Worthington Industries focuses on value-added steel processing and manufactured metal products in the United States, Europe, Mexico, Canada, and internationally. It operates through three segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. The company was founded in 1955 and is based in Columbus, Ohio.
WOR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Worthington Industries Inc. To summarize, we found that Worthington Industries Inc ranked in the 74th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 311.67%. In terms of the factors that were most noteworthy in this DCF analysis for WOR, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 30.96 -- which is good for besting 92.53% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
Worthington Industries Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 16.92% of tickers in our DCF set.
WOR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 16.92% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WOR, try TG, SID, LEU, ZEUS, and KALU.
The past few months have been quite challenging for manufacturing companies, and the story of Worthington Industries (NYSE: WOR) was no different. Two of its key end markets – automobile and construction – witnessed a slowdown, leading to an 18% fall in Q1 2021 net sales. However, things have been getting better since. The company’s […]