WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
USA - NYSE:WOR - US9818111026 - Common Stock
56.65 USD
-0.98 (-1.7%)
56.65 USD
0 (0%)
Taking everything into account, WOR scores 6 out of 10 in our fundamental rating. WOR was compared to 129 industry peers in the Machinery industry. While WOR has a great health rating, its profitability is only average at the moment. WOR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WOR had positive earnings in the past year.
WOR had a positive operating cash flow in the past year.
In the past 5 years WOR has always been profitable.
In the past 5 years WOR always reported a positive cash flow from operatings.
1.2 Ratios
WOR has a Return On Assets of 6.15%. This is in the better half of the industry: WOR outperforms 64.34% of its industry peers.
With a decent Return On Equity value of 11.15%, WOR is doing good in the industry, outperforming 61.24% of the companies in the same industry.
The Return On Invested Capital of WOR (2.57%) is worse than 67.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WOR is significantly below the industry average of 10.01%.
The 3 year average ROIC (0.95%) for WOR is below the current ROIC(2.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 11.15% | ||
| ROIC | 2.57% |
ROA(3y)6.48%
ROA(5y)10.26%
ROE(3y)12.61%
ROE(5y)23.04%
ROIC(3y)0.95%
ROIC(5y)3.3%
1.3 Margins
The Profit Margin of WOR (8.91%) is better than 67.44% of its industry peers.
In the last couple of years the Profit Margin of WOR has grown nicely.
WOR has a worse Operating Margin (5.49%) than 62.02% of its industry peers.
WOR's Operating Margin has improved in the last couple of years.
The Gross Margin of WOR (28.23%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.49% | ||
| PM (TTM) | 8.91% | ||
| GM | 28.23% |
OM growth 3Y-9.98%
OM growth 5Y3.09%
PM growth 3Y4.78%
PM growth 5Y26.44%
GM growth 3Y26.57%
GM growth 5Y13.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WOR is destroying value.
WOR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WOR has been reduced compared to 5 years ago.
WOR has a better debt/assets ratio than last year.
2.2 Solvency
WOR has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
WOR has a better Debt to FCF ratio (1.97) than 79.07% of its industry peers.
WOR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, WOR is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC9.13%
2.3 Liquidity
A Current Ratio of 3.30 indicates that WOR has no problem at all paying its short term obligations.
WOR's Current ratio of 3.30 is fine compared to the rest of the industry. WOR outperforms 79.84% of its industry peers.
WOR has a Quick Ratio of 2.24. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WOR (2.24) is better than 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.38% over the past year.
Measured over the past 5 years, WOR shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
Looking at the last year, WOR shows a very negative growth in Revenue. The Revenue has decreased by -20.15% in the last year.
WOR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -17.72% yearly.
EPS 1Y (TTM)17.38%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%48%
Revenue 1Y (TTM)-20.15%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%18.03%
3.2 Future
Based on estimates for the next years, WOR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.47% on average per year.
WOR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.89% yearly.
EPS Next Y16%
EPS Next 2Y13.45%
EPS Next 3Y12.39%
EPS Next 5Y10.47%
Revenue Next Year15.4%
Revenue Next 2Y9.79%
Revenue Next 3Y8.01%
Revenue Next 5Y6.89%
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
A Price/Earnings ratio of 17.11 indicates a rather expensive valuation of WOR.
75.19% of the companies in the same industry are more expensive than WOR, based on the Price/Earnings ratio.
WOR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
WOR is valuated correctly with a Price/Forward Earnings ratio of 14.34.
Based on the Price/Forward Earnings ratio, WOR is valued a bit cheaper than 76.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WOR to the average of the S&P500 Index (23.04), we can say WOR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
WOR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WOR is more expensive than 70.54% of the companies in the same industry.
72.09% of the companies in the same industry are more expensive than WOR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 26.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WOR may justify a higher PE ratio.
WOR's earnings are expected to grow with 12.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)3.12
EPS Next 2Y13.45%
EPS Next 3Y12.39%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.36%.
WOR's Dividend Yield is a higher than the industry average which is at 1.81.
With a Dividend Yield of 1.36, WOR pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of WOR decreases each year by -6.64%.
WOR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-6.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
32.13% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP32.13%
EPS Next 2Y13.45%
EPS Next 3Y12.39%
56.65
-0.98 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners52.42%
Inst Owner Change-0.01%
Ins Owners1.55%
Ins Owner Change1.55%
Market Cap2.82B
Analysts75
Price Target69.56 (22.79%)
Short Float %2.18%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend0.69
Dividend Growth(5Y)-6.64%
DP32.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.36%
Min EPS beat(2)4.37%
Max EPS beat(2)24.35%
EPS beat(4)4
Avg EPS beat(4)17.92%
Min EPS beat(4)4.37%
Max EPS beat(4)27.62%
EPS beat(8)6
Avg EPS beat(8)4.02%
EPS beat(12)9
Avg EPS beat(12)6.98%
EPS beat(16)12
Avg EPS beat(16)11.05%
Revenue beat(2)2
Avg Revenue beat(2)3.72%
Min Revenue beat(2)3.04%
Max Revenue beat(2)4.41%
Revenue beat(4)3
Avg Revenue beat(4)3.04%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)5.59%
Revenue beat(8)4
Avg Revenue beat(8)-1.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.68%
Revenue beat(16)8
Avg Revenue beat(16)1.87%
PT rev (1m)-1.16%
PT rev (3m)15.2%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 14.34 | ||
| P/S | 2.35 | ||
| P/FCF | 18.14 | ||
| P/OCF | 13.45 | ||
| P/B | 2.94 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 26.07 |
EPS(TTM)3.31
EY5.84%
EPS(NY)3.95
Fwd EY6.97%
FCF(TTM)3.12
FCFY5.51%
OCF(TTM)4.21
OCFY7.43%
SpS24.1
BVpS19.26
TBVpS6.51
PEG (NY)1.07
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 11.15% | ||
| ROCE | 4.25% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 5.34% | ||
| OM | 5.49% | ||
| PM (TTM) | 8.91% | ||
| GM | 28.23% | ||
| FCFM | 12.96% |
ROA(3y)6.48%
ROA(5y)10.26%
ROE(3y)12.61%
ROE(5y)23.04%
ROIC(3y)0.95%
ROIC(5y)3.3%
ROICexc(3y)1.14%
ROICexc(5y)3.88%
ROICexgc(3y)1.97%
ROICexgc(5y)5.64%
ROCE(3y)1.58%
ROCE(5y)5.5%
ROICexcg growth 3Y-21.87%
ROICexcg growth 5Y-3.62%
ROICexc growth 3Y-29.5%
ROICexc growth 5Y-8.78%
OM growth 3Y-9.98%
OM growth 5Y3.09%
PM growth 3Y4.78%
PM growth 5Y26.44%
GM growth 3Y26.57%
GM growth 5Y13.8%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 109.35% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 181.68% | ||
| Profit Quality | 145.41% | ||
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | N/A |
F-Score6
WACC9.13%
ROIC/WACC0.28
Cap/Depr(3y)94.96%
Cap/Depr(5y)94.87%
Cap/Sales(3y)5.73%
Cap/Sales(5y)4.31%
Profit Quality(3y)187.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.38%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%48%
EPS Next Y16%
EPS Next 2Y13.45%
EPS Next 3Y12.39%
EPS Next 5Y10.47%
Revenue 1Y (TTM)-20.15%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%18.03%
Revenue Next Year15.4%
Revenue Next 2Y9.79%
Revenue Next 3Y8.01%
Revenue Next 5Y6.89%
EBIT growth 1Y3405.67%
EBIT growth 3Y-45.65%
EBIT growth 5Y-15.18%
EBIT Next Year725.23%
EBIT Next 3Y111.73%
EBIT Next 5Y60.66%
FCF growth 1Y-69.5%
FCF growth 3YN/A
FCF growth 5Y-7.98%
OCF growth 1Y-65.29%
OCF growth 3Y44.09%
OCF growth 5Y-9.03%