WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WS - US9821041012 - Common Stock
35.83 USD
-0.7 (-1.92%)
35.83 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WS. WS was compared to 155 industry peers in the Metals & Mining industry. While WS is still in line with the averages on profitability rating, there are concerns on its financial health. WS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
WS had positive earnings in the past year.
WS had a positive operating cash flow in the past year.
WS had positive earnings in each of the past 5 years.
In the past 5 years WS always reported a positive cash flow from operatings.
1.2 Ratios
WS's Return On Assets of 5.29% is fine compared to the rest of the industry. WS outperforms 73.55% of its industry peers.
The Return On Equity of WS (10.73%) is better than 75.48% of its industry peers.
WS's Return On Invested Capital of 7.71% is fine compared to the rest of the industry. WS outperforms 69.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WS is below the industry average of 13.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROIC | 7.71% |
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
1.3 Margins
The Profit Margin of WS (3.79%) is better than 66.45% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
WS's Operating Margin of 5.28% is in line compared to the rest of the industry. WS outperforms 58.71% of its industry peers.
WS's Operating Margin has been stable in the last couple of years.
WS has a Gross Margin (12.88%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% |
OM growth 3Y-1.36%
OM growth 5YN/A
PM growth 3Y-6.89%
PM growth 5YN/A
GM growth 3Y8.93%
GM growth 5YN/A
2. Health
2.1 Basic Checks
WS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WS has more shares outstanding
WS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that WS is not a great score, but indicates only limited risk for bankruptcy at the moment.
WS's Altman-Z score of 2.98 is in line compared to the rest of the industry. WS outperforms 47.10% of its industry peers.
WS has a debt to FCF ratio of 7.77. This is a slightly negative value and a sign of low solvency as WS would need 7.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.77, WS is doing good in the industry, outperforming 61.29% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that WS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, WS is in line with its industry, outperforming 49.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.75
WACC10.31%
2.3 Liquidity
WS has a Current Ratio of 1.66. This is a normal value and indicates that WS is financially healthy and should not expect problems in meeting its short term obligations.
WS has a worse Current ratio (1.66) than 69.68% of its industry peers.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, WS is doing worse than 71.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for WS have decreased strongly by -13.24% in the last year.
Measured over the past years, WS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.32% on average per year.
The Revenue has decreased by -6.75% in the past year.
The Revenue has been decreasing by -8.73% on average over the past years.
EPS 1Y (TTM)-13.24%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%4.66%
3.2 Future
The Earnings Per Share is expected to grow by 10.31% on average over the next years. This is quite good.
Based on estimates for the next years, WS will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y27.43%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue Next Year10.37%
Revenue Next 2Y7.12%
Revenue Next 3Y6.87%
Revenue Next 5Y3.85%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WS is valuated correctly with a Price/Earnings ratio of 15.18.
Compared to the rest of the industry, the Price/Earnings ratio of WS indicates a rather cheap valuation: WS is cheaper than 91.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, WS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.01, the valuation of WS can be described as reasonable.
Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than 78.71% 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 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WS indicates a rather cheap valuation: WS is cheaper than 87.74% of the companies listed in the same industry.
WS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WS is cheaper than 68.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.56 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
WS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WS's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y23.04%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 2.50, WS pays a better dividend. On top of this WS pays more dividend than 83.87% of the companies listed in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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
26.98% of the earnings are spent on dividend by WS. This is a low number and sustainable payout ratio.
DP26.98%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
35.83
-0.7 (-1.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners53.42%
Inst Owner Change5.89%
Ins Owners35.92%
Ins Owner Change11.15%
Market Cap1.82B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (2.48%)
Short Float %3.14%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP26.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.97%
Min EPS beat(2)-1.64%
Max EPS beat(2)23.57%
EPS beat(4)1
Avg EPS beat(4)-19.5%
Min EPS beat(4)-70.72%
Max EPS beat(4)23.57%
EPS beat(8)3
Avg EPS beat(8)-8.76%
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)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)1.54%
Revenue beat(8)6
Avg Revenue beat(8)3.08%
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)0%
PT rev (3m)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.41%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 11.01 | ||
| P/S | 0.58 | ||
| P/FCF | 58.56 | ||
| P/OCF | 10.75 | ||
| P/B | 1.65 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)2.36
EY6.59%
EPS(NY)3.25
Fwd EY9.08%
FCF(TTM)0.61
FCFY1.71%
OCF(TTM)3.33
OCFY9.3%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.55
PEG (5Y)N/A
Graham Number33.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROCE | 10.68% | ||
| ROIC | 7.71% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 9.15% | ||
| OM | 5.28% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% | ||
| FCFM | 0.99% |
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
ROICexc(3y)9.6%
ROICexc(5y)12.34%
ROICexgc(3y)10.85%
ROICexgc(5y)13.6%
ROCE(3y)12.75%
ROCE(5y)15.86%
ROICexgc growth 3Y-10.2%
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.72%
ROICexc growth 5YN/A
OM growth 3Y-1.36%
OM growth 5YN/A
PM growth 3Y-6.89%
PM growth 5YN/A
GM growth 3Y8.93%
GM growth 5YN/A
F-Score4
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 197.29% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.9% | ||
| Profit Quality | 26.22% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.98 |
F-Score4
WACC10.31%
ROIC/WACC0.75
Cap/Depr(3y)140.43%
Cap/Depr(5y)109.29%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.15%
Profit Quality(3y)153.93%
Profit Quality(5y)107.18%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.24%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y27.43%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%4.66%
Revenue Next Year10.37%
Revenue Next 2Y7.12%
Revenue Next 3Y6.87%
Revenue Next 5Y3.85%
EBIT growth 1Y-10.1%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year88.25%
EBIT Next 3Y30.12%
EBIT Next 5Y17.49%
FCF growth 1Y-86.38%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y-39.52%
OCF growth 3Y79.98%
OCF growth 5YN/A
WORTHINGTON STEEL INC / WS FAQ
What is the ChartMill fundamental rating of WORTHINGTON STEEL INC (WS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WS.
Can you provide the valuation status for WORTHINGTON STEEL INC?
ChartMill assigns a valuation rating of 7 / 10 to WORTHINGTON STEEL INC (WS). This can be considered as Undervalued.
What is the profitability of WS stock?
WORTHINGTON STEEL INC (WS) has a profitability rating of 6 / 10.
What is the financial health of WORTHINGTON STEEL INC (WS) stock?
The financial health rating of WORTHINGTON STEEL INC (WS) is 3 / 10.
What is the expected EPS growth for WORTHINGTON STEEL INC (WS) stock?
The Earnings per Share (EPS) of WORTHINGTON STEEL INC (WS) is expected to grow by 27.43% in the next year.