seekingalpha.com
Timken: Priced Already For Stability, Not For Growth
The Timken Company is undergoing an internal reset, driving margin gains and a localized share price upswing, not fueled by demand growth. Management prioritizes segments sustaining ~20% EBITDA margins, reallocating capital and potentially exiting underperforming automotive and low-return businesses. Current valuation (17-18x forward EPS, 10-11x EBITDA) already prices in stable margins and cash flow, limiting upside unless further margin expansion materializes.
