Assessing Worthington Enterprises (WOR) Valuation After Recent Share Price Weakness

Why Worthington Enterprises is on investors’ radar today

Worthington Enterprises (WOR) has been drawing attention after a mixed stretch in recent trading, with the share price drifting lower over the past month and past 3 months while longer term returns remain positive.

See our latest analysis for Worthington Enterprises.

At around US$53.43, the share price has eased in the short term, with a 1 day share price return of a 2.0% decline and a 90 day share price return of a 5.5% decline, while the 1 year total shareholder return of 28.9% and 5 year total shareholder return of 71.1% point to longer term gains. This suggests that recent weakness may reflect shifting sentiment around growth prospects and risk rather than a break in the broader story.

If Worthington Enterprises has you reassessing opportunities in industrials, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With shares around US$53.43 and an implied gap to a US$67.20 analyst target plus an estimated intrinsic value suggesting a discount, you have to ask: is Worthington Enterprises undervalued, or is the market already pricing in future growth?

Most Popular Narrative: 22.6% Undervalued

Compared with the last close at US$53.43, the most followed narrative points to a higher fair value built on revenue growth, margin expansion and earnings compounding.

Worthington Enterprises is leveraging innovation to drive growth, as evidenced by the launch of new IoT-enabled and consumer products like SureSense and Balloon Time Mini, which are expected to increase revenues.

The company is investing in operational efficiencies through facility modernization projects and automation, anticipated to improve net margins over time.

Read the complete narrative.

Curious how steady top line growth, rising margins and a lower future P/E can still support a higher value than today’s price, without stretching assumptions?

Based on this narrative, expected earnings growth over the next few years, wider profit margins and a discount rate of 8.16% are all key inputs to the valuation. Analysts also factor in a future P/E that sits below the current Machinery industry average, as well as a modest reduction in share count over time.

Result: Fair Value of $69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you also need to keep an eye on tariff or trade disruptions and weaker consumer demand, which could pressure revenues, margins and earnings expectations.

Find out about the key risks to this Worthington Enterprises narrative.

Build Your Own Worthington Enterprises Narrative

If you see the numbers differently or would rather weigh the assumptions yourself, you can test your own story in just a few minutes with Do it your way.

A great starting point for your Worthington Enterprises research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more investment ideas beyond Worthington Enterprises?

If you stop with just one stock, you could miss opportunities that better match your goals, so widen your view with a few focused idea generators.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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