WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WOR - US9818111026 - Common Stock
53.01 USD
-0.5 (-0.93%)
53.01 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WOR. WOR was compared to 132 industry peers in the Machinery industry. While WOR has a great health rating, its profitability is only average at the moment. WOR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WOR was profitable.
- 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's Return On Assets of 6.05% is fine compared to the rest of the industry. WOR outperforms 65.91% of its industry peers.
- The Return On Equity of WOR (11.01%) is better than 66.67% of its industry peers.
- WOR has a Return On Invested Capital of 2.87%. This is in the lower half of the industry: WOR underperforms 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WOR is significantly below the industry average of 10.24%.
- The last Return On Invested Capital (2.87%) for WOR is above the 3 year average (0.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 11.01% | ||
| ROIC | 2.87% |
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
- WOR's Profit Margin of 8.46% is fine compared to the rest of the industry. WOR outperforms 67.42% of its industry peers.
- In the last couple of years the Profit Margin of WOR has grown nicely.
- With a Operating Margin value of 5.88%, WOR perfoms like the industry average, outperforming 40.15% of the companies in the same industry.
- In the last couple of years the Operating Margin of WOR has grown nicely.
- With a Gross Margin value of 27.87%, WOR perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
- WOR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.88% | ||
| PM (TTM) | 8.46% | ||
| GM | 27.87% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WOR is destroying value.
- The number of shares outstanding for WOR has been reduced compared to 1 year ago.
- Compared to 5 years ago, WOR has less shares outstanding
- The debt/assets ratio for WOR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.68 indicates that WOR is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.68, WOR is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
- The Debt to FCF ratio of WOR is 1.90, which is an excellent value as it means it would take WOR, only 1.90 years of fcf income to pay off all of its debts.
- WOR's Debt to FCF ratio of 1.90 is fine compared to the rest of the industry. WOR outperforms 77.27% of its industry peers.
- WOR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- WOR has a Debt to Equity ratio of 0.32. This is in the better half of the industry: WOR outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.31
WACC9.36%
2.3 Liquidity
- WOR has a Current Ratio of 3.26. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
- WOR's Current ratio of 3.26 is amongst the best of the industry. WOR outperforms 81.82% of its industry peers.
- A Quick Ratio of 2.26 indicates that WOR has no problem at all paying its short term obligations.
- WOR's Quick ratio of 2.26 is amongst the best of the industry. WOR outperforms 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.26 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
- WOR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.27%, which is quite impressive.
- WOR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
- The Revenue has been growing slightly by 7.43% in the past year.
- Measured over the past years, WOR shows a very negative growth in Revenue. The Revenue has been decreasing by -17.72% on average per year.
EPS 1Y (TTM)27.27%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%8.33%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%19.51%
3.2 Future
- WOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
- The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y14.41%
EPS Next 2Y13.92%
EPS Next 3Y12%
EPS Next 5Y9.66%
Revenue Next Year18.19%
Revenue Next 2Y11.56%
Revenue Next 3Y9.1%
Revenue Next 5Y6.98%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.78, the valuation of WOR can be described as correct.
- Based on the Price/Earnings ratio, WOR is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WOR is valued a bit cheaper.
- A Price/Forward Earnings ratio of 13.30 indicates a correct valuation of WOR.
- 89.39% of the companies in the same industry are more expensive than WOR, based on the Price/Forward Earnings ratio.
- WOR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 13.3 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WOR indicates a slightly more expensive valuation: WOR is more expensive than 65.15% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, WOR is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.38 | ||
| EV/EBITDA | 22.06 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of WOR may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)2.87
EPS Next 2Y13.92%
EPS Next 3Y12%
5. Dividend
5.1 Amount
- WOR has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.01, WOR pays a better dividend. On top of this WOR pays more dividend than 80.30% of the companies listed in the same industry.
- WOR's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
- The dividend of WOR decreases each year by -6.64%.
- WOR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-6.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- WOR pays out 33.03% of its income as dividend. This is a sustainable payout ratio.
DP33.03%
EPS Next 2Y13.92%
EPS Next 3Y12%
WORTHINGTON ENTERPRISES INC / WOR FAQ
What is the ChartMill fundamental rating of WORTHINGTON ENTERPRISES INC (WOR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WOR.
Can you provide the valuation status for WORTHINGTON ENTERPRISES INC?
ChartMill assigns a valuation rating of 6 / 10 to WORTHINGTON ENTERPRISES INC (WOR). This can be considered as Fairly Valued.
What is the profitability of WOR stock?
WORTHINGTON ENTERPRISES INC (WOR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WORTHINGTON ENTERPRISES INC (WOR) stock?
The Price/Earnings (PE) ratio for WORTHINGTON ENTERPRISES INC (WOR) is 15.78 and the Price/Book (PB) ratio is 2.74.
Can you provide the dividend sustainability for WOR stock?
The dividend rating of WORTHINGTON ENTERPRISES INC (WOR) is 4 / 10 and the dividend payout ratio is 33.03%.