Is The Timken Company (TKR) a Fundamentally Strong Stock to Invest in?

Investment management company Vulcan Value Partners recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The firm has five strategies, trailing their benchmark indexes in the third quarter of 2022. The fund’s Large-Cap Composite returned -7.3% net of fees and expenses, the Small Cap Composite returned -14.4% net, Focus Composite returned -8.0% net, the Focus Plus composite returned -7.9%, and All Cap Composite returned -11.5% net during the quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.

Vulcan Value Partners highlighted stocks like The Timken Company (NYSE:TKR) in the Q3 2022 investor letter. Headquartered in North Canton, Ohio, The Timken Company (NYSE:TKR) is a global manufacturer of engineered bearings and power transmission products. On November 3, 2022, The Timken Company (NYSE:TKR) stock closed at $69.76 per share. One-month return of The Timken Company (NYSE:TKR) was 7.72% and its shares lost 2.12% of their value over the last 52 weeks. The Timken Company (NYSE:TKR) has a market capitalization of $5.075 billion.

Vulcan Value Partners made the following comment about The Timken Company (NYSE:TKR) in its Q3 2022 investor letter:

“We purchased The Timken Company (NYSE:TKR) during the quarter. Timken Co. is a manufacturer of engineered bearings used in rotating motion equipment and related power transmission products. Its products are mission critical, have a high cost of failure, and only a relatively small cost to the customer. The company was spun out of Timken Steel in 2014, and since that time, the business has improved generating higher growth, higher margins, better positioning within end markets, and improved free cash flow. We think Timken’s scale along with its engineering abilities and technical expertise create high barriers to entry for competitors. Timken’s leadership team has significant ownership of the company, solid management incentives aligned with shareholder interests, and in our estimation are intelligent capital allocators. We have owned Timken in the past, and we are pleased to have the opportunity to own the company again.”

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The Timken Company (NYSE:TKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held The Timken Company (NYSE:TKR) at the end of the second quarter which was 23 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.