WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WOR - US9818111026 - Common Stock
58.36 USD
+0.36 (+0.62%)
58.36 USD
0 (0%)
WOR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While WOR has a great health rating, its profitability is only average at the moment. WOR has a correct valuation and a medium 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 6.15%. This is in the better half of the industry: WOR outperforms 66.15% of its industry peers.
WOR has a Return On Equity of 11.15%. This is in the better half of the industry: WOR outperforms 65.38% of its industry peers.
WOR's Return On Invested Capital of 2.57% is on the low side compared to the rest of the industry. WOR is outperformed by 66.15% 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 10.46%.
The last Return On Invested Capital (2.57%) for WOR is above the 3 year average (0.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 11.15% | ||
| ROIC | 2.57% |
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 has a better Profit Margin (8.91%) than 68.46% of its industry peers.
In the last couple of years the Profit Margin of WOR has grown nicely.
WOR's Operating Margin of 5.49% is on the low side compared to the rest of the industry. WOR is outperformed by 60.77% of its industry peers.
WOR's Operating Margin has improved in the last couple of years.
WOR has a Gross Margin of 28.23%. This is comparable to the rest of the industry: WOR outperforms 44.62% of its industry peers.
WOR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.49% | ||
| PM (TTM) | 8.91% | ||
| GM | 28.23% |
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.
The number of shares outstanding for WOR has been reduced compared to 1 year ago.
The number of shares outstanding for WOR has been reduced compared to 5 years ago.
Compared to 1 year ago, WOR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.85 indicates that WOR is not in any danger for bankruptcy at the moment.
The Altman-Z score of WOR (3.85) is better than 65.38% of its industry peers.
WOR has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
WOR's Debt to FCF ratio of 1.97 is fine compared to the rest of the industry. WOR outperforms 78.46% 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 better Debt to Equity ratio (0.32) than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.28
WACC9.22%
2.3 Liquidity
A Current Ratio of 3.30 indicates that WOR has no problem at all paying its short term obligations.
WOR's Current ratio of 3.30 is amongst the best of the industry. WOR outperforms 82.31% of its industry peers.
WOR has a Quick Ratio of 2.24. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
WOR's Quick ratio of 2.24 is fine compared to the rest of the industry. WOR outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.38% over the past year.
WOR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
Looking at the last year, WOR shows a very negative growth in Revenue. The Revenue has decreased by -20.15% in the last year.
The Revenue for WOR have been decreasing by -17.72% on average. This is quite bad
EPS 1Y (TTM)17.38%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%48%
Revenue 1Y (TTM)-20.15%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%18.03%
3.2 Future
The Earnings Per Share is expected to grow by 10.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.89% on average over the next years.
EPS Next Y17.38%
EPS Next 2Y14.37%
EPS Next 3Y12.39%
EPS Next 5Y10.47%
Revenue Next Year15.4%
Revenue Next 2Y9.79%
Revenue Next 3Y8.01%
Revenue Next 5Y6.89%
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.
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
A Price/Earnings ratio of 17.63 indicates a rather expensive valuation of WOR.
WOR's Price/Earnings ratio is a bit cheaper when compared to the industry. WOR is cheaper than 79.23% of the companies in the same industry.
WOR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.53, the valuation of WOR can be described as correct.
Based on the Price/Forward Earnings ratio, WOR is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
WOR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
68.46% of the companies in the same industry are cheaper than WOR, based on the Enterprise Value to EBITDA ratio.
73.85% 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 | 18.64 | ||
| EV/EBITDA | 26.17 |
4.3 Compensation for Growth
WOR's 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.
A more expensive valuation may be justified as WOR's earnings are expected to grow with 12.39% in the coming years.
PEG (NY)1.01
PEG (5Y)3.21
EPS Next 2Y14.37%
EPS Next 3Y12.39%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 1.79, WOR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, WOR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 32.13% of its income as dividend. This is a sustainable payout ratio.
DP32.13%
EPS Next 2Y14.37%
EPS Next 3Y12.39%
58.36
+0.36 (+0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change3.89%
Ins Owners1.63%
Ins Owner Change1.52%
Market Cap2.90B
Revenue(TTM)1.20B
Net Income(TTM)106.95M
Analysts75
Price Target69.56 (19.19%)
Short Float %2.14%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.69
Dividend Growth(5Y)-6.64%
DP32.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.36%
Min EPS beat(2)4.37%
Max EPS beat(2)24.35%
EPS beat(4)4
Avg EPS beat(4)17.92%
Min EPS beat(4)4.37%
Max EPS beat(4)27.62%
EPS beat(8)6
Avg EPS beat(8)4.02%
EPS beat(12)9
Avg EPS beat(12)6.98%
EPS beat(16)12
Avg EPS beat(16)11.05%
Revenue beat(2)2
Avg Revenue beat(2)3.72%
Min Revenue beat(2)3.04%
Max Revenue beat(2)4.41%
Revenue beat(4)3
Avg Revenue beat(4)3.04%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)5.59%
Revenue beat(8)4
Avg Revenue beat(8)-1.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.68%
Revenue beat(16)8
Avg Revenue beat(16)1.87%
PT rev (1m)0%
PT rev (3m)-1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 14.53 | ||
| P/S | 2.42 | ||
| P/FCF | 18.64 | ||
| P/OCF | 13.83 | ||
| P/B | 3.02 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | 26.17 |
EPS(TTM)3.31
EY5.67%
EPS(NY)4.02
Fwd EY6.88%
FCF(TTM)3.13
FCFY5.36%
OCF(TTM)4.22
OCFY7.23%
SpS24.16
BVpS19.31
TBVpS6.52
PEG (NY)1.01
PEG (5Y)3.21
Graham Number37.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 11.15% | ||
| ROCE | 4.25% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 5.34% | ||
| OM | 5.49% | ||
| PM (TTM) | 8.91% | ||
| GM | 28.23% | ||
| FCFM | 12.96% |
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%
ROICexgc growth 3Y-21.87%
ROICexgc 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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 109.35% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 181.68% | ||
| Profit Quality | 145.41% | ||
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 3.85 |
F-Score6
WACC9.22%
ROIC/WACC0.28
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)17.38%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%48%
EPS Next Y17.38%
EPS Next 2Y14.37%
EPS Next 3Y12.39%
EPS Next 5Y10.47%
Revenue 1Y (TTM)-20.15%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%18.03%
Revenue Next Year15.4%
Revenue Next 2Y9.79%
Revenue Next 3Y8.01%
Revenue Next 5Y6.89%
EBIT growth 1Y3405.67%
EBIT growth 3Y-45.65%
EBIT growth 5Y-15.18%
EBIT Next Year716.48%
EBIT Next 3Y111.73%
EBIT Next 5Y60.66%
FCF growth 1Y-69.5%
FCF growth 3YN/A
FCF growth 5Y-7.98%
OCF growth 1Y-65.29%
OCF growth 3Y44.09%
OCF growth 5Y-9.03%
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.
What is the valuation status for WOR stock?
ChartMill assigns a valuation rating of 5 / 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 is the valuation of WORTHINGTON ENTERPRISES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WORTHINGTON ENTERPRISES INC (WOR) is 17.63 and the Price/Book (PB) ratio is 3.02.
How financially healthy is WORTHINGTON ENTERPRISES INC?
The financial health rating of WORTHINGTON ENTERPRISES INC (WOR) is 8 / 10.