Worthington Steel, Inc. (WS) AI Stock Analysis

Worthington Steel, Inc. is a prominent player in the North American steel processing industry, specializing in a comprehensive array of steel products and solutions. The company's offerings include carbon flat-rolled steel, tailor welded blanks, electrical steel laminations, and aluminum tailor welded blanks. Catering primarily to sectors such as automotive, heavy truck manufacturing, agriculture, construction, and energy, it serves as a critical supplier across vital industrial markets. Established in 2023 and headquartered in Columbus, Ohio, Worthington Steel operates state-of-the-art facilities while focusing on operational excellence, sustainability, and technological innovation.

Worthington Steel's revenue rebounded by 11.3% to $3.44B in FY2026, following annual declines of 9.8% to $3.09B in FY2025 and 4.9% to $3.43B in FY2024. Gross margin softened from 12.6% in FY2025 to 11.7% in FY2026, while operating margin fell from 4.8% to 3.1%. Net income compressed from $110.7M in FY2025 to $17.3M in FY2026, yielding a net margin of 0.5% and EPS of $2.16. For the trailing twelve months ending August 31, 2026, revenue reached $5.30B with an operating margin of 2.8% and EPS of -$0.71. In the latest quarter, quarterly revenue grew 212.4% year-over-year, while quarterly earnings dropped 25.9%.

As of August 31, 2026, Worthington Steel held $248.2M in cash and short-term investments alongside total debt of $2.58B, resulting in net debt of $2.34B. The balance sheet reflects a debt-to-equity ratio of 2.50, shareholders' equity of $1.03B, total assets of $6.02B, and a current ratio of 1.81. In FY2026, the business produced $201.2M in operating cash flow and $80.0M in free cash flow, deploying $121.2M into capital expenditures and $32.6M into dividends paid.

Worthington Steel trades at a forward P/E of 8.1x, which stands below the 13.4x forward P/E median of its US-listed Basic Materials peers. Its enterprise value of $2.04B equates to an EV/EBITDA of 17.0x, above the peer group median of 10.5x, and an EV/revenue of 0.6x. The stock has a price-to-sales ratio of 0.4x and a price-to-book ratio of 1.7x. Over the past year, WS returned 34.4%, outperforming the S&P 500's return of 16.8%, and holds a beta of 2.23.

Worthington Steel pays a quarterly dividend with an annual forward rate of $0.64 per share, translating to a dividend yield of 1.61%. The company has paid consecutive dividends for 3 years, with a payout ratio of 32.6%. Its last ex-dividend date was December 14, 2026.

Wall Street coverage includes 1 Strong Buy rating and 1 Hold rating. The mean price target is $46.00, representing an upside of 15.9% compared to the last close of $39.68. For the fiscal year ending May 31, 2027, the consensus EPS estimate is $3.85, indicating projected EPS growth of 72.7% on estimated revenue of $11.35B. Over the last four quarters, the company delivered 1 EPS beat.

This page is an AI-written research summary of Worthington Steel, Inc. (WS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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