WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
31.5 USD
+0.16 (+0.51%)
31.5 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WS. WS was compared to 154 industry peers in the Metals & Mining industry. WS has a medium profitability rating, but doesn't score so well on its financial health evaluation. WS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WS was profitable.
WS had a positive operating cash flow in the past year.
Each year in the past 5 years WS has been profitable.
WS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WS has a better Return On Assets (5.29%) than 75.32% of its industry peers.
WS has a better Return On Equity (10.73%) than 78.57% of its industry peers.
With a decent Return On Invested Capital value of 7.49%, WS is doing good in the industry, outperforming 72.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WS is below the industry average of 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROIC | 7.49% |
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 3.79% is fine compared to the rest of the industry. WS outperforms 68.18% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
WS has a Operating Margin (5.14%) which is in line with its industry peers.
WS's Operating Margin has been stable in the last couple of years.
WS has a Gross Margin (12.88%) which is in line with its industry peers.
WS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.14% | ||
| 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.
WS has more shares outstanding than it did 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 2.84 indicates that WS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, WS is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of WS is 7.46, which is on the high side as it means it would take WS, 7.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WS (7.46) is better than 65.58% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that WS is not too dependend on debt financing.
WS has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: WS outperforms 47.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.83
WACC9.08%
2.3 Liquidity
WS has a Current Ratio of 1.66. This is a normal value and indicates that WS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.66, WS is not doing good in the industry: 68.83% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.97, WS is doing worse than 72.73% of the companies in the same industry.
| 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.
WS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.73% yearly.
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
Based on estimates for the next years, WS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.31% on average per year.
Based on estimates for the next years, WS will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
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
With a Price/Earnings ratio of 13.35, WS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of WS indicates a rather cheap valuation: WS is cheaper than 89.61% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. WS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 9.68, the valuation of WS can be described as reasonable.
81.82% of the companies in the same industry are more expensive than WS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WS to the average of the S&P500 Index (32.68), we can say WS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
86.36% 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 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.42 | ||
| EV/EBITDA | 6.91 |
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.
WS's earnings are expected to grow with 17.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y23.04%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, WS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.65, WS pays a better dividend. On top of this WS pays more dividend than 84.42% of the companies listed in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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 26.98% of its income as dividend. This is a sustainable payout ratio.
DP26.98%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
31.5
+0.16 (+0.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change2.08%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.60B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (16.57%)
Short Float %3.76%
Short Ratio4.6
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)3.33%
EPS NQ rev (3m)9.41%
EPS NY rev (1m)2.5%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 9.68 | ||
| P/S | 0.51 | ||
| P/FCF | 49.42 | ||
| P/OCF | 9.38 | ||
| P/B | 1.45 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.36
EY7.49%
EPS(NY)3.25
Fwd EY10.33%
FCF(TTM)0.64
FCFY2.02%
OCF(TTM)3.36
OCFY10.66%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.49
PEG (5Y)N/A
Graham Number33.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROCE | 10.38% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 8.9% | ||
| OM | 5.14% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% | ||
| FCFM | 1.03% |
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 | 7.46 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 197.29% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.9% | ||
| Profit Quality | 27.32% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.84 |
F-Score4
WACC9.08%
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-12.6%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year75.09%
EBIT Next 3Y30.12%
EBIT Next 5Y17.49%
FCF growth 1Y-85.81%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y-39.06%
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.