TimkenSteel Corporation
TimkenSteel Corporation Fundamental Analysis
TimkenSteel Corporation (TMST) shows weak financial fundamentals with a PE ratio of 293.34, profit margin of 0.24%, and ROE of 0.42%. The company generates $1.2B in annual revenue with weak year-over-year growth of -20.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 5.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TMST's fundamental strength across five key dimensions:
Efficiency Score
WeakTMST struggles to generate sufficient returns from assets.
Valuation Score
ModerateTMST shows balanced valuation metrics.
Growth Score
WeakTMST faces weak or negative growth trends.
Financial Health Score
ExcellentTMST maintains a strong and stable balance sheet.
Profitability Score
WeakTMST struggles to sustain strong margins.
Key Financial Metrics
Is TMST Expensive or Cheap?
P/E Ratio
TMST trades at 293.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TMST's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values TimkenSteel Corporation at 1.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 29.44 times EBITDA. This signals the market has high growth expectations.
How Well Does TMST Make Money?
Net Profit Margin
For every $100 in sales, TimkenSteel Corporation keeps $0.24 as profit after all expenses.
Operating Margin
Core operations generate 0.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.42 in profit for every $100 of shareholder equity.
ROA
TimkenSteel Corporation generates $0.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TimkenSteel Corporation generates limited operating cash flow of $29.47M, signaling weaker underlying cash strength.
Free Cash Flow
TimkenSteel Corporation generates weak or negative free cash flow of $-82.31M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.88 in free cash annually.
FCF Yield
TMST converts -8.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
293.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How TMST Stacks Against Its Sector Peers
| Metric | TMST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 293.34 | 25.16 | Worse (Expensive) |
| ROE | 0.42% | 981.00% | Weak |
| Net Margin | 0.24% | -105445.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.52 | Strong (Low Leverage) |
| Current Ratio | 1.73 | 6.31 | Neutral |
| ROA | 0.25% | -3362.00% (disorted) | Weak |
TMST outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TimkenSteel Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
101.23%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-40.55%
Industry Style: Cyclical, Commodity, Value
Declining