WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WS - US9821041012 - Common Stock
36.32 USD
-0.01 (-0.03%)
36.32 USD
0 (0%)
WS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. WS has an average financial health and profitability rating. WS is cheap, but on the other hand it scores bad on growth. These ratings could make WS a good candidate for value investing.
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.
In the past 5 years WS has always been profitable.
WS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.80%, WS is doing good in the industry, outperforming 74.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.15%, WS is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.03%, WS is doing good in the industry, outperforming 70.51% of the companies in the same industry.
WS had an Average Return On Invested Capital over the past 3 years of 9.34%. This is below the industry average of 13.25%.
| 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 66.03% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.17%, WS is in line with its industry, outperforming 57.05% of the companies in the same industry.
In the last couple of years the Operating Margin of WS has remained more or less at the same level.
WS has a Gross Margin (12.76%) which is in line with its industry peers.
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.
WS has more shares outstanding than it did 1 year ago.
WS has a better debt/assets ratio than last year.
2.2 Solvency
WS has an Altman-Z score of 3.24. This indicates that WS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WS (3.24) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 2.62, WS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that WS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.14, WS perfoms like the industry average, outperforming 55.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.79
WACC10.13%
2.3 Liquidity
WS has a Current Ratio of 1.80. 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 (1.80) than 66.03% of its industry peers.
WS has a Quick Ratio of 1.09. This is a normal value and indicates that WS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, WS is doing worse than 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
WS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.93%.
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.
Looking at the last year, WS shows a decrease in Revenue. The Revenue has decreased by -0.75% in the last year.
WS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.73% yearly.
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
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.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y18.09%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
EPS Next 5Y10.31%
Revenue Next Year18.78%
Revenue Next 2Y11%
Revenue Next 3Y8%
Revenue Next 5Y3.85%
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.
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
Based on the Price/Earnings ratio of 14.24, the valuation of WS can be described as correct.
Based on the Price/Earnings ratio, WS is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
WS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
WS is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.01. WS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
88.46% 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 cheaper than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 7.52 |
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.
WS's earnings are expected to grow with 15.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y20.48%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, 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 1.02. WS pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, WS has a dividend comparable with the average S&P500 company.
| 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 26.08% of its income as dividend. This is a sustainable payout ratio.
DP26.08%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
36.32
-0.01 (-0.03%)
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 Cap1.85B
Revenue(TTM)3.27B
Net Income(TTM)124.60M
Analysts82
Price Target41.82 (15.14%)
Short Float %3.03%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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)20.59%
EPS NQ rev (1m)-26.98%
EPS NQ rev (3m)-18.58%
EPS NY rev (1m)-7.33%
EPS NY rev (3m)-5.01%
Revenue NQ rev (1m)10.02%
Revenue NQ rev (3m)20.5%
Revenue NY rev (1m)7.61%
Revenue NY rev (3m)17.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.57 | ||
| P/FCF | 25.46 | ||
| P/OCF | 9.2 | ||
| P/B | 1.65 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)2.55
EY7.02%
EPS(NY)3.12
Fwd EY8.59%
FCF(TTM)1.43
FCFY3.93%
OCF(TTM)3.95
OCFY10.87%
SpS64.24
BVpS21.98
TBVpS18.24
PEG (NY)0.79
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 | 3.24 |
F-Score3
WACC10.13%
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 5Y10.31%
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 5Y3.85%
EBIT growth 1Y-14.22%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year88.25%
EBIT Next 3Y30.12%
EBIT Next 5Y17.49%
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.
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 5 / 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 18.09% in the next year.