9% |
| ROCE | 10.0% | 10.0% | 11.5% | 13.4% | 13.4% | 12.1% | 10.9% | 13.1% | 14.0% | 11.9% | 10.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.64 | 0.64 | 0.76 | 0.95 | 0.90 | 0.69 | 0.78 | 0.97 | 1.02 | 0.65 | 0.50 |
| Debt / EBITDA | 2.71 | 2.71 | 2.72 | 3.00 | 2.75 | 2.42 | 2.82 | 2.81 | 2.80 | 2.20 | 1.75 |
| Net Debt / Equity | — | 0.54 | 0.63 | 0.80 | 0.76 | 0.58 | 0.64 | 0.86 | 0.94 | 0.57 | 0.39 |
| Net Debt / EBITDA | 2.25 | 2.25 | 2.27 | 2.52 | 2.31 | 2.04 | 2.30 | 2.49 | 2.58 | 1.91 | 1.35 |
| Debt / FCF | — | 4.41 | 6.18 | 6.04 | 6.23 | 5.81 | 3.12 | 4.11 | 7.04 | 6.34 | 1.92 |
| Interest Coverage | 4.68 | 4.68 | 4.90 | 6.45 | 9.04 | 9.30 | 7.36 | 7.38 | 9.01 | 7.78 | 5.86 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.82 | 2.82 | 3.07 | 1.79 | 2.47 | 2.47 | 2.36 | 2.54 | 2.53 | 2.23 | 2.66 |
| Quick Ratio | 1.47 | 1.47 | 1.61 | 0.96 | 1.30 | 1.31 | 1.37 | 1.40 | 1.31 | 1.13 | 1.45 |
| Cash Ratio | 0.42 | 0.42 | 0.47 | 0.31 | 0.38 | 0.35 | 0.42 | 0.33 | 0.23 | 0.21 | 0.36 |
| Asset Turnover | — | 0.69 | 0.71 | 0.73 | 0.78 | 0.80 | 0.70 | 0.78 | 0.81 | 0.88 | 0.97 |
| Inventory Turnover | 2.63 | 2.63 | 2.62 | 2.64 | 2.65 | 2.86 | 2.97 | 3.14 | 3.04 | 2.97 | 3.60 |
| Days Sales Outstanding | — | 65.88 | 64.28 | 62.47 | 65.22 | 64.55 | 71.89 | 64.94 | 67.60 | 63.78 | 59.88 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.7% | 1.9% | 1.6% | 1.7% | 1.7% | 1.5% | 2.0% | 2.9% | 2.1% | 2.6% |
| Payout Ratio | 34.1% | 34.1% | 27.2% | 23.9% | 22.5% | 25.0% | 30.6% | 23.4% | 28.3% | 41.0% | 58.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 4.9% | 7.0% | 6.8% | 7.8% | 6.9% | 4.8% | 8.4% | 10.4% | 5.2% | 4.8% |
| FCF Yield | 4.2% | 6.9% | 6.1% | 6.2% | 5.4% | 4.5% | 7.7% | 9.5% | 7.5% | 3.4% | 8.4% |
| Buyback Yield | 0.6% | 1.0% | 0.8% | 4.3% | 4.0% | 1.7% | 0.8% | 1.4% | 3.4% | 1.1% | 3.2% |
| Total Shareholder Yield | 1.6% | 2.6% | 2.7% | 6.0% | 5.8% | 3.5% | 2.3% | 3.4% | 6.3% | 3.3% | 5.8% |
| Shares Outstanding | — | $70M | $71M | $72M | $74M | $77M | $76M | $77M | $78M | $79M | $79M |
Cyclical industrial demand sensitivity
According to current market data, TKR trades at a 34.36x TTM P/E, which appears elevated relative to its 0.19% YoY revenue growth, suggesting that investors are pricing in a significant recovery in industrial motion margins rather than current top-line performance as reported in recent filings.
The forward P/E of 22.94 implies that the market anticipates a meaningful earnings expansion, likely driven by the integration of higher-margin acquisitions. However, the PEG ratio of 17.06 indicates that the current valuation may be disconnected from near-term growth realities, warranting caution for value-oriented investors.
Based on reported figures, TKR's ROIC has hovered between 1.7% and 2.8% over the last ten quarters, a trend that suggests the company is struggling to generate returns on invested capital that meaningfully exceed its cost of capital during this phase of aggressive M&A integration.
The persistent gap between ROIC and historical industrial benchmarks indicates that the capital-intensive nature of the bearing business, combined with the integration costs of new acquisitions, is currently suppressing shareholder value creation. Investors should monitor whether the shift toward the 'Process' segment can eventually drive ROIC toward double-digit levels.
As reported in financial statements, TKR's cash conversion cycle remains elevated, peaking at 183 days in 2024Q4, which highlights a structural inefficiency in managing inventory and receivables compared to more agile peers in the industrial motion space.
The high DIO and DSO figures suggest that the company is carrying significant capital in its supply chain, which directly impacts its ability to generate free cash flow. This inefficiency appears to be a drag on overall operational performance, as the company must tie up substantial liquidity to support its long-cycle project-based contracts.
Based on recent quarterly filings, TKR has improved its current ratio to 2.88, providing a robust liquidity cushion that appears sufficient to navigate potential cyclical downturns in the mining and construction sectors, despite the volatility observed in its working capital requirements.
The improvement in the quick ratio to 1.55 suggests that the company is less dependent on inventory liquidation to meet short-term obligations than it was in previous periods. This liquidity position provides management with the flexibility to continue its M&A strategy, provided that the underlying cash generation stabilizes.
The P/E ratio is frequently misapplied to TKR because it fails to account for the significant non-cash amortization of intangible assets resulting from the company's aggressive M&A strategy, which artificially depresses GAAP net income and makes the stock appear more expensive than its cash-generative reality suggests.
Analysts should prioritize EV/EBITDA or P/FCF to better capture the true earning power of the business, as these metrics strip away the accounting noise associated with acquisition-related write-downs. Relying solely on P/E risks missing the underlying cash flow durability of the industrial motion segment.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TKR stock.
The Timken Company's current P/E ratio is 33.6x. The historical average is 13.8x. This places it at the 100th percentile of its historical range.
The Timken Company's current EV/EBITDA is 14.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.9x.
The Timken Company's return on equity (ROE) is 9.1%. The historical average is 12.2%.
Based on historical data, The Timken Company is trading at a P/E of 33.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Timken Company's current dividend yield is 1.01% with a payout ratio of 34.1%.
The Timken Company has 28.7% gross margin and 12.4% operating margin. Operating margin between 10-20% is typical for established companies.
The Timken Company's Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.