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WSWorthington Steel, Inc.Sell4.9·$41.02-1.32%
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Worthington Steel, Inc. (WS) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Basic Materials · Steel

Sell if holding. Engine safety override at $41.02: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality.

Worthington Steel is one of the largest independent intermediate processors of carbon flat-rolled steel in the US, operating 28 manufacturing facilities across the US, Canada, and international markets. It serves ~1,200 customers across automotive (52% of net sales),... Read more

$41.02+7.7% A.UpsideScore 4.9/10#9 of 10 Steel
QualityF-score7 / 9FCF yield0.05%
IncomeYield1.54%Payout26.67%sustainable
Stop $38.15Target $44.17(resistance)A.R:R -1.8:1
Analyst target$38.00-7.4%1 analysts
Range unavailable (1 analysts)

Sell if holding. Engine safety override at $41.02: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.9/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 15d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Jun 24, 202615d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Customer: automotive-related customers (52.0%)
Target reached (-21.3% upside)
Quality below floor (3.2 < 4.0)

Key Metrics

P/E (TTM)17.3
P/E (Fwd)15.5
Mkt Cap$2.1B
EV/EBITDA10.9
Profit Mgn3.6%
ROE10.4%
Rev Growth12.0%
Beta2.20
Dividend1.54%
Rating analysts10

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C0.17bullish
IV97%elevated

Concentration Risks(10-K Item 1A)

  • HIGHCustomerautomotive-related customers52%
    10-K Item 1A: 'Approximately 52% of our net sales are to automotive-related customers.'
  • MEDIUMCustomertop-3 customers33%
    10-K Item 1: 'our top three customers represented approximately 33.0% of total net sales'
  • LOWCustomerconstruction end market11%
    10-K Item 1A: 'The automotive and construction industries account for approximately 52.0% and 11.0%, respectfully, of our net sales'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Fcf Quality
0.1
Operating Margin
0.7
Net Margin
1.8
Roa
3.2
Roe
3.5
Current Ratio
5.5
Moat
6.4
Piotroski F
7.8
Earnings quality RED FLAG: 1% FCF/NIStrong Piotroski F-Score: 7/9
GatesA.R:R -1.8=NEGATIVEMomentum 4.9<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.9>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 15d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
66 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $36.21Resistance $45.07

Price Targets

$38
$44
A.Upside+7.7%
A.R:R-1.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-21.3% upside)
! Quality below floor (3.2 < 4.0)
! Value-trap signals (2/5): High leverage (D/E 1.9), Material insider selling (3 sells, 0.04% of cap)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-06-24 (15d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is WS stock a buy right now?

Sell if holding. Engine safety override at $41.02: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $38.15. Score 4.9/10, moderate confidence.

What is the WS stock price target?

Take-profit target: $44.17 (+7.7% upside). Prior stop was $38.15. Stop-loss: $38.15.

What are the risks of investing in WS?

Concentration risk — Customer: automotive-related customers (52.0%); Target reached (-21.3% upside); Quality below floor (3.2 < 4.0).

Is WS overvalued or undervalued?

Worthington Steel, Inc. trades at a P/E of 17.3 (forward 15.5). TrendMatrix value score: 7.0/10. Verdict: Sell.

What do analysts say about WS?

10 analysts cover WS with a consensus score of 4.1/5. Average price target: $38.

What does Worthington Steel, Inc. do?Worthington Steel is one of the largest independent intermediate processors of carbon flat-rolled steel in the US,...

Worthington Steel is one of the largest independent intermediate processors of carbon flat-rolled steel in the US, operating 28 manufacturing facilities across the US, Canada, and international markets. It serves ~1,200 customers across automotive (52% of net sales), construction (11%), and other end markets; top three customers account for ~33% of total net sales.

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