Worthington Story

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WOR -- USA Stock  

USD 49.87  0.35  0.71%

It seems Worthington Industries may not recover as fast as we have hopped for as its price went down 7.34% today. The entity's current daily volatility is 2.78 percent, with a beta of -0.75 and an alpha of 0.28 over DOW. Whilst many millenniums are getting more into investing against high market volatility, it is quite pruden to sum up Worthington Industries based on its historical prices. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three weeks ago
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Is Worthington Industries (NYSE:WOR) way too risky for millennials?
Worthington Industries has roughly 147.2 M in cash with 336.73 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.67. The company has 740.47 M in debt with debt to equity (D/E) ratio of 0.77, which is OK given its current industry classification. Worthington Industries has a current ratio of 2.48, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Investing in Worthington Industries, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Worthington Industries along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Worthington Industries's Liquidity

Worthington Industries financial leverage refers to using borrowed capital as a funding source to finance Worthington Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Worthington Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Worthington Industries's total debt and its cash.

How Worthington utilizes its cash?

To perform a cash flow analysis of Worthington Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Worthington Industries is receiving and how much cash it distributes out in a given period. The Worthington Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Worthington Industries Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Worthington Industries reported last year Net Cash Flow from Operations of 336.73 Million

Worthington Industries Correlation with Peers

Investors in Worthington can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Worthington Industries. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Worthington Industries and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Worthington is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Worthington for more details

What is the case for Worthington Industries Investors

We consider Worthington Industries very steady. Worthington Industries shows Sharpe Ratio of 0.0427, which attests that the company had 0.0427% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Worthington Industries, which you can use to evaluate future volatility of the company. Please check out Worthington Industries Market Risk Adjusted Performance of (0.27), mean deviation of 1.92, and Downside Deviation of 2.46 to validate if the risk estimate we provide is consistent with the expected return of 0.12%.
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Worthington Industries price fall is puzzling

Potential upside is down to 4.14. It may connote a possible volatility fall. As of the 22nd of September, Worthington Industries maintains the Mean Deviation of 1.92, market risk adjusted performance of (0.27), and Downside Deviation of 2.46. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Worthington Industries, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We have analyze and collected data for nineteen technical drivers for Worthington Industries, which can be compared to its rivals. Please check out Worthington Industries jensen alpha and semi variance to decide if Worthington Industries is priced fairly, providing market reflects its latest price of 36.85 per share. Given that Worthington Industries has jensen alpha of 0.2756, we strongly advise you to confirm Worthington Industries's prevalent market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While many other companies within the metal fabrication industry are still a little expensive, even after the recent corrections, Worthington Industries may offer a potential longer-term growth to retail investors. To conclude, as of the 22nd of September 2020, our final 30 days buy-hold-sell advice on the enterprise is Strong Sell. We believe Worthington Industries is currently overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Worthington Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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