WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WS - US9821041012 - Common Stock
33.68 USD
+1.44 (+4.47%)
34.2422 USD
+0.56 (+1.67%)
Overall WS gets a fundamental rating of 5 out of 10. We evaluated WS against 153 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WS was profitable.
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
Looking at the Return On Assets, with a value of 5.29%, WS is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
With a decent Return On Equity value of 10.73%, WS is doing good in the industry, outperforming 75.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.71%, WS is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WS is below the industry average of 13.09%.
| 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
WS's Profit Margin of 3.79% is fine compared to the rest of the industry. WS outperforms 67.32% of its industry peers.
In the last couple of years the Profit Margin of WS has declined.
With a Operating Margin value of 5.28%, WS perfoms like the industry average, outperforming 59.48% of the companies in the same industry.
WS's Operating Margin has been stable in the last couple of years.
The Gross Margin of WS (12.88%) is comparable to the rest of the industry.
WS's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WS is creating some value.
The number of shares outstanding for WS has been increased compared to 1 year ago.
The debt/assets ratio for WS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.87 indicates that WS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, WS is in line with its industry, outperforming 47.71% of the companies in the same industry.
The Debt to FCF ratio of WS is 7.77, which is on the high side as it means it would take WS, 7.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.77, WS is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
WS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.19, WS perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.83
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.66 indicates that WS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.66, WS is not doing good in the industry: 69.93% of the companies in the same industry are doing better.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, WS is not doing good in the industry: 73.20% of the companies in the same industry are doing better.
| 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.
The earnings per share for WS have been decreasing by -15.32% on average. This is quite bad
WS shows a decrease in Revenue. In the last year, the revenue decreased by -6.75%.
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
WS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.31% yearly.
The Revenue is expected to grow by 3.85% on average over the next years.
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
The Price/Earnings ratio is 14.27, which indicates a correct valuation of WS.
Based on the Price/Earnings ratio, WS is valued cheaper than 90.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.98, WS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.35, the valuation of WS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WS is valued cheaper than 81.70% 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 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 88.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WS is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.05 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
The 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)0.52
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 2.72, WS pays a better dividend. On top of this WS pays more dividend than 83.01% of the companies listed in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| 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%
33.68
+1.44 (+4.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change5.89%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.71B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (9.03%)
Short Float %3.48%
Short Ratio4.26
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 | 14.27 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.55 | ||
| P/FCF | 55.05 | ||
| P/OCF | 10.11 | ||
| P/B | 1.55 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)2.36
EY7.01%
EPS(NY)3.25
Fwd EY9.66%
FCF(TTM)0.61
FCFY1.82%
OCF(TTM)3.33
OCFY9.9%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.52
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 | 2.87 |
F-Score4
WACC9.31%
ROIC/WACC0.83
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 Year75.09%
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 5 / 10 to WS.
Can you provide the valuation status for WORTHINGTON STEEL INC?
ChartMill assigns a valuation rating of 8 / 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.