Worthington Industries (WOR) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 1.27%
• Average Volume (3M): 148.11K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.80
• 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: 192,717
• 30 Day Avg. Volume: 148,106
• 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: 1.08
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 15.24
• 1Y Price Target: $51.85
• Price Target Upside: -8.34% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.47
• Revenue Forecast (FY): $1.35B

• Rating: 70 Outperform
• Price Target: $59.00 ▲(4.30% Upside)

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

Strong free cash flow generation

Consistent FCF growth and an OCF-to-net-income ratio above 1 signal durable cash generation. That cash funds organic investment, accretive M&A, dividends and debt paydown, improving resilience through cycles and reducing reliance on external financing over the medium term.

Conservative balance sheet and low leverage

A low D/E and modest net leverage provide financial flexibility for strategic initiatives. This conservative capital structure lowers refinancing and solvency risk, enabling disciplined capital allocation and providing a buffer against cyclical downturns common in metal fabrication over the next several quarters.

Accretive strategic acquisition (LSI)

The LSI acquisition expands Worthington's building-products scale, adds complementary product lines and customer relationships, and is modeled to be EBITDA- and cash-accretive. Successful integration could sustainably enhance margins and market share in commercial metal roofing.

Negative Factors

Low operating (EBIT) margin

A sub-2% EBIT margin indicates structural pressure on operating profitability despite decent gross margins. Persistently weak operating leverage limits the company's ability to translate revenue into durable earnings, constraining reinvestment and reducing margin room to absorb cost shocks.

Gross margin erosion from integration and tariffs

Integration costs and tariff-driven input cost increases have compressed gross margins. Such integration-related friction and trade headwinds can persist across quarters, pressuring sustainable profitability until synergies and pricing actions fully offset incremental costs.

Partner underperformance and cyclic end-market exposure

Declining equity earnings from ClarkDietrich highlight dependence on partner/affiliate performance and exposure to cyclical building markets. These dependencies amplify earnings volatility and strategic complexity, making long-term earnings less predictable amid construction cycle swings.

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 multiple streams, primarily from the sale of its core products in the steel processing and pressure cylinders segments. The Steel Processing segment contributes significantly by providing value-added steel products to various industries, including automotive manufacturing. The Pressure Cylinders segment generates income from the production and sale of propane and industrial gas cylinders, catering to both commercial and consumer markets. Additionally, the Consumer Products segment offers products such as home improvement and outdoor living items, further diversifying the company's revenue sources. Significant partnerships with manufacturers and distributors enhance market reach and sales, while a commitment to operational efficiency and cost management also positively impacts profitability. Overall, the company's ability to adapt to market demands and focus on high-margin products plays a crucial role in its financial performance.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.15B	1.25B	1.42B	5.24B	3.17B
Gross Profit	318.26M	285.92M	339.37M	602.01M	579.84M
EBITDA	179.37M	156.49M	291.36M	643.81M	1.03B
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: 56.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 56.57 is above the 20-day moving average (MA) of 53.80, above the 50-day MA of 54.10, and below the 200-day MA of 57.78, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 is Negative, 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	80 Outperform	$3.81B	12.00	27.38%	0.67%	1.55%	701.41%
NWPX	78 Outperform	$660.66M	18.89	9.78%	―	7.61%	25.35%
WOR	70 Outperform	$2.78B	26.39	11.31%	1.27%	7.43%	148.83%
IIIN	66 Neutral	$667.82M	14.17	13.77%	3.49%	22.39%	112.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	63 Neutral	$402.30M	33.82	5.06%	―	-12.38%	-0.71%
RYI	52 Neutral	$944.13M	-42.37	-2.81%	2.84%	-4.89%	-214.50%

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.

Worthington Industries Appoints New Board Member

On December 16, 2025, Worthington Enterprises announced the appointment of Charles M. Chiappone to its Board of Directors, expanding the board from 12 to 13 members. Chiappone brings a wealth of experience from his previous roles at Armstrong World Industries and Alloy Polymers, enhancing the board’s strategic capabilities. Additionally, Worthington reported strong financial results for the second quarter of fiscal 2026, with a 19% increase in net sales and a 7% rise in adjusted net earnings. The company also declared a quarterly cash dividend and announced an agreement to acquire LSI Group, a leader in metal roofing components, for approximately $205 million, expected to close in January 2026. This acquisition aligns with Worthington’s growth strategy and is anticipated to bolster its Building Products segment.

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 Discusses Steel Business Separation

On November 13, 2025, Worthington Enterprises presented at the Baird 2025 Global Industrial Conference in Chicago, discussing the anticipated benefits of separating its steel processing business and the future opportunities post-separation. The company highlighted its strategic focus on innovation, cost efficiencies, and market expansion, while addressing potential risks such as economic conditions, regulatory approvals, and the impacts of global events like the COVID-19 pandemic and geopolitical tensions.

The most recent analyst rating on (WOR) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries to Present at Baird Conference

On November 5, 2025, Worthington Enterprises announced its participation in the Baird 2025 Global Industrial Conference in Chicago on November 13, 2025. The company’s President and CEO, Joseph B. Hayek, along with CFO Colin J. Souza, will present strategies for accelerating growth and shareholder value through innovation, transformation, and mergers and acquisitions. This participation underscores Worthington’s commitment to leveraging its business system to enhance its market position and engage with stakeholders.

The most recent analyst rating on (WOR) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.