WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
NYSE:WOR - New York Stock Exchange, Inc. - US9818111026 - Common Stock - Currency: USD
WOR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. WOR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WOR has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
WOR had positive earnings in the past year.
WOR had a positive operating cash flow in the past year.
WOR had positive earnings in each of the past 5 years.
WOR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WOR has a Return On Assets (5.67%) which is comparable to the rest of the industry.
WOR has a Return On Equity (10.25%) which is in line with its industry peers.
WOR has a Return On Invested Capital of 2.04%. This is in the lower half of the industry: WOR underperforms 68.75% of its industry peers.
WOR had an Average Return On Invested Capital over the past 3 years of 0.95%. This is significantly below the industry average of 10.71%.
The last Return On Invested Capital (2.04%) for WOR is above the 3 year average (0.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 10.25% | ||
| ROIC | 2.04% |
ROA(3y)6.48%
ROA(5y)10.26%
ROE(3y)12.61%
ROE(5y)23.04%
ROIC(3y)0.95%
ROIC(5y)3.3%
1.3 Margins
Looking at the Profit Margin, with a value of 8.33%, WOR is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
In the last couple of years the Profit Margin of WOR has grown nicely.
WOR has a Operating Margin of 4.39%. This is in the lower half of the industry: WOR underperforms 64.06% of its industry peers.
In the last couple of years the Operating Margin of WOR has grown nicely.
With a Gross Margin value of 27.65%, WOR perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
In the last couple of years the Gross Margin of WOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 8.33% | ||
| GM | 27.65% |
OM growth 3Y-9.98%
OM growth 5Y3.09%
PM growth 3Y4.78%
PM growth 5Y26.44%
GM growth 3Y26.57%
GM growth 5Y13.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WOR is destroying value.
WOR has more shares outstanding than it did 1 year ago.
WOR has less shares outstanding than it did 5 years ago.
WOR has a better debt/assets ratio than last year.
2.2 Solvency
WOR has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
The Debt to FCF ratio of WOR (1.90) is better than 78.13% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WOR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, WOR is doing good in the industry, outperforming 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC9.54%
2.3 Liquidity
A Current Ratio of 3.48 indicates that WOR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.48, WOR belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
WOR has a Quick Ratio of 2.62. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WOR (2.62) is better than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
WOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.91%.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
The Revenue for WOR has decreased by -52.69% in the past year. This is quite bad
The Revenue for WOR have been decreasing by -17.72% on average. This is quite bad
EPS 1Y (TTM)-29.91%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%43.24%
Revenue 1Y (TTM)-52.69%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%-0.29%
3.2 Future
Based on estimates for the next years, WOR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y7.97%
EPS Next 2Y9.73%
EPS Next 3Y9.31%
EPS Next 5Y8.31%
Revenue Next Year3.66%
Revenue Next 2Y4.05%
Revenue Next 3Y4.55%
Revenue Next 5Y4.55%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.42, WOR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WOR indicates a somewhat cheap valuation: WOR is cheaper than 63.28% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WOR to the average of the S&P500 Index (27.21), we can say WOR is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.84 indicates a rather expensive valuation of WOR.
WOR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WOR to the average of the S&P500 Index (21.70), we can say WOR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WOR is valued a bit more expensive than the industry average as 73.44% of the companies are valued more cheaply.
64.06% of the companies in the same industry are more expensive than WOR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.62 | ||
| EV/EBITDA | 33.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WOR may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)3.9
EPS Next 2Y9.73%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.19%.
WOR's Dividend Yield is a higher than the industry average which is at 1.88.
With a Dividend Yield of 1.19, WOR pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of WOR decreases each year by -6.77%.
WOR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-6.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WOR pays out 35.30% of its income as dividend. This is a sustainable payout ratio.
DP35.3%
EPS Next 2Y9.73%
EPS Next 3Y9.31%
65.75
+1.27 (+1.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners51.43%
Inst Owner Change-0.78%
Ins Owners1.55%
Ins Owner Change-0.68%
Market Cap3.28B
Analysts72.5
Price Target60.38 (-8.17%)
Short Float %2.6%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.68
Dividend Growth(5Y)-6.77%
DP35.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.98%
Min EPS beat(2)24.35%
Max EPS beat(2)27.62%
EPS beat(4)3
Avg EPS beat(4)8.96%
Min EPS beat(4)-31.48%
Max EPS beat(4)27.62%
EPS beat(8)6
Avg EPS beat(8)3.49%
EPS beat(12)9
Avg EPS beat(12)6.69%
EPS beat(16)12
Avg EPS beat(16)12.52%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)4.41%
Max Revenue beat(2)5.59%
Revenue beat(4)2
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-13.95%
Max Revenue beat(4)5.59%
Revenue beat(8)3
Avg Revenue beat(8)-2.59%
Revenue beat(12)5
Avg Revenue beat(12)0.2%
Revenue beat(16)8
Avg Revenue beat(16)1.78%
PT rev (1m)0.68%
PT rev (3m)13.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)0.21%
EPS NY rev (3m)8.7%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 19.84 | ||
| P/S | 2.84 | ||
| P/FCF | 20.62 | ||
| P/OCF | 15.65 | ||
| P/B | 3.5 | ||
| P/tB | 8.86 | ||
| EV/EBITDA | 33.09 |
EPS(TTM)3.07
EY4.67%
EPS(NY)3.31
Fwd EY5.04%
FCF(TTM)3.19
FCFY4.85%
OCF(TTM)4.2
OCFY6.39%
SpS23.11
BVpS18.77
TBVpS7.42
PEG (NY)2.69
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 10.25% | ||
| ROCE | 3.38% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 4.49% | ||
| OM | 4.39% | ||
| PM (TTM) | 8.33% | ||
| GM | 27.65% | ||
| FCFM | 13.8% |
ROA(3y)6.48%
ROA(5y)10.26%
ROE(3y)12.61%
ROE(5y)23.04%
ROIC(3y)0.95%
ROIC(5y)3.3%
ROICexc(3y)1.14%
ROICexc(5y)3.88%
ROICexgc(3y)1.97%
ROICexgc(5y)5.64%
ROCE(3y)1.58%
ROCE(5y)5.5%
ROICexcg growth 3Y-21.87%
ROICexcg growth 5Y-3.62%
ROICexc growth 3Y-29.5%
ROICexc growth 5Y-8.78%
OM growth 3Y-9.98%
OM growth 5Y3.09%
PM growth 3Y4.78%
PM growth 5Y26.44%
GM growth 3Y26.57%
GM growth 5Y13.8%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 104.8% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 212.11% | ||
| Profit Quality | 165.7% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | N/A |
F-Score6
WACC9.54%
ROIC/WACC0.21
Cap/Depr(3y)94.96%
Cap/Depr(5y)94.87%
Cap/Sales(3y)5.73%
Cap/Sales(5y)4.31%
Profit Quality(3y)187.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.91%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%43.24%
EPS Next Y7.97%
EPS Next 2Y9.73%
EPS Next 3Y9.31%
EPS Next 5Y8.31%
Revenue 1Y (TTM)-52.69%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%-0.29%
Revenue Next Year3.66%
Revenue Next 2Y4.05%
Revenue Next 3Y4.55%
Revenue Next 5Y4.55%
EBIT growth 1Y-41.6%
EBIT growth 3Y-45.65%
EBIT growth 5Y-15.18%
EBIT Next Year658.46%
EBIT Next 3Y105.97%
EBIT Next 5Y57.77%
FCF growth 1Y-22.9%
FCF growth 3YN/A
FCF growth 5Y-7.98%
OCF growth 1Y-27.67%
OCF growth 3Y44.09%
OCF growth 5Y-9.03%