WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WS - US9821041012 - Common Stock
33.68 USD
+1.44 (+4.47%)
34.2422 USD
+0.56 (+1.67%)
Overall WS gets a fundamental rating of 5 out of 10. We evaluated WS against 153 industry peers in the Metals & Mining industry. While WS is still in line with the averages on profitability rating, there are concerns on its financial health. WS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year WS was profitable.
In the past year WS had a positive cash flow from operations.
Each year in the past 5 years WS has been profitable.
In the past 5 years WS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.29%, WS is doing good in the industry, outperforming 73.86% of the companies in the same industry.
The Return On Equity of WS (10.73%) is better than 75.82% of its industry peers.
WS has a Return On Invested Capital of 7.71%. This is in the better half of the industry: WS outperforms 69.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WS is below the industry average of 13.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROIC | 7.71% |
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
Looking at the Profit Margin, with a value of 3.79%, WS is in the better half of the industry, outperforming 67.32% of the companies in the same industry.
WS's Profit Margin has declined in the last couple of years.
WS has a Operating Margin (5.28%) 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 has a Gross Margin (12.88%) which is comparable to the rest of the industry.
WS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% |
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) just above the Cost of Capital (WACC), WS is creating some value.
The number of shares outstanding for WS has been increased compared to 1 year ago.
Compared to 1 year ago, WS has an improved debt to assets ratio.
2.2 Solvency
WS has an Altman-Z score of 2.91. This is not the best score and indicates that WS is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of WS (2.91) is comparable to the rest of the industry.
WS has a debt to FCF ratio of 7.77. This is a slightly negative value and a sign of low solvency as WS would need 7.77 years to pay back of all of its debts.
The Debt to FCF ratio of WS (7.77) is better than 62.75% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that WS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, WS is in line with its industry, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.83
WACC9.33%
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 69.93% of its industry peers.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
The Quick ratio of WS (0.97) is worse than 73.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for WS have decreased strongly by -13.24% in the last year.
The earnings per share for WS have been decreasing by -15.32% on average. This is quite bad
Looking at the last year, WS shows a decrease in Revenue. The Revenue has decreased by -6.75% in the last year.
Measured over the past years, WS shows a decrease in Revenue. The Revenue has been decreasing by -8.73% on average per year.
EPS 1Y (TTM)-13.24%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%4.66%
3.2 Future
The Earnings Per Share is expected to grow by 10.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y27.43%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue Next Year10.37%
Revenue Next 2Y7.12%
Revenue Next 3Y6.87%
Revenue Next 5Y3.85%
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 14.27, which indicates a correct valuation of WS.
88.89% of the companies in the same industry are more expensive than WS, based on the Price/Earnings ratio.
WS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
WS is valuated reasonably with a Price/Forward Earnings ratio of 10.35.
Based on the Price/Forward Earnings ratio, WS is valued cheaply inside the industry as 81.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, WS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
86.93% of the companies in the same industry are more expensive than WS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WS indicates a somewhat cheap valuation: WS is cheaper than 68.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.05 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The 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)0.52
PEG (5Y)N/A
EPS Next 2Y23.04%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
WS's Dividend Yield is rather good when compared to the industry average which is at 2.72. WS pays more dividend than 83.01% of the companies in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
WS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WS pays out 26.98% of its income as dividend. This is a sustainable payout ratio.
DP26.98%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
33.68
+1.44 (+4.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change5.89%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.71B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (9.03%)
Short Float %3.48%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP26.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.97%
Min EPS beat(2)-1.64%
Max EPS beat(2)23.57%
EPS beat(4)1
Avg EPS beat(4)-19.5%
Min EPS beat(4)-70.72%
Max EPS beat(4)23.57%
EPS beat(8)3
Avg EPS beat(8)-8.76%
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)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)1.54%
Revenue beat(8)6
Avg Revenue beat(8)3.08%
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)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.41%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.55 | ||
| P/FCF | 55.05 | ||
| P/OCF | 10.11 | ||
| P/B | 1.55 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)2.36
EY7.01%
EPS(NY)3.25
Fwd EY9.66%
FCF(TTM)0.61
FCFY1.82%
OCF(TTM)3.33
OCFY9.9%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.52
PEG (5Y)N/A
Graham Number33.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROCE | 10.68% | ||
| ROIC | 7.71% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 9.15% | ||
| OM | 5.28% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% | ||
| FCFM | 0.99% |
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%
ROICexgc growth 3Y-10.2%
ROICexgc 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-Score4
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 197.29% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.9% | ||
| Profit Quality | 26.22% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.91 |
F-Score4
WACC9.33%
ROIC/WACC0.83
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)-13.24%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y27.43%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%4.66%
Revenue Next Year10.37%
Revenue Next 2Y7.12%
Revenue Next 3Y6.87%
Revenue Next 5Y3.85%
EBIT growth 1Y-10.1%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year75.09%
EBIT Next 3Y30.12%
EBIT Next 5Y17.49%
FCF growth 1Y-86.38%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y-39.52%
OCF growth 3Y79.98%
OCF growth 5YN/A
WORTHINGTON STEEL INC / WS FAQ
What is the ChartMill fundamental rating of WORTHINGTON STEEL INC (WS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WS.
Can you provide the valuation status for WORTHINGTON STEEL INC?
ChartMill assigns a valuation rating of 8 / 10 to WORTHINGTON STEEL INC (WS). This can be considered as Undervalued.
What is the profitability of WS stock?
WORTHINGTON STEEL INC (WS) has a profitability rating of 6 / 10.
What is the financial health of WORTHINGTON STEEL INC (WS) stock?
The financial health rating of WORTHINGTON STEEL INC (WS) is 3 / 10.
What is the expected EPS growth for WORTHINGTON STEEL INC (WS) stock?
The Earnings per Share (EPS) of WORTHINGTON STEEL INC (WS) is expected to grow by 27.43% in the next year.