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 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. WOR has an average financial health and profitability rating. WOR is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years WOR has been profitable.
In the past 5 years WOR always reported a positive cash flow from operatings.
1.2 Ratios
WOR has a Return On Assets of 8.09%. This is in the better half of the industry: WOR outperforms 74.22% of its industry peers.
With a decent Return On Equity value of 14.52%, WOR is doing good in the industry, outperforming 69.53% of the companies in the same industry.
WOR has a Return On Invested Capital of 1.45%. This is in the lower half of the industry: WOR underperforms 70.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WOR is significantly below the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 14.52% | ||
| ROIC | 1.45% |
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 has a Profit Margin of 11.78%. This is amongst the best in the industry. WOR outperforms 80.47% of its industry peers.
WOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.00%, WOR is doing worse than 67.97% of the companies in the same industry.
In the last couple of years the Operating Margin of WOR has declined.
The Gross Margin of WOR (26.40%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3% | ||
| PM (TTM) | 11.78% | ||
| GM | 26.4% |
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.
The number of shares outstanding for WOR has been increased compared to 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 2.05. This is a good value and a sign of high solvency as WOR would need 2.05 years to pay back of all of its debts.
WOR has a Debt to FCF ratio of 2.05. This is in the better half of the industry: WOR outperforms 78.91% of its industry peers.
WOR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
WOR's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. WOR outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | N/A |
ROIC/WACC0.15
WACC9.45%
2.3 Liquidity
A Current Ratio of 3.51 indicates that WOR has no problem at all paying its short term obligations.
The Current ratio of WOR (3.51) is better than 82.81% of its industry peers.
A Quick Ratio of 2.60 indicates that WOR has no problem at all paying its short term obligations.
The Quick ratio of WOR (2.60) is better than 83.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
WOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.90%.
The Earnings Per Share has been growing by 8.52% on average over the past years. This is quite good.
Looking at the last year, WOR shows a very negative growth in Revenue. The Revenue has decreased by -65.52% in the last year.
Measured over the past years, WOR shows a very negative growth in Revenue. The Revenue has been decreasing by -19.82% on average per year.
EPS 1Y (TTM)-56.9%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%13.75%
Revenue 1Y (TTM)-65.52%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-3.86%
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 -10.30% yearly.
Based on estimates for the next years, WOR will show a decrease in Revenue. The Revenue will decrease by -1.59% on average per year.
EPS Next Y-39.58%
EPS Next 2Y-17.33%
EPS Next 3Y-10.3%
EPS Next 5YN/A
Revenue Next Year-11.78%
Revenue Next 2Y-4.45%
Revenue Next 3Y-1.59%
Revenue Next 5YN/A
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 decreasing.
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
WOR is valuated rather expensively with a Price/Earnings ratio of 17.23.
Based on the Price/Earnings ratio, WOR is valued a bit cheaper than 61.72% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. WOR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.83, WOR is valued correctly.
Based on the Price/Forward Earnings ratio, WOR is valued a bit cheaper than the industry average as 67.97% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WOR to the average of the S&P500 Index (21.08), we can say WOR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 15.83 |
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 71.09% of the companies listed in the same industry.
66.41% 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 | 16.47 | ||
| EV/EBITDA | 29.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as WOR's earnings are expected to decrease with -10.30% in the coming years.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y-17.33%
EPS Next 3Y-10.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, WOR has a reasonable but not impressive dividend return.
WOR's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.57, WOR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.83%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
WOR pays out 24.57% of its income as dividend. This is a sustainable payout ratio.
DP24.57%
EPS Next 2Y-17.33%
EPS Next 3Y-10.3%
47.39
+0.37 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners52.92%
Inst Owner Change0%
Ins Owners1.63%
Ins Owner Change-0.58%
Market Cap2.37B
Analysts49.09
Price Target55.28 (16.65%)
Short Float %4.03%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend1.16
Dividend Growth(5Y)4.83%
DP24.57%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.49%
Min EPS beat(2)15.35%
Max EPS beat(2)27.62%
EPS beat(4)2
Avg EPS beat(4)-2.74%
Min EPS beat(4)-31.48%
Max EPS beat(4)27.62%
EPS beat(8)6
Avg EPS beat(8)5.79%
EPS beat(12)9
Avg EPS beat(12)12.03%
EPS beat(16)12
Avg EPS beat(16)12.99%
Revenue beat(2)1
Avg Revenue beat(2)2.35%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)5.59%
Revenue beat(4)1
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-13.95%
Max Revenue beat(4)5.59%
Revenue beat(8)2
Avg Revenue beat(8)-3.35%
Revenue beat(12)5
Avg Revenue beat(12)1.6%
Revenue beat(16)7
Avg Revenue beat(16)1.07%
PT rev (1m)4.23%
PT rev (3m)4.23%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)13.74%
EPS NY rev (1m)0%
EPS NY rev (3m)7.6%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 15.83 | ||
| P/S | 2.05 | ||
| P/FCF | 16.47 | ||
| P/OCF | 12.29 | ||
| P/B | 2.52 | ||
| P/tB | 7.18 | ||
| EV/EBITDA | 29.44 |
EPS(TTM)2.75
EY5.8%
EPS(NY)2.99
Fwd EY6.32%
FCF(TTM)2.88
FCFY6.07%
OCF(TTM)3.86
OCFY8.14%
SpS23.13
BVpS18.77
TBVpS6.6
PEG (NY)N/A
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 14.52% | ||
| ROCE | 2.31% | ||
| ROIC | 1.45% | ||
| ROICexc | 1.7% | ||
| ROICexgc | 3.24% | ||
| OM | 3% | ||
| PM (TTM) | 11.78% | ||
| GM | 26.4% | ||
| FCFM | 12.44% |
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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 101.45% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 232.6% | ||
| Profit Quality | 105.61% | ||
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | N/A |
F-Score6
WACC9.45%
ROIC/WACC0.15
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)-56.9%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%13.75%
EPS Next Y-39.58%
EPS Next 2Y-17.33%
EPS Next 3Y-10.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-65.52%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-3.86%
Revenue Next Year-11.78%
Revenue Next 2Y-4.45%
Revenue Next 3Y-1.59%
Revenue Next 5YN/A
EBIT growth 1Y-83.8%
EBIT growth 3Y-82.48%
EBIT growth 5Y-59.47%
EBIT Next Year87.3%
EBIT Next 3Y30.43%
EBIT Next 5YN/A
FCF growth 1Y-69.4%
FCF growth 3Y2.41%
FCF growth 5Y12.73%
OCF growth 1Y-65.68%
OCF growth 3Y1.86%
OCF growth 5Y7.94%