WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
NYSE:WS - New York Stock Exchange, Inc. - US9821041012 - Common Stock - Currency: USD
Overall WS gets a fundamental rating of 5 out of 10. We evaluated WS against 155 industry peers in the Metals & Mining industry. WS has an average financial health and profitability rating. 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.
Each year in the past 5 years WS has been profitable.
Each year in the past 5 years WS had a positive operating cash flow.
1.2 Ratios
WS's Return On Assets of 5.64% is fine compared to the rest of the industry. WS outperforms 77.42% of its industry peers.
The Return On Equity of WS (10.31%) is better than 78.71% of its industry peers.
WS has a Return On Invested Capital of 8.45%. This is in the better half of the industry: WS outperforms 77.42% of its industry peers.
WS had an Average Return On Invested Capital over the past 3 years of 9.34%. This is below the industry average of 11.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 10.31% | ||
| ROIC | 8.45% |
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 (3.58%) is better than 66.45% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
WS has a Operating Margin (5.08%) which is in line with its industry peers.
WS's Operating Margin has been stable in the last couple of years.
WS has a Gross Margin (12.56%) which 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 | 5.08% | ||
| PM (TTM) | 3.58% | ||
| GM | 12.56% |
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.
WS has more shares outstanding than it did 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 3.33 indicates that WS is not in any danger for bankruptcy at the moment.
WS's Altman-Z score of 3.33 is fine compared to the rest of the industry. WS outperforms 60.65% of its industry peers.
WS has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
WS's Debt to FCF ratio of 1.52 is amongst the best of the industry. WS outperforms 85.16% of its industry peers.
WS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WS (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.87
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.66 indicates that WS should not have too much problems paying its short term obligations.
WS has a Current ratio of 1.66. This is in the lower half of the industry: WS underperforms 67.74% of its industry peers.
A Quick Ratio of 0.99 indicates that WS may have some problems paying its short term obligations.
The Quick ratio of WS (0.99) is worse than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
WS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.04%.
Measured over the past years, WS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.75% on average per year.
Looking at the last year, WS shows a decrease in Revenue. The Revenue has decreased by -9.83% in the last year.
The Revenue has been decreasing by -8.73% on average over the past years.
EPS 1Y (TTM)-28.04%
EPS 3Y-14.75%
EPS 5YN/A
EPS Q2Q%-0.94%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
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 13.32% on average per year.
WS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y26.71%
EPS Next 2Y25.64%
EPS Next 3Y19.14%
EPS Next 5Y13.32%
Revenue Next Year-0.03%
Revenue Next 2Y3.54%
Revenue Next 3Y2.45%
Revenue Next 5Y1.91%
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 15.28, which indicates a correct valuation of WS.
84.52% of the companies in the same industry are more expensive than WS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WS to the average of the S&P500 Index (27.30), we can say WS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.06, the valuation of WS can be described as correct.
Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than 72.90% of the companies in the same industry.
WS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 83.23% of the companies in the same industry.
WS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WS is cheaper than 85.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 7.25 |
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 19.14% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y25.64%
EPS Next 3Y19.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, WS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.90, WS pays a better dividend. On top of this WS pays more dividend than 81.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, WS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
WS pays out 28.82% of its income as dividend. This is a sustainable payout ratio.
DP28.82%
EPS Next 2Y25.64%
EPS Next 3Y19.14%
32.85
+0.27 (+0.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.42%
Inst Owner Change0%
Ins Owners35.93%
Ins Owner Change6.02%
Market Cap1.67B
Analysts82
Price Target34.68 (5.57%)
Short Float %2.14%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP28.82%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.82%
Min EPS beat(2)-29.21%
Max EPS beat(2)23.57%
EPS beat(4)1
Avg EPS beat(4)-19.15%
Min EPS beat(4)-70.72%
Max EPS beat(4)23.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-6.19%
Max Revenue beat(2)1.02%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)8.19%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
EPS NQ rev (1m)-7.1%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.82%
Revenue NQ rev (1m)7.56%
Revenue NQ rev (3m)7.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 12.06 | ||
| P/S | 0.54 | ||
| P/FCF | 16.68 | ||
| P/OCF | 7.24 | ||
| P/B | 1.55 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)2.15
EY6.54%
EPS(NY)2.72
Fwd EY8.29%
FCF(TTM)1.97
FCFY5.99%
OCF(TTM)4.54
OCFY13.82%
SpS60.96
BVpS21.17
TBVpS18.26
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 10.31% | ||
| ROCE | 11.8% | ||
| ROIC | 8.45% | ||
| ROICexc | 8.67% | ||
| ROICexgc | 9.66% | ||
| OM | 5.08% | ||
| PM (TTM) | 3.58% | ||
| GM | 12.56% | ||
| FCFM | 3.23% |
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%
ROICexcg growth 3Y-10.2%
ROICexcg 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-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 197.58% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.27% | ||
| Profit Quality | 90.24% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.33 |
F-Score5
WACC9.69%
ROIC/WACC0.87
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)-28.04%
EPS 3Y-14.75%
EPS 5YN/A
EPS Q2Q%-0.94%
EPS Next Y26.71%
EPS Next 2Y25.64%
EPS Next 3Y19.14%
EPS Next 5Y13.32%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
Revenue Next Year-0.03%
Revenue Next 2Y3.54%
Revenue Next 3Y2.45%
Revenue Next 5Y1.91%
EBIT growth 1Y-25.87%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year76.75%
EBIT Next 3Y29.34%
EBIT Next 5Y18.74%
FCF growth 1Y3.95%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y15.44%
OCF growth 3Y79.98%
OCF growth 5YN/A