WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA - NYSE:WS - US9821041012 - Common Stock
31.04 USD
+0.31 (+1.01%)
Overall WS gets a fundamental rating of 5 out of 10. We evaluated WS against 154 industry peers in the Metals & Mining industry. There are concerns on the financial health of WS while its profitability can be described as average. WS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
WS had positive earnings in the past year.
WS had a positive operating cash flow in the past year.
WS had positive earnings in each of the past 5 years.
WS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.29%, WS is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
WS has a Return On Equity of 10.73%. This is in the better half of the industry: WS outperforms 76.62% of its industry peers.
With a decent Return On Invested Capital value of 7.71%, WS is doing good in the industry, outperforming 70.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WS is below the industry average of 12.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROIC | 7.71% |
ROA(3y)6.29%
ROA(5y)8.01%
ROE(3y)11.49%
ROE(5y)15.25%
ROIC(3y)9.34%
ROIC(5y)12.06%
1.3 Margins
WS's Profit Margin of 3.79% is fine compared to the rest of the industry. WS outperforms 66.23% of its industry peers.
WS's Profit Margin has declined in the last couple of years.
WS has a Operating Margin of 5.28%. This is comparable to the rest of the industry: WS outperforms 59.09% of its industry peers.
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 of 12.88%. This is comparable to the rest of the industry: WS outperforms 46.75% of its industry peers.
WS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% |
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
2. Health
2.1 Basic Checks
WS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WS has more shares outstanding
Compared to 1 year ago, WS has an improved debt to assets ratio.
2.2 Solvency
WS has an Altman-Z score of 2.83. This is not the best score and indicates that WS is in the grey zone with still only limited risk for bankruptcy at the moment.
WS has a Altman-Z score of 2.83. This is comparable to the rest of the industry: WS outperforms 47.40% of its industry peers.
WS has a debt to FCF ratio of 7.77. This is a slightly negative value and a sign of low solvency as WS would need 7.77 years to pay back of all of its debts.
WS has a Debt to FCF ratio of 7.77. This is in the better half of the industry: WS outperforms 64.94% of its industry peers.
WS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.19, WS perfoms like the industry average, outperforming 47.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.82
WACC9.43%
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: 70.13% of the companies in the same industry are doing better.
A Quick Ratio of 0.97 indicates that WS may have some problems paying its short term obligations.
WS has a Quick ratio of 0.97. This is in the lower half of the industry: WS underperforms 73.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for WS have decreased strongly by -13.24% 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 -6.75% in the past year.
The Revenue has been decreasing by -8.73% on average over the past years.
EPS 1Y (TTM)-13.24%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%4.66%
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 10.31% on average per year.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y27.43%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue Next Year10.37%
Revenue Next 2Y7.12%
Revenue Next 3Y6.87%
Revenue Next 5Y3.85%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.15, WS is valued correctly.
Based on the Price/Earnings ratio, WS is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
WS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
Based on the Price/Forward Earnings ratio of 9.54, the valuation of WS can be described as reasonable.
Based on the Price/Forward Earnings ratio, WS is valued cheaper than 83.77% of the companies in the same industry.
WS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
WS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WS is cheaper than 88.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WS indicates a somewhat cheap valuation: WS is cheaper than 69.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.73 | ||
| EV/EBITDA | 6.64 |
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.
The decent profitability rating of WS 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)0.48
PEG (5Y)N/A
EPS Next 2Y23.04%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
WS has a Yearly Dividend Yield of 2.01%.
WS's Dividend Yield is rather good when compared to the industry average which is at 2.63. WS pays more dividend than 84.42% of the companies in the same industry.
WS's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
WS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WS pays out 26.98% of its income as dividend. This is a sustainable payout ratio.
DP26.98%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
NYSE:WS (11/19/2025, 12:16:29 PM)
31.04
+0.31 (+1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.78%
Inst Owner Change6.11%
Ins Owners35.78%
Ins Owner Change11.15%
Market Cap1.58B
Revenue(TTM)3.13B
Net Income(TTM)118.60M
Analysts82
Price Target36.72 (18.3%)
Short Float %3.48%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP26.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.97%
Min EPS beat(2)-1.64%
Max EPS beat(2)23.57%
EPS beat(4)1
Avg EPS beat(4)-19.5%
Min EPS beat(4)-70.72%
Max EPS beat(4)23.57%
EPS beat(8)3
Avg EPS beat(8)-8.76%
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)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-6.19%
Max Revenue beat(4)1.54%
Revenue beat(8)6
Avg Revenue beat(8)3.08%
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)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.41%
EPS NY rev (1m)2.5%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 9.54 | ||
| P/S | 0.5 | ||
| P/FCF | 50.73 | ||
| P/OCF | 9.31 | ||
| P/B | 1.43 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)2.36
EY7.6%
EPS(NY)3.25
Fwd EY10.49%
FCF(TTM)0.61
FCFY1.97%
OCF(TTM)3.33
OCFY10.74%
SpS61.62
BVpS21.74
TBVpS17.97
PEG (NY)0.48
PEG (5Y)N/A
Graham Number33.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 10.73% | ||
| ROCE | 10.68% | ||
| ROIC | 7.71% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 9.15% | ||
| OM | 5.28% | ||
| PM (TTM) | 3.79% | ||
| GM | 12.88% | ||
| FCFM | 0.99% |
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%
ROICexgc growth 3Y-10.2%
ROICexgc 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-Score4
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 197.29% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.9% | ||
| Profit Quality | 26.22% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.83 |
F-Score4
WACC9.43%
ROIC/WACC0.82
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)-13.24%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y27.43%
EPS Next 2Y23.04%
EPS Next 3Y17.2%
EPS Next 5Y10.31%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%4.66%
Revenue Next Year10.37%
Revenue Next 2Y7.12%
Revenue Next 3Y6.87%
Revenue Next 5Y3.85%
EBIT growth 1Y-10.1%
EBIT growth 3Y-9.98%
EBIT growth 5YN/A
EBIT Next Year75.09%
EBIT Next 3Y30.12%
EBIT Next 5Y17.49%
FCF growth 1Y-86.38%
FCF growth 3Y218.23%
FCF growth 5YN/A
OCF growth 1Y-39.52%
OCF growth 3Y79.98%
OCF growth 5YN/A
WORTHINGTON STEEL INC / WS FAQ
What is the ChartMill fundamental rating of WORTHINGTON STEEL INC (WS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WS.
Can you provide the valuation status for WORTHINGTON STEEL INC?
ChartMill assigns a valuation rating of 8 / 10 to WORTHINGTON STEEL INC (WS). This can be considered as Undervalued.
What is the profitability of WS stock?
WORTHINGTON STEEL INC (WS) has a profitability rating of 6 / 10.
What is the financial health of WORTHINGTON STEEL INC (WS) stock?
The financial health rating of WORTHINGTON STEEL INC (WS) is 3 / 10.
What is the expected EPS growth for WORTHINGTON STEEL INC (WS) stock?
The Earnings per Share (EPS) of WORTHINGTON STEEL INC (WS) is expected to grow by 27.43% in the next year.