Timken Company: Compounding Value Via Long-Term ROE And FCF Per Share

Nov. 28, 2023 11:00 AM ETThe Timken Company (TKR) StockTKR3 Comments
Zach Bristow
4.17K Followers

Summary

  • Timken Company is a long-term compounder with a history of predictable cash flows and strong customer networks.
  • TKR has created immense wealth for its owners over the years by producing 15–20% returns on equity capital for the last decade.
  • The company's sensible approach to capital allocation and attractive valuations make it a compelling investment opportunity.

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Investment briefing

Long-term capital compounders are a rare bunch, but are more common on the global stock exchanges than one might first think. Take Timken Company (NYSE:TKR), for example. Founded in 1899, the company provides the world with bearings + products for

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4.17K Followers
Equity strategist (US Equities)Technical focus on fundamental value drivers of business economics to uncover high probability long-term compounders. Seeking to buy at appropriate prices relative to intrinsic worth. Partners are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures & options markets. Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Conduct your own due diligence. The Company accepts no responsibility for personal decisions made. Opinions of The Company and its affiliates may change from time to time without prior acknowledgement. The Company and its representatives share no economic relationship with any entities in which it holds common stock investments.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TKR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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