WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WS - US9821041012 - Common Stock
40.15 USD
+1.13 (+2.9%)
40.6 USD
+0.45 (+1.12%)
Taking everything into account, WS scores 5 out of 10 in our fundamental rating. WS was compared to 154 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 is valued quite cheap, but it does not seem to be growing. These ratings could make WS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year WS was profitable.
- In the past year WS had a positive cash flow from operations.
- 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 5.80%. This is in the better half of the industry: WS outperforms 75.97% of its industry peers.
- Looking at the Return On Equity, with a value of 11.15%, WS is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
- The Return On Invested Capital of WS (8.03%) is better than 70.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WS is in line with the industry average of 10.32%.
| 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
- The Profit Margin of WS (3.82%) is better than 65.58% 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 57.79% 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.
- Looking at the Gross Margin, with a value of 12.76%, WS is in line with its industry, outperforming 44.16% 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
- 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 3.32 indicates that WS is not in any danger for bankruptcy at the moment.
- WS has a Altman-Z score (3.32) which is in line with 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.
- Looking at the Debt to FCF ratio, with a value of 2.62, WS is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
- WS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- WS has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: WS outperforms 56.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.76
WACC10.54%
2.3 Liquidity
- A Current Ratio of 1.80 indicates that WS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.80, WS is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- 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 64.29% of the companies in the same industry.
| 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.
- 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 -0.75% in the last year.
- Measured over the past years, WS shows a decrease in Revenue. The Revenue has been decreasing by -8.73% on average per year.
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
- The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
- 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 Year19.03%
Revenue Next 2Y10.95%
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.
- 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 15.75, which indicates a correct valuation of WS.
- Compared to the rest of the industry, the Price/Earnings ratio of WS indicates a rather cheap valuation: WS is cheaper than 96.10% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of WS to the average of the S&P500 Index (28.60), we can say WS is valued slightly cheaper.
- WS is valuated correctly with a Price/Forward Earnings ratio of 12.86.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WS indicates a rather cheap valuation: WS is cheaper than 82.47% of the companies listed in the same industry.
- WS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WS indicates a rather cheap valuation: WS is cheaper than 90.91% of the companies listed in the same industry.
- WS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WS is cheaper than 87.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.15 | ||
| EV/EBITDA | 8.08 |
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)0.87
PEG (5Y)N/A
EPS Next 2Y20.48%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
- WS has a Yearly Dividend Yield of 1.73%.
- WS's Dividend Yield is rather good when compared to the industry average which is at 1.02. WS pays more dividend than 85.06% of the companies in the same industry.
- WS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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%
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 15.75 and the Price/Book (PB) ratio is 1.83.
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%.