WORTHINGTON ENTERPRISES INC (WOR)
US9818111026 - Common Stock
WOR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WOR had positive earnings in the past year.
In the past year WOR had a positive cash flow from operations.
In the past 5 years WOR has always been profitable.
In the past 5 years WOR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WOR (12.62%) is better than 89.06% of its industry peers.
The Return On Equity of WOR (23.26%) is better than 82.81% of its industry peers.
With a Return On Invested Capital value of 3.73%, WOR is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for WOR is significantly below the industry average of 10.76%.
The last Return On Invested Capital (3.73%) for WOR is above the 3 year average (2.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 23.26% | ||
| ROIC | 3.73% |
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 Profit Margin of 8.48%. This is in the better half of the industry: WOR outperforms 67.19% of its industry peers.
In the last couple of years the Profit Margin of WOR has grown nicely.
WOR's Operating Margin of 3.55% is on the low side compared to the rest of the industry. WOR is outperformed by 62.50% of its industry peers.
In the last couple of years the Operating Margin of WOR has declined.
WOR's Gross Margin of 19.78% is on the low side compared to the rest of the industry. WOR is outperformed by 81.25% of its industry peers.
WOR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.55% | ||
| PM (TTM) | 8.48% | ||
| GM | 19.78% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WOR is destroying 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.
WOR has a better debt/assets ratio than last year.
2.2 Solvency
WOR has an Altman-Z score of 4.34. This indicates that WOR is financially healthy and has little risk of bankruptcy at the moment.
WOR's Altman-Z score of 4.34 is fine compared to the rest of the industry. WOR outperforms 64.06% of its industry peers.
WOR has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.44, WOR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that WOR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, WOR is in line with its industry, outperforming 51.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 4.34 |
ROIC/WACC0.47
WACC8.01%
2.3 Liquidity
WOR has a Current Ratio of 3.78. This indicates that WOR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.78, WOR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Quick Ratio of 2.86 indicates that WOR has no problem at all paying its short term obligations.
WOR has a better Quick ratio (2.86) than 95.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
WOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.87%.
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 -50.39% in the last year.
WOR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -19.82% yearly.
EPS 1Y (TTM)-24.87%
EPS 3Y-6.04%
EPS 5Y8.52%
EPS Q2Q%-72.99%
Revenue 1Y (TTM)-50.39%
Revenue growth 3Y-26.76%
Revenue growth 5Y-19.82%
Sales Q2Q%-74.06%
3.2 Future
WOR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.20% yearly.
The Revenue is expected to grow by 0.56% on average over the next years.
EPS Next Y-30.76%
EPS Next 2Y-13.4%
EPS Next 3Y-5.2%
EPS Next 5YN/A
Revenue Next Year-6.47%
Revenue Next 2Y-1.36%
Revenue Next 3Y0.56%
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 10.31, the valuation of WOR can be described as reasonable.
WOR's Price/Earnings ratio is a bit cheaper when compared to the industry. WOR is cheaper than 75.00% of the companies in the same industry.
WOR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.71.
WOR is valuated correctly with a Price/Forward Earnings ratio of 14.90.
WOR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.09. WOR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WOR.
Based on the Price/Free Cash Flow ratio, WOR is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | 13.87 |
4.3 Compensation for Growth
The decent profitability rating of WOR may justify a higher PE ratio.
WOR's earnings are expected to decrease with -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-13.4%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
WOR has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
WOR's Dividend Yield is a higher than the industry average which is at 2.48.
WOR's Dividend Yield is slightly below the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of WOR has a limited annual growth rate of 4.83%.
WOR has paid a dividend for at least 10 years, which is 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 27.48% of its income as dividend. This is a sustainable payout ratio.
DP27.48%
EPS Next 2Y-13.4%
EPS Next 3Y-5.2%
WORTHINGTON ENTERPRISES INC
NYSE:WOR (9/16/2024, 5:05:00 PM)
After market: 45.17 0 (0%)45.17
-0.07 (-0.15%)
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 Cap2.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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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 | 10.31 | ||
| Fwd PE | 14.9 | ||
| 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)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 23.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.55% | ||
| PM (TTM) | 8.48% | ||
| GM | 19.78% | ||
| 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 Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.78 | ||
| Quick Ratio | 2.86 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.87%
EPS 3Y-6.04%
EPS 5Y
EPS Q2Q%
EPS Next Y-30.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-50.39%
Revenue growth 3Y-26.76%
Revenue growth 5Y
Sales 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