WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WS - US9821041012 - Common Stock
36.93 USD
+0.66 (+1.82%)
36.93 USD
0 (0%)
Overall WS gets a fundamental rating of 5 out of 10. We evaluated WS against 157 industry peers in the Metals & Mining industry. Both the profitability and the financial health of WS get a neutral evaluation. Nothing too spectacular is happening here. WS has a bad growth rate and is valued cheaply. With these ratings, WS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year WS was profitable.
WS had a positive operating cash flow in the past year.
In the past 5 years WS has always been profitable.
In the past 5 years WS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WS (5.80%) is better than 75.80% of its industry peers.
With a decent Return On Equity value of 11.15%, WS is doing good in the industry, outperforming 78.34% of the companies in the same industry.
The Return On Invested Capital of WS (8.03%) is better than 70.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WS is in line with the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 11.15% | ||
| ROIC | 8.03% |
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 has a better Profit Margin (3.82%) than 66.24% of its industry peers.
In the last couple of years the Profit Margin of WS has declined.
WS's Operating Margin of 5.17% is in line compared to the rest of the industry. WS outperforms 57.96% 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 12.76%, WS is in line with its industry, outperforming 43.95% of the companies in the same industry.
WS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.17% | ||
| PM (TTM) | 3.82% | ||
| GM | 12.76% |
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) below the Cost of Capital (WACC), WS is destroying 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
WS has an Altman-Z score of 3.26. This indicates that WS is financially healthy and has little risk of bankruptcy at the moment.
WS's Altman-Z score of 3.26 is in line compared to the rest of the industry. WS outperforms 48.41% of its industry peers.
WS has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as WS would need 2.62 years to pay back of all of its debts.
The Debt to FCF ratio of WS (2.62) is better than 75.80% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that WS is not too dependend on debt financing.
WS has a Debt to Equity ratio (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.79
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.80 indicates that WS should not have too much problems paying its short term obligations.
The Current ratio of WS (1.80) is worse than 63.69% of its industry peers.
A Quick Ratio of 1.09 indicates that WS should not have too much problems paying its short term obligations.
WS's Quick ratio of 1.09 is on the low side compared to the rest of the industry. WS is outperformed by 64.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for WS have decreased by -8.93% 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 -0.75% in the past year.
The Revenue has been decreasing by -8.73% on average over the past years.
EPS 1Y (TTM)-8.93%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%17.98%
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 9.59% yearly.
Based on estimates for the next years, WS will show a small growth in Revenue. The Revenue will grow by 4.42% on average per year.
EPS Next Y18.09%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
EPS Next 5Y9.59%
Revenue Next Year18.78%
Revenue Next 2Y11%
Revenue Next 3Y8%
Revenue Next 5Y4.42%
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 accelerating.
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
A Price/Earnings ratio of 14.48 indicates a correct valuation of WS.
Based on the Price/Earnings ratio, WS is valued cheaper than 94.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, WS is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.83, which indicates a very decent valuation of WS.
WS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WS is cheaper than 78.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WS to the average of the S&P500 Index (23.92), we can say WS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 90.45% of the companies in the same industry.
83.44% of the companies in the same industry are more expensive than WS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.89 | ||
| EV/EBITDA | 7.64 |
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.
The decent profitability rating of WS may justify a higher PE ratio.
A more expensive valuation may be justified as WS's earnings are expected to grow with 15.90% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y20.48%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, WS has a reasonable but not impressive dividend return.
WS's Dividend Yield is rather good when compared to the industry average which is at 0.98. WS pays more dividend than 84.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, WS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
WS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WS pays out 26.08% of its income as dividend. This is a sustainable payout ratio.
DP26.08%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
36.93
+0.66 (+1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners54.48%
Inst Owner Change0.35%
Ins Owners36.58%
Ins Owner Change2.69%
Market Cap1.88B
Revenue(TTM)3.27B
Net Income(TTM)124.60M
Analysts82
Price Target41.82 (13.24%)
Short Float %3.3%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP26.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.52%
Min EPS beat(2)-5.4%
Max EPS beat(2)-1.64%
EPS beat(4)1
Avg EPS beat(4)-3.17%
Min EPS beat(4)-29.21%
Max EPS beat(4)23.57%
EPS beat(8)3
Avg EPS beat(8)-5.84%
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)3.86%
Min Revenue beat(2)1.54%
Max Revenue beat(2)6.18%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)6.18%
Revenue beat(8)6
Avg Revenue beat(8)3.29%
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)13.89%
PT rev (3m)13.89%
EPS NQ rev (1m)-26.98%
EPS NQ rev (3m)-20.69%
EPS NY rev (1m)-7.33%
EPS NY rev (3m)-5.01%
Revenue NQ rev (1m)10.02%
Revenue NQ rev (3m)10.39%
Revenue NY rev (1m)7.61%
Revenue NY rev (3m)8.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 11.83 | ||
| P/S | 0.57 | ||
| P/FCF | 25.89 | ||
| P/OCF | 9.35 | ||
| P/B | 1.68 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)2.55
EY6.9%
EPS(NY)3.12
Fwd EY8.45%
FCF(TTM)1.43
FCFY3.86%
OCF(TTM)3.95
OCFY10.69%
SpS64.24
BVpS21.98
TBVpS18.24
PEG (NY)0.8
PEG (5Y)N/A
Graham Number35.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 11.15% | ||
| ROCE | 10.79% | ||
| ROIC | 8.03% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 9.64% | ||
| OM | 5.17% | ||
| PM (TTM) | 3.82% | ||
| GM | 12.76% | ||
| FCFM | 2.22% |
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-Score3
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 169.8% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.12% | ||
| Profit Quality | 58.19% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.26 |
F-Score3
WACC10.18%
ROIC/WACC0.79
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)-8.93%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y18.09%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
EPS Next 5Y9.59%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%17.98%
Revenue Next Year18.78%
Revenue Next 2Y11%
Revenue Next 3Y8%
Revenue Next 5Y4.42%
EBIT growth 1Y-14.22%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year78.24%
EBIT Next 3Y28.85%
EBIT Next 5Y16.8%
FCF growth 1Y3.95%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y15.44%
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.
What is the valuation status of WORTHINGTON STEEL INC (WS) stock?
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.
Can you provide the PE and PB ratios for WS stock?
The Price/Earnings (PE) ratio for WORTHINGTON STEEL INC (WS) is 14.48 and the Price/Book (PB) ratio is 1.68.
Is the dividend of WORTHINGTON STEEL INC sustainable?
The dividend rating of WORTHINGTON STEEL INC (WS) is 4 / 10 and the dividend payout ratio is 26.08%.