📊 WS Key Takeaways
Is Worthington Steel, Inc. (WS) a Good Investment?
Worthington Steel exhibits a fortress balance sheet with minimal leverage (0.05x D/E) and strong interest coverage (9.5x), providing financial stability. However, operational fundamentals are deteriorating with net income declining 7.2% and EPS down 29.6% year-over-year despite flat revenues, reflecting margin compression typical of the cyclical steel industry. Thin operating margins (2.9%) and weak returns on capital (ROE 5.9%, ROA 2.9%) limit upside without significant operational improvement.
Why Buy Worthington Steel, Inc. Stock? WS Key Strengths
- Fortress balance sheet with minimal debt (0.05x debt-to-equity ratio)
- Strong interest coverage ratio of 9.5x providing significant debt servicing capacity
- Consistent positive free cash flow generation ($72.2M) despite operational challenges
WS Stock Risks: Worthington Steel, Inc. Investment Risks
- Revenue growth stagnation (0.0% YoY) with no top-line expansion momentum
- Profitability deterioration with net income down 7.2% and EPS down 29.6% YoY indicating margin compression
- Very thin operating margins (2.9%) and net margins (2.6%) vulnerable to industry cyclicality
- Low returns on capital (ROE 5.9%, ROA 2.9%) suggesting inefficient capital deployment
- Quick ratio of 0.90x below 1.0 threshold indicating potential short-term liquidity constraints
Key Metrics to Watch
- Quarterly revenue trend and gross margin trajectory for signs of recovery
- Operating cash flow sustainability and free cash flow generation consistency
- Return on equity trend - needs improvement above 6-7% to demonstrate capital efficiency
- Quick ratio movement - monitor if liquidity position strengthens or weakens
Worthington Steel, Inc. (WS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.9% FCF margin may limit capital allocation flexibility.
WS Profit Margin, ROE & Profitability Analysis
WS vs Materials Sector: How Worthington Steel, Inc. Compares
How Worthington Steel, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Worthington Steel, Inc. Stock Overvalued? WS Valuation Analysis 2026
Based on fundamental analysis, Worthington Steel, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Worthington Steel, Inc. Balance Sheet: WS Debt, Cash & Liquidity
WS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Worthington Steel, Inc.'s revenue has declined by 11% over the 5-year period, indicating business contraction. The most recent EPS of $1.77 reflects profitable operations.
WS Revenue Growth, EPS Growth & YoY Performance
WS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $687.4M | $10.4M | $0.20 |
| Q2 2026 | $739.0M | $12.8M | $0.25 |
| Q1 2026 | $834.0M | $28.4M | $0.56 |
| Q3 2025 | $687.4M | $13.8M | $0.27 |
| Q2 2025 | $739.0M | -$6.0M | $-0.12 |
| Q1 2025 | $834.0M | $28.4M | $0.56 |
| Q3 2024 | $780.7M | $5.4M | $0.11 |
| Q2 2023 | $808.0M | -$6.0M | $-0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Worthington Steel, Inc. Dividends, Buybacks & Capital Allocation
WS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Worthington Steel, Inc. (CIK: 0001968487)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WS
What is the AI rating for WS?
Worthington Steel, Inc. (WS) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WS's key strengths?
Claude: Fortress balance sheet with minimal debt (0.05x debt-to-equity ratio). Strong interest coverage ratio of 9.5x providing significant debt servicing capacity.
What are the risks of investing in WS?
Claude: Revenue growth stagnation (0.0% YoY) with no top-line expansion momentum. Profitability deterioration with net income down 7.2% and EPS down 29.6% YoY indicating margin compression.
What is WS's revenue and growth?
Worthington Steel, Inc. reported revenue of $2.5B.
Does WS pay dividends?
Worthington Steel, Inc. pays dividends, with $24.6M distributed to shareholders in the trailing twelve months.
Where can I find WS SEC filings?
Official SEC filings for Worthington Steel, Inc. (CIK: 0001968487) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WS's EPS?
Worthington Steel, Inc. has a diluted EPS of $1.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Worthington Steel, Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WS stock overvalued or undervalued?
Valuation metrics for WS: ROE of 5.9% (sector avg: 14%), net margin of 2.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy WS stock in 2026?
Our dual AI analysis gives Worthington Steel, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WS's free cash flow?
Worthington Steel, Inc.'s operating cash flow is $156.3M, with capital expenditures of $84.1M. FCF margin is 2.9%.
How does WS compare to other Materials stocks?
Vs Materials sector averages: Net margin 2.6% (avg: 10%), ROE 5.9% (avg: 14%), current ratio 1.48 (avg: 1.6).