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Is this Large Market Cap Stock target price reasonable for The Timken Company (NYSE:TKR)?

The company in question is, The Timken Company (NYSE:TKR) currently with a stock price of 34.3 (0.12% today). The market cap for The Timken Company is 2752.79, and is in the sector Industrial Goods, and Machine Tools & Accessories industry. The target price for The Timken Company is 34.33. Currently The Timken Company is trading with a P/E of 20.56, and a forward P/E of 16.42. Average volume for The Timken Company is 527.25 and so far today it is 87512.

Performance in the last year for The Timken Company has been 18.35%. For EPS growth, The Timken Company has seen a growth of -152.00%, and is looking to grow in the next year to 8.70%. More long term stats show that EPS growth has been -18.20% over the last five years and could be 2.50% for the next five years. The Timken Company has seen sales growth quarter over quarter at -7.50%, with EPS growth quarter over quarter at 32.90%. The 20-day simple moving average is 1.45%, with the 200-day simple moving average coming to 8.44%.

Since the IPO date for The Timken Company on the 07/01/1985, The Timken Company has seen performance year to date to be 22.74%. With The Timken Company trading at 34.3, the dividend yield is 3.04%, and the EPS is 1.67.

So could The Timken Company, be undervalued? Well as said before P/E is 20.56. The PEG is 8.23, P/S is 0.99 and the P/B is at 2.02. The P/cash is 17.65, with P/free cash flow at 10.

The Timken Company ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 1.4. This is with long term debt/equity at 0.45, and total debt/equity at 0.47.

In terms of margins, The Timken Company has a gross margin of 27.00%, an operating margin of 3.50% and a profit margin of 4.90%.Payout ratio for The Timken Company is 61.80%. Return on assets come to 4.80% with return on investment coming to -1.50%.

Insider ownership for The Timken Company, is at 1.10% and institutional ownership comes to 78.80%. Outstanding shares are at 80.35. While shares float is 69.08. The float short is currently 5.16%, and short ratio is 6.76.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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