WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
NYSE:WS - New York Stock Exchange, Inc. - US9821041012 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WS. WS was compared to 151 industry peers in the Metals & Mining industry. WS has only an average score on both its financial health and profitability. WS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WS was profitable.
In the past year WS had a positive cash flow from operations.
1.2 Ratios
WS's Return On Assets of 8.24% is amongst the best of the industry. WS outperforms 84.62% of its industry peers.
The Return On Equity of WS (14.19%) is better than 86.01% of its industry peers.
The Return On Invested Capital of WS (11.09%) is better than 87.41% of its industry peers.
WS had an Average Return On Invested Capital over the past 3 years of 10.20%. This is in line with the industry average of 8.84%.
The last Return On Invested Capital (11.09%) for WS is above the 3 year average (10.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 14.19% | ||
| ROIC | 11.09% |
ROA(3y)7.29%
ROA(5y)N/A
ROE(3y)13.36%
ROE(5y)N/A
ROIC(3y)10.2%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 4.36%, WS is doing good in the industry, outperforming 70.63% of the companies in the same industry.
WS's Profit Margin has declined in the last couple of years.
WS has a Operating Margin of 5.99%. This is comparable to the rest of the industry: WS outperforms 55.94% of its industry peers.
WS's Operating Margin has declined in the last couple of years.
WS has a Gross Margin (13.12%) which is comparable to the rest of the industry.
WS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 4.36% | ||
| GM | 13.12% |
OM growth 3Y-15.75%
OM growth 5YN/A
PM growth 3Y-17.52%
PM growth 5YN/A
GM growth 3Y-9.73%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WS is still creating some value.
Compared to 1 year ago, WS has less shares outstanding
The debt/assets ratio for WS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.81 indicates that WS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.81, WS is in the better half of the industry, outperforming 62.94% of the companies in the same industry.
WS has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
WS has a better Debt to FCF ratio (1.45) than 82.52% of its industry peers.
WS has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, WS is in line with its industry, outperforming 58.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.05
WACC10.53%
2.3 Liquidity
A Current Ratio of 1.83 indicates that WS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, WS is doing worse than 60.84% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that WS should not have too much problems paying its short term obligations.
The Quick ratio of WS (1.10) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
WS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 78.53%, which is quite impressive.
Measured over the past years, WS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.15% on average per year.
The Revenue has decreased by -4.91% in the past year.
The Revenue has been growing by 17.27% on average over the past years. This is quite good.
EPS 1Y (TTM)78.53%
EPS 3Y-3.15%
EPS 5YN/A
EPS Q2Q%72.73%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y17.27%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
3.2 Future
The Earnings Per Share is expected to grow by 4.58% on average over the next years.
WS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.36% yearly.
EPS Next Y-26.55%
EPS Next 2Y5.16%
EPS Next 3Y5.6%
EPS Next 5Y4.58%
Revenue Next Year-7.2%
Revenue Next 2Y-3.54%
Revenue Next 3Y-1.2%
Revenue Next 5Y-0.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WS is valuated reasonably with a Price/Earnings ratio of 10.14.
90.91% of the companies in the same industry are more expensive than WS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. WS is valued rather cheaply when compared to this.
WS is valuated reasonably with a Price/Forward Earnings ratio of 8.12.
WS's Price/Forward Earnings ratio is rather cheap when compared to the industry. WS is cheaper than 88.11% of the companies in the same industry.
WS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
85.31% of the companies in the same industry are more expensive than WS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WS is valued a bit cheaper than the industry average as 79.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.16%
EPS Next 3Y5.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, WS has a reasonable but not impressive dividend return.
The stock price of WS dropped by -37.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.16, WS pays a bit more dividend than its industry peers.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
WS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
16.60% of the earnings are spent on dividend by WS. This is a low number and sustainable payout ratio.
DP16.6%
EPS Next 2Y5.16%
EPS Next 3Y5.6%
28.39
-0.52 (-1.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.23%
Inst Owner Change-95.41%
Ins Owners35.92%
Ins Owner Change3.15%
Market Cap1.44B
Analysts82
Price Target41.82 (47.31%)
Short Float %3.07%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP16.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.48%
Min EPS beat(2)-70.72%
Max EPS beat(2)-0.24%
EPS beat(4)2
Avg EPS beat(4)-8.51%
Min EPS beat(4)-70.72%
Max EPS beat(4)22.52%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.96%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)8.19%
Revenue beat(4)3
Avg Revenue beat(4)5.93%
Min Revenue beat(4)-0.27%
Max Revenue beat(4)11.68%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.5%
PT rev (3m)2.5%
EPS NQ rev (1m)-29.48%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-24.2%
EPS NY rev (3m)-24.2%
Revenue NQ rev (1m)-6.71%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 8.12 | ||
| P/S | 0.44 | ||
| P/FCF | 18.15 | ||
| P/OCF | 7.1 | ||
| P/B | 1.43 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)2.8
EY9.86%
EPS(NY)3.5
Fwd EY12.32%
FCF(TTM)1.56
FCFY5.51%
OCF(TTM)4
OCFY14.08%
SpS64.82
BVpS19.92
TBVpS16.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 14.19% | ||
| ROCE | 15.48% | ||
| ROIC | 11.09% | ||
| ROICexc | 11.52% | ||
| ROICexgc | 13.01% | ||
| OM | 5.99% | ||
| PM (TTM) | 4.36% | ||
| GM | 13.12% | ||
| FCFM | 2.41% |
ROA(3y)7.29%
ROA(5y)N/A
ROE(3y)13.36%
ROE(5y)N/A
ROIC(3y)10.2%
ROIC(5y)N/A
ROICexc(3y)10.43%
ROICexc(5y)N/A
ROICexgc(3y)11.84%
ROICexgc(5y)N/A
ROCE(3y)13.84%
ROCE(5y)N/A
ROICexcg growth 3Y-13.48%
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.68%
ROICexc growth 5YN/A
OM growth 3Y-15.75%
OM growth 5YN/A
PM growth 3Y-17.52%
PM growth 5YN/A
GM growth 3Y-9.73%
GM growth 5YN/A
F-Score7
Asset Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 191.47% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.62% | ||
| Profit Quality | 55.37% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.81 |
F-Score7
WACC10.53%
ROIC/WACC1.05
Cap/Depr(3y)94.97%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.72%
Cap/Sales(5y)N/A
Profit Quality(3y)124.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)78.53%
EPS 3Y-3.15%
EPS 5YN/A
EPS Q2Q%72.73%
EPS Next Y-26.55%
EPS Next 2Y5.16%
EPS Next 3Y5.6%
EPS Next 5Y4.58%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y17.27%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
Revenue Next Year-7.2%
Revenue Next 2Y-3.54%
Revenue Next 3Y-1.2%
Revenue Next 5Y-0.36%
EBIT growth 1Y82.39%
EBIT growth 3Y-1.21%
EBIT growth 5YN/A
EBIT Next Year12.16%
EBIT Next 3Y16.63%
EBIT Next 5Y10.7%
FCF growth 1Y-64.34%
FCF growth 3Y-8.1%
FCF growth 5YN/A
OCF growth 1Y-36.67%
OCF growth 3Y9.34%
OCF growth 5YN/A