Worthington Enterprises, Inc. (WOR) stock analysis

P/E above its 5-year median

Worthington Enterprises's P/E of 18.2 is above its own 5-year median of 14.6.

P/E above the industry

Worthington Enterprises's P/E of 18.2 is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 17.9.

EV/EBITDA below its 5-year median

Worthington Enterprises's EV/EBITDA of 23.1 is below its 5-year median of 29.5.

P/B above the industry

Worthington Enterprises's price-to-book of 2.84 is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 1.75.

Trading above fair value

The share price of $60.37 is above our fair value estimate of $49.78.

Margin of safety under 20%

The price is 21.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -0.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -15.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 52.9% over the last twelve months, against a 5-year average of -26.4% a year.

Growing faster than the industry

Revenue grew 18.4% over the last twelve months; the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median is 9.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 27.2% over the last twelve months, against 28.2% a year earlier.

Return on equity over 15%

Return on equity was 16.3% over the last twelve months and averaged 15.5% over five years.

Return on capital under 10%

Return on invested capital was 5.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Worthington Enterprises's return on equity of 16.3% is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 3.6%.

Earnings shrank over 5 years

Net income shrank 26.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 11.5% over the last twelve months, against a 5-year average of 15.1%.

Net margin above the industry

Worthington Enterprises's net margin of 11.5% is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 4.0%.

Low debt

Debt is 29.2% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 50.8% five years ago to 29.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 82.4% of total debt.

Interest well covered

Operating income covers interest expense 9.7 times.

Short-term assets cover short-term debts

Current assets are 2.67 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.38; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Worthington Enterprises paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Worthington Enterprises yields 1.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 23.1% of net income.

Covered by free cash flow

Dividends take 19.2% of free cash flow.