WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
31.34 USD
+0.96 (+3.16%)
31.29 USD
-0.05 (-0.16%)
WS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 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 is cheap, but on the other hand it scores bad on growth.
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.
In the past 5 years WS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.29%, WS is in the better half of the industry, outperforming 76.13% of the companies in the same industry.
WS's Return On Equity of 10.73% is amongst the best of the industry. WS outperforms 81.29% of its industry peers.
With a decent Return On Invested Capital value of 7.49%, WS is doing good in the industry, outperforming 72.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WS is below the industry average of 12.30%.
| 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 68.39% of the companies in the same industry.
In the last couple of years the Profit Margin of WS has declined.
With a Operating Margin value of 5.14%, WS perfoms like the industry average, outperforming 58.06% 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's Gross Margin of 12.88% is in line compared to the rest of the industry. WS outperforms 48.39% 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
WS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WS has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, WS has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.84, WS is in line with its industry, outperforming 43.23% 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 65.81% 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.
The Debt to Equity ratio of WS (0.19) 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/WACC0.84
WACC8.89%
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 66.45% of its industry peers.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, WS is doing worse than 72.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for WS have decreased strongly by -13.24% in the last year.
WS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.32% yearly.
The Revenue has decreased by -6.75% in the past year.
WS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.73% yearly.
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
The Earnings Per Share is expected to grow by 10.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y24.32%
EPS Next 2Y25.26%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue Next Year9.86%
Revenue Next 2Y5.64%
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.
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
With a Price/Earnings ratio of 13.28, WS is valued correctly.
93.55% 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 27.69. WS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.29, the valuation of WS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WS indicates a rather cheap valuation: WS is cheaper than 90.32% 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 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 88.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WS indicates a somewhat cheap valuation: WS is cheaper than 69.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.17 | ||
| EV/EBITDA | 6.91 |
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 17.20% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y25.26%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, WS pays a better dividend. On top of this WS pays more dividend than 88.39% of the companies listed in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 26.98% of its income as dividend. This is a sustainable payout ratio.
DP26.98%
EPS Next 2Y25.26%
EPS Next 3Y17.2%
31.34
+0.96 (+3.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change0.25%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.59B
Analysts82
Price Target36.72 (17.17%)
Short Float %3.48%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)5.88%
PT rev (3m)5.88%
EPS NQ rev (1m)9.41%
EPS NQ rev (3m)9.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)8.55%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)8.93%
Revenue NY rev (3m)8.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.51 | ||
| P/FCF | 49.17 | ||
| P/OCF | 9.33 | ||
| P/B | 1.44 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.36
EY7.53%
EPS(NY)3.37
Fwd EY10.76%
FCF(TTM)0.64
FCFY2.03%
OCF(TTM)3.36
OCFY10.72%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.55
PEG (5Y)N/A
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%
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-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
WACC8.89%
ROIC/WACC0.84
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 Y24.32%
EPS Next 2Y25.26%
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 Year9.86%
Revenue Next 2Y5.64%
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