Worthington Enterprises (WOR): Assessing Valuation After a Choppy Three-Month Share Price Pullback

Worthington Enterprises (WOR) has been on a choppy stretch lately, with shares down about 15% over the past 3 months even as the stock still sits well ahead on a 1 year view.

See our latest analysis for Worthington Enterprises.

That pullback comes after a strong run, with the share price still showing a solid year to date gain and longer term total shareholder returns comfortably positive. This suggests momentum has cooled rather than completely reversing.

If Worthington has you rethinking your portfolio mix, it might be a good moment to explore fast growing stocks with high insider ownership for other under the radar growth stories with skin in the game.

With profits rising faster than revenue and shares still sitting below analyst targets, the recent pullback raises a key question: Are investors overlooking Worthington’s earnings power, or has the stock already priced in its next leg of growth?

Most Popular Narrative Narrative: 20.1% Undervalued

With Worthington Enterprises last closing at $55.14 against a narrative fair value of $69, the story leans toward upside and invites a closer look.

The company is investing in operational efficiencies through facility modernization projects and automation, anticipated to improve net margins over time. Strategic partnerships and new market entry, such as those with Tractor Supply and Walmart, are expected to expand distribution channels and support revenue growth.

Read the complete narrative.

Curious how margin expansion, disciplined growth, and a lower future earnings multiple can still support a higher value? The key assumptions might surprise you. Unlock the full narrative to see what is driving this upside case.

Result: Fair Value of $69 (UNDERVALUED)

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

However, persistent macro uncertainty and softer consumer demand, along with any missteps integrating acquisitions, could quickly undermine the upbeat margin and growth narrative.

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

Another Angle on Valuation

Multiples tell a more cautious story. Worthington trades on a P E of 25.6 times, slightly richer than the Machinery industry at 25.3 times and its own fair ratio of 24 times. This suggests there may be less margin of safety if growth or margins disappoint from here.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Worthington Enterprises Narrative

If you see the story differently or simply prefer to dig into the numbers yourself, you can build a custom view in just a few minutes, Do it your way.

A great starting point for your Worthington Enterprises research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.