Worthington Enterprises Inc. Common Shares (WOR)

FairStock Score: 38/100 — MIXED

Key Financials

Strengths

• Generates $3 million in annual free cash flow (0.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 11.4% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.36, providing financial flexibility
• Revenue growth of 24.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($12) with negative 345% margin of safety—limited downside protection

AI Analysis

Worthington Enterprises Inc. Common Shares is a small-cap industrials company valued at $2.7 billion. The business generates $1.3 billion in annual revenue with a 3.4% net margin and $3 million in free cash flow. From a quality standpoint, Worthington shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 3.0 in the grey zone. On valuation, the stock is commanding a steep 166.2x multiple, with trades far above its Graham Number ($12) with no margin of safety. Growth dynamics show revenue growing at 24.4% and profit growth of 14.6%. The 1.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Worthington's 24% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $3 million in annual free cash flow (0.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 166x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer