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 127 industry peers in the Machinery 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.
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
WOR has a Return On Assets of 5.67%. This is comparable to the rest of the industry: WOR outperforms 58.27% of its industry peers.
The Return On Equity of WOR (10.25%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.04%, WOR is doing worse than 70.08% of the companies in the same industry.
WOR had an Average Return On Invested Capital over the past 3 years of 0.95%. This is significantly below the industry average of 10.83%.
The 3 year average ROIC (0.95%) for WOR is below the current ROIC(2.04%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 8.33%, WOR is doing good in the industry, outperforming 64.57% of the companies in the same industry.
In the last couple of years the Profit Margin of WOR has grown nicely.
Looking at the Operating Margin, with a value of 4.39%, WOR is doing worse than 65.35% of the companies in the same industry.
WOR's Operating Margin has improved in the last couple of years.
WOR has a Gross Margin (27.65%) 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 | 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
WOR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WOR has more shares outstanding
The number of shares outstanding for WOR has been reduced compared to 5 years ago.
Compared to 1 year ago, WOR has an improved debt to assets ratio.
2.2 Solvency
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 76.38% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WOR is not too dependend on debt financing.
WOR's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. WOR outperforms 59.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.24
WACC8.35%
2.3 Liquidity
A Current Ratio of 3.48 indicates that WOR has no problem at all paying its short term obligations.
The Current ratio of WOR (3.48) is better than 82.68% 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.
WOR's Quick ratio of 2.62 is amongst the best of the industry. WOR outperforms 85.83% of its industry peers.
| 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.
WOR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -52.69%.
Measured over the past years, WOR shows a very negative growth in Revenue. The Revenue has been decreasing by -17.72% on average per year.
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
Based on estimates for the next years, WOR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y16%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
EPS Next 5Y8.31%
Revenue Next Year14.1%
Revenue Next 2Y9.31%
Revenue Next 3Y8.06%
Revenue Next 5Y4.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.04, the valuation of WOR can be described as rather expensive.
WOR's Price/Earnings ratio is a bit cheaper when compared to the industry. WOR is cheaper than 66.14% of the companies in the same industry.
WOR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.27, the valuation of WOR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WOR is valued a bit cheaper than 62.99% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. WOR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 17.27 |
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 73.23% of the companies 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 64.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.29 | ||
| EV/EBITDA | 31.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WOR may justify a higher PE ratio.
A more expensive valuation may be justified as WOR's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)1.25
PEG (5Y)3.65
EPS Next 2Y13.45%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, WOR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.88, WOR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.23, WOR pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of WOR decreases each year by -6.77%.
WOR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-6.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
35.30% of the earnings are spent on dividend by WOR. This is a low number and sustainable payout ratio.
DP35.3%
EPS Next 2Y13.45%
EPS Next 3Y12.78%
61.51
-0.46 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners51.43%
Inst Owner Change-0.32%
Ins Owners1.55%
Ins Owner Change0.45%
Market Cap3.07B
Analysts72.5
Price Target70.38 (14.42%)
Short Float %2.74%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend0.68
Dividend Growth(5Y)-6.77%
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)16.55%
PT rev (3m)22.78%
EPS NQ rev (1m)7.59%
EPS NQ rev (3m)5.3%
EPS NY rev (1m)7.43%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)8.58%
Revenue NQ rev (3m)8.95%
Revenue NY rev (1m)10.08%
Revenue NY rev (3m)10.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 17.27 | ||
| P/S | 2.66 | ||
| P/FCF | 19.29 | ||
| P/OCF | 14.64 | ||
| P/B | 3.28 | ||
| P/tB | 8.29 | ||
| EV/EBITDA | 31.82 |
EPS(TTM)3.07
EY4.99%
EPS(NY)3.56
Fwd EY5.79%
FCF(TTM)3.19
FCFY5.18%
OCF(TTM)4.2
OCFY6.83%
SpS23.11
BVpS18.77
TBVpS7.42
PEG (NY)1.25
PEG (5Y)3.65
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 | 250 | ||
| Cash Conversion | 212.11% | ||
| Profit Quality | 165.7% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | N/A |
F-Score6
WACC8.35%
ROIC/WACC0.24
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 5Y8.31%
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 5Y4.55%
EBIT growth 1Y-41.6%
EBIT growth 3Y-45.65%
EBIT growth 5Y-15.18%
EBIT Next Year658.46%
EBIT Next 3Y105.97%
EBIT Next 5Y57.77%
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%