Worthington Steel is a value-priced steel processor with a Piotroski score of 7/9 and moderate peer ranking, but the business quality is below the minimum floor at 3.2, earnings have been mixed with 2 recent misses, and heavy automotive customer concentration leaves the company exposed to cyclical demand risk.
Thesis pillars
- Automotive Customer Concentration↓Deteriorating
- Target Exceeded Negative Asymmetry↓Deteriorating
- Quality Floor Failure↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Worthington Steel, Inc. (WS) Stock Analysis
Range Bound setup · Inst Constrain edge
Basic Materials · Steel
Sell if holding. Engine safety override at $33.76: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 2.86; Below-average business quality; Below long-term trend.
Worthington Steel processes carbon flat-rolled steel and produces electrical steel laminations and tailor welded products, operating 28 manufacturing facilities in the U.S., Canada, China, India, Germany, and Mexico. The company buys steel coils from primary producers and... Read more
Sell if holding. Engine safety override at $33.76: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 2.86; Below-average business quality; Below long-term trend. Chart setup: RSI 48 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 19d clear, semi cycle peak clear). Fails on weak momentum and materials cycle peak fwd=6.8x,ratio=0.03x. Suitability: aggressive.
About Worthington Steel, Inc.
About Worthington Steel, Inc.
Worthington Steel's automotive and construction end markets accounted for approximately 52% and 11% of net sales, respectively, in fiscal 2025, when the company purchased about 2.44 million tons of steel — 70% hot-rolled, 20% cold-rolled and 10% galvanized — to run 28 manufacturing facilities across the U.S. (19), Canada (2), China, India, Germany, and Mexico (4).
Worthington Steel earns revenue primarily through direct sale of processed steel, priced on a mix of fixed and index-based supply terms, alongside toll processing where customers retain title to the steel and pay a processing fee without the company carrying inventory risk. Its top three customers represented approximately 33% of total net sales in fiscal 2025, and roughly 52% of net sales flowed to automotive-related customers, including a significant portion tied to the Detroit Three automakers and their suppliers. The company purchases flat-rolled steel from major mills including Cleveland-Cliffs, Nucor, Steel Dynamics, and United States Steel, and sources zinc from a small group of suppliers such as Glencore and Teck Resources at market prices. Contracts with both customers and suppliers are generally short-term or order-by-order rather than long-term, which the filing notes has historically allowed relationships to be replaced without significant business interruption.
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One angle distinct from customer or end-market mix is regulatory exposure tied to climate policy: Worthington Steel is tracking compliance obligations under the European Union's Carbon Border Adjustment Mechanism and Corporate Sustainability Reporting Directive, alongside California's Climate Corporate Data Accountability Act and Climate-Related Financial Risk Act, any of which could raise compliance costs or metal and utility prices across its footprint. Separately, Section 232 tariffs on imported steel and aluminum were doubled to 50% effective June 4, 2025, a level the filing warns could reverse and pressure domestic steel prices downward if legal challenge, legislation, or executive action later relaxes the measure.
See also: Basic Materials · Steel
From Worthington Steel, Inc.'s most recent 10-K filing, extracted August 30, 2026.
Recent developments
updated 2026-09-18Recent Developments — Worthington Steel, Inc.
Latest news
- NEWS Worthington Steel Signs Domination And Profit & Loss Transfer Agreement With Kloeckner Via Subsidiary Worthington Steel — benzinga Sep 8, 2026 positive
- NEWS Kloeckner Announces It's Unable To Recommend Either Acceptance Or Rejection Of Worthington Steel's Delisting Takeover Of — benzinga Jul 22, 2026 negative
- NEWS Worthington Steel Announces Opening Of Acceptance Period For Public Delisting Tender Offer For All Kloeckner Shares It D — benzinga Jul 15, 2026 negative
- NEWS Worthington Steel Q4 2026 Earnings Call Transcript — benzinga Jun 25, 2026 neutral
- NEWS Worthington Steel Q4 Adj. EPS $0.74 Beats $0.73 Estimate, Sales $929.200M Miss $992.000M Estimate — benzinga Jun 24, 2026 negative
Generated 2026-09-18T08:22:11Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomertop three customers33%10-K Item 1: 'During fiscal 2025, our top three customers represented approximately 33.0% of total net sales.'
- HIGHCustomerautomotive-related customers52%10-K Item 1A: 'Approximately 52% of our net sales are to automotive-related customers.'
- MEDIUMCustomerDetroit Three automakers10-K Item 1A: 'a significant portion of our automotive sales are to the Detroit Three automakers and their suppliers'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $33.76: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 2.86; Below-average business quality; Below long-term trend. Chart setup: RSI 48 mid-range, Bollinger mid-band. Prior stop was $31.40. Score 5.1/10, moderate confidence.
Take-profit target: $39.10 (+15.8% upside). Prior stop was $31.40. Stop-loss: $31.40.
Commodity cycle peak: fwd P/E 6.8× (below 12) + fwd/trail 0.03× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Customer: automotive-related customers (52.0%); Quality below floor (3.8 < 4.0).
Worthington Steel, Inc. trades at a P/E of 196.1 (forward 6.8). TrendMatrix value score: 8.1/10. Verdict: Sell.
10 analysts cover WS with a consensus score of 4.1/5. Average price target: $46.
What does Worthington Steel, Inc. do?Worthington Steel processes carbon flat-rolled steel and produces electrical steel laminations and tailor welded...
Worthington Steel processes carbon flat-rolled steel and produces electrical steel laminations and tailor welded products, operating 28 manufacturing facilities in the U.S., Canada, China, India, Germany, and Mexico. The company buys steel coils from primary producers and processes them to customer specifications, serving about 1,200 customers in fiscal 2025, with automotive representing approximately 52% of net sales and construction about 11%.