Worthington Steel (WS)
Market Price (12/18/2025): $36.95 | Market Cap: $1.8 BilSector: Materials | Industry: Steel
Worthington Steel (WS)
Market Price (12/18/2025): $36.95Market Cap: $1.8 BilSector: MaterialsIndustry: Steel
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 10%, Dividend Yield is 2.1%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.9% | Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.7% |
| Low stock price volatilityVol 12M is 49% | Key risksWS key risks include [1] its heavy concentration in the cyclical automotive and construction sectors, Show more. |
| Megatrend and thematic driversMegatrends include Circular Economy & Recycling, Advanced Materials, and Sustainable Resource Management. Themes include Steel Recycling & Resource Efficiency, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 10%, Dividend Yield is 2.1%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.9% |
| Low stock price volatilityVol 12M is 49% |
| Megatrend and thematic driversMegatrends include Circular Economy & Recycling, Advanced Materials, and Sustainable Resource Management. Themes include Steel Recycling & Resource Efficiency, Show more. |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.7% |
| Key risksWS key risks include [1] its heavy concentration in the cyclical automotive and construction sectors, Show more. |
Valuation, Metrics & Events
WS Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Between August 31, 2025, and December 18, 2025, Worthington Steel's stock experienced an 8.9% movement influenced by several key factors:
1. Mixed Q1 Fiscal 2026 Earnings and Initial Market Concerns:
On September 24, 2025, Worthington Steel reported adjusted earnings per share (EPS) of $0.77, surpassing the $0.73 forecast, and a 5% year-over-year revenue increase to $872.9 million for its first fiscal quarter ended August 31, 2025. Despite the earnings beat, the stock experienced a significant drop of 13.57% in premarket trading, reflecting investor concerns over anticipated future inventory losses and mixed market conditions.
2. Strong Q2 Fiscal 2026 Revenue Performance:
Worthington Steel reported its second-quarter fiscal 2026 results on December 17, 2025, for the period ending November 30, 2025. While adjusted EPS of $0.38 missed some analyst estimates, net sales reached $871.9 million, significantly exceeding analyst expectations and representing an 18% increase compared to the prior year. This strong revenue performance led to a 4.8% surge in after-hours trading.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| WS Return | � | � | � | � | 15% | 14% | � |
| Peers Return | 3% | 52% | 26% | 37% | 3% | 44% | 301% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% |
Monthly Win Rates [3] | |||||||
| WS Win Rate | � | � | � | � | 67% | 58% | |
| Peers Win Rate | 50% | 58% | 58% | 52% | 60% | 63% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | |
Max Drawdowns [4] | |||||||
| WS Max Drawdown | � | � | � | � | -11% | -29% | |
| Peers Max Drawdown | -47% | -12% | -17% | -8% | -15% | -15% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: HCC, NWPX, FRD, NUE, STLD.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/17/2025 (YTD)
How Low Can It Go
WS has limited trading history. Below is the Materials sector ETF (XLB) in its place.
| Event | XLB | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -25.7% | -25.4% |
| % Gain to Breakeven | 34.5% | 34.1% |
| Time to Breakeven | 534 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -37.6% | -33.9% |
| % Gain to Breakeven | 60.2% | 51.3% |
| Time to Breakeven | 121 days | 148 days |
| 2018 Correction | ||
| % Loss | -26.1% | -19.8% |
| % Gain to Breakeven | 35.4% | 24.7% |
| Time to Breakeven | 617 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -60.7% | -56.8% |
| % Gain to Breakeven | 154.6% | 131.3% |
| Time to Breakeven | 1,761 days | 1,480 days |
Compare to
In The Past
Materials Select Sector SPDR's stock fell -25.7% during the 2022 Inflation Shock from a high on 4/20/2022. A -25.7% loss requires a 34.5% gain to breakeven.
Preserve Wealth
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Asset Allocation
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Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
Select past ideas related to WS. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | DD | DuPont de Nemours | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 5.9% | 5.9% | -0.2% |
| 11212025 | CF | CF Industries | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.6% | 0.6% | -3.1% |
| 11212025 | HL | Hecla Mining | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 45.1% | 45.1% | 0.0% |
| 11072025 | CDE | Coeur Mining | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 17.1% | 17.1% | -5.7% |
| 10312025 | ATR | AptarGroup | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.6% | 6.6% | -2.5% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | DD | DuPont de Nemours | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 5.9% | 5.9% | -0.2% |
| 11212025 | CF | CF Industries | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.6% | 0.6% | -3.1% |
| 11212025 | HL | Hecla Mining | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 45.1% | 45.1% | 0.0% |
| 11072025 | CDE | Coeur Mining | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 17.1% | 17.1% | -5.7% |
| 10312025 | ATR | AptarGroup | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.6% | 6.6% | -2.5% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Worthington Steel
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 74.00 |
| Mkt Cap | 3.1 |
| Rev LTM | 2,178 |
| Op Inc LTM | 105 |
| FCF LTM | 16 |
| FCF 3Y Avg | 96 |
| CFO LTM | 188 |
| CFO 3Y Avg | 357 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 0.1% |
| Rev Chg 3Y Avg | -8.0% |
| Rev Chg Q | 12.8% |
| QoQ Delta Rev Chg LTM | 3.2% |
| Op Mgn LTM | 6.5% |
| Op Mgn 3Y Avg | 11.0% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 9.3% |
| CFO/Rev 3Y Avg | 11.4% |
| FCF/Rev LTM | 0.5% |
| FCF/Rev 3Y Avg | 4.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 3.1 |
| P/S | 1.0 |
| P/EBIT | 10.6 |
| P/E | 16.1 |
| P/CFO | 11.6 |
| Total Yield | 7.1% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 3.5% |
| D/E | 0.2 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 10.1% |
| 3M Rtn | 17.4% |
| 6M Rtn | 38.8% |
| 12M Rtn | 36.7% |
| 3Y Rtn | 85.6% |
| 1M Excs Rtn | 9.4% |
| 3M Excs Rtn | 17.6% |
| 6M Excs Rtn | 26.4% |
| 12M Excs Rtn | 22.5% |
| 3Y Excs Rtn | 9.6% |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 9/29/2025 | -0.2% | 1.9% | 4.6% |
| 6/27/2025 | -6.9% | -0.9% | -4.3% |
| 3/21/2025 | 2.0% | -2.2% | -6.5% |
| 12/20/2024 | -7.2% | -8.2% | -12.6% |
| 9/30/2024 | -0.8% | -1.5% | 16.5% |
| 6/28/2024 | -2.2% | -3.0% | 15.4% |
| 3/26/2024 | 3.9% | 4.1% | -11.9% |
| 12/22/2023 | 12.1% | -12.0% | -3.9% |
| SUMMARY STATS | |||
| # Positive | 3 | 2 | 3 |
| # Negative | 5 | 6 | 5 |
| Median Positive | 3.9% | 3.0% | 15.4% |
| Median Negative | -2.2% | -2.6% | -6.5% |
| Max Positive | 12.1% | 4.1% | 16.5% |
| Max Negative | -7.2% | -12.0% | -12.6% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 8312025 | 10102025 | 10-Q 8/31/2025 |
| 5312025 | 7292025 | 10-K 5/31/2025 |
| 2282025 | 4112025 | 10-Q 2/28/2025 |
| 11302024 | 1132025 | 10-Q 11/30/2024 |
| 8312024 | 10152024 | 10-Q 8/31/2024 |
| 5312024 | 8022024 | 10-K 5/31/2024 |
| 2292024 | 4122024 | 10-Q 2/29/2024 |
| 11302023 | 1162024 | 10-Q 11/30/2023 |
| 5312023 | 10042023 | 10-12B 5/31/2023 |
| 5312022 | 4192023 | DRS 5/31/2022 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |