WOR
Worthington Industries Inc
Industrial/Transportation
03/15/2018
Presented
| Date | 03/12/2018 |
| Price | $45.95 |
| Market Cap | $2.92B |
| Ent Value | $3.42B |
| P/E Ratio | 16.55x |
| Book Value | $15.13 |
| Div Yield | 1.85% |
| Shares O/S | 63.47M |
| Ave Daily Vol | 340,737 |
| Short Int | N/A |
Current
| Price | $40.31 |
| Market Cap | $2.03B |
| Worthington Industries, Inc. engages in metals processing, which focuses on value-added steel processing and manufactured metal products. It offers pressure cylinder products such as propane, oxygen and helium tanks, hand torches, refrigerant and industrial cylinders, camping cylinders, scuba tanks, compressed natural gas cylinders and helium balloon kits; engineered cabs and operator stations and cab components; framing systems for mid-rise buildings; steel pallets and racks; and, through joint ventures, suspension grid systems for concealed and lay-in panel ceilings; laser welded blanks; light gauge steel framing for commercial and residential construction; and current and past model automotive service stampings. The company operates through the following business segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. The Steel Processing segment designs and manufactures recyclable steel packaging solutions for the movement of products. The Pressure Cylinders segment refers to Worthington Cylinders business unit which operates manufacturing facilities, and two consolidated joint ventures: Turkey-based Worthington Aritas Basincli Kaplar Sanayi, a manufacturer of cryogenic pressure vessels for LNG and other gas storage applications; and Utah-based dHybrid Systems, LLC, a manufacturer of CNG fuel systems for large trucks. The Engineered Cabs segment consists of the Worthington Industries Engineered Cabs business unit, which operates two main facilities. The Other segment includes construction services and Worthington Energy Innovations. Worthington Industries was founded by John H. McConnell in 1955 and is headquartered in Columbus, OH. |
Publicly traded companies mentioned herein: Worthington Industries Inc (WOR)
Highlights
The presenter is short shares of Worthington Industries (WOR) due to his belief that WOR is subject to headwinds including declining volumes (due to auto end-market weakness) and steel spreads reverting to more normal levels. The latter concern turns a tailwind that has benefitted WOR into a headwind, and also negates WOR’s ability to benefit from broader strength in the steel market. With the actual structure of its business more akin to a middle man/ auto supplier, the presenter sees 25% downside over the next two quarters as fiscal 2018 (year ending in May) concludes and trends unfold. He targets $37 for WOR shares, on the basis of 13x his $2.85 fiscal 2018 EPS estimate.
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