Returns Breakdown
7.84
Return on Assets
16.21
Return on Investment
| Return on Investment | 16.21 | |
| Return on Assets | 7.84 | |
| Return on Equity | 19.38 | |
| Return Capital | 0.13 | |
| Return on Sales | 0.0783 |
Are Timken (NYSE:TKR) retail investors starting to hold back?
 | By Raphi Shpitalnik | Macroaxis Story |
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 08/03/2020, Market Capitalization is likely to grow to about 2.9 B, while Free Cash Flow is likely to drop slightly above 213.8 M. Today's short post will sum up Timken as your potential position. We will discuss the question of why retail investors should continue to be confident in Timken outlook.
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Reviewed by Ellen Johnson
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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Timken. Your research has to be compared to or analyzed against Timken's peers to derive any actionable benefits. When done correctly, Timken's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Timken Company.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Timken Company. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Timken
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Timken's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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. Financial leverage can amplify the potential profits to Timken's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Timken's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Timken's total debt and its cash.
Timken Gross Profit
Timken Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Timken previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Timken Gross Profit growth over the last 10 years. Please check Timken's gross profit and other fundamental indicators for more details.
A Deeper Perspective On Timken
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.
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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 Raphi Shpitalnik do not own shares of Timken Company. Please refer to our Terms of Use for any information regarding our disclosure principles.