Worthington Industries (WOR) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: 1.07%
• Average Volume (3M): 293.81K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.90
• Revenue Growth: -60.43%
• EPS Growth: -14.19%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.06
• Shares Outstanding: 49,917,225
• 10 Day Avg. Volume: 286,125
• 30 Day Avg. Volume: 293,811
• PEG Ratio: 0.55
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.49
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: 6.87
• 1Y Price Target: $68.33
• Price Target Upside: 7.56% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $71.00 ▲(11.76%Upside)

Worthington Industries receives a solid stock score, driven by strong financial performance, bullish technical indicators, and positive earnings call outcomes. Valuation concerns and economic uncertainties slightly offset these strengths.

Positive Factors

Acquisition

Elgen acquisition provides exposure to HVAC, another niche market & aligns well with WOR’s domestic sourcing.

Financial Performance

Gross margin came in well above consensus, driving beats of approximately 13% and 30% on adjusted EBITDA and EPS, respectively.

Stock Valuation

Worthington Enterprises stock is believed to be undervalued by 20% to 40%, suggesting potential for stock price appreciation.

Negative Factors

Stock Movement

Today's stock move appears to be a bit overdone given it was a 'less bad' quarter.

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

Worthington Industries generates revenue through its three main business segments. In the Steel Processing segment, the company processes flat-rolled steel to produce products such as hot-rolled, cold-rolled, and galvanized steel, which are supplied to automotive, construction, and industrial markets. The Pressure Cylinders segment manufactures pressure vessels for storage and transportation of gases, and consumer products such as propane tanks and helium cylinders, catering to both industrial and retail markets. The Engineered Cabs segment designs and manufactures custom cab enclosures for heavy equipment, targeting the agriculture and construction industries. The company benefits from strategic partnerships that enhance its supply chain efficiency and customer reach, while also focusing on operational excellence and innovation to maintain competitive pricing and high-quality product offerings.

Worthington Industries Financial Statement Overview

Summary

Worthington Industries demonstrates strong financial stability with low leverage and healthy profit margins. However, challenges with revenue growth and a decline in free cash flow slightly temper this positive assessment.

Income Statement

Worthington Industries has maintained a stable gross profit margin of around 27.6% in 2025, which shows good cost management despite modest revenue levels. The net profit margin of 8.3% indicates reasonable profitability, though it decreased from the previous year. The revenue growth rate is negative, reflecting a 7.4% decrease year-over-year, which may indicate challenges in market expansion or demand. However, the company has improved its EBIT margin to 8.2% in 2025, showing recovery from past periods of negative EBIT. This combination of stable profitability and recent EBIT recovery supports a healthy income statement score.

Balance Sheet

The balance sheet of Worthington Industries shows a strong equity position with a debt-to-equity ratio of 0.35, indicating low leverage. The return on equity (ROE) is 10.2%, which is reasonable but reflects a decline from previous years. The equity ratio is 55.3%, which is stable, highlighting a solid capital structure and financial stability. These metrics suggest a low-risk profile with room for leveraging if needed, contributing to a positive balance sheet score.

Cash Flow

The operating cash flow to net income ratio is 2.18 in 2025, indicating strong cash generation relative to reported earnings. Free cash flow has declined by 22.9% compared to the previous year, which could impact the company's ability to reinvest or return capital to shareholders. However, the free cash flow to net income ratio is 1.66, which remains healthy and demonstrates efficient capital management. Despite the recent decrease in free cash flow, the robust cash flow generation supports the company's liquidity and capital flexibility.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.15B	1.25B	4.92B	5.24B	3.17B
Gross Profit	319.04M	285.02M	663.31M	714.82M	639.08M
EBITDA	94.97M	156.49M	149.27M	643.81M	375.59M
Net Income	96.05M	110.62M	256.53M	379.39M	723.79M
Balance Sheet
Total Assets	1.70B	1.64B	3.65B	3.64B	3.37B
Cash, Cash Equivalents and Short-Term Investments	250.07M	244.22M	454.95M	34.48M	640.31M
Total Debt	326.06M	317.18M	795.38M	844.41M	747.81M
Total Liabilities	756.91M	747.63M	1.83B	2.03B	1.82B
Stockholders Equity	937.19M	888.88M	1.70B	1.48B	1.40B
Cash Flow
Free Cash Flow	159.16M	206.45M	539.00M	-24.49M	192.20M
Operating Cash Flow	209.74M	289.98M	625.36M	70.11M	274.38M
Investing Cash Flow	-135.10M	-140.81M	-71.78M	-438.19M	468.51M
Financing Cash Flow	-68.79M	-359.89M	-133.13M	-237.75M	-249.78M

Worthington Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 63.53 is above the 20-day moving average (MA) of 62.17, above the 50-day MA of 59.76, and above the 200-day MA of 46.37, indicating a bullish trend. The MACD of 1.60 indicates Positive momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WOR.

Worthington Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	82 Outperform	$3.18B	12.30	23.85%	0.75%	1.70%	684.20%
WOR	74 Outperform	$3.17B	33.09	10.52%	1.07%	-60.43%	-14.19%
MEC	73 Outperform	$331.06M	14.99	9.40%	―	-8.42%	164.82%
IIIN	72 Outperform	$768.70M	34.34	6.61%	0.30%	-0.33%	-7.06%
NWPX	72 Outperform	$416.06M	12.87	9.13%	―	8.06%	38.46%
Sector *	65 Neutral	$10.85B	15.47	5.22%	1.89%	3.09%	-26.84%
RYI	58 Neutral	$765.30M	37.86	-0.78%	3.15%	-9.04%	-108.47%

Worthington Industries Corporate Events

Worthington Industries Approves Executive Retention Award

On June 30, 2025, Worthington Enterprises’ Compensation Committee approved a special leadership retention performance share award for key executives, including the Vice President and Chief Financial Officer, Vice President – General Counsel & Secretary, President of the Consumer Products segment, and Senior Vice President & Chief of Corporate Affairs. This award, part of the 2024 Long-Term Incentive Plan, aims to align executive retention with shareholder interests by granting common shares upon meeting performance and retention conditions over a three-year period. The award is structured to incentivize executives by linking vesting to the company’s annualized total shareholder return and continuous employment, with the potential for accelerated vesting under specific circumstances.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries Reports Strong Q4 Earnings Growth

On June 24, 2025, Worthington Enterprises reported its fiscal 2025 fourth-quarter results, highlighting a 111% increase in net earnings from continuing operations to $3.6 million and a 35% rise in adjusted EBITDA to $85.1 million. The company declared a quarterly cash dividend of $0.19 per share, a 12% increase from the previous quarter, and announced the acquisition of Elgen Manufacturing for approximately $93 million. The acquisition aligns with Worthington’s growth strategy in niche markets, and the company expressed confidence in sustaining growth into fiscal 2026.

The most recent analyst rating on (WOR) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries Acquires Elgen Manufacturing for $93M

On June 19, 2025, Worthington Enterprises announced its acquisition of Elgen Manufacturing, a leading provider of HVAC parts and components, for approximately $93 million. This strategic acquisition, funded from existing cash, is expected to create synergies and growth opportunities within Worthington’s Building Products segment, enhancing its market position in the HVAC infrastructure sector and providing operational efficiencies and value for Elgen’s customers.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.