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Worthington Steel, Inc. (WS) Stock Analysis

Range Bound setup

SellVALUE-TRAP 2/5Moderate Confidence

Basic Materials · Steel

Sell if holding. Engine safety override at $38.24: 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; Negative price momentum.

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

$38.24+9.4% A.UpsideScore 4.9/10#9 of 10 Steel
QualityF-score7 / 9FCF yield0.05%
IncomeYield1.64%Payout26.67%sustainable
Stop $35.57Target $41.83(resistance)A.R:R -1.5:1
Analyst target$38.00-0.6%1 analysts
Range unavailable (1 analysts)

Sell if holding. Engine safety override at $38.24: 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; Negative price momentum. Chart setup: RSI 52 mid-range, Bollinger mid-band. Score 4.9/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 37d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Worthington Steel, Inc.

Generated 2026-05-20T20:21:22Z.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Customer: automotive-related customers (52.0%)
Target reached (-15.6% upside)
Quality below floor (3.2 < 4.0)

Key Metrics

P/E (TTM)16.2
P/E (Fwd)14.6
Mkt Cap$2.0B
EV/EBITDA10.3
Profit Mgn3.6%
ROE10.4%
Rev Growth12.0%
Beta2.20
Dividend1.64%
Rating analysts10

Quality Signals

Piotroski F7/9MoatNarrow

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. Full disclaimer

Rating Breakdown

2 floor-breakers

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

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

Volume
0.0
Macd
0.5
Obv
5.3
Rsi
5.5
Ma Position
6.0
Above 200-day MA
GatesMomentum 3.5<4.5A.R:R -1.5=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 37d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
52 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $35.06Resistance $42.68

Price Targets

$36
$42
A.Upside+9.4%
A.R:R-1.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-15.6% upside)
! Quality below floor (3.2 < 4.0)
! Value-trap signals (2/5): High leverage (D/E 1.9), Material insider selling (5 sells, 0.05% of cap)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-06-24 (37d)

Verdict History

reverse chrono — latest first
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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 $38.24: 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; Negative price momentum. Chart setup: RSI 52 mid-range, Bollinger mid-band. Prior stop was $35.57. Score 4.9/10, moderate confidence.

What is the WS stock price target?

Take-profit target: $41.83 (+9.4% upside). Prior stop was $35.57. Stop-loss: $35.57.

What are the risks of investing in WS?

Concentration risk — Customer: automotive-related customers (52.0%); Target reached (-15.6% upside); Quality below floor (3.2 < 4.0).

Is WS overvalued or undervalued?

Worthington Steel, Inc. trades at a P/E of 16.2 (forward 14.6). TrendMatrix value score: 7.3/10. 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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