WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
29.2 USD
-1.46 (-4.76%)
29.2 USD
0 (0%)
Overall WS gets a fundamental rating of 5 out of 10. We evaluated WS against 156 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 is valued quite cheap, but it does not seem to be growing.
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.
Each year in the past 5 years WS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.29%, WS is in the better half of the industry, outperforming 75.64% of the companies in the same industry.
WS's Return On Equity of 10.73% is amongst the best of the industry. WS outperforms 80.77% of its industry peers.
WS has a Return On Invested Capital of 7.49%. This is in the better half of the industry: WS outperforms 73.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WS is below the industry average of 12.16%.
| 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 has a better Profit Margin (3.79%) than 67.95% of its industry peers.
In the last couple of years the Profit Margin of WS has declined.
With a Operating Margin value of 5.14%, WS perfoms like the industry average, outperforming 57.05% of the companies in the same industry.
WS's Operating Margin has been stable in the last couple of years.
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 | 5.14% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WS is still creating some value.
Compared to 1 year ago, WS has more shares outstanding
WS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that WS is not a great score, but indicates only limited risk for bankruptcy at the moment.
WS's Altman-Z score of 2.80 is in line compared to the rest of the industry. WS outperforms 45.51% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.46, WS is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
WS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
WS has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: WS outperforms 49.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.83
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.66 indicates that WS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, WS is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, WS is not doing good in the industry: 73.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
WS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.24%.
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 Y24.32%
EPS Next 2Y25.26%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue Next Year9.86%
Revenue Next 2Y5.64%
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.
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
The Price/Earnings ratio is 12.37, which indicates a correct valuation of WS.
Based on the Price/Earnings ratio, WS is valued cheaper than 92.95% of the companies in the same industry.
WS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
WS is valuated reasonably with a Price/Forward Earnings ratio of 8.66.
WS's Price/Forward Earnings ratio is rather cheap when compared to the industry. WS is cheaper than 89.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. WS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
89.74% of the companies in the same industry are more expensive than WS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WS is valued a bit cheaper than the industry average as 68.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.74 | ||
| EV/EBITDA | 6.6 |
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.
WS has a very decent profitability rating, which 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)0.51
PEG (5Y)N/A
EPS Next 2Y25.26%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 2.03%. 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 2.45. WS pays more dividend than 87.82% of the companies in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 2Y25.26%
EPS Next 3Y17.2%
29.2
-1.46 (-4.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change0%
Ins Owners35.78%
Ins Owner Change10.92%
Market Cap1.45B
Analysts82
Price Target36.72 (25.75%)
Short Float %3.48%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)5.88%
PT rev (3m)5.88%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)13.92%
EPS NY rev (1m)0.97%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)10.49%
Revenue NQ rev (3m)16.46%
Revenue NY rev (1m)8.93%
Revenue NY rev (3m)9.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.46 | ||
| P/FCF | 44.74 | ||
| P/OCF | 8.49 | ||
| P/B | 1.31 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)2.36
EY8.08%
EPS(NY)3.37
Fwd EY11.55%
FCF(TTM)0.65
FCFY2.24%
OCF(TTM)3.44
OCFY11.78%
SpS63.1
BVpS22.26
TBVpS18.4
PEG (NY)0.51
PEG (5Y)N/A
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%
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-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 | 2.8 |
F-Score4
WACC9.06%
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 Y24.32%
EPS Next 2Y25.26%
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 Year9.86%
Revenue Next 2Y5.64%
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