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Worthington Steel, Inc. (WS)
NYSE:WS
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Worthington Steel, Inc.
(NYSE:WS)
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Select Model
Rating:73Outperform
Price Target:
$32.00
▲(5.96% Upside)
Worthington Steel's strong financial performance and strategic acquisitions contribute positively to its stock score. However, technical indicators suggest potential bearish momentum, and challenges in certain markets could impact future growth. The stock's moderate valuation and reasonable dividend yield provide some support.
Worthington Steel, Inc. (WS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend Yield2.12%
Average Volume (3M)290.36K
Price to Earnings (P/E)12.8
Beta (1Y)1.77
Revenue Growth-6.75%
EPS Growth-5.18%
CountryUS
Employees5,000
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)0.77
Shares Outstanding50,870,804
10 Day Avg. Volume491,798
30 Day Avg. Volume290,361
Financial Highlights & Ratios
PEG Ratio-0.39
Price to Book (P/B)1.15
Price to Sales (P/S)0.40
P/FCF Ratio5.35
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit5.57
Enterprise Value/Ebitda9.79
Forecast
1Y Price Target
$34.00Price Target Upside12.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Worthington Steel, Inc. Business Overview & Revenue Model
Company DescriptionWorthington 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 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:Sep 24, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Neutral
Despite facing challenges in the agricultural and toll processing markets, Worthington Steel's solid performance in the automotive sector, strategic acquisitions, and capital investments indicate a positive trajectory. The company is cautiously optimistic about future growth opportunities.Q4-2025 Updates
Positive Updates
Stable Adjusted EBITDA and Earnings Per Share Growth
Adjusted EBITDA for the fourth quarter was $87 million, a slight increase from $86.5 million in the prior year. Earnings per share increased to $1.10 from $1.06 in the same period last year.
Automotive Market Share Gains
Worthington Steel saw a 5% increase in shipments to the automotive market, attributed to market share gains and new program shipments.
Acquisition of Sitem
Closed on the acquisition of a 52% ownership stake in Sitem, enhancing Worthington's position in the European electric motor lamination market.
Awards and Recognitions
Worthington Steel was named 2024 Supplier of the Year by General Motors and recognized as a Partner-level Supplier in the John Deere Achieving Excellence Program for the 13th consecutive year.
Strategic Capital Investments
Continued progress on electrical steel expansions in Mexico and Canada, with initial production in Mexico expected later this year.
Negative Updates
Agricultural Market Challenges
The agricultural market faced pressure with a 40% decline in volumes compared to the prior year quarter.
Toll Processing Volume Decline
Toll processing tons were down 11% year-over-year due to slowness in automotive tolling programs and the wind-down of the Worthington Samuel Coil Processing facility.
Gross Margin Decline
Gross margin was $4 million lower than the prior year quarter, primarily due to unfavorable tolling margins.
Net Sales Decline
Net sales in the quarter were $833 million, down 9% from the prior year quarter, primarily due to lower direct selling prices and lower toll volumes.
Company Guidance
During the fourth quarter of the fiscal year 2025, Worthington Steel reported an adjusted EBITDA of $87 million, slightly up from $86.5 million in the previous year. Earnings per share rose to $1.10 from $1.06, despite a challenging macroeconomic environment. The automotive sector showed strength with a 5% increase in shipments, bolstered by market share gains. However, construction and agricultural markets faced declines, with agricultural volumes down by 40%. The company completed the acquisition of a 52% stake in Sitem, enhancing its presence in the European electric motor lamination market. Worthington Steel's gross margin improved by 350 basis points quarter-over-quarter, attributed to a favorable mix of direct tons and improved metal spreads. Despite a 9% decrease in net sales to $833 million, the company maintained strong market positions and strategic expansions, particularly in the electrical steel market, with ongoing projects in Mexico and Canada.Worthington Steel, Inc. Financial Statement Overview
Summary
Worthington Steel, Inc. exhibits a solid financial position with robust cash flow generation and a strong balance sheet. Despite a decline in revenue, the company maintains strong profitability metrics and low financial leverage, enhancing its 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.09B | 3.09B | 3.43B | 3.61B | 4.07B | 2.13B |
| Gross Profit | 388.60M | 388.60M | 439.80M | 336.50M | 395.50M | 370.84M |
| EBITDA | 221.20M | 221.20M | 287.50M | 201.30M | 316.80M | 268.36M |
| Net Income | 110.70M | 110.70M | 154.70M | 87.10M | 180.40M | 171.01M |
Balance Sheet | ||||||
| Total Assets | 1.96B | 1.96B | 1.87B | 1.76B | 2.08B | 1.37B |
| Cash, Cash Equivalents and Short-Term Investments | 92.90M | 92.90M | 40.20M | 32.68M | 20.05M | 17.46M |
| Total Debt | 227.90M | 230.20M | 223.90M | 100.39M | 153.90M | 8.11M |
| Total Liabilities | 763.90M | 763.90M | 748.90M | 609.79M | 817.66M | 551.82M |
| Stockholders Equity | 1.07B | 1.07B | 985.30M | 1.03B | 1.13B | 661.33M |
Cash Flow | ||||||
| Free Cash Flow | 156.20M | 230.30M | 96.10M | 269.54M | 3.05M | 123.75M |
| Operating Cash Flow | 230.30M | 230.30M | 199.50M | 315.01M | 39.49M | 152.55M |
| Investing Cash Flow | -139.20M | -129.10M | -123.20M | -22.15M | -395.35M | -27.69M |
| Financing Cash Flow | -38.40M | -48.50M | -68.80M | -280.23M | 358.45M | -116.68M |
Worthington Steel, Inc. Technical Analysis
Negative
30.20
Price Trends
31.86
Negative
29.69
Positive
29.02
Positive
Market Momentum
-0.05
Positive
40.61
Neutral
44.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WS, the sentiment is Negative. The current price of 30.2 is below the 20-day moving average (MA) of 32.55, below the 50-day MA of 31.86, and above the 200-day MA of 29.02, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 44.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WS.
Worthington Steel, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.54B | 12.80 | 11.22% | 2.12% | -6.75% | -5.18% | |
71 Outperform | 5.97B | 10.94 | 5.95% | 3.49% | -6.55% | -37.93% | |
69 Neutral | 4.63B | 13.29 | 10.64% | ― | -18.58% | -35.32% | |
66 Neutral | 346.23M | 25.24 | 2.49% | 2.04% | -9.21% | -60.42% | |
50 Neutral | 1.97B | -5.07 | -15.90% | 15.19% | -10.77% | -191.87% | |
49 Neutral | 119.25M | -43.45 | -3.55% | ― | -20.35% | 77.51% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
WS
Worthington Steel, Inc.
30.20
-3.10
-9.31%
GGB
Gerdau SA
3.07
-0.32
-9.44%
SIM
Grupo Simec SA De CV
27.92
0.25
0.90%
SID
Companhia Siderúrgica Nacional
1.51
-0.77
-33.77%
ZEUS
Olympic Steel
30.92
-7.36
-19.23%
ACNT
Ascent Industries
12.73
3.03
31.24%
Worthington Steel, Inc. Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial 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.