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The Timken CoMEX:TKR 62 Return-on-Tangible-Equity is 58.18% as of Mar. 2026, which is 40% below its 10-year median of 97.48. GuruFocus rates MEX:TKR with a GF Score™ of 62/100 and a GF Value™ of MXN1,162.73 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,974 Industrial Products companies, The Timken Co ranks better than 94.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Timken Co's annualized net income for the quarter that ended in Mar. 2026 was MXN7,083 Mil. The Timken Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN12,174 Mil. Therefore, The Timken Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 58.18%.
The historical rank and industry rank for The Timken Co's Return-on-Tangible-Equity or its related term are showing as below:
MEX:TKR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 20.45 Med: 97.48 Max: 38115.79
Current: 50.82
During the past 13 years, The Timken Co's highest Return-on-Tangible-Equity was 38,115.79%. The lowest was 20.45%. And the median was 97.48%.
MEX:TKR's Return-on-Tangible-Equity is ranked better than 94.96% of 2974
companies
in the Industrial Products industry
Industry Median: 6.775
vs MEX:TKR: 50.82
The Timken Co (MEX:TKR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Timken Co Return-on-Tangible-Equity Related Terms
The Timken Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Timken Co's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TKR vs TTC, SWK, LECO: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, The Timken Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Timken Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Timken Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Timken Co's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 58.18% mean?
The Timken Co (MEX:TKR) has a Return-on-Tangible-Equity of 58.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Timken Co and its competitors. This is 40% below median its historical median of 97.48. Over the past decade, The Timken Co's Return-on-Tangible-Equity has ranged from 20.45 to 38,115.79. According to the industry distribution chart, The Timken Co ranks #150 out of 2974 companies in the Industrial Products industry, placing it in the top 5%.
Is The Timken Co's Return-on-Tangible-Equity too high?
The Timken Co's current Return-on-Tangible-Equity of 58.18% is 40% below median its 10-year median of 97.48. Over the past 10 years, this metric has ranged from a low of 20.45 to a high of 38,115.79. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. The Timken Co's value of 58.18% is 758.7% above this industry median. Based on the distribution chart, The Timken Co ranks #150 out of 2974 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, The Timken Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Timken Co's Return-on-Tangible-Equity compare to TTC and SWK?
According to the Industrial Products industry distribution chart, The Timken Co ranks #150 out of 2974 companies for Return-on-Tangible-Equity. This places The Timken Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.78. The Timken Co's value of 58.18% is 758.7% above this benchmark. Historically, The Timken Co's own Return-on-Tangible-Equity has ranged from 20.45 to 38,115.79 over the past decade. While the company's 10-year median is 97.48 vs. the industry median of 6.78, The Timken Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.78, based on 2,974 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Timken Co's current Return-on-Tangible-Equity of 58.18% is 758.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Timken Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Timken Co's current Return-on-Tangible-Equity is 58.18%, which is 40% below median its own 10-year median of 97.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Timken Co stock overvalued right now?
Based on GuruFocus' analysis, The Timken Co (MEX:TKR) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,162.73, compared to a current price of MXN2,560.00 — trading 120.2% above its estimated fair value. The current Return-on-Tangible-Equity is 58.18%, which is 40% below median its 10-year median of 97.48 and 758.7% above the Industrial Products industry median of 6.78. The Timken Co's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Timken Co (MEX:TKR), the current Return-on-Tangible-Equity is 58.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Timken Co (MEX:TKR) Overvalued in 2026?
Based on GuruFocus' analysis, The Timken Co stock appears to be overvalued.
The current stock price of MXN2,560.00 is trading 120.2% above its estimated GF Value™ of MXN1,162.73.
GuruFocus considers The Timken Co to be Significantly Overvalued.
Key valuation signals for MEX:TKR:
Return-on-Tangible-Equity: 58.18% (40% below median its 10-year median of 97.48)
GF Value™: MXN1,162.73 vs. price of MXN2,560.00 (120.2% above fair value)
Industry Position: 758.7% above the Industrial Products median (#150 of 2974)
No single metric tells the full story. See the MEX:TKR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Timken Co designs and manages a portfolio of engineered bearings and industrial motion products, and provides related services. The various products offered by the company include ball bearings, plain bearings, tapered roller bearings, housed bearings, linear guides, telescopic rails, lubrication systems, agricultural conveyor chains, couplings, brakes, seals, etc. These products are offered through brands like Timken, GGB, Philadelphia Gear, Cone Drive, CGI, and Rollon, among others. The company has two reportable segments: Engineered Bearings, which generates the maximum revenue, and Industrial Motion. Geographically, the company generates maximum revenue from the United States, followed by Europe, Middle East and Africa (EMEA), Asia-Pacific, and the other regions of the Americas.
62GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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