Mechel PAO (MTL) vs Worthington Steel, Inc. (WS)

Mechel PAO and Worthington Steel, Inc. are both Steel companies. Worthington Steel, Inc. is the larger, with a market value of $2.0B against $1.2B — 1.7× the size. Worthington Steel, Inc. has negative trailing earnings, so its P/E is not meaningful; Mechel PAO trades at 0.8×. Worthington Steel, Inc. grew revenue faster over the last twelve months: 69.1% against 16.7%. Mechel PAO has the higher net margin (8.44% vs −0.72%) and the lower return on invested capital (0.00% vs 0.11%). Across the 18 metrics below, Mechel PAO leads on 11 and Worthington Steel, Inc. on 7.

Valuation

Metric MTL WS Steel median
P/E 0.84 n/m 20.82
P/S 0.13 0.37 0.73
P/B n/m 1.21 1.24
Price to free cash flow 1.19 24.18 25.52
EV/EBITDA 4.25 40.26 9.90
EV/Sales 0.99 0.74 0.91
Earnings yield 119.61% (1.49%) 4.44%
Free cash flow yield 84.18% 4.14% 0.00%

Profitability

Metric MTL WS Steel median
Gross margin 40.24% 10.37% 13.91%
Operating margin 0.00% 0.12% 4.77%
Net margin 8.44% (0.72%) 3.40%
Free cash flow margin 14.18% 1.55% 0.00%
Return on equity (13.31%) (2.67%) 2.21%
Return on assets 12.58% (0.93%) 1.83%
Return on invested capital 0.00% 0.11% 2.52%

Growth

Metric MTL WS Steel median
Revenue growth (TTM) 16.66% 69.13% 15.09%
EPS growth (last fiscal year) 10,700.00% (84.47%) (18.80%)
Revenue growth, 5-year CAGR 5.72% — 6.73%
Net income growth, 5-year CAGR 59.28% — 0.00%

Health

Metric MTL WS Steel median
Debt to equity (1.81) 1.35 0.25
Current ratio 0.32 1.81 2.58
Net debt to EBITDA 2.26 2.15 0.10

Dividend

Metric MTL WS Steel median
Dividend yield — 1.61% 1.30%
Payout ratio — 1.81 0.48

Size

Metric MTL WS Steel median
Market cap 1.21b 2.01b 1.53b

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