Worthington Industries (WOR) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: 1.27%
• Average Volume (3M): 148.66K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.81
• Revenue Growth: 7.43%
• EPS Growth: 148.83%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.65
• Shares Outstanding: 49,546,580
• 10 Day Avg. Volume: 161,609
• 30 Day Avg. Volume: 148,662
• PEG Ratio: -2.20
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 2.52
• P/FCF Ratio: 18.28
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 13.26
• 1Y Price Target: $74.00
• Price Target Upside: 26.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.48
• Revenue Forecast (FY): $1.35B

• Rating: 70 Outperform
• Price Target: $52.00 ▼(-11.07% Downside)
• Action: Upgraded Date: 01/17/26
• Date: Action: Upgraded 01/17/26

WOR scores well on fundamentals, led by strong cash generation and a conservative balance sheet, and is further supported by a positive earnings-call outlook (growth, margin improvement, low leverage). The overall score is held back by mixed/weak longer-term technicals and a relatively high P/E with only a modest dividend yield.

Positive Factors

Cash generation & conversion

Worthington consistently converts earnings to cash, with double-digit FCF growth and near-complete FCF conversion (96%). This durable cash generation supports reinvestment, M&A funding, dividends and resilience through cycles, reducing reliance on external financing for multi-quarter horizons.

Conservative balance sheet / low leverage

Low leverage and a strong equity base provide financial flexibility to pursue strategic investments and absorb cyclical volatility. A ~0.4x net debt/adj. EBITDA ratio and solid equity ratio materially lower refinancing and liquidity risk across a 2-6 month horizon and support disciplined capital allocation.

Strategic M&A strengthens building products

Acquisitions like LSI and Elgen are explicitly targeted to enhance higher-margin building products and extend product depth. When integrated successfully, these deals improve recurring revenue mix and scale in advantaged niches, supporting durable margin and market-share gains over multiple quarters.

Negative Factors

Low operational (EBIT) profitability

A very low EBIT margin indicates underlying operational inefficiencies or cost pressures in parts of the business that can persist beyond near-term quarters. Even with strong adjusted EBITDA in segments, weak EBIT constrains room for reinvestment and heightens sensitivity to input-cost changes over 2-6 months.

Margin deterioration from integrations

Integration-related margin erosion is a structural risk when acquisitions are a core growth engine. If synergies lag or integration costs persist, consolidated margins can remain depressed, limiting durable margin improvement and increasing execution risk across subsequent quarters.

Exposure to partner weakness & tariffs

Reliance on equity affiliates and exposure to tariffs create recurring downside risks: weaker partner earnings materially dent consolidated results, while tariff-driven cost or supply shifts can compress margins. These structural exposures can persist and affect multi-quarter profitability and planning.

Worthington Industries Business Overview & Revenue Model

Company Description

Worthington Industries, Inc., an industrial manufacturing company, focuses on value-added steel processing, manufactured consumer, building, and sustainable mobility products in North America and internationally. It operates through Steel Processing, Consumer Products, Building Products, and Sustainable Energy Solutions segments. The Steel Processing segment processes flat-rolled steel for customers primarily in the automotive, aerospace, agricultural, appliance, construction, container, energy, hardware, heavy-truck, HVAC, lawn and garden, leisure and recreation, office furniture, and office equipment markets. It also toll processes steel for steel mills, large end-users, service centers, and other processors. The Consumer Products segment sells tools, outdoor living, and celebrations products under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brand names. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products to gas producers and distributors. The Sustainable Energy Solutions segment offers on-board fueling systems and services, as well as gas containment solutions and services for the storage, transport, and distribution of industrial gases. The company was founded in 1955 and is headquartered in Columbus, Ohio.

How the Company Makes Money

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Worthington Industries Financial Statement Overview

Summary

Strong cash-flow profile (FCF growth 11.33% TTM; OCF/NI 1.10) and a conservative balance sheet (D/E 0.36; equity ratio 54.91%) support a solid financial score. Offsetting this, operational profitability looks pressured with a low EBIT margin (1.21% TTM).

Income Statement

Worthington Industries shows a strong gross profit margin of 28.23% TTM, indicating efficient production processes. The net profit margin of 8.91% TTM is healthy, reflecting good cost control. Revenue growth rate of 4.45% TTM suggests a positive trend compared to previous declines. However, EBIT margin of 1.21% TTM is low, indicating potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.36 TTM indicates a conservative leverage approach, which is positive for financial stability. Return on equity of 11.41% TTM is decent, showing effective use of equity. The equity ratio of 54.91% TTM suggests a strong capital structure. However, the relatively low ROE compared to historical performance indicates room for improvement.

Cash Flow

Worthington Industries demonstrates strong cash flow management with a free cash flow growth rate of 11.33% TTM. The operating cash flow to net income ratio of 1.10 TTM indicates robust cash generation relative to earnings. The free cash flow to net income ratio of 0.74 TTM is solid, reflecting efficient cash conversion. Overall, cash flow metrics are a strong point for the company.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	1.25B	1.15B	1.25B	1.42B	5.24B	3.17B
Gross Profit	347.80M	318.26M	285.92M	339.37M	602.01M	579.84M
EBITDA	195.99M	179.37M	156.49M	291.36M	643.81M	1.03B
Net Income	106.02M	96.05M	110.62M	256.53M	379.39M	723.79M
Balance Sheet
Total Assets	1.75B	1.70B	1.64B	3.65B	3.64B	3.37B
Cash, Cash Equivalents and Short-Term Investments	180.29M	250.07M	244.22M	454.95M	34.48M	640.31M
Total Debt	377.61M	326.06M	317.18M	795.38M	844.41M	747.81M
Total Liabilities	790.31M	756.91M	747.63M	1.83B	2.03B	1.82B
Stockholders Equity	963.02M	937.19M	888.88M	1.70B	1.48B	1.40B
Cash Flow
Free Cash Flow	160.71M	159.16M	206.45M	539.00M	-24.49M	192.20M
Operating Cash Flow	212.12M	209.74M	289.98M	625.36M	70.11M	274.38M
Investing Cash Flow	-151.42M	-135.10M	-140.81M	-71.78M	-438.19M	468.51M
Financing Cash Flow	-74.22M	-68.79M	-359.89M	-133.13M	-237.75M	-249.78M

Worthington Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOR, the sentiment is Negative. The current price of 58.47 is above the 20-day moving average (MA) of 51.96, above the 50-day MA of 53.89, and above the 200-day MA of 57.45, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 30.25 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOR.

Worthington Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	78 Outperform	$3.55B	19.10	26.34%	0.67%	1.55%	701.41%
NWPX	74 Outperform	$677.28M	16.91	9.20%	―	7.61%	25.35%
WOR	70 Outperform	$2.36B	24.74	11.16%	1.27%	7.43%	148.83%
IIIN	68 Neutral	$593.72M	20.81	13.31%	3.49%	22.39%	112.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	58 Neutral	$338.10M	-47.25	-3.30%	―	-12.38%	-0.71%

Worthington Industries Corporate Events

Worthington Industries Highlights Growth Outlook at Investor Conference

On January 14, 2026, Worthington Enterprises presented at the CJS Securities 26th Annual New Ideas for the New Year conference, directing investors to presentation materials and a transcript now available on its website. Alongside reiterating extensive risk disclosures and safe-harbor language around forward-looking statements, the company highlighted its key investment attributes, including strong secular growth drivers in its building and consumer products segments, high-margin performance with a 33% adjusted EBITDA margin in building products, and financial flexibility underpinned by low leverage and solid free cash flow, reinforcing its positioning as a resilient, innovation-led industrial player for long-term investors.

The most recent analyst rating on (WOR) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries Expands Via Acquisition of LSI Group

On January 16, 2026, Worthington Enterprises announced it had completed the acquisition of LSI Group, LLC, one of the largest U.S. manufacturers of standing-seam metal roof clips and retrofit components serving the commercial metal roof market. The deal, which brings LSI’s businesses BPD, Logan Stampings, LSI Metal Fabrication and Roof Hugger under Worthington’s umbrella, marks a strategic step in strengthening Worthington’s position across the building envelope and expanding its presence in the commercial metal roofing sector, with management highlighting LSI’s innovation, service reputation and long-term customer relationships as key assets expected to enhance the company’s building products offering and competitive positioning.

The most recent analyst rating on (WOR) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries details growth strategy at investor conference

On January 7, 2026, Worthington Enterprises announced that President and CEO Joe Hayek and CFO Colin Souza will present at the virtual CJS Securities 26th Annual New Ideas for the New Year conference on January 14, 2026, at 8:45 a.m. ET, where they plan to outline the company’s strategy for accelerating growth and enhancing shareholder value. The presentation, which will be accessible via webcast with a replay available on the company’s investor relations website, is expected to highlight Worthington’s use of its established Worthington Business System—built on innovation, transformation and M&A—as a key framework for its growth agenda, underscoring management’s efforts to communicate its strategic direction and value proposition to the investment community.

The most recent analyst rating on (WOR) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.