Worthington Industries, Inc. Fundamental Analysis
Worthington Industries, Inc. Fundamental Analysis
Worthington Industries, Inc. (WOR) shows moderate financial fundamentals with a PE ratio of 16.66, profit margin of 11.30%, and ROE of 15.80%. The company generates $1.4B in annual revenue with weak year-over-year growth of -7.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WOR's fundamental strength across five key dimensions:
Efficiency Score
WeakWOR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWOR trades at attractive valuation levels.
Growth Score
WeakWOR faces weak or negative growth trends.
Financial Health Score
ExcellentWOR maintains a strong and stable balance sheet.
Profitability Score
ModerateWOR maintains healthy but balanced margins.
Key Financial Metrics
Is WOR Expensive or Cheap?
P/E Ratio
WOR trades at 16.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WOR's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Worthington Industries, Inc. at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.21 times EBITDA. This signals the market has high growth expectations.
How Well Does WOR Make Money?
Net Profit Margin
For every $100 in sales, Worthington Industries, Inc. keeps $11.30 as profit after all expenses.
Operating Margin
Core operations generate 5.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.80 in profit for every $100 of shareholder equity.
ROA
Worthington Industries, Inc. generates $8.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Worthington Industries, Inc. produces operating cash flow of $229.60M, showing steady but balanced cash generation.
Free Cash Flow
Worthington Industries, Inc. generates strong free cash flow of $212.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.30 in free cash annually.
FCF Yield
WOR converts 7.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How WOR Stacks Against Its Sector Peers
| Metric | WOR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.66 | 30.65 | Better (Cheaper) |
| ROE | 15.80% | 1211.00% | Weak |
| Net Margin | 11.30% | -20858.00% (disorted) | Strong |
| Debt/Equity | 0.34 | 0.38 | Neutral |
| Current Ratio | 2.37 | 21.70 | Strong Liquidity |
| ROA | 8.45% | -1320842.00% (disorted) | Weak |
WOR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Worthington Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-58.05%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
35.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-30.70%
Industry Style: Cyclical, Value, Infrastructure
Declining