Is TIMKEN CO (TKR) Halal?

NYSE Industrials United States $6.8B
✓ HALAL
Confidence: 95/100
TIMKEN CO (TKR) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 29.7% against the AAOIFI threshold of 30%, TIMKEN CO comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Tools & Accessories), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 29.7%
/ 30%
5.3%
/ 30%
11.9%
/ 30%
0.22%
/ 5%
✓ HALAL
DJIM 29.7%
/ 33%
5.3%
/ 33%
11.9%
/ 33%
0.22%
/ 5%
✓ HALAL
MSCI 30.8%
/ 33%
5.5%
/ 33%
12.4%
/ 33%
0.22%
/ 5%
✓ HALAL
S&P 29.7%
/ 33%
5.3%
/ 33%
11.9%
/ 33%
0.22%
/ 5%
✓ HALAL
FTSE 30.8%
/ 33%
5.5%
/ 33%
12.4%
/ 50%
0.22%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
23.7
Forward: 14.7
EPS
$4.11
Dividend Yield
144.0%
Payout: 33.8%
P/B Ratio
2.1
EV/EBITDA
10.9
EV: $8.6B
Revenue
$4.6B
Growth: 3.5%
Beta
1.2
Average volatility
Current Ratio
2.8

Profitability

Gross Margin 30.4%
Operating Margin 10.8%
Net Margin 6.3%
Return on Equity (ROE) 10.0%
Return on Assets (ROA) 5.4%

Cash Flow & Balance Sheet

Operating Cash Flow$554M
Free Cash Flow$406M
Total Debt$2.1B
Debt-to-Equity61.4
Current Ratio2.8
Total Assets$6.7B

Price & Trading

Last Close$99.06
50-Day MA$101.12
200-Day MA$84.14
Avg Volume806K
Beta1.2
52-Week Range
$56.20
$111.39

About TIMKEN CO (TKR)

CEO
Dr. Lucian Boldea Ph.D.
Employees
19,000
Sector
Industrials
Industry
Tools & Accessories
Country
United States
Exchange
NYSE
Market Cap
$6.8B
Currency
USD

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company operates in two segments, Engineered Bearings and Industrial Motion. The Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. The Industrial Motion segment offers a portfolio of engineered products, such as industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, couplings, filtration systems, seals, and industrial clutches and brakes, as well as industrial drivetrain and bearing repairing services. This segment serves a range of industries comprising solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, CGI, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.

Purification Calculator

As a halal stock with 0.22% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is TIMKEN CO (TKR) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), TIMKEN CO is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is TIMKEN CO's debt ratio?

TIMKEN CO's debt ratio is 29.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 30.8%.

Does TIMKEN CO require dividend purification?

Yes, TIMKEN CO has an impermissible income ratio of 0.22%, which means 0.22% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are TIMKEN CO's key financial metrics?

TIMKEN CO has a market capitalization of $6.8B, trailing P/E ratio of 23.7, and revenue of $4.6B. The company maintains a gross margin of 30.4% and a net margin of 6.3%. Return on equity stands at 10.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.