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WSWorthington Steel, Inc.Sell4.9·$35.16-8.84%
SellModerate Confidence
Investment thesis

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 ConcentrationStable
  • Target Exceeded Negative AsymmetryStable
  • Quality Floor FailureStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Worthington Steel, Inc. (WS) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Basic Materials · Steel

Sell if holding. Engine safety override at $35.16: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 2.33; Below-average business quality; Negative price momentum.

Worthington Steel processes carbon flat-rolled steel and produces electrical steel laminations and laser-welded blanks at 28 manufacturing facilities in the US, Canada, Germany, India, China, and Mexico. In fiscal 2025, the company purchased 2.44 million tons of steel, serving... Read more

$35.16+11.2% A.UpsideScore 4.9/10#9 of 10 Steel
QualityF-score7 / 9FCF yield0.05%
IncomeYield1.62%Payout26.67%sustainable
Stop $33.60Target $39.10(analyst − 15%)A.R:R 0.8:1
Analyst target$46.00+30.8%1 analysts
Range unavailable (1 analysts)

Sell if holding. Engine safety override at $35.16: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 2.33; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.9/10, moderate confidence.

Passes 5/7 gates (clean insider activity, no SEC red flags, earnings proximity 93d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

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

Recent developments

updated 2026-06-29

Recent Developments — Worthington Steel, Inc.

Latest news

Generated 2026-06-29T23:53:58Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Sep 30, 202693d to earnings· next earnings call

Thesis

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

Key Metrics

P/E (TTM)113.4
P/E (Fwd)15.4
Mkt Cap$1.9B
EV/EBITDA10.5
Profit Mgn3.6%
ROE10.4%
Rev Growth12.0%
Beta2.20
Dividend1.62%
Rating analysts10

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C2.33bearish
IV62%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 three customers33%
    10-K Item 1: 'our top three customers represented approximately 33.0% of total net sales'

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

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.2
Ma Position
2.2
Rsi
3.5
Volume
4.3
Volume distribution (falling OBV)Below 200-MA but MA still rising (+4.1%/30d) — pullback in uptrend, not confirmed weakness

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
GatesMomentum 2.2<4.5A.R:R 0.8 < 1.5@spotInsider activity: OKNo SEC red flagsEARNINGS PROXIMITY 93d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
33 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $34.64Resistance $44.94

Price Targets

$34
$39
A.Upside+11.2%
A.R:R0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.2 < 4.0)
! momentum at 2.2 (below the engine's 4.5 threshold)
! asymmetry at 0.8 (below the engine's 1.5 threshold)@spot

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-09-30 (93d)

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 $35.16: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 2.33; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $33.60. Score 4.9/10, moderate confidence.

What is the WS stock price target?

Take-profit target: $39.10 (+11.2% upside). Prior stop was $33.60. Stop-loss: $33.60.

What are the risks of investing in WS?

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

Is WS overvalued or undervalued?

Worthington Steel, Inc. trades at a P/E of 113.4 (forward 15.4). TrendMatrix value score: 7.4/10. Verdict: Sell.

What do analysts say about WS?

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 laser-welded blanks...

Worthington Steel processes carbon flat-rolled steel and produces electrical steel laminations and laser-welded blanks at 28 manufacturing facilities in the US, Canada, Germany, India, China, and Mexico. In fiscal 2025, the company purchased 2.44 million tons of steel, serving ~1,200 customers across automotive (52% of net sales), construction (11%), and other end markets, with its top three customers accounting for approximately 33% of total net sales.

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