Worthington Steel, Inc. (WS) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 2.02%
• Average Volume (3M): 194.29K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.79
• Revenue Growth: -6.75%
• EPS Growth: -5.18%
• Country: US
• Employees: 5,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.77
• Shares Outstanding: 50,833,057
• 10 Day Avg. Volume: 165,358
• 30 Day Avg. Volume: 194,289
• PEG Ratio: -0.39
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 12.34
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 8.97
• 1Y Price Target: $36.00
• Price Target Upside: 13.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.69
• Revenue Forecast (FY): $3.17B

• Rating: 69 Neutral
• Price Target: $34.00 ▲(7.36% Upside)

Worthington Steel's overall stock score reflects its stable financial performance and strategic growth initiatives, particularly in the automotive and EV sectors. The company's reasonable valuation and dividend yield add to its attractiveness. However, technical indicators suggest potential short-term volatility, and challenges in certain markets pose risks. The company's strategic focus on AI-driven improvements and safety achievements are positive long-term factors.

Worthington Steel, Inc. Business Overview & Revenue Model

Company Description

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.

How the Company Makes Money

Worthington Steel generates revenue through multiple streams, predominantly by selling steel products to various industries, including construction and automotive. The company earns money through direct sales of its core products, such as flat-rolled steel and custom-fabricated steel components. Additionally, WS engages in value-added services, such as processing and fabrication, which command higher margins. Strategic partnerships with major manufacturers and suppliers enhance its distribution capabilities and market reach, thereby contributing significantly to its earnings. Furthermore, the company's focus on sustainability and innovation allows it to tap into niche markets, driving additional revenue growth.

Worthington Steel, Inc. Financial Statement Overview

Summary

Worthington Steel, Inc. demonstrates stable financial performance with consistent revenue growth and efficient production processes. The balance sheet reflects prudent leverage and effective equity utilization. However, declining free cash flow growth and moderate cash generation efficiency highlight areas for improvement in liquidity management.

Income Statement

Worthington Steel, Inc. shows a stable revenue base with a TTM revenue growth rate of 1.26%. The gross profit margin is consistent at around 12.88%, indicating efficient production processes. However, the net profit margin of 3.79% suggests room for improvement in cost management. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.27, indicating prudent leverage use. Return on equity is reasonable at 11.29%, showing effective use of shareholder funds. The equity ratio of 49.25% suggests a balanced capital structure, though there is potential to enhance asset utilization.

Cash Flow

Operating cash flow is positive, but the free cash flow growth rate has declined by 43.21%, indicating potential liquidity challenges. The operating cash flow to net income ratio of 0.25 suggests moderate cash generation efficiency. The free cash flow to net income ratio of 0.69 indicates a need for improved cash retention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	3.13B	3.09B	3.43B	3.61B	2.13B	4.07B
Gross Profit	403.40M	388.60M	439.80M	336.50M	370.84M	395.50M
EBITDA	241.40M	221.20M	287.50M	201.30M	268.36M	316.80M
Net Income	118.60M	110.70M	154.70M	87.10M	171.01M	180.40M
Balance Sheet
Total Assets	2.24B	1.96B	1.87B	1.76B	1.37B	2.08B
Cash, Cash Equivalents and Short-Term Investments	78.30M	92.90M	40.20M	32.68M	17.46M	20.05M
Total Debt	333.30M	227.90M	231.50M	100.39M	8.11M	153.90M
Total Liabilities	912.40M	763.90M	748.90M	609.79M	551.82M	817.66M
Stockholders Equity	1.10B	1.07B	985.30M	1.03B	661.33M	1.13B
Cash Flow
Free Cash Flow	88.70M	99.90M	96.10M	269.54M	123.75M	3.05M
Operating Cash Flow	170.70M	230.30M	199.50M	315.01M	152.55M	39.49M
Investing Cash Flow	-148.60M	-129.10M	-123.20M	-22.15M	-27.69M	-395.35M
Financing Cash Flow	19.90M	-48.50M	-68.80M	-280.23M	-116.68M	358.45M

Worthington Steel, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WS, the sentiment is Positive. The current price of 31.67 is above the 20-day moving average (MA) of 31.45, above the 50-day MA of 31.55, and above the 200-day MA of 28.72, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WS.

Worthington Steel, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIM	73 Outperform	$4.62B	23.68	5.84%	―	-16.81%	-67.68%
GGB	71 Outperform	$6.71B	13.40	5.21%	3.10%	-2.53%	-36.08%
WS	69 Neutral	$1.61B	13.43	11.22%	2.02%	-6.75%	-5.18%
ZEUS	65 Neutral	$389.12M	29.59	2.40%	1.71%	-5.64%	-48.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ACNT	57 Neutral	$129.14M	148.60	-3.84%	―	-29.03%	―
SID	54 Neutral	$2.23B	-5.50	-10.50%	14.25%	-5.79%	-5.30%

Worthington Steel, Inc. Corporate Events

Worthington Steel’s Earnings Call Highlights Robust Growth Amid Challenges

Worthington Steel’s recent earnings call conveyed a generally positive sentiment, underscored by robust financial results and commendable safety achievements. The company reported significant gains in the automotive sector, although it faces challenges in toll processing and agricultural markets, along with potential inventory holding losses. Despite these hurdles, Worthington Steel is committed to strategic expansions and operational transformations to navigate uncertainties effectively.

Worthington Steel Reports Strong Start to Fiscal 2026

On September 24, 2025, Worthington Steel held its Annual Meeting of Shareholders where directors were elected, executive compensation was approved, and KPMG LLP was ratified as the independent auditor. The company declared a quarterly dividend of $0.16 per share, payable on December 26, 2025. Worthington Steel reported a strong start to fiscal 2026 with a 5% increase in net sales to $872.9 million and a 30% rise in net earnings to $36.8 million, driven by disciplined execution and the acquisition of Sitem Group. The company faced lower toll volumes but benefited from higher direct volumes and spreads, reflecting its adaptability in a soft market.

The most recent analyst rating on (WS) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Worthington Steel, Inc. stock, see the WS Stock Forecast page.

Worthington Steel Reports Strong Start to Fiscal 2026

Worthington Steel, Inc., a leading metals processing company, specializes in value-added steel solutions and operates in the industrial sector with a focus on sustainability and innovation. The company recently announced its first quarter fiscal 2026 results, showcasing a strong start to the year with notable financial improvements and strategic expansions. Worthington Steel reported a 5% increase in net sales to $872.9 million, alongside a rise in operating income to $48.3 million and net earnings attributable to the company of $36.8 million. The company also declared a quarterly dividend of $0.16 per share. A significant highlight of the quarter was the acquisition of a majority stake in S.I.T.E.M. S.p.A., which contributed to the company’s growth and strategic positioning. The acquisition is expected to enhance Worthington Steel’s capabilities and market reach. Looking ahead, Worthington Steel remains committed to leveraging its industrial heritage and transformation mindset to drive long-term growth and adapt to dynamic market conditions.