WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
31.67 USD
-0.1 (-0.31%)
31.67 USD
0 (0%)
WS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 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
WS had positive earnings in the past year.
In the past year WS had a positive cash flow from operations.
Each year in the past 5 years WS has been profitable.
WS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WS (5.29%) is better than 74.03% of its industry peers.
Looking at the Return On Equity, with a value of 10.73%, WS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
WS has a Return On Invested Capital of 7.71%. This is in the better half of the industry: WS outperforms 70.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WS is below the industry average of 12.75%.
| 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 67.53% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
WS has a Operating Margin of 5.28%. This is comparable to the rest of the industry: WS outperforms 59.74% of its industry peers.
WS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 12.88%, WS is in line with its industry, outperforming 48.05% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WS is still creating some value.
The number of shares outstanding for WS has been increased compared to 1 year ago.
Compared to 1 year ago, WS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that WS is not a great score, but indicates only limited risk for bankruptcy at the moment.
WS's Altman-Z score of 2.85 is in line compared to the rest of the industry. WS outperforms 48.05% of its industry peers.
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.
WS has a better Debt to FCF ratio (7.77) than 66.23% of its industry peers.
WS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
WS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. WS outperforms 48.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.86
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.66 indicates that WS should not have too much problems paying its short term obligations.
The Current ratio of WS (1.66) is worse than 69.48% of its industry peers.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
WS's Quick ratio of 0.97 is on the low side compared to the rest of the industry. WS is outperformed by 73.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
WS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.24%.
WS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.32% yearly.
WS shows a decrease in Revenue. In the last year, the revenue decreased by -6.75%.
WS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.73% yearly.
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
Based on estimates for the next years, WS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.31% on average per year.
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.
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
WS is valuated correctly with a Price/Earnings ratio of 13.42.
Based on the Price/Earnings ratio, WS is valued cheaply inside the industry as 90.26% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.89. WS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.73, the valuation of WS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WS is valued cheaper than 82.47% of the companies in the same industry.
WS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 9.73 |
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 88.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WS is valued a bit cheaper than 69.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.76 | ||
| EV/EBITDA | 6.87 |
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.
WS's earnings are expected to grow with 17.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
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%. Purely for dividend investing, there may be better candidates out there.
WS's Dividend Yield is rather good when compared to the industry average which is at 2.60. WS pays more dividend than 83.77% of the companies in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
WS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WS pays out 26.98% of its income as dividend. This is a sustainable payout ratio.
DP26.98%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
31.67
-0.1 (-0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change1.01%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.61B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (15.95%)
Short Float %3.76%
Short Ratio4.6
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)3.33%
EPS NQ rev (3m)9.41%
EPS NY rev (1m)2.5%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.51 | ||
| P/FCF | 51.76 | ||
| P/OCF | 9.5 | ||
| P/B | 1.46 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 6.87 |
EPS(TTM)2.36
EY7.45%
EPS(NY)3.25
Fwd EY10.28%
FCF(TTM)0.61
FCFY1.93%
OCF(TTM)3.33
OCFY10.52%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.49
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 | 2.85 |
F-Score4
WACC8.98%
ROIC/WACC0.86
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.