- WORTHINGTON INDUSTRIES has improved earnings per share by 16.7% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, WORTHINGTON INDUSTRIES increased its bottom line by earning $1.55 versus $0.57 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.55).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market, WORTHINGTON INDUSTRIES's return on equity exceeds that of both the industry average and the S&P 500.
- The revenue fell significantly faster than the industry average of 57.5%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- WOR has underperformed the S&P 500 Index, declining 7.03% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for WORTHINGTON INDUSTRIES is currently extremely low, coming in at 14.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.30% significantly trails the industry average.
NEW YORK ( TheStreet) -- Worthington Industries (NYSE: WOR) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself. Highlights from the ratings report include: