WORTHINGTON ENTERPRISES INC (WOR) Stock Fundamental Analysis
NYSE:WOR - New York Stock Exchange, Inc. - US9818111026 - Common Stock - Currency: USD
Overall WOR gets a fundamental rating of 5 out of 10. We evaluated WOR against 128 industry peers in the Machinery industry. WOR has an excellent financial health rating, but there are some minor concerns on its profitability. WOR does not seem to be growing, but still is valued expensively.
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 8.09% is fine compared to the rest of the industry. WOR outperforms 73.44% of its industry peers.
The Return On Equity of WOR (14.52%) is better than 73.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.45%, WOR is doing worse than 70.31% 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 10.31%.
| 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
Looking at the Profit Margin, with a value of 11.78%, WOR belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
In the last couple of years the Profit Margin of WOR has grown nicely.
The Operating Margin of WOR (3.00%) is worse than 67.97% of its industry peers.
WOR's Operating Margin has declined in the last couple of years.
WOR has a Gross Margin (26.40%) which is in line with 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WOR is destroying value.
Compared to 1 year ago, WOR has more shares outstanding
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
An Altman-Z score of 3.92 indicates that WOR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.92, WOR is doing good in the industry, outperforming 67.19% 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.
With a decent Debt to FCF ratio value of 2.05, WOR is doing good in the industry, outperforming 75.78% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that WOR is not too dependend on debt financing.
WOR has a Debt to Equity ratio of 0.31. This is in the better half of the industry: WOR outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 3.92 |
ROIC/WACC0.15
WACC9.43%
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.
WOR's Current ratio of 3.51 is amongst the best of the industry. WOR outperforms 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 better Quick ratio (2.60) than 86.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
WOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.90%.
The Earnings Per Share has been growing by 8.52% on average over the past years. This is quite good.
The Revenue for WOR has decreased by -65.52% in the past year. This is quite bad
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 -5.50% on average over the next years.
WOR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.46% yearly.
EPS Next Y-34.47%
EPS Next 2Y-13.06%
EPS Next 3Y-5.5%
EPS Next 5YN/A
Revenue Next Year-11.62%
Revenue Next 2Y-4.25%
Revenue Next 3Y-1.46%
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
The Price/Earnings ratio is 20.94, which indicates a rather expensive current valuation of WOR.
WOR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.82, WOR is valued at the same level.
A Price/Forward Earnings ratio of 17.39 indicates a rather expensive valuation of WOR.
The rest of the industry has a similar Price/Forward Earnings ratio as WOR.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, WOR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WOR indicates a slightly more expensive valuation: WOR is more expensive than 72.66% of the companies listed in the same industry.
64.84% of the companies in the same industry are more expensive than WOR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.01 | ||
| EV/EBITDA | 35.6 |
4.3 Compensation for Growth
WOR's earnings are expected to decrease with -5.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.46
EPS Next 2Y-13.06%
EPS Next 3Y-5.5%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 1.88, WOR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, WOR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
24.57% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP24.57%
EPS Next 2Y-13.06%
EPS Next 3Y-5.5%
57.59
-0.28 (-0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners52.92%
Inst Owner Change-0.76%
Ins Owners1.63%
Ins Owner Change0%
Market Cap2.87B
Analysts49.09
Price Target59.98 (4.15%)
Short Float %2.87%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)8.49%
PT rev (3m)13.08%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)0%
EPS NY rev (3m)8.47%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 17.39 | ||
| P/S | 2.49 | ||
| P/FCF | 20.01 | ||
| P/OCF | 14.93 | ||
| P/B | 3.07 | ||
| P/tB | 8.73 | ||
| EV/EBITDA | 35.6 |
EPS(TTM)2.75
EY4.78%
EPS(NY)3.31
Fwd EY5.75%
FCF(TTM)2.88
FCFY5%
OCF(TTM)3.86
OCFY6.7%
SpS23.13
BVpS18.77
TBVpS6.6
PEG (NY)N/A
PEG (5Y)2.46
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 | 3.92 |
F-Score6
WACC9.43%
ROIC/WACC0.15
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-13.06%
EPS Next 3Y-5.5%
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-11.62%
Revenue Next 2Y-4.25%
Revenue Next 3Y-1.46%
Revenue Next 5YN/A
EBIT growth 1Y-83.8%
EBIT growth 3Y-82.48%
EBIT growth 5Y-59.47%
EBIT Next Year87.6%
EBIT Next 3Y30.81%
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%