By analyzing existing basic indicators between Worthington Industries and Valmont, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Valmont with a short position in Worthington Industries. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Worthington Industries has an asset utilization ratio of 136.32 percent. This connotes that the company is making $1.36 for each dollar of assets. An increasing asset utilization means that Worthington Industries is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Worthington or ESAB is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Worthington Industries dividends
A dividend is the distribution of a portion of Worthington Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Worthington Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Worthington one year expected dividend income is about USD0.72 per share.
As of 04/19/2024,
Dividend Yield is likely to grow to 0.05, while
Dividends Paid is likely to drop slightly above 50
M.
Investing in dividend-paying stocks, such as Worthington Industries is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Worthington Industries must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Worthington Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
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. Financial leverage can amplify the potential profits to Worthington Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Worthington Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Worthington Industries's total debt and its cash.
Correlation Between Worthington and ESAB Corp
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Worthington Industries together with similar or unrelated positions with a negative correlation. For example, you can also add ESAB Corp to your portfolio. If ESAB Corp is not perfectly correlated to Worthington Industries it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Worthington Industries, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Worthington Industries and ESAB Corp in your portfolio? Please note if you are using this as a pair-trade strategy between Worthington Industries and ESAB Corp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between WOR and ESAB for more information.
A Deeper look at Worthington
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Worthington Industries revenue. Based on the latest financial disclosure, Worthington Industries reported 2.81
B of revenue. This is 19.68% lower than that of the Industrials sector and 147.88% higher than that of the
Metal Fabrication industry. The revenue for all United States stocks is 70.22% higher than that of the firm. As for Valmont Industries we see revenue of 2.9
B, which is 155.82% higher than that of the Metal Fabrication
| Worthington | 2.81 Billion |
| Sector | 1.13 Billion |
| Valmont | 2.9 Billion |
Worthington Industries price fall is misleading
Latest treynor ratio is at 4.62. Worthington Industries currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.36. However, we advise investors to further question Worthington Industries expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Worthington Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Worthington Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Worthington Industries Investment
While some other firms under the metal fabrication industry are still a bit expensive, Worthington Industries may offer a potential longer-term growth to retail investors. Taking everything into account, as of the 24th of March 2021, our research shows that Worthington Industries is a rather very steady investment opportunity with a
low probability of distress in the next two years. From a slightly different view, the entity currently appears to be
fairly valued. Our actual 30 days buy-hold-sell advice on the enterprise is
Strong Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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
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