WORTHINGTON ENTERPRISES INC (WOR)
US9818111026 - Common Stock
We assign a fundamental rating of 6 out of 10 to WOR. WOR was compared to 68 industry peers in the Household Durables 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 it does not seem to be growing.
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.
Each year in the past 5 years WOR has been profitable.
In the past 5 years WOR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.97%, WOR belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
WOR's Return On Equity of 29.86% is amongst the best of the industry. WOR outperforms 92.54% of its industry peers.
WOR has a Return On Invested Capital of 12.53%. This is in the better half of the industry: WOR outperforms 77.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WOR is below the industry average of 10.06%.
The last Return On Invested Capital (12.53%) for WOR is above the 3 year average (7.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.97% | ||
| ROE | 29.86% | ||
| ROIC | 12.53% |
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
Looking at the Profit Margin, with a value of 7.12%, WOR is in line with its industry, outperforming 58.21% of the companies in the same industry.
WOR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 6.32%, WOR is in line with its industry, outperforming 49.25% of the companies in the same industry.
In the last couple of years the Operating Margin of WOR has declined.
WOR has a worse Gross Margin (16.69%) than 95.52% of its industry peers.
WOR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| PM (TTM) | 7.12% | ||
| GM | 16.69% |
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%
2. Health
2.1 Basic Checks
WOR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WOR has been increased compared to 1 year ago.
WOR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WOR has been reduced compared to a year ago.
2.2 Solvency
WOR has an Altman-Z score of 5.81. This indicates that WOR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.81, WOR belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
The Debt to FCF ratio of WOR is 0.78, which is an excellent value as it means it would take WOR, only 0.78 years of fcf income to pay off all of its debts.
WOR's Debt to FCF ratio of 0.78 is fine compared to the rest of the industry. WOR outperforms 79.10% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that WOR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, WOR perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 5.81 |
ROIC/WACC1.22
WACC10.31%
2.3 Liquidity
A Current Ratio of 3.42 indicates that WOR has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.42, WOR is doing good in the industry, outperforming 62.69% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that WOR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.47, WOR belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
WOR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.62%, which is quite impressive.
Measured over the past years, WOR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.60% on average per year.
WOR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.54%.
Measured over the past years, WOR shows a small growth in Revenue. The Revenue has been growing by 6.54% on average per year.
EPS 1Y (TTM)36.62%
EPS 3Y35.37%
EPS 5Y14.6%
EPS growth Q2Q-23.08%
Revenue 1Y (TTM)-26.54%
Revenue growth 3Y17.13%
Revenue growth 5Y6.54%
Revenue growth Q2Q-71.29%
3.2 Future
The Earnings Per Share is expected to decrease by -12.48% on average over the next years. This is quite bad
WOR is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -34.65% yearly.
EPS Next Y-23.25%
EPS Next 2Y-21.83%
EPS Next 3Y-12.48%
EPS Next 5YN/A
Revenue Next Year-73.78%
Revenue Next 2Y-47.86%
Revenue Next 3Y-34.65%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.22 indicates a reasonable valuation of WOR.
79.10% of the companies in the same industry are more expensive than WOR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.25. WOR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 16.52, WOR is valued correctly.
WOR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.67. WOR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WOR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, WOR is valued a bit cheaper than the industry average as 74.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
WOR has a very decent profitability rating, which may justify a higher PE ratio.
WOR's earnings are expected to decrease with -12.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-21.83%
EPS Next 3Y-12.48%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.34, WOR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.12, WOR pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.65%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
23.50% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP23.5%
EPS Next 2Y-21.83%
EPS Next 3Y-12.48%
WORTHINGTON ENTERPRISES INC
NYSE:WOR (4/24/2024, 7:04:00 PM)
After market: 58.84 0 (0%)58.84
-0.76 (-1.28%)
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 Cap2.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 16.52 | ||
| 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)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.97% | ||
| ROE | 29.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.32% | ||
| PM (TTM) | 7.12% | ||
| GM | 16.69% | ||
| 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 Turnover2.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.42 | ||
| Quick Ratio | 2.47 | ||
| 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)36.62%
EPS 3Y35.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.54%
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