The devil is in the details, and the details of Worthington Industries (NYSE: WOR) paint a compelling picture. The company, a key player in the Metal Fabrication industry, has shown a five-year return of 2.19%, indicating a steady performance. The company's financial health is underscored by its total stockholder equity of $1.7B and total current assets of $1.9B. However, the company's total debt stands at $795.38M, which could be a cause for concern. Despite this, Worthington Industries has demonstrated strong cash flow from operations, totaling $625.36M, and a forward dividend rate of 0.64, making it an attractive prospect for income-focused investors. Furthermore, with 53.92% of shares owned by institutions, there is significant confidence in the company's future prospects. However, the company's price to sales ratio of 0.6107 suggests that the stock may be undervalued, providing a potential opportunity for investors. While the company's momentum is evident, investors should keep an eye on key market indicators to ensure continued growth. Currently, Worthington Industries' Enterprise Value to Sales ratio remains relatively stable compared to the previous year. As of 05/30/2024, the Free Cash Flow Per Share is projected to increase to 10.49, while the Enterprise Value may slightly exceed $624.1 million. Despite stable basic indicators, Worthington Industries has not fully utilized its potential. Recent fluctuations in the stock price may cause short-term volatility for retail investors. However, Worthington Industries is gradually outperforming the market, making it a potential investment option for your portfolios.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Worthington Industries income statement, its balance sheet, and the statement of cash flows. Potential Worthington Industries investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Worthington Industries investors may use each financial statement separately, they are all related. The changes in Worthington Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Worthington Industries's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Worthington Industries
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Worthington Industries performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Worthington Industries shares is the value that is considered the true value of the share. If
the intrinsic value of Worthington is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Worthington Industries. Please read more on our
fundamental analysis page.
How effective is Worthington Industries in utilizing its assets?
Worthington Industries reports assets on its Balance Sheet. It represents the amount of Worthington resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Worthington Industries aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Metals & Mining space. To get a better handle on how balance sheet or income statements item affect Worthington volatility, please check the breakdown of all its
fundamentals.
Are Worthington Industries Earnings Expected to grow?
The
future earnings power of Worthington Industries involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Worthington Industries factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Worthington Industries
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Worthington
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Worthington Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Worthington Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Worthington one year expected dividend income is about USD0.7 per share.
As of 12/01/2024,
Dividend Payout Ratio is likely to grow to 0.73, while
Dividends Paid is likely to drop slightly above 50.4
M.
Investing in dividend-paying stocks, such as Worthington Industries is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Worthington Industries must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Worthington Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Worthington Industries Gross Profit
Worthington Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Worthington Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Worthington Industries Gross Profit growth over the last 10 years. Please check Worthington Industries'
gross profit and other
fundamental indicators for more details.
A Deeper look at Worthington
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Worthington Industries is not uncomon. There are few distinct groups of Worthington Industries stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Worthington is distributed among investors.
Ownership Allocation
Worthington Industries retains a total of 50.15 Million
outstanding shares. Over half of Worthington Industries' outstanding shares are owned by
institutional investors. These institutional investors are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutions are subject to different rules and regulations than regular investors in Worthington Industries. Please watch out for any change in the
institutional holdings of Worthington Industries as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company shows, if the real value of the company is less than the current market value, you may not be able to make money on it.
| Retail Investors8.61% | Insiders37.47% | Institutions53.92% |
| Retail Investors | 8.61 |
| Insiders | 37.47 |
| Institutions | 53.92 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Worthington Industries' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Worthington Industries' decisions due to their larger holdings.
| 2021 | 2022 | 2023 | 2024 (projected) |
Short Long Term Debt Total | 844.4M | 795.4M | 914.7M | 960.4M | Total Assets | 3.6B | 3.7B | 4.2B | 4.4B |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Worthington Industries has an asset utilization ratio of 134.66 percent. This connotes that the Company is making $1.35 for each dollar of assets. An increasing asset utilization means that Worthington Industries is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total2.2 B | | | Total Current Assets2.3 B | | | |
| Non Current Assets Total | 2.15 Billion | 39.44 |
| Non Currrent Assets Other | (65.09 Million) | -1.19 |
| Other Current Assets | 126.74 Million | 2.32 |
| Total Current Assets | 2.26 Billion | 41.34 |
| Intangible Assets | 379.43 Million | 6.95 |
| Other Assets | 21.34 Million | 0.39 |
| Net Tangible Assets | 586.59 Million | 10.75 |
As the saying goes, "cash is king," and Worthington Industries (NYSE: WOR) seems to be ruling the roost with an impressive end period cash flow of $454.9M. This metal fabrication industry player has demonstrated strong fundamentals, with a healthy current ratio of 2.17X, indicating a robust ability to meet short-term obligations. The company's net income stands at $269.17M, and with a PE ratio of 11.22, the stock appears undervalued compared to its earnings. However, the company's beta of 1.33 suggests a higher volatility than the market, which could mean potential for higher returns, but also greater risk. While the probability of bankruptcy is relatively low at 11.54%, investors should consider all these factors in their decision-making process.
Possible June bounce-back of Worthington?
Despite Worthington Industries' recent Jensen Alpha drop to -0.12, indicating potential price depreciation, it's essential to consider the company's resilience and rebound potential. Historically, Worthington has shown an ability to recover from similar downturns. With favorable market conditions and strategic actions, a June rebound could be possible. Investors should monitor the stock's performance closely in the upcoming weeks. Worthington Industries displays low volatility, with a skewness of 0.06 and kurtosis of 0.36. Understanding market volatility trends can help investors time the market.
Proper use of volatility indicators allows traders to gauge Worthington Industries' stock risk against market volatility during both bullish and bearish trends. The increased volatility of bear markets can directly affect Worthington Industries' stock price, causing investor stress as share values drop, often leading to portfolio rebalancing.In conclusion, Worthington Industries (WOR) continues to show resilience despite the modest market downturn. The stock's valuation real value stands at
$60.14, slightly above its current market value of
$56.99, indicating potential for growth. However, investors should be cautious as the possible downside price is estimated at $52.64. The analyst overall consensus is a 'Hold', with two analysts recommending a hold and one suggesting a sell. The estimated target price ranges from a low of $59.15 to a high of $72.15, with an average target price of $65. Therefore, while the stock is advancing slowly, it is advisable for investors to monitor the market conditions and analyst recommendations closely before making investment decisions..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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