WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
NYSE:WOR - New York Stock Exchange, Inc. - US9818111026 - Common Stock - Currency: USD
Overall WOR gets a fundamental rating of 4 out of 10. We evaluated WOR against 67 industry peers in the Household Durables 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WOR had positive earnings in the past year.
In the past year WOR had a positive cash flow from operations.
In the past 5 years WOR has always been profitable.
In the past 5 years WOR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WOR (7.14%) is comparable to the rest of the industry.
With a Return On Equity value of 12.99%, WOR perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
With a Return On Invested Capital value of 0.69%, WOR is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for WOR is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 12.99% | ||
| ROIC | 0.69% |
ROA(3y)8.06%
ROA(5y)9.81%
ROE(3y)17.73%
ROE(5y)22.91%
ROIC(3y)2.68%
ROIC(5y)3.75%
1.3 Margins
WOR's Profit Margin of 10.14% is fine compared to the rest of the industry. WOR outperforms 76.92% of its industry peers.
WOR's Profit Margin has improved in the last couple of years.
WOR's Operating Margin of 1.40% is on the low side compared to the rest of the industry. WOR is outperformed by 64.62% of its industry peers.
In the last couple of years the Operating Margin of WOR has declined.
WOR has a Gross Margin of 24.74%. This is comparable to the rest of the industry: WOR outperforms 44.62% of its industry peers.
In the last couple of years the Gross Margin of WOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.4% | ||
| PM (TTM) | 10.14% | ||
| GM | 24.74% |
OM growth 3Y-76.08%
OM growth 5Y-49.45%
PM growth 3Y-26.99%
PM growth 5Y16.81%
GM growth 3Y4.32%
GM growth 5Y12.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WOR is destroying value.
Compared to 1 year ago, WOR has more shares outstanding
WOR has less shares outstanding than it did 5 years ago.
WOR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.24 indicates that WOR is not in any danger for bankruptcy at the moment.
WOR has a Altman-Z score (3.24) which is comparable to the rest of the industry.
The Debt to FCF ratio of WOR is 2.12, which is a good value as it means it would take WOR, 2.12 years of fcf income to pay off all of its debts.
WOR has a better Debt to FCF ratio (2.12) than 69.23% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WOR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, WOR is in line with its industry, outperforming 49.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.08
WACC8.38%
2.3 Liquidity
A Current Ratio of 3.56 indicates that WOR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.56, WOR is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
WOR has a Quick Ratio of 2.50. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.50, WOR belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The earnings per share for WOR have decreased strongly by -60.12% in the last year.
WOR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.52% yearly.
Looking at the last year, WOR shows a very negative growth in Revenue. The Revenue has decreased by -71.78% in the last year.
The Revenue for WOR have been decreasing by -19.82% on average. This is quite bad
EPS 1Y (TTM)-60.12%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-71.78%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-74.79%
3.2 Future
WOR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.59% yearly.
Based on estimates for the next years, WOR will show a decrease in Revenue. The Revenue will decrease by -2.04% on average per year.
EPS Next Y-39.87%
EPS Next 2Y-18.19%
EPS Next 3Y-10.59%
EPS Next 5YN/A
Revenue Next Year-12.86%
Revenue Next 2Y-5.01%
Revenue Next 3Y-2.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 15.92, the valuation of WOR can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as WOR.
WOR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 14.33, the valuation of WOR can be described as correct.
WOR's Price/Forward Earnings is on the same level as the industry average.
WOR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 14.33 |
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 73.85% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WOR is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.16 | ||
| EV/EBITDA | 33.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as WOR's earnings are expected to decrease with -10.59% in the coming years.
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y-18.19%
EPS Next 3Y-10.59%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
WOR's Dividend Yield is a higher than the industry average which is at 2.94.
Compared to the average S&P500 Dividend Yield of 2.28, WOR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of WOR has a limited annual growth rate of 4.83%.
WOR has paid a dividend for at least 10 years, which is a reliable track record.
WOR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.83%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
34.51% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP34.51%
EPS Next 2Y-18.19%
EPS Next 3Y-10.59%
WORTHINGTON ENTERPRISES INC
NYSE:WOR (2/4/2025, 8:16:18 PM)
After market: 42.02 0 (0%)42.02
+0.75 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners53.47%
Inst Owner Change0.49%
Ins Owners1.6%
Ins Owner Change-0.97%
Market Cap2.11B
Analysts46
Price Target52.28 (24.42%)
Short Float %4.38%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend1.16
Dividend Growth(5Y)4.83%
DP34.51%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.06%
Min EPS beat(2)-31.48%
Max EPS beat(2)15.35%
EPS beat(4)2
Avg EPS beat(4)-8.25%
Min EPS beat(4)-31.48%
Max EPS beat(4)15.35%
EPS beat(8)6
Avg EPS beat(8)7.72%
EPS beat(12)8
Avg EPS beat(12)8.2%
EPS beat(16)12
Avg EPS beat(16)11.74%
Revenue beat(2)0
Avg Revenue beat(2)-7.42%
Min Revenue beat(2)-13.95%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-7.77%
Min Revenue beat(4)-13.95%
Max Revenue beat(4)-0.89%
Revenue beat(8)2
Avg Revenue beat(8)-2.56%
Revenue beat(12)5
Avg Revenue beat(12)1.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.44%
PT rev (3m)0.49%
EPS NQ rev (1m)2.94%
EPS NQ rev (3m)-21.13%
EPS NY rev (1m)7.08%
EPS NY rev (3m)6.32%
Revenue NQ rev (1m)-3.35%
Revenue NQ rev (3m)-12.48%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 14.33 | ||
| P/S | 1.81 | ||
| P/FCF | 15.16 | ||
| P/OCF | 11.39 | ||
| P/B | 2.32 | ||
| P/tB | 7.1 | ||
| EV/EBITDA | 33.74 |
EPS(TTM)2.64
EY6.28%
EPS(NY)2.93
Fwd EY6.98%
FCF(TTM)2.77
FCFY6.6%
OCF(TTM)3.69
OCFY8.78%
SpS23.22
BVpS18.13
TBVpS5.92
PEG (NY)N/A
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 12.99% | ||
| ROCE | 1.1% | ||
| ROIC | 0.69% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 1.51% | ||
| OM | 1.4% | ||
| PM (TTM) | 10.14% | ||
| GM | 24.74% | ||
| FCFM | 11.94% |
ROA(3y)8.06%
ROA(5y)9.81%
ROE(3y)17.73%
ROE(5y)22.91%
ROIC(3y)2.68%
ROIC(5y)3.75%
ROICexc(3y)2.76%
ROICexc(5y)4.32%
ROICexgc(3y)3.75%
ROICexgc(5y)6.05%
ROCE(3y)4.33%
ROCE(5y)6.01%
ROICexcg growth 3Y-77.78%
ROICexcg growth 5Y-54.45%
ROICexc growth 3Y-79.51%
ROICexc growth 5Y-56.56%
OM growth 3Y-76.08%
OM growth 5Y-49.45%
PM growth 3Y-26.99%
PM growth 5Y16.81%
GM growth 3Y4.32%
GM growth 5Y12.38%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | 95.87% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 287.59% | ||
| Profit Quality | 117.72% | ||
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 3.24 |
F-Score6
WACC8.38%
ROIC/WACC0.08
Cap/Depr(3y)91.93%
Cap/Depr(5y)94.51%
Cap/Sales(3y)4.87%
Cap/Sales(5y)4.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-60.12%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%-23.08%
EPS Next Y-39.87%
EPS Next 2Y-18.19%
EPS Next 3Y-10.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-71.78%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-74.79%
Revenue Next Year-12.86%
Revenue Next 2Y-5.01%
Revenue Next 3Y-2.04%
Revenue Next 5YN/A
EBIT growth 1Y-93.28%
EBIT growth 3Y-82.48%
EBIT growth 5Y-59.47%
EBIT Next Year79.47%
EBIT Next 3Y27.99%
EBIT Next 5YN/A
FCF growth 1Y-61.36%
FCF growth 3Y2.41%
FCF growth 5Y12.73%
OCF growth 1Y-59.05%
OCF growth 3Y1.86%
OCF growth 5Y7.94%