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 84th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 593.67%. As for the metrics that stood out in our discounted cash flow analysis of Worthington Industries Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 25.34 -- which is good for besting 89.04% 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 15.66% of tickers in our DCF set.
WOR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than only 15.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GMS, USCR, WLKP, GFI, and NX can be thought of as valuation peers to WOR, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Worthington Industries (NYSE:WOR) posted its quarterly earnings data on Wednesday. The industrial products company reported $0.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.68 by $0.27, MarketWatch Earnings reports. Worthington Industries had a return on equity of 10.60% and a net margin of 24.09%. Shares of WOR stock traded down […]