WORTHINGTON STEEL INC (WS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WS • US9821041012
40.23 USD
+0.08 (+0.2%)
At close: Jan 30, 2026
40.5 USD
+0.27 (+0.67%)
After Hours: 1/30/2026, 8:24:33 PM
Taking everything into account, WS scores 5 out of 10 in our fundamental rating. WS was compared to 157 industry peers in the Metals & Mining industry. WS has only an average score on both its financial health and profitability. WS is cheap, but on the other hand it scores bad on growth. These ratings would make WS suitable for value investing!
1. Profitability
1.1 Basic Checks
- WS had positive earnings in the past year.
- In the past year WS had a positive cash flow from operations.
- Each year in the past 5 years WS has been profitable.
- Each year in the past 5 years WS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of WS (5.80%) is better than 75.80% of its industry peers.
- WS has a Return On Equity of 11.15%. This is in the better half of the industry: WS outperforms 77.71% of its industry peers.
- With a decent Return On Invested Capital value of 8.03%, WS is doing good in the industry, outperforming 70.70% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WS is in line with the industry average of 10.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 11.15% | ||
| ROIC | 8.03% |
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
- The Profit Margin of WS (3.82%) is better than 65.61% of its industry peers.
- In the last couple of years the Profit Margin of WS has declined.
- WS's Operating Margin of 5.17% is in line compared to the rest of the industry. WS outperforms 57.96% of its industry peers.
- In the last couple of years the Operating Margin of WS has remained more or less at the same level.
- The Gross Margin of WS (12.76%) is comparable to the rest of the industry.
- WS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.17% | ||
| PM (TTM) | 3.82% | ||
| GM | 12.76% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WS is destroying value.
- WS has more shares outstanding than it did 1 year ago.
- Compared to 1 year ago, WS has an improved debt to assets ratio.
2.2 Solvency
- WS has an Altman-Z score of 3.36. This indicates that WS is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 3.36, WS perfoms like the industry average, outperforming 45.86% of the companies in the same industry.
- The Debt to FCF ratio of WS is 2.62, which is a good value as it means it would take WS, 2.62 years of fcf income to pay off all of its debts.
- WS has a better Debt to FCF ratio (2.62) than 76.43% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that WS is not too dependend on debt financing.
- WS has a Debt to Equity ratio (0.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.76
WACC10.53%
2.3 Liquidity
- WS has a Current Ratio of 1.80. This is a normal value and indicates that WS is financially healthy and should not expect problems in meeting its short term obligations.
- WS has a Current ratio of 1.80. This is in the lower half of the industry: WS underperforms 63.69% of its industry peers.
- A Quick Ratio of 1.09 indicates that WS should not have too much problems paying its short term obligations.
- The Quick ratio of WS (1.09) is worse than 64.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- WS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.93%.
- 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.
- Looking at the last year, WS shows a decrease in Revenue. The Revenue has decreased by -0.75% in the last year.
- WS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.73% yearly.
EPS 1Y (TTM)-8.93%
EPS 3Y-15.32%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-8.73%
Revenue growth 5YN/A
Sales Q2Q%17.98%
3.2 Future
- The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
- WS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y18.09%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
EPS Next 5Y9.59%
Revenue Next Year19.03%
Revenue Next 2Y10.95%
Revenue Next 3Y8%
Revenue Next 5Y4.42%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- WS is valuated correctly with a Price/Earnings ratio of 15.78.
- Based on the Price/Earnings ratio, WS is valued cheaply inside the industry as 92.99% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.32. WS is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 12.89, WS is valued correctly.
- Based on the Price/Forward Earnings ratio, WS is valued a bit cheaper than 77.07% of the companies in the same industry.
- WS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WS is valued cheaply inside the industry as 89.17% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WS indicates a rather cheap valuation: WS is cheaper than 83.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.21 | ||
| EV/EBITDA | 8.33 |
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.
- WS has a very decent profitability rating, which may justify a higher PE ratio.
- WS's earnings are expected to grow with 15.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y20.48%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
- WS has a Yearly Dividend Yield of 1.73%.
- WS's Dividend Yield is rather good when compared to the industry average which is at 1.02. WS pays more dividend than 84.71% of the companies in the same industry.
- WS's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
- WS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 26.08% of the earnings are spent on dividend by WS. This is a low number and sustainable payout ratio.
DP26.08%
EPS Next 2Y20.48%
EPS Next 3Y15.9%
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.
What is the valuation status of WORTHINGTON STEEL INC (WS) stock?
ChartMill assigns a valuation rating of 7 / 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.
Can you provide the PE and PB ratios for WS stock?
The Price/Earnings (PE) ratio for WORTHINGTON STEEL INC (WS) is 15.78 and the Price/Book (PB) ratio is 1.83.
Is the dividend of WORTHINGTON STEEL INC sustainable?
The dividend rating of WORTHINGTON STEEL INC (WS) is 4 / 10 and the dividend payout ratio is 26.08%.