WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
NYSE:WOR - New York Stock Exchange, Inc. - US9818111026 - Common Stock - Currency: USD
WOR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. WOR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WOR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WOR had positive earnings in the past year.
In the past year WOR had a positive cash flow from operations.
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 (5.67%) which is in line with its industry peers.
WOR has a Return On Equity (10.25%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.04%, WOR is not doing good in the industry: 69.29% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for WOR is significantly below the industry average of 10.78%.
The 3 year average ROIC (0.95%) for WOR is below the current ROIC(2.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 10.25% | ||
| ROIC | 2.04% |
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 (8.33%) is better than 65.35% of its industry peers.
WOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.39%, WOR is doing worse than 64.57% of the companies in the same industry.
In the last couple of years the Operating Margin of WOR has grown nicely.
WOR has a Gross Margin of 27.65%. This is comparable to the rest of the industry: WOR outperforms 41.73% of its industry peers.
In the last couple of years the Gross Margin of WOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 8.33% | ||
| GM | 27.65% |
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
WOR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WOR has more shares outstanding
The number of shares outstanding for WOR has been reduced compared to 5 years ago.
Compared to 1 year ago, WOR has an improved debt to assets ratio.
2.2 Solvency
WOR has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.90, WOR is in the better half of the industry, outperforming 77.95% of the companies in the same industry.
WOR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WOR (0.32) is better than 60.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC9.6%
2.3 Liquidity
WOR has a Current Ratio of 3.48. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
WOR's Current ratio of 3.48 is amongst the best of the industry. WOR outperforms 82.68% of its industry peers.
WOR has a Quick Ratio of 2.62. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
WOR has a Quick ratio of 2.62. This is amongst the best in the industry. WOR outperforms 85.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
WOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.91%.
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 -52.69% in the last year.
The Revenue for WOR have been decreasing by -17.72% on average. This is quite bad
EPS 1Y (TTM)-29.91%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%43.24%
Revenue 1Y (TTM)-52.69%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%-0.29%
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 8.31% on average per year.
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y16%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
EPS Next 5Y8.31%
Revenue Next Year14.1%
Revenue Next 2Y9.31%
Revenue Next 3Y8.06%
Revenue Next 5Y4.55%
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
With a Price/Earnings ratio of 20.27, WOR is valued on the expensive side.
WOR's Price/Earnings ratio is a bit cheaper when compared to the industry. WOR is cheaper than 63.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. WOR is valued slightly cheaper when compared to this.
WOR is valuated rather expensively with a Price/Forward Earnings ratio of 17.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WOR indicates a somewhat cheap valuation: WOR is cheaper than 63.78% of the companies listed in the same industry.
WOR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WOR is valued a bit more expensive than the industry average as 73.23% of the companies are valued more cheaply.
65.35% 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 | 19.52 | ||
| EV/EBITDA | 31.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WOR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WOR's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)1.27
PEG (5Y)3.69
EPS Next 2Y13.45%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
WOR's Dividend Yield is a higher than the industry average which is at 1.85.
With a Dividend Yield of 1.21, WOR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of WOR decreases each year by -6.77%.
WOR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-6.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
35.30% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP35.3%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
62.23
-0.62 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners51.43%
Inst Owner Change0.01%
Ins Owners1.55%
Ins Owner Change0.45%
Market Cap3.11B
Analysts72.5
Price Target70.38 (13.1%)
Short Float %2.52%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.68
Dividend Growth(5Y)-6.77%
DP35.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.98%
Min EPS beat(2)24.35%
Max EPS beat(2)27.62%
EPS beat(4)3
Avg EPS beat(4)8.96%
Min EPS beat(4)-31.48%
Max EPS beat(4)27.62%
EPS beat(8)6
Avg EPS beat(8)3.49%
EPS beat(12)9
Avg EPS beat(12)6.69%
EPS beat(16)12
Avg EPS beat(16)12.52%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)4.41%
Max Revenue beat(2)5.59%
Revenue beat(4)2
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-13.95%
Max Revenue beat(4)5.59%
Revenue beat(8)3
Avg Revenue beat(8)-2.59%
Revenue beat(12)5
Avg Revenue beat(12)0.2%
Revenue beat(16)8
Avg Revenue beat(16)1.78%
PT rev (1m)17.35%
PT rev (3m)27.31%
EPS NQ rev (1m)7.59%
EPS NQ rev (3m)5.3%
EPS NY rev (1m)7.43%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)8.58%
Revenue NQ rev (3m)8.95%
Revenue NY rev (1m)10.08%
Revenue NY rev (3m)10.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 17.47 | ||
| P/S | 2.69 | ||
| P/FCF | 19.52 | ||
| P/OCF | 14.81 | ||
| P/B | 3.31 | ||
| P/tB | 8.39 | ||
| EV/EBITDA | 31.95 |
EPS(TTM)3.07
EY4.93%
EPS(NY)3.56
Fwd EY5.72%
FCF(TTM)3.19
FCFY5.12%
OCF(TTM)4.2
OCFY6.75%
SpS23.11
BVpS18.77
TBVpS7.42
PEG (NY)1.27
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 10.25% | ||
| ROCE | 3.38% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 4.49% | ||
| OM | 4.39% | ||
| PM (TTM) | 8.33% | ||
| GM | 27.65% | ||
| FCFM | 13.8% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 104.8% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 212.11% | ||
| Profit Quality | 165.7% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | N/A |
F-Score6
WACC9.6%
ROIC/WACC0.21
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)-29.91%
EPS 3Y-25.04%
EPS 5Y5.49%
EPS Q2Q%43.24%
EPS Next Y16%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
EPS Next 5Y8.31%
Revenue 1Y (TTM)-52.69%
Revenue growth 3Y-39.62%
Revenue growth 5Y-17.72%
Sales Q2Q%-0.29%
Revenue Next Year14.1%
Revenue Next 2Y9.31%
Revenue Next 3Y8.06%
Revenue Next 5Y4.55%
EBIT growth 1Y-41.6%
EBIT growth 3Y-45.65%
EBIT growth 5Y-15.18%
EBIT Next Year658.46%
EBIT Next 3Y105.97%
EBIT Next 5Y57.77%
FCF growth 1Y-22.9%
FCF growth 3YN/A
FCF growth 5Y-7.98%
OCF growth 1Y-27.67%
OCF growth 3Y44.09%
OCF growth 5Y-9.03%