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 128 industry peers in the Machinery industry. While WOR has a great health rating, its profitability is only average at the moment. 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.
In the past year WOR had a positive cash flow from operations.
WOR had positive earnings in each of the past 5 years.
Each year in the past 5 years WOR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WOR (8.09%) is better than 73.44% of its industry peers.
WOR has a better Return On Equity (14.52%) than 68.75% of its industry peers.
WOR has a worse Return On Invested Capital (1.45%) than 71.09% of its industry peers.
WOR had an Average Return On Invested Capital over the past 3 years of 2.68%. This is significantly below the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 14.52% | ||
| ROIC | 1.45% |
ROA(3y)8.06%
ROA(5y)9.81%
ROE(3y)17.73%
ROE(5y)22.91%
ROIC(3y)2.68%
ROIC(5y)3.75%
1.3 Margins
WOR has a better Profit Margin (11.78%) than 80.47% of its industry peers.
WOR's Profit Margin has improved in the last couple of years.
WOR has a Operating Margin of 3.00%. This is in the lower half of the industry: WOR underperforms 67.97% of its industry peers.
WOR's Operating Margin has declined in the last couple of years.
WOR has a Gross Margin of 26.40%. This is comparable to the rest of the industry: WOR outperforms 40.63% of its industry peers.
WOR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3% | ||
| PM (TTM) | 11.78% | ||
| GM | 26.4% |
OM growth 3Y-76.08%
OM growth 5Y-49.45%
PM growth 3Y-26.99%
PM growth 5Y16.81%
GM growth 3Y4.32%
GM growth 5Y12.38%
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.
WOR has more 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 an Altman-Z score of 3.65. This indicates that WOR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, WOR is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of WOR is 2.05, which is a good value as it means it would take WOR, 2.05 years of fcf income to pay off all of its debts.
WOR has a Debt to FCF ratio of 2.05. This is in the better half of the industry: WOR outperforms 77.34% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that WOR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, WOR is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 3.65 |
ROIC/WACC0.16
WACC9.26%
2.3 Liquidity
WOR has a Current Ratio of 3.51. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WOR (3.51) is better than 82.81% of its industry peers.
WOR has a Quick Ratio of 2.60. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
WOR has a Quick ratio of 2.60. This is amongst the best in the industry. WOR outperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The earnings per share for WOR have decreased strongly by -56.90% in the last year.
WOR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.52% yearly.
Looking at the last year, WOR shows a very negative growth in Revenue. The Revenue has decreased by -65.52% in the last year.
Measured over the past years, WOR shows a very negative growth in Revenue. The Revenue has been decreasing by -19.82% on average per year.
EPS 1Y (TTM)-56.9%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%13.75%
Revenue 1Y (TTM)-65.52%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-3.86%
3.2 Future
The Earnings Per Share is expected to decrease by -5.96% on average over the next years.
WOR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.59% yearly.
EPS Next Y-34.47%
EPS Next 2Y-13.46%
EPS Next 3Y-5.96%
EPS Next 5YN/A
Revenue Next Year-11.78%
Revenue Next 2Y-4.45%
Revenue Next 3Y-1.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 18.60, the valuation of WOR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WOR indicates a somewhat cheap valuation: WOR is cheaper than 60.16% of the companies listed in the same industry.
WOR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.85.
The Price/Forward Earnings ratio is 15.59, which indicates a correct valuation of WOR.
WOR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WOR is cheaper than 68.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WOR to the average of the S&P500 Index (20.77), we can say WOR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WOR is valued a bit more expensive than 71.09% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WOR is valued a bit cheaper than 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.77 | ||
| EV/EBITDA | 31.4 |
4.3 Compensation for Growth
WOR's earnings are expected to decrease with -5.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y-13.46%
EPS Next 3Y-5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, WOR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.04, WOR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, WOR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of WOR has a limited annual growth rate of 4.83%.
WOR has been paying a dividend for at least 10 years, so it has a reliable track record.
WOR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.83%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
WOR pays out 24.57% of its income as dividend. This is a sustainable payout ratio.
DP24.57%
EPS Next 2Y-13.46%
EPS Next 3Y-5.96%
51.15
+0.52 (+1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners52.92%
Inst Owner Change0.25%
Ins Owners1.63%
Ins Owner Change-0.58%
Market Cap2.55B
Analysts49.09
Price Target57.32 (12.06%)
Short Float %2.77%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend1.16
Dividend Growth(5Y)4.83%
DP24.57%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.49%
Min EPS beat(2)15.35%
Max EPS beat(2)27.62%
EPS beat(4)2
Avg EPS beat(4)-2.74%
Min EPS beat(4)-31.48%
Max EPS beat(4)27.62%
EPS beat(8)6
Avg EPS beat(8)5.79%
EPS beat(12)9
Avg EPS beat(12)12.03%
EPS beat(16)12
Avg EPS beat(16)12.99%
Revenue beat(2)1
Avg Revenue beat(2)2.35%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)5.59%
Revenue beat(4)1
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-13.95%
Max Revenue beat(4)5.59%
Revenue beat(8)2
Avg Revenue beat(8)-3.35%
Revenue beat(12)5
Avg Revenue beat(12)1.6%
Revenue beat(16)7
Avg Revenue beat(16)1.07%
PT rev (1m)8.08%
PT rev (3m)8.08%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)13.74%
EPS NY rev (1m)8.47%
EPS NY rev (3m)16.71%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 15.59 | ||
| P/S | 2.21 | ||
| P/FCF | 17.77 | ||
| P/OCF | 13.26 | ||
| P/B | 2.72 | ||
| P/tB | 7.75 | ||
| EV/EBITDA | 31.4 |
EPS(TTM)2.75
EY5.38%
EPS(NY)3.28
Fwd EY6.41%
FCF(TTM)2.88
FCFY5.63%
OCF(TTM)3.86
OCFY7.54%
SpS23.13
BVpS18.77
TBVpS6.6
PEG (NY)N/A
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 14.52% | ||
| ROCE | 2.31% | ||
| ROIC | 1.45% | ||
| ROICexc | 1.7% | ||
| ROICexgc | 3.24% | ||
| OM | 3% | ||
| PM (TTM) | 11.78% | ||
| GM | 26.4% | ||
| FCFM | 12.44% |
ROA(3y)8.06%
ROA(5y)9.81%
ROE(3y)17.73%
ROE(5y)22.91%
ROIC(3y)2.68%
ROIC(5y)3.75%
ROICexc(3y)2.76%
ROICexc(5y)4.32%
ROICexgc(3y)3.75%
ROICexgc(5y)6.05%
ROCE(3y)4.33%
ROCE(5y)6.01%
ROICexcg growth 3Y-77.78%
ROICexcg growth 5Y-54.45%
ROICexc growth 3Y-79.51%
ROICexc growth 5Y-56.56%
OM growth 3Y-76.08%
OM growth 5Y-49.45%
PM growth 3Y-26.99%
PM growth 5Y16.81%
GM growth 3Y4.32%
GM growth 5Y12.38%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 101.45% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 232.6% | ||
| Profit Quality | 105.61% | ||
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 3.65 |
F-Score6
WACC9.26%
ROIC/WACC0.16
Cap/Depr(3y)91.93%
Cap/Depr(5y)94.51%
Cap/Sales(3y)4.87%
Cap/Sales(5y)4.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56.9%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%13.75%
EPS Next Y-34.47%
EPS Next 2Y-13.46%
EPS Next 3Y-5.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-65.52%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-3.86%
Revenue Next Year-11.78%
Revenue Next 2Y-4.45%
Revenue Next 3Y-1.59%
Revenue Next 5YN/A
EBIT growth 1Y-83.8%
EBIT growth 3Y-82.48%
EBIT growth 5Y-59.47%
EBIT Next Year87.3%
EBIT Next 3Y30.43%
EBIT Next 5YN/A
FCF growth 1Y-69.4%
FCF growth 3Y2.41%
FCF growth 5Y12.73%
OCF growth 1Y-65.68%
OCF growth 3Y1.86%
OCF growth 5Y7.94%