Worthington Industries (WOR) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 1.25%
• Average Volume (3M): 291.19K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.87
• Revenue Growth: -39.38%
• EPS Growth: 175.22%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.74
• Shares Outstanding: 49,665,054
• 10 Day Avg. Volume: 162,286
• 30 Day Avg. Volume: 291,192
• PEG Ratio: -2.20
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 2.52
• P/FCF Ratio: 18.28
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 10.25
• Enterprise Value/Ebitda: 17.81
• 1Y Price Target: $68.50
• Price Target Upside: 21.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $62.00 ▲(9.60% Upside)

Worthington Industries' strong financial performance and positive earnings call highlight significant growth and strategic execution. However, technical indicators suggest potential bearish momentum, and the valuation indicates the stock may be overvalued. The company's resilience and strategic initiatives are key strengths, while market conditions pose challenges.

Positive Factors

Strategic Acquisitions

The acquisition of Elgen Manufacturing enhances Worthington's revenue base and operational capabilities, supporting long-term growth and market expansion.

Strong Cash Generation

Strong cash generation relative to earnings indicates robust liquidity and financial flexibility, enabling strategic investments and shareholder returns.

Revenue and Margin Growth

Significant revenue and margin growth reflect effective cost management and market demand, enhancing the company's competitive position.

Negative Factors

Revenue Decline

Declining revenue growth suggests challenges in market expansion and demand, potentially impacting long-term profitability and market share.

Economic Uncertainty

Economic and tariff uncertainties pose risks to pricing and supply chain management, potentially affecting operational stability and cost structures.

Impairments and Charges

Significant impairment and restructuring charges indicate financial strain in certain segments, affecting overall profitability and resource allocation.

Worthington Industries Business Overview & Revenue Model

Company Description

Worthington Industries, Inc. is a leading global manufacturer of value-added steel and metal products, with a diverse portfolio that spans multiple sectors, including automotive, construction, energy, and consumer products. The company operates through various segments, including Steel Processing, Pressure Cylinders, and Metal Framing, offering products such as steel coils, propane cylinders, and framing systems. With a commitment to innovation and sustainability, Worthington Industries leverages advanced manufacturing techniques to deliver high-quality solutions tailored to meet the needs of its customers.

How the Company Makes Money

Worthington Industries generates revenue primarily through the sale of its manufactured steel and metal products across its various business segments. The Steel Processing segment contributes significantly by providing processed steel products to customers in industries such as automotive and construction. The Pressure Cylinders segment earns revenue from producing and selling propane cylinders and other pressure vessels, catering to both commercial and consumer markets. The Metal Framing segment offers framing systems for construction projects, which also drives revenue. Worthington's partnerships with key suppliers and customers enhance its market reach and operational efficiency. Additionally, the company focuses on innovation and cost management to maintain profitability, adapting to market demands and economic conditions.

Worthington Industries Financial Statement Overview

Summary

Worthington Industries demonstrates a solid financial position with strong cash flow generation and a healthy balance sheet. The company has shown resilience with positive revenue growth and profitability margins. While operational efficiency could be improved, the overall financial health is stable, supported by a balanced leverage and strong equity base.

Income Statement

Worthington Industries shows a solid gross profit margin of 28.23% TTM, indicating efficient cost management. The net profit margin of 8.91% TTM reflects healthy profitability. Revenue growth is positive at 4.02% TTM, reversing previous declines, suggesting a recovery in sales. However, the EBIT margin is relatively low at 0.83% TTM, indicating potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.36 TTM is moderate, suggesting a balanced approach to leveraging. Return on equity is reasonable at 11.41% TTM, indicating effective use of equity to generate profits. The equity ratio stands at 55.20% TTM, showcasing a strong equity base relative to assets, enhancing financial stability.

Cash Flow

Operating cash flow is robust, with a coverage ratio of 1.10 TTM, indicating strong cash generation relative to net income. Free cash flow growth is positive at 6.00% TTM, reflecting improved cash management. The free cash flow to net income ratio of 0.80 TTM suggests efficient conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.20B	1.15B	1.25B	4.92B	5.24B	3.17B
Gross Profit	338.82M	319.04M	285.02M	663.31M	714.82M	639.08M
EBITDA	194.93M	179.16M	156.49M	149.27M	643.81M	375.59M
Net Income	106.95M	96.05M	110.62M	256.53M	379.39M	723.79M
Balance Sheet
Total Assets	1.74B	1.70B	1.64B	3.65B	3.64B	3.37B
Cash, Cash Equivalents and Short-Term Investments	167.12M	250.07M	244.22M	454.95M	34.48M	640.31M
Total Debt	346.26M	326.06M	317.18M	795.38M	844.41M	747.81M
Total Liabilities	778.31M	756.91M	747.63M	1.83B	2.03B	1.82B
Stockholders Equity	959.83M	937.19M	888.88M	1.70B	1.48B	1.40B
Cash Flow
Free Cash Flow	155.51M	159.16M	206.45M	539.00M	-24.49M	192.20M
Operating Cash Flow	209.66M	209.74M	289.98M	625.36M	70.11M	274.38M
Investing Cash Flow	-151.78M	-135.10M	-140.81M	-71.78M	-438.19M	468.51M
Financing Cash Flow	-69.30M	-68.79M	-359.89M	-133.13M	-237.75M	-249.78M

Worthington Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOR, the sentiment is Negative. The current price of 56.57 is above the 20-day moving average (MA) of 56.37, below the 50-day MA of 59.50, and above the 200-day MA of 54.42, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 23.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOR.

Worthington Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWPX	―	$578.12M	16.36	9.78%	―	7.61%	25.35%
AZZ	―	$3.00B	9.60	27.28%	0.74%	1.55%	701.41%
WOR	―	$2.79B	26.24	11.50%	1.25%	-39.38%	175.22%
IIIN	―	$606.57M	14.89	11.36%	3.59%	22.39%	112.75%
MEC	―	$362.06M	21.06	7.37%	―	-16.95%	66.04%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RYI	―	$710.54M	―	-2.81%	3.18%	-4.89%	-214.50%

Worthington Industries Corporate Events

Worthington Industries Approves 2025 Equity Plan for Directors

At the Annual Meeting of Shareholders held on September 23, 2025, Worthington Enterprises’ shareholders approved the 2025 Equity Plan for Non-Employee Directors, which allows for the granting of up to 1,000,000 common shares. This plan, effective immediately upon approval, will be managed by the company’s Board of Directors and offers various types of stock-related awards to non-employee directors. Additionally, the shareholders elected directors for a three-year term and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending May 31, 2026. Worthington Enterprises also reported strong financial performance in the first quarter of fiscal 2026, with significant growth in sales, adjusted EBITDA, and earnings per share. The company highlighted its strategic focus on innovation, transformation, and acquisitions, which have driven its growth despite market challenges. New product launches and successful integrations of recent acquisitions have bolstered its market position, while ongoing modernization projects and capital investments aim to sustain future growth.

The most recent analyst rating on (WOR) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries Reports Strong Q1 Growth Amid Challenges

The recent earnings call for Worthington Industries, Inc. paints a picture of a company experiencing a robust start to the fiscal year, marked by significant revenue and EBITDA growth. The positive sentiment is tempered by challenges such as tariffs, high interest rates, and difficulties within the Consumer Products segment. Despite these hurdles, the company remains optimistic about its strategic direction and future prospects.

Worthington Enterprises Reports Strong Q1 Fiscal 2026 Results

Worthington Enterprises, Inc., headquartered in Columbus, Ohio, is a designer and manufacturer of market-leading brands that enhance everyday life by improving spaces and experiences. The company operates primarily in the Building Products and Consumer Products segments, offering a diverse range of solutions including HVAC components, architectural systems, and consumer tools.

Worthington Industries Reports Strong Q1 2026 Results

On September 23, 2025, Worthington Enterprises reported its fiscal 2026 first-quarter results, highlighting an 18% increase in net sales to $303.7 million and a 45% rise in net earnings to $34.8 million compared to the same period last year. The company also declared a quarterly dividend of $0.19 per share, payable on December 29, 2025. The acquisition of Elgen Manufacturing significantly contributed to the growth in the Building Products segment, while the Consumer Products segment faced challenges due to lower volumes. Worthington’s strategic focus on innovation and acquisitions, supported by a strong balance sheet, positions it well for future growth.

The most recent analyst rating on (WOR) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries Discusses Strategic Focus at Conference

On August 12, 2025, Worthington Enterprises participated in a fireside chat at the Canaccord Genuity 45th Annual Growth Conference, discussing its strategic separation from its steel business in December 2023. The separation allowed Worthington Enterprises to focus on its building and consumer products, optimizing operations and capital allocation. The company has seen stabilization in demand post-COVID-19 and continues to benefit from its joint ventures, WAVE and ClarkDietrich, which contribute significant cash flow and growth opportunities in areas like data centers and healthcare.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Worthington Industries CEO to Speak at Growth Conference

On August 5, 2025, Worthington Enterprises announced that its President and CEO, Joseph B. Hayek, and CFO, Colin J. Souza, will participate in a fireside chat at the Canaccord Genuity Growth Conference on August 12, 2025. The discussion will focus on the company’s strategies for accelerating long-term growth and shareholder value through innovation, transformation, and mergers and acquisitions. This participation is part of Worthington’s efforts to highlight its business strategies and engage with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.