Worthington Enterprises, Inc. (WOR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Steel Dynamics, Inc.

Metallus, Inc.

Commercial Metals Co.

Nucor Corp.

Reliance, Inc.

Worthington Enterprises, Inc.

Cleveland-Cliffs, Inc.

Radius Recycling, Inc.

Ryerson Holding Corp.

United States Steel Corp.

Mesabi Trust

Why is Worthington Enterprises, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -18.13% of over the last 5 years

Flat results in May 25

NET SALES(9M) At USD 896.45 MM has Grown at -47.96%
INTEREST(HY) At USD 0.68 MM has Grown at 368.97%
OPERATING CASH FLOW(Y) Lowest at USD 209.74 MM

With ROCE of 3.32%, it has a expensive valuation with a 3.04 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.95%, its profits have fallen by -60.4%

Market Beating Performance

The stock has generated a return of 41.95% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Worthington Enterprises, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Worthington Enterprises, Inc.

28.83%

0.24

40.17%

S&P 500

15.98%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.72%

EBIT Growth (5y)

-18.13%

EBIT to Interest (avg)

13.35

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.84

Tax Ratio

26.27%

Dividend Payout Ratio

35.49%

Pledged Shares

Institutional Holding

57.23%

ROCE (avg)

10.28%

ROE (avg)

26.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.21

EV to EBIT

91.59

EV to EBITDA

37.70

EV to Capital Employed

3.04

EV to Sales

2.67

PEG Ratio

Dividend Yield

ROCE (Latest)

3.32%

ROE (Latest)

13.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 219.35%

RAW MATERIAL COST(Y)

Fallen by -19.83% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 8.11 %

PRE-TAX PROFIT(Q)

Highest at USD 66.53 MM

-11What is not working for the Company

NET SALES(9M)

At USD 896.45 MM has Grown at -47.96%

INTEREST(HY)

At USD 0.68 MM has Grown at 368.97%

OPERATING CASH FLOW(Y)

Lowest at USD 209.74 MM

Here's what is working for Worthington Enterprises, Inc.

Pre-Tax Profit

Highest at USD 66.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 66.53 MM has Grown at 62.14%

over average net sales of the previous four periods of USD 41.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Lowest at 8.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 219.35%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -19.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 12.55 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Worthington Enterprises, Inc.

Interest

At USD 0.68 MM has Grown at 368.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

At USD 896.45 MM has Grown at -47.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD 209.74 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Non Operating Income

Highest at USD 5.44 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income