WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
33.55 USD
+0.17 (+0.51%)
33.55 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WS. WS was compared to 156 industry peers in the Metals & Mining industry. WS has only an average score on both its financial health and profitability. WS has a bad growth rate and is valued cheaply. This makes WS very considerable 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.
WS had positive earnings in each of the past 5 years.
Each year in the past 5 years WS had a positive operating cash flow.
1.2 Ratios
WS has a better Return On Assets (5.64%) than 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 10.31%, WS is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
WS has a Return On Invested Capital of 8.45%. This is in the better half of the industry: WS outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WS is below the industry average of 12.92%.
| 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
With a decent Profit Margin value of 3.58%, WS is doing good in the industry, outperforming 67.31% of the companies in the same industry.
In the last couple of years the Profit Margin of WS has declined.
WS has a Operating Margin of 5.08%. This is comparable to the rest of the industry: WS outperforms 57.05% of its industry peers.
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 of 12.56%. This is comparable to the rest of the industry: WS outperforms 48.08% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WS is destroying 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 3.36 indicates that WS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WS (3.36) is comparable to the rest of the industry.
The Debt to FCF ratio of WS is 1.52, which is an excellent value as it means it would take WS, only 1.52 years of fcf income to pay off all of its debts.
WS has a better Debt to FCF ratio (1.52) than 84.62% of its industry peers.
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 | 1.52 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.9
WACC9.42%
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 64.74% 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.
Looking at the Quick ratio, with a value of 0.99, WS is doing worse than 67.95% of the companies in the same industry.
| 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 -28.76%.
The earnings per share for WS have been decreasing by -15.32% on average. This is quite bad
Looking at the last year, WS shows a decrease in Revenue. The Revenue has decreased by -9.83% 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)-28.76%
EPS 3Y-15.32%
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
The Earnings Per Share is expected to grow by 12.25% on average over the next years. This is quite good.
WS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.78% yearly.
EPS Next Y23.12%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
EPS Next 5Y12.25%
Revenue Next Year0.86%
Revenue Next 2Y2.97%
Revenue Next 3Y2.45%
Revenue Next 5Y2.78%
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
A Price/Earnings ratio of 15.60 indicates a correct valuation of WS.
Based on the Price/Earnings ratio, WS is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, WS is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.67 indicates a correct valuation of WS.
Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than the industry average as 73.72% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WS to the average of the S&P500 Index (22.71), we can say WS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 85.26% of the companies in the same industry.
87.82% 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 | 17.08 | ||
| EV/EBITDA | 7.45 |
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)0.67
PEG (5Y)N/A
EPS Next 2Y25.16%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 1.96%.
WS's Dividend Yield is rather good when compared to the industry average which is at 2.51. WS pays more dividend than 83.33% of the companies in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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
28.82% of the earnings are spent on dividend by WS. This is a low number and sustainable payout ratio.
DP28.82%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
33.55
+0.17 (+0.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.52%
Inst Owner Change-0.1%
Ins Owners36.03%
Ins Owner Change6.8%
Market Cap1.71B
Analysts82
Price Target34.68 (3.37%)
Short Float %3.06%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)0%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.67 | ||
| P/S | 0.55 | ||
| P/FCF | 17.08 | ||
| P/OCF | 7.41 | ||
| P/B | 1.59 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)2.15
EY6.41%
EPS(NY)2.65
Fwd EY7.89%
FCF(TTM)1.96
FCFY5.85%
OCF(TTM)4.53
OCFY13.49%
SpS60.81
BVpS21.11
TBVpS18.22
PEG (NY)0.67
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 | 20.39 | ||
| Cash Conversion | 103.27% | ||
| Profit Quality | 90.24% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.36 |
F-Score5
WACC9.42%
ROIC/WACC0.9
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)-28.76%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%-0.94%
EPS Next Y23.12%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
EPS Next 5Y12.25%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
Revenue Next Year0.86%
Revenue Next 2Y2.97%
Revenue Next 3Y2.45%
Revenue Next 5Y2.78%
EBIT growth 1Y-25.87%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year73.94%
EBIT Next 3Y28.74%
EBIT Next 5Y18.41%
FCF growth 1Y3.95%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y15.44%
OCF growth 3Y79.98%
OCF growth 5YN/A