WS Stock Analysis: Worthington Steel | NYSE
Steel | NYSE, USA | Market Cap: 1.812m USD | 12M Return: 19.7% | US9821041012 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 13.1M
Qual. Beats: -1
Rev. Trend: 40.6%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 2.8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Worthington Steel, Inc. is a steel processor operating across the United States, Canada, Mexico, and select international markets. The company provides a range of carbon flat-rolled steel processing services, including pickling, specialty re-rolling, hot dip galvanizing, blanking, slitting, and cutting-to-length, as well as laser welded solutions, precision magnetic steel laminations, tailor welded blanks, and steel toll processing for mills, large end-users, and service centers.
Its customer base spans the automotive, construction, machinery and equipment, agriculture, heavy truck, and energy sectors. The company was incorporated in 2023 as a spin-off from Worthington Enterprises (formerly Worthington Industries) and is headquartered in Columbus, Ohio.
As a steel processor rather than a primary steelmaker, Worthington Steel sits in the middle of the steel value chain, purchasing hot-rolled or cold-rolled coil from mills and adding value through surface treatment, slitting, blanking, and fabrication before delivering to industrial end-users. This toll-processing and value-added model tends to be less commodity-price sensitive than integrated steelmaking, though demand remains tied to cyclical end markets such as automotive and construction.
- Steel processing spreads compress on volatile hot-rolled coil pricing
- Automotive and heavy truck production drives flat-rolled volume demand
- Electrical steel lamination sales rise on EV and grid investment
- Zinc costs pressure galvanizing margins across product mix
| Net Income: -24.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 5.11 > 1.0 |
| NWC/Revenue: -18.50% < 20% (prev 14.52%; Δ -33.02% < -1%) |
| CFO/TA 0.09 > 3% & CFO 201.5m > Net Income -24.5m |
| Net Debt (2.60b) to EBITDA (198.6m): 13.08 < 3 |
| Current Ratio: 0.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (50.0m) vs 12m ago 0.81% < -2% |
| Gross Margin: 10.36% > 18% (prev 12.88%; Δ -2.52% > 0.5%) |
| Asset Turnover: 234.8% > 50% (prev 139.6%; Δ 95.18% > 0%) |
| Interest Coverage Ratio: 1.81 > 6 (EBIT TTM 113.8m / Interest Expense TTM 62.8m) |
| A: -0.43 (Total Current Assets 1.13b - Total Current Liabilities 2.11b) / Total Assets 2.27b |
| B: 0.05 (Retained Earnings 121.8m / Total Assets 2.27b) |
| C: 0.05 (EBIT TTM 113.8m / Avg Total Assets 2.26b) |
| D: 0.01 (Book Value of Equity 63.8m / Total Liabilities 4.32b) |
| Altman-Z'' = -2.30 = D |
As of October 12, 2026, the stock is trading at USD 36.05 with a total of 655,346 shares traded. Over the past week, the price has changed by -2.49%, over one month by +4.98%, over three months by +13.11% and over the past year by +19.71%.
Current recommended Stop Loss: 33.70 (which is 6.5% or 1.3 ATR below the current price).
Worthington Steel has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy WS.
- StrongBuy: 1
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 46 | 27.6% |
P/E Trailing = 209.1765
P/E Forward = 8.0906
P/S = 0.342
P/B = 1.6631
Revenue TTM = 5.30b USD
EBIT TTM = 113.8m USD
EBITDA TTM = 198.6m USD
Long Term Debt = 44.4m USD (from longTermDebt, last fiscal year)
Short Term Debt = 575.9m USD (from shortTermDebt, last quarter)
Debt = 2.68b USD (from shortLongTermDebtTotal, last quarter) + Leases 97.5m
Net Debt = 2.60b USD (calculated: Debt 2.68b - CCE 84.6m)
Enterprise Value = 4.41b USD (1.81b + Debt 2.68b - CCE 84.6m)
Interest Coverage Ratio = 1.81 (Ebit TTM 113.8m / Interest Expense TTM 62.8m)
EV/FCF = 29.91x (Enterprise Value 4.41b / FCF TTM 147.4m)
FCF Yield = 3.34% (FCF TTM 147.4m / Enterprise Value 4.41b)
FCF Margin = 2.78% (FCF TTM 147.4m / Revenue TTM 5.30b)
Net Margin = -0.46% (Net Income TTM -24.5m / Revenue TTM 5.30b)
Gross Margin = 10.36% ((Revenue TTM 5.30b - Cost of Revenue TTM 4.75b) / Revenue TTM)
Gross Margin QoQ = 9.58% (prev 12.71%)
Tobins Q-Ratio = 1.94 (Enterprise Value 4.41b / Total Assets 2.27b)
Interest Expense / Debt = 2.34% (Interest Expense 62.8m / Debt 2.68b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 89.9m (EBIT 113.8m * (1 - 21.00%))
Current Ratio = 0.54 (Total Current Assets 1.13b / Total Current Liabilities 2.11b)
Debt / Equity = 42.03 (Debt 2.68b / totalStockholderEquity, last quarter 63.8m)
Debt / EBITDA = 13.08 (Net Debt 2.60b / EBITDA 198.6m)
Debt / FCF = 17.62 (Net Debt 2.60b / FCF TTM 147.4m)
Total Stockholder Equity = 844.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.09% (Net Income -24.5m / Total Assets 2.27b)
RoE = -2.90% (Net Income TTM -24.5m / Total Stockholder Equity 844.4m)
RoCE = 12.80% (EBIT 113.8m / Capital Employed (Equity 844.4m + L.T.Debt 44.4m))
RoIC = 13.81% (NOPAT 89.9m / Invested Capital 651.0m)
WACC = 5.28% (E(1.81b)/V(4.49b) * Re(10.35%) + D(2.68b)/V(4.49b) * Rd(2.34%) * (1-Tc(0.21)))
Discount Rate = 10.35% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -18.72 | Cagr: 0.60%
[DCF] Terminal Value 77.97% ; FCFF base≈100.9m ; Y1≈115.6m ; Y5≈170.2m
[DCF] Fair Price = N/A (negative equity: EV 2.56b - Net Debt 2.60b = -35.6m; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.93 | # QB: -1
Revenue Correlation: 40.57 | Revenue CAGR: 6.56% | SUE: 4.0 | # QB: 1
EPS current Quarter (2026-11-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-05-31): EPS=4.29 | Chg30d=+60.37% | Revisions=+25% | GrowthEPS=+92.4% | GrowthRev=+11.6%
EPS next Year (2028-05-31): EPS=4.87 | Chg30d=+49.85% | Revisions=-25% | GrowthEPS=+13.5% | GrowthRev=+0.0%