Worthington Industries
Market Cap
US$2.1b
Last Updated
2020/02/16 23:58 UTC
Data Sources
Company Financials +
Executive Summary
Worthington Industries, Inc., a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the United States, Austria, Canada, Mexico, Poland, Portugal, and Turkey.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Worthington Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WOR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.4%
WOR
-0.9%
US Metals and Mining
1.5%
US Market
1 Year Return
0.2%
WOR
0.9%
US Metals and Mining
20.1%
US Market
Return vs Industry: WOR matched the US Metals and Mining industry which returned 0.9% over the past year.
Return vs Market: WOR underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| WOR | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -0.9% | 1.5% |
| 30 Day | -6.9% | -7.1% | 1.4% |
| 90 Day | 0.9% | -1.1% | 8.7% |
| 1 Year | 2.7%0.2% | 3.5%0.9% | 22.7%20.1% |
| 3 Year | -19.4%-24.2% | -6.3%-11.3% | 50.1%40.5% |
| 5 Year | 35.3%21.3% | 18.7%9.4% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Worthington Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is Worthington Industries (NYSE:WOR) Using Too Much Debt?1 month ago | Simply Wall St
Would Worthington Industries, Inc. (NYSE:WOR) Be Valuable To Income Investors?1 month ago | Simply Wall St
Have Worthington Industries, Inc. (NYSE:WOR) Insiders Been Selling Their Stock?Valuation
Is Worthington Industries undervalued compared to its fair value and its price relative to the market?
18.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WOR ($37.77) is trading below our estimate of fair value ($46.14)
Significantly Below Fair Value: WOR is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WOR is poor value based on its PE Ratio (18.8x) compared to the Metals and Mining industry average (11x).
PE vs Market: WOR is poor value based on its PE Ratio (18.8x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: WOR is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: WOR is overvalued based on its PB Ratio (2.5x) compared to the US Metals and Mining industry average (1.5x).
Next Steps
Future Growth
How is Worthington Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
21.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WOR's forecast earnings growth (21.4% per year) is above the savings rate (1.7%).
Earnings vs Market: WOR's earnings (21.4% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WOR's revenue is expected to decline over the next 3 years (-0.3% per year).
High Growth Revenue: WOR's revenue is forecast to decline over the next 3 years (-0.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WOR's Return on Equity is forecast to be low in 3 years time (17.4%).
Next Steps
Past Performance
How has Worthington Industries performed over the past 5 years?
8.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WOR has a large one-off loss of $40.0M impacting its November 30 2019 financial results.
Growing Profit Margin: WOR's current net profit margins (3.2%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: WOR's earnings have grown by 8.6% per year over the past 5 years.
Accelerating Growth: WOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WOR had negative earnings growth (-43.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (14.9%).
Return on Equity
High ROE: WOR's Return on Equity (12.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Worthington Industries's financial position?
Financial Position Analysis
Short Term Liabilities: WOR's short term assets ($1.0B) exceed its short term liabilities ($473.9M).
Long Term Liabilities: WOR's short term assets ($1.0B) exceed its long term liabilities ($976.4M).
Debt to Equity History and Analysis
Debt Level: WOR's debt to equity ratio (72.9%) is considered high.
Reducing Debt: WOR's debt to equity ratio has increased from 70.7% to 72.9% over the past 5 years.
Debt Coverage: WOR's debt is well covered by operating cash flow (41.7%).
Interest Coverage: WOR's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Inventory Level: WOR has a high level of physical assets or inventory.
Debt Coverage by Assets: WOR's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Worthington Industries's current dividend yield, its reliability and sustainability?
2.54%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Worthington Industries before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WOR's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: WOR's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: WOR's dividend payments have been volatile in the past 10 years.
Growing Dividend: WOR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.8%), WOR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WOR's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
John McConnell (65yo)
26.7yrs
Tenure
US$3,738,833
Compensation
Mr. John P. McConnell has been the Chairman of the Board of Worthington Industries, Inc. since September 1996 and Chief Executive Officer since June 1993 at Worthington Cylinder Corporation. Mr. McConnell ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD3.74M) is about average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 26.7yrs | US$3.74m | 8.14% $172.4m | |
| President | 1.5yrs | US$6.50m | 1.06% $22.4m | |
| VP & CFO | 1.3yrs | US$1.08m | 0.21% $4.5m | |
| Executive VP | 1.5yrs | US$5.40m | 0.34% $7.2m | |
| Senior VP of Administration | 21.2yrs | US$1.19m | 0.061% $1.3m | |
| Senior Vice President of Manufacturing | 19.1yrs | US$1.26m | 0.24% $5.0m | |
| Chief Information Officer | 4.8yrs | no data | no data | |
| Investor Relations Officer & Treasurer | 1.4yrs | no data | no data | |
| Vice President of Corporate Communications & Brand Management | 1.4yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1.4yrs | no data | 0.055% $1.2m |
1.5yrs
Average Tenure
60yo
Average Age
Experienced Management: WOR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 26.7yrs | US$3.74m | 8.14% $172.4m | |
| Lead Independent Director | 13.1yrs | US$294.13k | 0.35% $7.4m | |
| Independent Director | 9.4yrs | US$199.75k | 0.12% $2.5m | |
| Independent Director | 21.1yrs | US$199.75k | 0.35% $7.3m | |
| Independent Director | 23.1yrs | US$209.75k | 0.13% $2.7m | |
| Independent Director | 22.1yrs | US$199.75k | 0.10% $2.2m | |
| Independent Director | 20.1yrs | US$199.75k | 0.082% $1.7m | |
| Independent Director | 8.9yrs | US$199.75k | 0.071% $1.5m | |
| Independent Director | 15.3yrs | US$214.75k | 0.11% $2.4m | |
| Independent Director | 8.7yrs | US$199.75k | 0.057% $1.2m |
17.7yrs
Average Tenure
66.5yo
Average Age
Experienced Board: WOR's board of directors are seasoned and experienced ( 17.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WOR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Worthington Industries, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Worthington Industries, Inc.
- Ticker: WOR
- Exchange: NYSE
- Founded: 1955
- Industry: Steel
- Sector: Materials
- Market Cap: US$2.118b
- Shares outstanding: 56.07m
- Website: https://www.worthingtonindustries.com
Number of Employees
Location
- Worthington Industries, Inc.
- 200 Old Wilson Bridge Road
- Columbus
- Ohio
- 43085
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WOR | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| WTH | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
Biography
Worthington Industries, Inc., a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the United States, Austria, Canada, Mexico, Poland, Portugal, and Turkey. It operates through three segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. The Steel Processing segment processes flat-rolled steel for customers primarily in the automotive, aerospace, agricultural, appliance, construction, container, hardware, heavy-truck, HVAC, lawn and garden, leisure and recreation, office furniture, and office equipment markets. It also toll processes steel for steel mills, large end-users, service centers, and other processors. The Pressure Cylinders segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, well water and expansion tanks, and oil and gas equipment, as well as various accessories and related products for end-use market applications, including industrial products, consumer products, and oil and gas equipment. The Engineered Cabs segment designs and manufactures custom-engineered open and enclosed cabs, as well as operator stations and custom fabrications for heavy mobile equipment used in the agricultural, construction, forestry, military, and mining industries; and machined structural components, complex and painted weldments, and engine doors. It also designs and manufactures reusable custom steel platforms, racks, and pallets for supporting, protecting, and handling products in the shipping process. The company was founded in 1955 and is headquartered in Columbus, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:58 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/05/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.