WORTHINGTON ENTERPRISES INC (WOR)

US9818111026 - Common Stock

64.23  +2.04 (+3.28%)

After market: 64.23 0 (0%)

Fundamental Rating

5

WOR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. WOR has an average financial health and profitability rating. WOR has a valuation in line with the averages, but on the other hand it scores bad on growth.



4

1. Profitability

1.1 Basic Checks

In the past year WOR was profitable.
WOR had a positive operating cash flow in the past year.
Each year in the past 5 years WOR has been profitable.
WOR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

WOR has a better Return On Assets (8.28%) than 68.66% of its industry peers.
Looking at the Return On Equity, with a value of 16.55%, WOR is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
With a Return On Invested Capital value of 7.51%, WOR perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WOR is below the industry average of 9.93%.
Industry RankSector Rank
ROA 8.28%
ROE 16.55%
ROIC 7.51%
ROA(3y)12.97%
ROA(5y)9.68%
ROE(3y)30.84%
ROE(5y)24.12%
ROIC(3y)7.92%
ROIC(5y)6.89%

1.3 Margins

WOR has a Profit Margin of 6.43%. This is comparable to the rest of the industry: WOR outperforms 52.24% of its industry peers.
WOR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 5.89%, WOR is in line with its industry, outperforming 49.25% of the companies in the same industry.
WOR's Operating Margin has declined in the last couple of years.
WOR has a worse Gross Margin (15.38%) than 97.01% of its industry peers.
WOR's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.89%
PM (TTM) 6.43%
GM 15.38%
OM growth 3Y8.16%
OM growth 5Y-2.66%
PM growth 3Y26.53%
PM growth 5Y-0.83%
GM growth 3Y-2.35%
GM growth 5Y-3.01%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WOR is destroying value.
The number of shares outstanding for WOR has been increased compared to 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

An Altman-Z score of 3.48 indicates that WOR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.48, WOR is in line with its industry, outperforming 52.24% of the companies in the same industry.
The Debt to FCF ratio of WOR is 1.24, which is an excellent value as it means it would take WOR, only 1.24 years of fcf income to pay off all of its debts.
WOR has a Debt to FCF ratio of 1.24. This is in the better half of the industry: WOR outperforms 71.64% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that WOR is not too dependend on debt financing.
WOR's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. WOR outperforms 53.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 1.24
Altman-Z 3.48
ROIC/WACC0.78
WACC9.64%

2.3 Liquidity

WOR has a Current Ratio of 1.88. This is a normal value and indicates that WOR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.88, WOR is doing worse than 61.19% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that WOR should not have too much problems paying its short term obligations.
WOR has a better Quick ratio (1.27) than 62.69% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.27

3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.08% over the past year.
WOR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.60% yearly.
The Revenue for WOR has decreased by -15.88% in the past year. This is quite bad
WOR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.54% yearly.
EPS 1Y (TTM)39.08%
EPS 3Y35.37%
EPS 5Y14.6%
EPS growth Q2Q77.27%
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y17.13%
Revenue growth 5Y6.54%
Revenue growth Q2Q-7.54%

3.2 Future

Based on estimates for the next years, WOR will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.00% on average per year.
WOR is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -34.60% yearly.
EPS Next Y-27.76%
EPS Next 2Y-27.91%
EPS Next 3Y-17%
EPS Next 5YN/A
Revenue Next Year-73.52%
Revenue Next 2Y-47.9%
Revenue Next 3Y-34.6%
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 decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.70, the valuation of WOR can be described as reasonable.
76.12% 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 26.15, WOR is valued rather cheaply.
A Price/Forward Earnings ratio of 21.20 indicates a rather expensive valuation of WOR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WOR indicates a slightly more expensive valuation: WOR is more expensive than 64.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.62, WOR is valued at the same level.
Industry RankSector Rank
PE 9.7
Fwd PE 21.2

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WOR indicates a somewhat cheap valuation: WOR is cheaper than 61.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WOR indicates a somewhat cheap valuation: WOR is cheaper than 74.63% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.38
EV/EBITDA 8.4

4.3 Compensation for Growth

WOR's earnings are expected to decrease with -17.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.66
EPS Next 2Y-27.91%
EPS Next 3Y-17%

6

5. Dividend

5.1 Amount

WOR has a Yearly Dividend Yield of 1.03%.
Compared to an average industry Dividend Yield of 3.26, WOR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, WOR pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

On average, the dividend of WOR grows each year by 7.65%, which is quite nice.
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)7.65%
Div Incr Years10
Div Non Decr Years10

5.3 Sustainability

21.32% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP21.32%
EPS Next 2Y-27.91%
EPS Next 3Y-17%

WORTHINGTON ENTERPRISES INC

NYSE:WOR (2/23/2024, 7:20:13 PM)

After market: 64.23 0 (0%)

64.23

+2.04 (+3.28%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.21B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.7
Fwd PE 21.2
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.66
Profitability
Industry RankSector Rank
ROA 8.28%
ROE 16.55%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.89%
PM (TTM) 6.43%
GM 15.38%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.29
Health
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.88
Quick Ratio 1.27
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)39.08%
EPS 3Y35.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-27.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y17.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y