WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
31.5 USD
+0.16 (+0.51%)
31.5 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. WS has a medium profitability rating, but doesn't score so well on its financial health evaluation. WS has a bad growth rate and is valued cheaply.
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.
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
WS has a Return On Assets of 5.29%. This is in the better half of the industry: WS outperforms 75.32% of its industry peers.
WS's Return On Equity of 10.73% is fine compared to the rest of the industry. WS outperforms 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.49%, WS is in the better half of the industry, outperforming 72.08% 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 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROIC | 7.49% |
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
With a decent Profit Margin value of 3.79%, WS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
WS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.14%, WS perfoms like the industry average, outperforming 58.44% of the companies in the same industry.
WS's Operating Margin has been stable in the last couple of years.
WS's Gross Margin of 12.88% is in line compared to the rest of the industry. WS outperforms 48.05% of its industry peers.
WS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.14% | ||
| 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.
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 2.84. This is not the best score and indicates that WS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.84, WS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of WS is 7.46, which is on the high side as it means it would take WS, 7.46 years of fcf income to pay off all of its debts.
WS has a Debt to FCF ratio of 7.46. This is in the better half of the industry: WS outperforms 65.58% 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 has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.83
WACC9.08%
2.3 Liquidity
WS has a Current Ratio of 1.66. This is a normal value and indicates that WS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WS (1.66) is worse than 68.83% of its industry peers.
WS has a Quick Ratio of 1.66. This is a bad value and indicates that WS is not financially healthy enough and could expect problems in meeting its short term obligations.
WS has a worse Quick ratio (0.97) than 72.73% 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%.
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
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.
WS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
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
With a Price/Earnings ratio of 13.35, WS is valued correctly.
89.61% of the companies in the same industry are more expensive than WS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. WS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.68, which indicates a very decent valuation of WS.
81.82% of the companies in the same industry are more expensive than WS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WS to the average of the S&P500 Index (32.68), we can say WS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 86.36% of the companies in the same industry.
68.18% 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 | 49.42 | ||
| EV/EBITDA | 6.91 |
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.
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 17.20% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y23.04%
EPS Next 3Y17.2%
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 2.69. WS pays more dividend than 84.42% of the companies 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 | 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%
31.5
+0.16 (+0.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change2.08%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.60B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (16.57%)
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 | 13.35 | ||
| Fwd PE | 9.68 | ||
| P/S | 0.51 | ||
| P/FCF | 49.42 | ||
| P/OCF | 9.38 | ||
| P/B | 1.45 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.36
EY7.49%
EPS(NY)3.25
Fwd EY10.33%
FCF(TTM)0.64
FCFY2.02%
OCF(TTM)3.36
OCFY10.66%
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 | 10.38% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 8.9% | ||
| OM | 5.14% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% | ||
| FCFM | 1.03% |
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
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 | 7.46 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 197.29% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.9% | ||
| Profit Quality | 27.32% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.84 |
F-Score4
WACC9.08%
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-12.6%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year75.09%
EBIT Next 3Y30.12%
EBIT Next 5Y17.49%
FCF growth 1Y-85.81%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y-39.06%
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.