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%)
Taking everything into account, WOR scores 6 out of 10 in our fundamental rating. 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.
- In the past 5 years WOR has always been profitable.
- WOR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WOR has a Return On Assets of 6.05%. This is in the better half of the industry: WOR outperforms 65.91% of its industry peers.
- WOR's Return On Equity of 11.01% is fine compared to the rest of the industry. WOR outperforms 66.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.87%, WOR is doing worse than 66.67% of the companies in the same industry.
- WOR had an Average Return On Invested Capital over the past 3 years of 0.95%. This is significantly below the industry average of 10.24%.
- The 3 year average ROIC (0.95%) for WOR is below the current ROIC(2.87%), indicating increased profibility in the last year.
| 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.
- WOR has a Operating Margin (5.88%) which is comparable to the rest of the industry.
- WOR's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 27.87%, WOR is in line with its industry, outperforming 43.94% 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 | 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.
- WOR has less shares outstanding than it did 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
- WOR has an Altman-Z score of 3.68. This indicates that WOR is financially healthy and has little risk of bankruptcy at the moment.
- WOR's Altman-Z score of 3.68 is fine compared to the rest of the industry. WOR outperforms 62.12% of its industry peers.
- 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.
- 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
- A Current Ratio of 3.26 indicates that WOR has no problem at all paying its short term obligations.
- WOR has a better Current ratio (3.26) than 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.
- Looking at the Quick ratio, with a value of 2.26, WOR belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
| 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.
- Measured over the past 5 years, WOR shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
- WOR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.43%.
- 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.
- WOR's Price/Earnings ratio is rather cheap when compared to the industry. WOR is cheaper than 84.85% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WOR is valued a bit cheaper.
- The Price/Forward Earnings ratio is 13.30, which indicates a correct valuation of WOR.
- WOR's Price/Forward Earnings ratio is rather cheap when compared to the industry. WOR is cheaper than 89.39% of the companies in the same industry.
- 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
- 65.15% of the companies in the same industry are cheaper than WOR, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, WOR is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| 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
- With a Yearly Dividend Yield of 1.41%, WOR has a reasonable but not impressive dividend return.
- WOR's Dividend Yield is rather good when compared to the industry average which is at 1.01. WOR pays more dividend than 80.30% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.81, WOR is paying slightly less dividend.
| 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
- 33.03% of the earnings are spent on dividend by WOR. This is a low number and 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%.