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WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis

NYSE:WS - New York Stock Exchange, Inc. - US9821041012 - Common Stock - Currency: USD

31.935  +0.31 (+1%)

Fundamental Rating

5

WS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. WS has an average financial health and profitability rating. WS is cheap, but on the other hand it scores bad on growth. These ratings could make WS a good candidate for value investing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year WS was profitable.
In the past year WS had a positive cash flow from operations.
In the past 5 years WS has always been profitable.
WS had a positive operating cash flow in each of the past 5 years.
WS Yearly Net Income VS EBIT VS OCF VS FCFWS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 2025 100M 200M 300M

1.2 Ratios

WS has a better Return On Assets (5.64%) than 75.64% of its industry peers.
WS's Return On Equity of 10.31% is fine compared to the rest of the industry. WS outperforms 77.56% of its industry peers.
With a decent Return On Invested Capital value of 8.45%, WS is doing good in the industry, outperforming 75.64% of the companies in the same industry.
WS had an Average Return On Invested Capital over the past 3 years of 9.34%. This is below the industry average of 12.79%.
Industry RankSector Rank
ROA 5.64%
ROE 10.31%
ROIC 8.45%
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
WS Yearly ROA, ROE, ROICWS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

The Profit Margin of WS (3.58%) is better than 66.03% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.08%, WS is in line with its industry, outperforming 55.77% of the companies in the same industry.
In the last couple of years the Operating Margin of WS has remained more or less at the same level.
WS has a Gross Margin (12.56%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WS has grown nicely.
Industry RankSector Rank
OM 5.08%
PM (TTM) 3.58%
GM 12.56%
OM growth 3Y-1.36%
OM growth 5YN/A
PM growth 3Y-6.89%
PM growth 5YN/A
GM growth 3Y8.93%
GM growth 5YN/A
WS Yearly Profit, Operating, Gross MarginsWS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 2025 5 10 15

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WS is destroying value.
WS has more shares outstanding than it did 1 year ago.
WS has a better debt/assets ratio than last year.
WS Yearly Shares OutstandingWS Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 2024 2025 10M 20M 30M 40M
WS Yearly Total Debt VS Total AssetsWS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 3.30 indicates that WS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WS (3.30) is comparable to the rest of the industry.
The Debt to FCF ratio of WS is 1.52, which is an excellent value as it means it would take WS, only 1.52 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.52, WS belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that WS is not too dependend on debt financing.
The Debt to Equity ratio of WS (0.14) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 1.52
Altman-Z 3.3
ROIC/WACC0.84
WACC10.08%
WS Yearly LT Debt VS Equity VS FCFWS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

WS has a Current Ratio of 1.66. This is a normal value and indicates that WS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.66, WS is not doing good in the industry: 66.03% of the companies in the same industry are doing better.
WS has a Quick Ratio of 1.66. This is a bad value and indicates that WS is not financially healthy enough and could expect problems in meeting its short term obligations.
WS's Quick ratio of 0.99 is on the low side compared to the rest of the industry. WS is outperformed by 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 0.99
WS Yearly Current Assets VS Current LiabilitesWS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

3

3. Growth

3.1 Past

The earnings per share for WS have decreased strongly by -28.76% in the last year.
Measured over the past years, WS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.32% on average per year.
The Revenue has decreased by -9.83% in the past year.
The Revenue has been decreasing by -8.73% on average over the past years.
EPS 1Y (TTM)-28.76%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%-0.94%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%

3.2 Future

Based on estimates for the next years, WS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.25% on average per year.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y23.12%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
EPS Next 5Y12.25%
Revenue Next Year0.86%
Revenue Next 2Y2.97%
Revenue Next 3Y3.84%
Revenue Next 5Y2.78%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WS Yearly Revenue VS EstimatesWS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
WS Yearly EPS VS EstimatesWS Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

8

4. Valuation

4.1 Price/Earnings Ratio

WS is valuated correctly with a Price/Earnings ratio of 14.85.
84.62% of the companies in the same industry are more expensive than WS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.82, WS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.06, the valuation of WS can be described as correct.
Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than 74.36% of the companies in the same industry.
WS is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.85
Fwd PE 12.06
WS Price Earnings VS Forward Price EarningsWS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 83.97% of the companies in the same industry.
87.18% of the companies in the same industry are more expensive than WS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.26
EV/EBITDA 7.05
WS Per share dataWS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

WS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WS's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y25.16%
EPS Next 3Y17.2%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.16%, WS has a reasonable but not impressive dividend return.
WS's Dividend Yield is rather good when compared to the industry average which is at 2.61. WS pays more dividend than 86.54% of the companies in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 2.16%

5.2 History

WS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
WS Yearly Dividends per shareWS Yearly Dividends per shareYearly Dividends per share 2024 2025 0.2 0.4 0.6

5.3 Sustainability

28.82% of the earnings are spent on dividend by WS. This is a low number and sustainable payout ratio.
DP28.82%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
WS Yearly Income VS Free CF VS DividendWS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
WS Dividend Payout.WS Dividend Payout, showing the Payout Ratio.WS Dividend Payout.PayoutRetained Earnings

WORTHINGTON STEEL INC

NYSE:WS (8/19/2025, 2:47:05 PM)

31.935

+0.31 (+1%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)06-25 2025-06-25/amc
Earnings (Next)09-24 2025-09-24
Inst Owners50.52%
Inst Owner Change-0.12%
Ins Owners36.03%
Ins Owner Change6.91%
Market Cap1.62B
Analysts82
Price Target34.68 (8.6%)
Short Float %2.3%
Short Ratio2.65
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP28.82%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-12 2025-09-12 (0.16)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.82%
Min EPS beat(2)-29.21%
Max EPS beat(2)23.57%
EPS beat(4)1
Avg EPS beat(4)-19.15%
Min EPS beat(4)-70.72%
Max EPS beat(4)23.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-6.19%
Max Revenue beat(2)1.02%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)8.19%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 14.85
Fwd PE 12.06
P/S 0.53
P/FCF 16.26
P/OCF 7.05
P/B 1.51
P/tB 1.75
EV/EBITDA 7.05
EPS(TTM)2.15
EY6.73%
EPS(NY)2.65
Fwd EY8.29%
FCF(TTM)1.96
FCFY6.15%
OCF(TTM)4.53
OCFY14.18%
SpS60.81
BVpS21.11
TBVpS18.22
PEG (NY)0.64
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.64%
ROE 10.31%
ROCE 11.8%
ROIC 8.45%
ROICexc 8.67%
ROICexgc 9.66%
OM 5.08%
PM (TTM) 3.58%
GM 12.56%
FCFM 3.23%
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
ROICexc(3y)9.6%
ROICexc(5y)12.34%
ROICexgc(3y)10.85%
ROICexgc(5y)13.6%
ROCE(3y)12.75%
ROCE(5y)15.86%
ROICexcg growth 3Y-10.2%
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.72%
ROICexc growth 5YN/A
OM growth 3Y-1.36%
OM growth 5YN/A
PM growth 3Y-6.89%
PM growth 5YN/A
GM growth 3Y8.93%
GM growth 5YN/A
F-Score5
Asset Turnover1.58
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 1.52
Debt/EBITDA 0.68
Cap/Depr 197.58%
Cap/Sales 4.22%
Interest Coverage 20.39
Cash Conversion 103.27%
Profit Quality 90.24%
Current Ratio 1.66
Quick Ratio 0.99
Altman-Z 3.3
F-Score5
WACC10.08%
ROIC/WACC0.84
Cap/Depr(3y)140.43%
Cap/Depr(5y)109.29%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.15%
Profit Quality(3y)153.93%
Profit Quality(5y)107.18%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.76%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%-0.94%
EPS Next Y23.12%
EPS Next 2Y25.16%
EPS Next 3Y17.2%
EPS Next 5Y12.25%
Revenue 1Y (TTM)-9.83%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%-8.57%
Revenue Next Year0.86%
Revenue Next 2Y2.97%
Revenue Next 3Y3.84%
Revenue Next 5Y2.78%
EBIT growth 1Y-25.87%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year73.94%
EBIT Next 3Y28.74%
EBIT Next 5Y18.41%
FCF growth 1Y3.95%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y15.44%
OCF growth 3Y79.98%
OCF growth 5YN/A