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Worthington Steel, Inc. (WS)
NYSE:WS
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Worthington Steel, Inc.
(NYSE:WS)
Rating:77Outperform
Price Target:
$36.00
▲(13.10%Upside)
Worthington Steel, Inc. (WS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.62B
Dividend Yield2.01%
Average Volume (3M)328.66K
Price to Earnings (P/E)14.5
Beta (1Y)1.76
Revenue Growth-9.83%
EPS Growth-28.70%
CountryUS
Employees5,000
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)1.05
Shares Outstanding50,740,547
10 Day Avg. Volume242,375
30 Day Avg. Volume328,662
Financial Highlights & Ratios
PEG Ratio6.27
Price to Book (P/B)1.47
Price to Sales (P/S)0.00
P/FCF Ratio10.39
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit4.72
Enterprise Value/Ebitda2.04
Forecast
1Y Price Target
$32.00Price Target Upside0.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Worthington Steel, Inc. Business Overview & Revenue Model
Company DescriptionWorthington Steel, Inc. (WS) is a leading manufacturer and processor of steel products operating in the metals sector. The company is renowned for its diverse range of steel solutions, including flat-rolled steel products, which are used in various industries such as automotive, construction, and manufacturing. Worthington Steel is committed to delivering high-quality products and innovative solutions to meet the evolving needs of its customers.
How the Company Makes MoneyWorthington Steel, Inc. generates revenue primarily through the manufacturing and sale of its steel products. The company's key revenue streams include the sale of flat-rolled steel products, custom-engineered products, and specialized steel solutions tailored to specific industry needs. Worthington Steel collaborates with a network of distributors and partners to ensure efficient market reach and customer satisfaction. Additionally, the company benefits from long-term contracts with major clients in the automotive and construction industries, providing a stable source of recurring revenue. Strategic investments in technology and production capabilities enhance operational efficiency, contributing to profitability.
Worthington Steel, Inc. Earnings Call Summary
Earnings Call Date:Jun 25, 2025
(Q4-2025)
| % Change Since: 21.21%|
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Neutral
Worthington Steel reported solid financial performance with gains in automotive market share and strategic acquisitions, despite challenges in the agricultural and construction markets, and a decline in toll processing volumes.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA in Q4 was $87 million compared to $86.5 million in the prior year quarter. Earnings per share increased to $1.10 from $1.06 in the same period last year.
Market Share Gains in Automotive
Automotive shipments increased by 5% compared to the prior year quarter, driven by market share gains.
Strategic Acquisitions and Expansions
Closed on a 52% ownership stake in Sitem, expanding capabilities in the European electric motor lamination market. Progress continues on electrical steel expansions in Mexico and Canada.
Recognition and Awards
Named 2024 Supplier of the Year by General Motors and recognized as a Partner-level Supplier in the John Deere Achieving Excellence Program.
AI Implementation
Began integrating artificial intelligence to enhance productivity, improve quality, and unlock new value for customers.
Negative Updates
Challenges in Agricultural Market
Agricultural volumes were down 40% compared with the prior year quarter due to market softness and increased competition.
Toll Processing Volume Decline
Toll processing tons were down 11% year-over-year due to slowness in automotive tolling programs and the closure of the Cleveland pickling facility.
Gross Margin Decrease
Gross margin was $4 million lower than the prior year quarter due to unfavorable tolling margins and market compression.
Construction Market Slowdown
Construction markets faced a 5% decrease in volume year-over-year.
Company Guidance
During Worthington Steel's Fourth Quarter Fiscal Year 2025 earnings call, the company reported an adjusted EBITDA of $87 million, slightly up from $86.5 million in the prior year, and earnings per share of $1.10 compared to $1.06 last year. The company highlighted the strength in the automotive sector, with a 5% increase in shipments, supported by market share gains. However, construction and agricultural markets experienced challenges, with construction volumes down 5% and agricultural volumes down 40% year-over-year. The company also noted a decline in toll processing volumes by 11% due to various factors, including the closure of a facility and customer program changes. Worthington Steel's net sales were $833 million, a 9% decrease from the previous year, attributed to lower direct selling prices and toll volumes. The company is optimistic about future growth, driven by ongoing investments in the electrical steel market and the recent acquisition of a 52% stake in Sitem, a European electrical steel manufacturer. Worthington Steel is also focused on strategic initiatives to enhance margins, reduce working capital, and expand capacity, with capital expenditures anticipated to be around $100 million for fiscal 2026.Worthington Steel, Inc. Financial Statement Overview
Summary
Worthington Steel, Inc. shows strong financial health with robust cash flow generation and a solid balance sheet. Despite declining revenue, the company maintains good profitability metrics and low leverage, enhancing financial stability.Income Statement
Worthington Steel, Inc. has demonstrated consistent profitability with a Gross Profit Margin of approximately 12.6% for the latest fiscal year. However, there was a decline in Total Revenue from $3.43 billion to $3.09 billion, indicating a negative Revenue Growth Rate. The Net Profit Margin stands at a healthy 3.6%, although it has decreased compared to the previous year. Despite these challenges, the company maintains an EBIT Margin of 4.7% and EBITDA Margin of 4.7%, showing operational efficiency.75
Positive
Balance Sheet
The company has a strong balance sheet characterized by a Debt-to-Equity Ratio of 0.21, suggesting low financial leverage. The Equity Ratio is robust at 54.7%, signifying a solid capital structure with more than half of the assets funded by equity. Return on Equity (ROE) is 10.3%, highlighting effective utilization of shareholder funds to generate returns.80
Positive
Cash Flow
Cash flow analysis reveals a strong Free Cash Flow to Net Income Ratio of 2.08, indicating efficient cash conversion. The Operating Cash Flow to Net Income Ratio is 2.08, demonstrating strong cash generation relative to net income. The Free Cash Flow Growth Rate has significantly increased due to improved operating efficiencies and capital management.85
Very Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.09B | 3.43B | 3.61B | 4.07B | 2.13B |
| Gross Profit | 388.60M | 439.80M | 340.40M | 395.46M | 370.84M |
| EBITDA | 147.00M | 287.50M | 205.30M | 274.70M | 268.36M |
| Net Income | 110.70M | 154.70M | 87.10M | 180.40M | 171.01M |
Balance Sheet | |||||
| Total Assets | 1.96B | 1.87B | 1.76B | 2.08B | 1.37B |
| Cash, Cash Equivalents and Short-Term Investments | 92.90M | 40.20M | 32.68M | 20.05M | 17.46M |
| Total Debt | 230.20M | 223.90M | 100.39M | 153.90M | 8.11M |
| Total Liabilities | 763.90M | 748.90M | 609.79M | 817.66M | 551.82M |
| Stockholders Equity | 1.07B | 985.30M | 1.03B | 1.13B | 661.33M |
Cash Flow | |||||
| Free Cash Flow | 230.30M | 96.10M | 269.54M | 3.05M | 123.75M |
| Operating Cash Flow | 230.30M | 199.50M | 315.01M | 39.49M | 152.55M |
| Investing Cash Flow | -129.10M | -123.20M | -22.15M | -395.35M | -27.69M |
| Financing Cash Flow | -48.50M | -68.80M | -280.23M | 358.45M | -116.68M |
Worthington Steel, Inc. Technical Analysis
Positive
31.83
Price Trends
28.33
Positive
26.83
Positive
30.81
Positive
Market Momentum
1.13
Positive
56.73
Neutral
47.91
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 31.83 is below the 20-day moving average (MA) of 31.87, above the 50-day MA of 28.33, and above the 200-day MA of 30.81, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 47.91 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.62B | 14.53 | 10.75% | 2.01% | -9.83% | -28.70% | |
71 Outperform | $5.97B | 171.83 | 0.88% | 1.35% | -5.64% | -93.26% | |
57 Neutral | $371.38M | 23.16 | 2.95% | 1.86% | -9.65% | -61.57% | |
56 Neutral | $6.23B | 21.98 | -28.61% | 4.90% | 10.73% | -32.66% | |
56 Neutral | $5.66B | ― | -25.79% | ― | -12.14% | -4329.00% | |
51 Neutral | $1.98B | ― | -16.28% | 8.02% | -9.84% | -14783.33% |
* General Sector Average
Performance Comparison
WS
Worthington Steel, Inc.
31.83
-6.58
-17.13%
CLF
Cleveland-Cliffs
11.44
-3.82
-25.03%
CMC
Commercial Metals Company
53.32
-5.84
-9.87%
SID
Companhia Siderúrgica Nacional
1.53
-0.49
-24.26%
ZEUS
Olympic Steel
33.27
-15.03
-31.12%
Worthington Steel, Inc. Corporate Events
Executive/Board ChangesDividendsBusiness Operations and StrategyFinancial Disclosures
Worthington Steel Appoints Mark C. Davis to Board
Neutral
Jun 27, 2025
On June 24, 2025, Carl A. Nelson Jr. announced his retirement from the Board of Directors of Worthington Steel, effective September 24, 2025, with no disagreements cited. Mark C. Davis was appointed to the Board and the Audit Committee on June 25, 2025, filling the position created by the Board’s expansion. Additionally, the company declared a quarterly cash dividend of $0.16 per share, payable on September 26, 2025. Worthington Steel reported a 9% decrease in net sales for the fourth quarter of fiscal 2025 compared to the previous year, primarily due to lower selling prices and toll volumes. Despite this, the company achieved a slight increase in net earnings and continued to execute its growth strategies, including the acquisition of Sitem Group and investments in electrical steel, while maintaining strong market positioning and earning industry accolades.
The most recent analyst rating on (WS) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Worthington Steel, Inc. stock, see the WS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.