Worthington Steel Inc WS

MaterialsMetals & MiningUnited States of America

Last close 42.09 USD on Nov 1, 2026, +19.0% year to date

Quant rating

Quant rating C Rank 62 of 151 in Materials

Growth C 98 of 151
Valuation C 84 of 151
Quality C 73 of 151
Revisions C 80 of 151
Momentum A 13 of 151

Wall Street consensus Buy (2.50)Average target 46.00 USD +9.3%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 2.1B
Enterprise value: 4.7B
52-week range: 27.27 – 48.91
3-year range: 22.20 – 48.91
Dividend yield: 1.57%
Beta (5 years): –
Shares outstanding: 51.2M
Next earnings: Dec 15, 2026

About the company

Worthington Steel, Inc. is a metals processor, which provides a range of products and services that span a variety of end markets. The Company delivers steel processing across end-markets including automotive, heavy truck, agriculture, construction, and energy. It serves its customers by processing flat-rolled steel coils, which source primarily from various North American steel mills, into the precise type, thickness, length, width, shape, and surface quality required by customer specifications. Its Flat Rolled Steel products offer Hot rolled steel, Cold rolled steel, and Galvanized steel. It provides solutions for industries such as alternative energy, appliance, trucking, rail car, shipbuilding, construction, trailer, elevator/escalator, and furniture. It also manufactures engineered electrical steel lamination solutions for electric motors, transformers and generators. Its products include Motor & Generator Laminations and Transformer Laminations.

Growth and profitability fiscal year ends May 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	3,444	3,093	3,431	3,608	4,069	–
Revenue growth	11.3%	−9.8%	−4.9%	−11.3%	91.3%	10.1%
EPS (basic, normalized)	2.23	2.16	3.42	–	–	–
EPS growth	3.2%	−36.8%	–	–	–	–
Gross margin	11.7%	12.6%	12.8%	9.3%	9.7%	11.2%
Net margin	0.2%	3.6%	4.5%	2.4%	4.4%	3.0%
ROE	0.8%	10.8%	15.4%	8.1%	20.1%	11.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	248
Current ratio	1.81x
Long-term debt (mil)	1,669
Net debt (mil)	2,636
Total equity (mil)	1,032
Net debt / equity	2.55x
Net debt / EBITDA	10.73x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	3,444	+11.3%	1.4x	246	+20.7%	19.2x	2.23	+3.2%	18.9x
2027	11,403	+231.1%	0.4x	522	+112.6%	9.0x	4.07	+82.5%	10.3x
2028	10,504	−7.9%	0.4x	549	+5.2%	8.6x	4.76	+17.0%	8.8x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	11,403	+196.8%	+196.8%	+216.6%	4.07	+59.6%	+59.6%	+66.1%
2028	10,504	–	–	–	4.76	–	–	–
2029	–	–	–	–	–	–	–	–

Earnings surprises

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	May 2024	Aug 2024	Nov 2024	Feb 2025	May 2025	Aug 2025	Nov 2025	Feb 2026	May 2026	Aug 2026
Sales reported (mil)	911	834	739	687	833	873	872	770	929	954
Sales mean (mil)	849	748	719	711	800	835	797	883	992	886
Surprise	+7.3%	+11.4%	+2.7%	−3.4%	+4.1%	+4.6%	+9.4%	−12.8%	−6.3%	+7.7%
EPS reported	1.06	0.56	0.19	0.35	1.05	0.77	0.38	0.27	0.74	0.57
EPS mean	0.84	0.55	0.63	0.48	0.82	0.76	0.39	0.43	0.75	0.68
Surprise	+26.2%	+2.8%	−69.8%	−27.1%	+27.3%	+1.3%	−2.6%	−37.2%	−1.3%	−16.2%

Peer comparison Metals & Mining

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
WS Worthington Steel Inc	2.1B	10.73x	0.2%	1.97x	10.3x	8.8x	9.0x	8.6x
NUE Nucor Corporation	62.1B	1.14x	5.3%	2.72x	14.0x	12.5x	8.5x	8.0x
VALE Vale S.A.	51.2B	0.91x	6.5%	–	6.9x	6.8x	4.3x	4.2x
STLD Steel Dynamics Inc	35.7B	1.49x	6.5%	3.63x	14.2x	11.5x	9.6x	8.0x
RS Reliance, Inc.	22.3B	1.06x	5.2%	2.88x	16.4x	17.0x	10.8x	11.4x
X United States Steel Corp	12.4B	2.73x	−8.1%	–	–	–	–	–
Mean		3.01x	2.6%	2.80x	12.4x	11.3x	8.5x	8.0x
Median		1.32x	5.3%	2.80x	14.0x	11.5x	9.0x	8.0x

Technical analysis

1M+10.3%
3M+7.2%
1Y+29.9%
3Y+71.8%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Worthington Steel Inc, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	3,444	3,093	3,431	3,608	4,069	2,127
Cost of revenue	3,040	2,705	2,991	3,271	3,673	1,757
Gross profit	403	389	440	337	395	371
Selling, general & administrative expenses	293	232	224	201	180	147
Research & development	–	–	–	–	–	–
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	112	10.0	20.9	15.4	−11.4	1.9
Other operating expenses	0	0	0	0	0	0
Operating income	−1.4	147	194	120	227	222
Net interest income (expense)	−8.1	−2.7	16.4	4.7	26.8	16.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	16.6	3.8	5.3	3.7	0.9	−0.3
Net income before taxes	7.1	148	216	129	254	237
Provision for taxes	20.0	28.8	46.1	29.0	54.0	48.5
Minority interest	21.4	−8.6	−15.4	−12.6	−19.9	−17.7
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	8.5	111	155	87.1	180	171
Extraordinary items	–	–	–	–	–	–
Net income	8.5	111	155	87.1	180	171
EBIT, normalized	110	157	215	136	215	223
EBITDA, normalized	195	223	281	205	275	268
Basic EPS, normalized	2.23	2.16	3.42	–	–	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Worthington Steel Inc, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	84.6	38.0	40.2	32.7	20.1	17.5
Receivables	523	446	477	472	601	405
Total inventory	416	422	405	415	569	443
Prepaid expenses	97.3	76.3	76.6	57.8	60.9	41.1
Other current assets	9.1	66.4	2.9	3.4	15.7	33.4
Total current assets	1,130	1,048	1,002	981	1,267	940
Property, plant & equipment	735	621	548	490	511	284
Goodwill	44.5	79.6	79.6	78.6	80.0	20.2
Intangibles	77.3	67.9	77.0	83.4	89.7	17.4
Long-term investments	246	127	135	115	119	92.0
Note receivable	–	–	–	–	–	–
Other long-term assets	20.5	18.4	25.3	17.3	16.8	13.3
Total assets	2,252	1,962	1,866	1,764	2,084	1,367
Liabilities
Accounts payable	424	402	380	402	524	452
Payable/accrued	–	–	–	–	–	–
Accrued expenses	127	66.0	76.1	53.4	70.8	52.6
Short-term debt	185	149	148	2.8	48.0	0
Current portion of long-term debt	29.9	–	0	20.0	15.0	0
Other current liabilities	9.9	13.8	13.9	0	0	1.2
Total current liabilities	776	632	618	478	658	506
Long-term debt	49.9	2.3	0	0	20.0	0
Minority interest	200	124	132	126	133	154
Other liabilities	164	130	131	131	140	45.7
Total liabilities	1,189	888	881	735	951	705
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	–	–	–	–	–	–
Additional paid-in capital	919	914	905	–	–	–
Retained earnings (accumulated deficit)	140	164	86.1	–	–	–
Treasury stock	–	–	–	–	–	–
Other equity	3.9	−4.0	−6.1	1,029	1,133	661
Total equity	1,063	1,074	985	1,029	1,133	661
Total liabilities & shareholders' equity	2,252	1,962	1,866	1,764	2,084	1,367

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Worthington Steel Inc, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	−12.9	119	170	99.7	200	189
Depreciation, depletion & amortization	84.2	66.0	65.3	69.6	59.5	45.0
Deferred taxes	−10.4	−3.1	1.1	−9.7	13.6	−5.2
Non-cash items	112	27.9	−6.6	15.5	−29.9	−3.1
Changes in working capital	28.8	20.2	−30.4	140	−204	−72.7
Cash from operations	201	230	200	315	39.5	153
Investing activities
Capital expenditures	−121	−130	−103	−45.5	−36.4	−28.8
Other investing cash flows	−92.2	1.3	−19.8	23.3	−359	1.1
Cash from investing	−213	−129	−123	−22.2	−395	−27.7
Financing activities
Financing cash flow items	−16.3	−17.0	−206	−220	282	−117
Cash dividends paid	−32.6	−31.9	−7.9	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	51.9	0.4	146	−60.2	76.7	0
Cash from financing	3.0	−48.5	−68.8	−280	358	−117
Foreign exchange effects	0.9	–	–	–	–	–
Net change in cash	−8.3	52.7	7.5	12.6	2.6	8.2
Free cash flow	80.0	99.9	96.1	270	3.0	124

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.