Worthington Steel, Inc. (WS) AI Stock Analysis

• Market Cap: $1.59B
• Dividend Yield: 2.1%
• Average Volume (3M): 319.29K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.80
• 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: 210,728
• 30 Day Avg. Volume: 319,286
• 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: 1.36
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 8.97
• 1Y Price Target: $36.00
• Price Target Upside: 17.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $33.00 ▲(8.06% Upside)

Worthington Steel's overall stock score reflects strong earnings performance and strategic expansions, particularly in the automotive sector. However, liquidity challenges and short-term bearish technical indicators weigh on the score. The stock's valuation is reasonable, providing a balanced outlook.

Worthington Steel, Inc. Business Overview & Revenue Model

Company Description

Worthington Steel, Inc. (WS) is a leading manufacturer and distributor of steel products and services, catering primarily to the construction, automotive, and industrial sectors. The company specializes in providing high-quality steel solutions, including flat-rolled steel, processed steel, and custom fabrication services. With a commitment to innovation and sustainability, Worthington Steel aims to deliver exceptional value to its customers through a diverse range of steel products that meet the evolving demands of various industries.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.09B	3.43B	3.61B	4.07B	2.13B
Gross Profit	403.40M	388.60M	439.80M	336.50M	395.50M	370.84M
EBITDA	241.40M	221.20M	287.50M	201.30M	316.80M	268.36M
Net Income	118.60M	110.70M	154.70M	87.10M	180.40M	171.01M
Balance Sheet
Total Assets	2.24B	1.96B	1.87B	1.76B	2.08B	1.37B
Cash, Cash Equivalents and Short-Term Investments	78.30M	92.90M	40.20M	32.68M	20.05M	17.46M
Total Debt	333.30M	227.90M	223.90M	100.39M	153.90M	8.11M
Total Liabilities	912.40M	763.90M	748.90M	609.79M	817.66M	551.82M
Stockholders Equity	1.10B	1.07B	985.30M	1.03B	1.13B	661.33M
Cash Flow
Free Cash Flow	88.70M	99.90M	96.10M	269.54M	3.05M	123.75M
Operating Cash Flow	170.70M	230.30M	199.50M	315.01M	39.49M	152.55M
Investing Cash Flow	-148.60M	-129.10M	-123.20M	-22.15M	-395.35M	-27.69M
Financing Cash Flow	19.90M	-48.50M	-68.80M	-280.23M	358.45M	-116.68M

Worthington Steel, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.54
• 50DMA: Negative
• 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 Negative. The current price of 30.54 is below the 20-day moving average (MA) of 30.78, below the 50-day MA of 31.86, and above the 200-day MA of 28.55, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GGB	71 Outperform	$6.46B	12.16	5.77%	3.21%	-6.55%	-37.93%
WS	68 Neutral	$1.59B	13.29	11.22%	2.10%	-6.75%	-5.18%
ZEUS	66 Neutral	$317.56M	22.47	2.50%	2.18%	-9.21%	-60.42%
SIM	66 Neutral	$4.66B	13.09	10.49%	―	-18.58%	-35.32%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SID	53 Neutral	$2.14B	―	-15.57%	14.08%	-10.77%	-192.16%
ACNT	51 Neutral	$113.73M	―	-10.88%	―	-20.35%	77.51%

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.