Worthington Industries: Sum Of Parts Is Greater Than The Whole

Apr. 11, 2023 12:25 PM ETWorthington Enterprises, Inc. (WOR) StockWOR
Hong Chew Eu
1.18K Followers

Summary

  • Worthington Industries, Inc. has proposed to separate into 2 standalone public companies to create more value for shareholders.
  • These 2 companies would be in different sectors. One is in the steel business and is cyclical. The other is in the pressure cylinder business which is non-cyclical.
  • A sum-of-parts valuation shows that there is a margin of safety. The company is also financially sound. Given its separation plan, this is an investment opportunity.

Distribution Warehouse With Galvanized Steel Rolls

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Investment thesis

Worthington Industries, Inc. (NYSE:WOR) has proposed to separate its two major businesses and create two standalone public companies by early 2024. These two companies are in different sectors with different competition and opportunities. One is

This article was written by

1.18K Followers
BSc (Eng), MBA. Self-taught value investor with 2 decades of investing experience. Blogger at i4value.asia. The blog is on value investing through case studies where I analyze and value listed companies in the ASEAN and US regions. I have an exceptional perspective having served as a Board member of a Malaysia listed company for several decades. I have value investing book "Do you really want to master value investing?" on Amazon

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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