WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
USA - NYSE:WOR - US9818111026 - Common Stock
61.03 USD
-0.03 (-0.05%)
61.03 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. WOR has an excellent financial health rating, but there are some minor concerns on its profitability. WOR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WOR was profitable.
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's Return On Assets of 5.67% is fine compared to the rest of the industry. WOR outperforms 60.47% of its industry peers.
Looking at the Return On Equity, with a value of 10.25%, WOR is in line with its industry, outperforming 58.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.04%, WOR is doing worse than 68.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WOR is significantly below the industry average of 10.02%.
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 65.12% of its industry peers.
WOR's Profit Margin has improved in the last couple of years.
WOR's Operating Margin of 4.39% is on the low side compared to the rest of the industry. WOR is outperformed by 63.57% of its industry peers.
WOR's Operating Margin has improved in the last couple of years.
WOR has a Gross Margin of 27.65%. This is comparable to the rest of the industry: WOR outperforms 43.41% of its industry peers.
WOR's Gross Margin has improved in the last couple of years.
| 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.
WOR has less shares outstanding than it did 5 years ago.
WOR has a better debt/assets ratio than last year.
2.2 Solvency
WOR has an Altman-Z score of 4.05. This indicates that WOR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.05, WOR is doing good in the industry, outperforming 67.44% of the companies in the same industry.
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 78.29% 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.
WOR has a Debt to Equity ratio of 0.32. This is in the better half of the industry: WOR outperforms 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 4.05 |
ROIC/WACC0.21
WACC9.53%
2.3 Liquidity
A Current Ratio of 3.48 indicates that WOR has no problem at all paying its short term obligations.
WOR has a better Current ratio (3.48) than 83.72% 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.
Looking at the Quick ratio, with a value of 2.62, WOR belongs to the top of the industry, outperforming 85.27% of the companies in the same industry.
| 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.
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
WOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.29% yearly.
The Revenue is expected to grow by 6.71% on average over the next years.
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
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
A Price/Earnings ratio of 19.88 indicates a rather expensive valuation of WOR.
Based on the Price/Earnings ratio, WOR is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WOR to the average of the S&P500 Index (27.41), we can say WOR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.14, the valuation of WOR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WOR is valued a bit cheaper than 67.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WOR to the average of the S&P500 Index (22.87), we can say WOR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.14 |
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 73.64% 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 67.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.09 | ||
| EV/EBITDA | 31.26 |
4.3 Compensation for Growth
WOR's 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.
WOR's earnings are expected to grow with 12.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)3.62
EPS Next 2Y13.45%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, WOR has a reasonable but not impressive dividend return.
WOR's Dividend Yield is a higher than the industry average which is at 1.74.
With a Dividend Yield of 1.16, WOR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
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%
61.03
-0.03 (-0.05%)
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 Cap3.04B
Analysts72.5
Price Target70.38 (15.32%)
Short Float %2.07%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)16.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.59%
EPS NY rev (1m)0%
EPS NY rev (3m)7.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.14 | ||
| P/S | 2.63 | ||
| P/FCF | 19.09 | ||
| P/OCF | 14.49 | ||
| P/B | 3.24 | ||
| P/tB | 8.21 | ||
| EV/EBITDA | 31.26 |
EPS(TTM)3.07
EY5.03%
EPS(NY)3.56
Fwd EY5.84%
FCF(TTM)3.2
FCFY5.24%
OCF(TTM)4.21
OCFY6.9%
SpS23.17
BVpS18.82
TBVpS7.44
PEG (NY)1.24
PEG (5Y)3.62
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 | 4.05 |
F-Score6
WACC9.53%
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%