Worthington Steel, Inc. (WS) Stock

Worthington Steel, Inc. (WS) is a Materials stock trading at $33.26 (as of 2026-09-18), with a market capitalization of $1.69B and a trailing P/E of 198.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Worthington Steel, Inc. is a North American steel processor producing carbon flat-rolled steel and tailor welded blanks, along with electrical steel laminations and aluminum tailor welded blanks. Its products are used in end markets such as automotive, heavy truck, agriculture, construction, and energy.

Understand Worthington Steel, Inc.: how it makes money

Worthington Steel processes flat-rolled carbon steel, tailor welded blanks, and electrical steel laminations for automotive OEMs, heavy truck, agriculture, and construction customers. It earns revenue by buying and reselling processed steel at a markup (direct) or charging a per-ton fee on customer-supplied coils (toll), with direct tonnage at roughly two-thirds of the mix.

Worthington is a processor, not a producer: it buys or receives steel coils, cuts them into panels and laminations, and earns the spread (direct) or a per-ton fee (toll). Profitability swings with the direct-to-toll mix and plant utilization, not with any proprietary technology.

Business quality (Weak): Low-margin processor with a negative operating margin this quarter and a P/E roughly nine times the steel-works industry average. No broad product moat beyond the electrical-steel niche; heavy working-capital needs amplify the commodity cycle.

Valuation: At 203× earnings, WS trades 833% above the Steel Works average (22×).

Bull case

  • Detroit 3 share gains accelerating: Management flagged that Detroit 3 shipment growth substantially exceeded industry production growth in the quarter, signaling Worthington is taking share in its core automotive channel. If that trend holds, volume absorption improves fixed-cost leverage across the processing lines.
  • Electrical steel niche well positioned: Canada's new electrical-steel capacity is already more than 60% sold before full production ramps, and management tied hybrid vehicle growth to expanding addressable demand in electrical steel and powertrain. This is a higher-value, slower-cycle product that diversifies revenue away from commodity auto panels.

Bear case

  • European margins under pressure: Management attributed acquired-business profitability weakness to soft European demand and Chinese import competition in the quarter. The Klockner acquisition, intended to add European scale, is currently a drag on results rather than a margin contributor.
  • Leverage rising into a downturn: Buying additional Klockner shares increased borrowings and financial leverage just as the operating margin turned to negative 8 percent for the quarter. If steel pricing softens further, the extra debt amplifies cash-flow strain during the down-cycle.
  • Valuation far above sector norms: The stock trades at 203.2 times earnings versus a 22 times Steel Works industry average, an 833 percent premium. Clearing that multiple requires sustained above-peer growth that a negative-margin quarter makes difficult to underwrite.
Valuation — source: SEC EDGAR (first-party)
Price$33.26
Market Cap$1.69B
P/E Ratio198.8
EV / EBITDA22.5
Price / Book1.41
Price / Sales0.49
Dividend Yield1.9%
FCF Yield4.7%
DCF Value (model)$30.54
DCF Upside vs Price-8.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$3.44B
Net Margin0.2%
Return on Equity0.7%
Debt / Equity0.21
Current Ratio1.46
Revenue Growth (YoY)11.6%
FCF Growth (YoY)-7.1%
Financial Health — source: SEC EDGAR
Altman Z-Score2.74 (grey)
Piotroski F-Score3/9 (weak)
Valuation vs Sector & Industry
Stock P/E198.8
Sector P/E (Materials)21.8
Industry P/E (Steel Works)19.3
vs Sector811.7%
vs Industry931.7%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($171.50M)
Institutional Holders Tracked10
Company
SectorMaterials
IndustrySteel Works
CEOGeoffrey G. Gilmore
Employees5,000
CountryUS
IPO Date2023-12-04

Worthington Steel, Inc. earnings call transcripts

  • WS Q3 FY26 earnings call transcript (reported 2026-03-25) · analysis
  • WS Q2 FY26 earnings call transcript (reported 2025-12-17) · analysis
  • WS Q1 FY26 earnings call transcript (reported 2025-09-24) · analysis

All WS earnings calls

Related Companies (Steel Works; 8 comparable companies)

  • Worthington Enterprises, Inc. (WOR)
  • Insteel Industries, Inc. (IIIN)
  • Gibraltar Industries, Inc. (ROCK)
  • Friedman Industries Inc. (FRD)
  • Mueller Industries, Inc. (MLI)
  • Belden Inc (BDC)
  • Titan International, Inc. (DE) (TWI)
  • Howmet Aerospace Inc. (HWM)
WS earnings history · WS institutional & insider holders · WS KPIs & operating metrics · WS financials · WS filings, presentations & press releases · WS investor presentations & press releases · WS SEC filings · WS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-18.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.