WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
NYSE:WOR - US9818111026 - Common Stock
66.74 USD
-0.31 (-0.46%)
66.74 USD
0 (0%)
WOR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. While WOR has a great health rating, its profitability is only average at the moment. 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.
WOR had a positive operating cash flow in the past year.
WOR had positive earnings in each of the past 5 years.
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 comparable to the rest of the industry.
WOR has a worse Return On Invested Capital (2.04%) than 67.72% of its industry peers.
WOR had an Average Return On Invested Capital over the past 3 years of 0.95%. This is significantly below the industry average of 10.48%.
The last Return On Invested Capital (2.04%) for WOR is above the 3 year average (0.95%), which is a sign of increasing profitability.
| 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
WOR has a better Profit Margin (8.33%) than 63.78% of its industry peers.
In the last couple of years the Profit Margin of WOR has grown nicely.
WOR has a worse Operating Margin (4.39%) than 62.99% of its industry peers.
WOR's Operating Margin has improved in the last couple of years.
WOR has a Gross Margin (27.65%) which 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 | 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
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.
Compared to 1 year ago, WOR has an improved debt to assets ratio.
2.2 Solvency
WOR has an Altman-Z score of 4.28. This indicates that WOR is financially healthy and has little risk of bankruptcy at the moment.
WOR's Altman-Z score of 4.28 is fine compared to the rest of the industry. WOR outperforms 70.08% of its industry peers.
The Debt to FCF ratio of WOR is 1.90, which is an excellent value as it means it would take WOR, only 1.90 years of fcf income to pay off all of its debts.
WOR's Debt to FCF ratio of 1.90 is fine compared to the rest of the industry. WOR outperforms 76.38% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WOR is not too dependend on debt financing.
WOR has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 4.28 |
ROIC/WACC0.21
WACC9.56%
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.
Looking at the Current ratio, with a value of 3.48, WOR belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
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.
The Quick ratio of WOR (2.62) is better than 85.04% 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%.
WOR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
The Revenue for WOR has decreased by -52.69% in the past year. This is quite bad
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 10.29% on average per year.
WOR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.71% yearly.
EPS Next Y16%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
EPS Next 5Y10.29%
Revenue Next Year14.1%
Revenue Next 2Y9.31%
Revenue Next 3Y8.06%
Revenue Next 5Y6.71%
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
WOR is valuated rather expensively with a Price/Earnings ratio of 21.74.
62.20% of the companies in the same industry are more expensive than WOR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, WOR is valued at the same level.
A Price/Forward Earnings ratio of 18.74 indicates a rather expensive valuation of WOR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WOR indicates a somewhat cheap valuation: WOR is cheaper than 61.42% of the companies listed in the same industry.
WOR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 18.74 |
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 74.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WOR is valued a bit cheaper than the industry average as 63.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.88 | ||
| EV/EBITDA | 34.29 |
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 12.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)3.96
EPS Next 2Y13.45%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.21%.
Compared to an average industry Dividend Yield of 1.87, WOR pays a bit more dividend than its industry peers.
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 -6.64%.
WOR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-6.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WOR pays out 35.30% of its income as dividend. This is a sustainable payout ratio.
DP35.3%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
66.74
-0.31 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners51.49%
Inst Owner Change0.11%
Ins Owners1.53%
Ins Owner Change0.45%
Market Cap3.32B
Analysts72.5
Price Target70.38 (5.45%)
Short Float %2.05%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.69
Dividend Growth(5Y)-6.64%
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)0%
PT rev (3m)17.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.3%
EPS NY rev (1m)0%
EPS NY rev (3m)7.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 18.74 | ||
| P/S | 2.88 | ||
| P/FCF | 20.88 | ||
| P/OCF | 15.84 | ||
| P/B | 3.55 | ||
| P/tB | 8.97 | ||
| EV/EBITDA | 34.29 |
EPS(TTM)3.07
EY4.6%
EPS(NY)3.56
Fwd EY5.34%
FCF(TTM)3.2
FCFY4.79%
OCF(TTM)4.21
OCFY6.31%
SpS23.17
BVpS18.82
TBVpS7.44
PEG (NY)1.36
PEG (5Y)3.96
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 | 4.23 | ||
| Cash Conversion | 212.11% | ||
| Profit Quality | 165.7% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 4.28 |
F-Score6
WACC9.56%
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 5Y10.29%
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 5Y6.71%
EBIT growth 1Y-41.6%
EBIT growth 3Y-45.65%
EBIT growth 5Y-15.18%
EBIT Next Year725.23%
EBIT Next 3Y112.09%
EBIT Next 5Y60.3%
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%