Worthington Steel Inc. Common Shares (WS)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power bought at a sensible price. Worthington Steel is a steel processor serving automotive and industrial markets, and the record shows why this is a cyclical, commodity-like business rather than a franchise. In fiscal 2024, the year ended 2024-05-31, it earned $154.7M, or $3.11 per diluted share, on $3.4B of revenue. In fiscal 2025, ended 2025-05-31, net income fell to $110.7M and EPS to $2.19. In fiscal 2026, ended 2026-05-31, revenue was $3.4B but net income collapsed to $8.5M, or $0.17 per diluted share. The fiscal Q1 2027 period ended 2026-08-31 showed revenue of $2.7B and a net loss of $10.0M, or -$0.20 per diluted share. Quarterly profits in fiscal 2026 also faded: fiscal Q1 2026 ended 2025-08-31 earned $36.8M, fiscal Q2 2026 ended 2025-11-30 earned $18.8M, and fiscal Q3 2026 ended 2026-02-28 earned $10.4M. That is not stable. At the $39.20 close on 2026-10-13, FairStock's calculations show a P/E of 230.59, P/B of 1.84, EV/EBITDA of 19.03, FCF yield of 4.0%, and a Graham Number of $9.03, leaving a negative margin of safety of -334.11%. The balance sheet is not heavily levered at D/E 0.28, but ROE is -1.05%, ROCE is 4.31%, Piotroski is 4/9, and Altman Z is 1.96. FairStock labels it CYCLICAL — Steel: earnings follow the economic cycle. It may recover, but I see little margin of safety at this price.

In plain English: Worthington Steel processes flat-rolled steel for auto and industrial customers. The business looks weak now: in the fiscal year ended 2026-05-31, revenue was $3.4B but net income was only $8.5M, and in the fiscal Q1 2027 period ended 2026-08-31, it had a net loss of $10.0M. At $39.20, the stock looks expensive compared with current earnings and accounting value, so it would need a strong profit recovery to justify the price.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer