Worthington Industries (WOR) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 1.27%
• Average Volume (3M): 153.37K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.75
• 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: 124,942
• 30 Day Avg. Volume: 153,373
• 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: 2.39
• Enterprise Value/Gross Profit: 8.60
• Enterprise Value/Ebitda: 15.27
• 1Y Price Target: $71.50
• Price Target Upside: 22.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.48
• Revenue Forecast (FY): $1.35B

• Rating: 70 Outperform
• Price Target: $65.00 ▲(11.17% Upside)
• 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

Strong cash generation

Worthington's consistent free cash flow growth and strong operating-cash-to-income conversion demonstrate durable cash-generation capacity. This supports disciplined capital allocation—funding M&A, dividends, and capex—while providing a buffer against cyclical downturns and enabling long-term investment without relying on external financing.

Conservative balance sheet

A low debt-to-equity ratio and strong equity base give Worthington financial flexibility for strategic moves and resilience in stress scenarios. Low leverage reduces refinancing risk and supports opportunistic M&A and steady dividend policy, improving long-term stability and ability to invest through industry cycles.

Strategic acquisition growth

Acquisitions like LSI and prior deals expand Worthington's building-products footprint and add predictable EBITDA and sales, strengthening higher-margin building segments. This M&A-driven expansion, paired with product placements and innovation, should sustainably enhance market position and diversify revenue sources over the medium term.

Negative Factors

Low operating margin

Despite healthy gross margins, the very low EBIT margin indicates persistent operating inefficiencies or cost structure issues. Low operating profitability limits the firm's ability to absorb input-cost inflation or invest in growth organically, increasing reliance on acquisitions or non-operating levers to lift overall returns.

Gross margin pressure from integrations

Margin deterioration tied to the Elgen integration and growth investments signals execution risk when assimilating acquisitions. Prolonged integration drag can compress long-term profitability, erode anticipated synergies, and delay the realization of acquisition-driven returns if not remedied efficiently.

Affiliate weakness & external headwinds

Declining equity earnings from ClarkDietrich and tariff-related cost pressure expose Worthington to partner performance and macro trade risks. Reliance on equity affiliates and sensitivity to tariffs can introduce earnings volatility and constrain margin recovery, complicating reliable medium-term profit improvement.

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	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: Neutral
• Last Price: 58.47
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 58.47 is above the 20-day moving average (MA) of 57.32, above the 50-day MA of 54.83, and above the 200-day MA of 58.27, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WOR.

Worthington Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	79 Outperform	$4.06B	12.78	27.38%	0.67%	1.55%	701.41%
NWPX	74 Outperform	$742.96M	21.65	9.78%	―	7.61%	25.35%
WOR	70 Outperform	$2.78B	26.38	11.31%	1.27%	7.43%	148.83%
IIIN	68 Neutral	$723.10M	15.34	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	$426.69M	36.55	5.06%	―	-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.

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.