NEW YORK (TheStreet) -- Shares of Worthington Industries, Inc.
(WOR - Get Report) are up 0.59% to $42.62 after KeyBanc
(KEY) raised its price target to $48.00 from $46.00, and lifted its fiscal year 2016 earnings per share estimate to $3.15 from $3.08.
However, Keybanc lowered its fiscal year 2015 earnings per share estimate to $2.60 from $2.75 on weaker near-term momentum.
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Separately,TheStreet Ratings team rates WORTHINGTON INDUSTRIES as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate WORTHINGTON INDUSTRIES (WOR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 24.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- WORTHINGTON INDUSTRIES has improved earnings per share by 9.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WORTHINGTON INDUSTRIES increased its bottom line by earning $1.92 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($2.38 versus $1.92).
- Net operating cash flow has significantly increased by 166.70% to $96.82 million when compared to the same quarter last year. In addition, WORTHINGTON INDUSTRIES has also vastly surpassed the industry average cash flow growth rate of -37.47%.
- Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.82 is weak.
- You can view the full analysis from the report here: WOR Ratings Report