TimkenSteel Corporation Common Shares (TMST) Company Bio
TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products. It operates in two segments, Industrial & Mobile, and Energy & Distribution. The company was established in 2014 and is based in Canton, Ohio.
TMST Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TMST, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TimkenSteel Corp ranked in the 87th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1566% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of TimkenSteel Corp, consider:
The company's compound free cash flow growth rate over the past 4.54 years comes in at 0.85%; that's greater than 90.64% of US stocks we're applying DCF forecasting to.
As a business, TMST is generating more cash flow than only 21.49% of positive cash flow stocks in the Basic Materials.
TimkenSteel Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.03. This coverage rate is greater than that of just 6.19% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TMST, try UNVR, STLD, GMS, HCC, and SCCO.