NYSE:WOR

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Worthington Industries

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.


Snowflake Analysis

Excellent balance sheet established 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

WOR

-2.9%

US Metals and Mining

1.1%

US Market


1 Year Return

-24.6%

WOR

7.9%

US Metals and Mining

4.6%

US Market

Return vs Industry: WOR underperformed the US Metals and Mining industry which returned 8% over the past year.

Return vs Market: WOR underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

WORIndustryMarket
7 Day1.9%-2.9%1.1%
30 Day14.1%6.3%5.5%
90 Day-22.1%1.2%-4.9%
1 Year-22.5%-24.6%10.5%7.9%7.0%4.6%
3 Year-32.3%-36.8%4.5%-2.2%28.6%20.1%
5 Year8.5%-3.0%17.9%8.2%52.5%35.3%

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

Valuation

Is Worthington Industries undervalued compared to its fair value and its price relative to the market?

14.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WOR ($26.88) is trading above our estimate of fair value ($15.11)

Significantly Below Fair Value: WOR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WOR is poor value based on its PE Ratio (14.8x) compared to the Metals and Mining industry average (8.3x).

PE vs Market: WOR is good value based on its PE Ratio (14.8x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: WOR is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: WOR is overvalued based on its PB Ratio (1.8x) compared to the US Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Worthington Industries forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOR's forecast earnings growth (30.7% per year) is above the savings rate (2.2%).

Earnings vs Market: WOR's earnings (30.7% per year) are forecast to grow faster than the US market (21.6% 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 (-4.3% per year).

High Growth Revenue: WOR's revenue is forecast to decline over the next 3 years (-4.3% 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 (18%).


Next Steps

Past Performance

How has Worthington Industries performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WOR has a large one-off loss of $81.1M impacting its February 29 2020 financial results.

Growing Profit Margin: WOR's current net profit margins (3%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: WOR's earnings have grown by 6.9% 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 (-31.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-12.4%).


Return on Equity

High ROE: WOR's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Worthington Industries's financial position?


Financial Position Analysis

Short Term Liabilities: WOR's short term assets ($1.1B) exceed its short term liabilities ($489.8M).

Long Term Liabilities: WOR's short term assets ($1.1B) exceed its long term liabilities ($967.0M).


Debt to Equity History and Analysis

Debt Level: WOR's debt to equity ratio (71.9%) is considered high.

Reducing Debt: WOR's debt to equity ratio has reduced from 82.2% to 71.9% over the past 5 years.

Debt Coverage: WOR's debt is well covered by operating cash flow (46.7%).

Interest Coverage: WOR's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Worthington Industries's current dividend yield, its reliability and sustainability?

3.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WOR's dividend (3.57%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: WOR's dividend (3.57%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: WOR's dividends per share have been stable 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 reasonable payout ratio (52.3%), WOR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WOR's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

John McConnell (65yo)

26.92yrs

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 ($USD3.74M) is about average for companies of similar size in the US market ($USD4.91M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John McConnell
Chairman of the Board & CEO26.92yrsUS$3.74m8.22% $122.7m
B. Rose
President1.75yrsUS$6.50m1.07% $15.9m
Joseph Hayek
VP & CFO1.5yrsUS$1.08m0.22% $3.3m
Geoffrey Gilmore
Executive VP1.75yrsUS$5.40m0.34% $5.1m
Dale Brinkman
Senior VP of Administration21.42yrsUS$1.19m0.062% $923.0k
Virgil Winland
Senior Vice President of Manufacturing19.33yrsUS$1.26m0.24% $3.5m
Matt Schlabig
Chief Information Officer5yrsno datano data
Marcus Rogier
Investor Relations Officer & Treasurer1.67yrsno datano data
Sonya Higginbotham
Vice President of Corporate Communications & Brand Management1.67yrsno datano data
Catherine Lyttle
Senior VP & Chief Human Resources Officer1.67yrsno data0.056% $829.1k

1.8yrs

Average Tenure

60yo

Average Age

Experienced Management: WOR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John McConnell
Chairman of the Board & CEO26.92yrsUS$3.74m8.22% $122.7m
John Blystone
Lead Independent Director13.33yrsUS$294.13k0.35% $5.2m
Kerrii Anderson
Independent Director9.67yrsUS$199.75k0.12% $1.8m
Michael Endres
Independent Director21.33yrsUS$199.75k0.35% $5.2m
Peter Karmanos
Independent Director23.33yrsUS$209.75k0.13% $1.9m
Mary Schiavo
Independent Director22.33yrsUS$199.75k0.11% $1.6m
Sidney Ribeau
Independent Director20.33yrsUS$199.75k0.083% $1.2m
Mark Davis
Independent Director9.17yrsUS$199.75k0.072% $1.1m
Carl Nelson
Independent Director15.5yrsUS$214.75k0.12% $1.7m
Ozey Horton
Independent Director8.92yrsUS$199.75k0.057% $858.1k

17.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: WOR's board of directors are seasoned and experienced ( 17.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WOR insiders have bought more shares than they have sold 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$1.493b
  • Shares outstanding: 55.55m
  • Website: https://www.worthingtonindustries.com

Number of Employees


Location

  • Worthington Industries, Inc.
  • 200 Old Wilson Bridge Road
  • Columbus
  • Ohio
  • 43085
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WORNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
WTHDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 08:30
End of Day Share Price2020/05/22 00:00
Earnings2020/02/29
Annual Earnings2019/05/31


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.