WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
33.57 USD
-0.07 (-0.21%)
33.571 USD
0 (0%)
WS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. WS has only an average score on both its financial health and profitability. WS is cheap, but on the other hand it scores bad on growth. This makes WS very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year WS was profitable.
WS had a positive operating cash flow in the past year.
WS had positive earnings in each of the past 5 years.
WS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.64%, WS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
With a decent Return On Equity value of 10.31%, WS is doing good in the industry, outperforming 78.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.45%, WS is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WS is below the industry average of 12.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 10.31% | ||
| ROIC | 8.45% |
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
1.3 Margins
WS's Profit Margin of 3.58% is fine compared to the rest of the industry. WS outperforms 67.31% of its industry peers.
In the last couple of years the Profit Margin of WS has declined.
WS has a Operating Margin (5.08%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WS has remained more or less at the same level.
WS's Gross Margin of 12.56% is in line compared to the rest of the industry. WS outperforms 48.08% of its industry peers.
In the last couple of years the Gross Margin of WS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.08% | ||
| PM (TTM) | 3.58% | ||
| GM | 12.56% |
OM growth 3Y-1.36%
OM growth 5YN/A
PM growth 3Y-6.89%
PM growth 5YN/A
GM growth 3Y8.93%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WS is destroying value.
The number of shares outstanding for WS has been increased compared to 1 year ago.
The debt/assets ratio for WS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.37 indicates that WS is not in any danger for bankruptcy at the moment.
WS has a Altman-Z score (3.37) which is comparable to the rest of the industry.
The Debt to FCF ratio of WS is 1.52, which is an excellent value as it means it would take WS, only 1.52 years of fcf income to pay off all of its debts.
WS has a better Debt to FCF ratio (1.52) than 84.62% of its industry peers.
WS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.14, WS perfoms like the industry average, outperforming 55.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.89
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.66 indicates that WS should not have too much problems paying its short term obligations.
WS has a Current ratio of 1.66. This is in the lower half of the industry: WS underperforms 64.74% of its industry peers.
WS has a Quick Ratio of 1.66. This is a bad value and indicates that WS is not financially healthy enough and could expect problems in meeting its short term obligations.
WS's Quick ratio of 0.99 is on the low side compared to the rest of the industry. WS is outperformed by 67.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for WS have decreased strongly by -28.76% in the last year.
The earnings per share for WS have been decreasing by -15.32% on average. This is quite bad
WS shows a decrease in Revenue. In the last year, the revenue decreased by -9.83%.
The Revenue has been decreasing by -8.73% on average over the past years.
EPS 1Y (TTM)-28.76%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%-0.94%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
3.2 Future
WS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.25% yearly.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y23.12%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
EPS Next 5Y12.25%
Revenue Next Year0.86%
Revenue Next 2Y2.97%
Revenue Next 3Y2.45%
Revenue Next 5Y2.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 15.61, which indicates a correct valuation of WS.
Based on the Price/Earnings ratio, WS is valued cheaper than 86.54% of the companies in the same industry.
WS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.68, WS is valued correctly.
Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than 73.08% of the companies in the same industry.
WS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 83.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WS is valued cheaper than 86.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.09 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
WS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WS may justify a higher PE ratio.
A more expensive valuation may be justified as WS's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y25.16%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, WS pays a better dividend. On top of this WS pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, WS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
WS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WS pays out 28.82% of its income as dividend. This is a sustainable payout ratio.
DP28.82%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
33.57
-0.07 (-0.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.52%
Inst Owner Change-0.1%
Ins Owners36.03%
Ins Owner Change6.8%
Market Cap1.71B
Analysts82
Price Target34.68 (3.31%)
Short Float %3.06%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP28.82%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.82%
Min EPS beat(2)-29.21%
Max EPS beat(2)23.57%
EPS beat(4)1
Avg EPS beat(4)-19.15%
Min EPS beat(4)-70.72%
Max EPS beat(4)23.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-6.19%
Max Revenue beat(2)1.02%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)8.19%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 12.68 | ||
| P/S | 0.55 | ||
| P/FCF | 17.09 | ||
| P/OCF | 7.42 | ||
| P/B | 1.59 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 7.51 |
EPS(TTM)2.15
EY6.4%
EPS(NY)2.65
Fwd EY7.89%
FCF(TTM)1.96
FCFY5.85%
OCF(TTM)4.53
OCFY13.49%
SpS60.81
BVpS21.11
TBVpS18.22
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 10.31% | ||
| ROCE | 11.8% | ||
| ROIC | 8.45% | ||
| ROICexc | 8.67% | ||
| ROICexgc | 9.66% | ||
| OM | 5.08% | ||
| PM (TTM) | 3.58% | ||
| GM | 12.56% | ||
| FCFM | 3.23% |
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
ROICexc(3y)9.6%
ROICexc(5y)12.34%
ROICexgc(3y)10.85%
ROICexgc(5y)13.6%
ROCE(3y)12.75%
ROCE(5y)15.86%
ROICexcg growth 3Y-10.2%
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.72%
ROICexc growth 5YN/A
OM growth 3Y-1.36%
OM growth 5YN/A
PM growth 3Y-6.89%
PM growth 5YN/A
GM growth 3Y8.93%
GM growth 5YN/A
F-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 197.58% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 20.39 | ||
| Cash Conversion | 103.27% | ||
| Profit Quality | 90.24% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.37 |
F-Score5
WACC9.49%
ROIC/WACC0.89
Cap/Depr(3y)140.43%
Cap/Depr(5y)109.29%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.15%
Profit Quality(3y)153.93%
Profit Quality(5y)107.18%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.76%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%-0.94%
EPS Next Y23.12%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
EPS Next 5Y12.25%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
Revenue Next Year0.86%
Revenue Next 2Y2.97%
Revenue Next 3Y2.45%
Revenue Next 5Y2.78%
EBIT growth 1Y-25.87%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year73.94%
EBIT Next 3Y28.74%
EBIT Next 5Y18.41%
FCF growth 1Y3.95%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y15.44%
OCF growth 3Y79.98%
OCF growth 5YN/A