Critical Survey: Timkensteel (TMST) versus Its Competitors

Timkensteel (NYSE: TMST) is one of 22 public companies in the “Blast furnaces & steel mills” industry, but how does it contrast to its rivals? We will compare Timkensteel to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, risk and dividends.

Institutional & Insider Ownership

75.0% of Timkensteel shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Blast furnaces & steel mills” companies are owned by institutional investors. 8.2% of Timkensteel shares are owned by company insiders. Comparatively, 9.4% of shares of all “Blast furnaces & steel mills” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.



Earnings & Valuation

This table compares Timkensteel and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Timkensteel $1.33 billion -$43.80 million -15.77
Timkensteel Competitors $12.33 billion $652.37 million 16.20

Timkensteel’s rivals have higher revenue and earnings than Timkensteel. Timkensteel is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Timkensteel and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timkensteel -3.33% -7.56% -3.86%
Timkensteel Competitors 4.25% 10.75% 3.42%

Risk and Volatility

Timkensteel has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, Timkensteel’s rivals have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Timkensteel and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timkensteel 0 2 2 0 2.50
Timkensteel Competitors 306 903 1077 53 2.37

Timkensteel presently has a consensus price target of $19.25, indicating a potential upside of 22.07%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 12.12%. Given Timkensteel’s stronger consensus rating and higher probable upside, analysts clearly believe Timkensteel is more favorable than its rivals.

Summary

Timkensteel rivals beat Timkensteel on 8 of the 13 factors compared.

About Timkensteel

TimkenSteel Corporation manufactures alloy steel, as well as carbon and micro-alloy steel. The Company’s portfolio includes special bar quality (SBQ) bars, seamless mechanical tubing and precision steel components. In addition, the Company supplies machining and thermal treatment services, as well as manage raw material recycling programs, which are used as a feeder system for its melt operations. The Company’s products include SBQ Steel and Seamless Mechanical Steel Tubing, and Value-added Precision Products and Services. Its focus is on alloy steel. The Company manufactures carbon, micro-alloy and alloy steel, sold as ingots, bars and tubes. In addition to its customized steels, the Company also manufactures custom-make precision components. Its products and services are used in a range of demanding applications in the market sectors, such as oil and gas, industrial equipment, mining and power generation.

Receive News & Ratings for Timkensteel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Timkensteel and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply