Worthington Steel, Inc.

Industrials
Steel/Iron Ore
www.worthingtonsteel.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.16B
PE 17
Debt $244.40M
Cash $36.00M
EV $2.37B
FCF $167.20M

Earnings

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Sales & Net Margins

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Earnings	$124.60M
EBIT	$180.50M
ROE	11%
ROA	10%
FCF	$167.20M
Equity	$1.14B
Growth Stability	1
PE	17.35
PEG	0.57
PB	1.89
P/FCF	12.93
P/S	0.64
Price/Cash	0.02
Debt/Equity	0.21
Debt/FCF	1.46
Net Margins	3%
Gross Margins	12%
Op. Margins	5%
Earnings CAGR	31%
Sales Growth YoY	-8%
Sales Growth QoQ	-8%
Sales CAGR	-2%
FCF CAGR	-28%
Equity CAGR	-6%
Earnings Stability	-0.76
Earnings Growth YoY	-51%
Earnings Growth QoQ	-47%
Earnings CAGR 5Y	31%

Sales CAGR 5Y	-2%
FCF CAGR 5Y	-28%
Equity CAGR 5Y	-6%
Earnings CAGR 3Y	-2%
Sales CAGR 3Y	-2%
FCF CAGR 3Y	-28%
Equity CAGR 3Y	-6%
Market Cap	$2.16B
Revenue	$3.36B
Dividend Yield	1%
Payout Ratio	13%
Assets	$1.83B
Total Debt	$244.40M
Cash	$36.00M
Shares Outstanding	49.4M
EV	2.37B
Earnings Score	6%
Moat Score	84%
Safety Score	95%
Final Score	62%
Working Capital	397.6M
Current Ratio	1.71
Gross Profit	$411.70M
Shares Growth 3y	9%
Equity Growth QoQ	2%
Equity Growth YoY	-8%

Assets & ROA

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Stockholders Equity & ROE

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Worthington Steel, Inc. operates as a steel processor and producer. The Company offers manufactures laser welded products consumer and building steel products, as well as pressure cylinders and accessories for applications such as fuel storage, water systems, outdoor living, tools and celebrations. Worthington Steel serves customers worldwide.

SEC Filings

Direct access to Worthington Steel, Inc. (WS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 29
2023
- 10-Q Nov 30

Sector Comparison

How does Worthington Steel, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Worthington Steel, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 31%

Stability -76%

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Worthington Steel, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Worthington Steel, Inc..

Years

Calculation mode

= $339M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$167M	$121M	$87M	$63M	$45M	$33M	$24M	$17M	$12M	$8.9M	$6.4M	$64M
DCF		$110M	$72M	$47M	$31M	$20M	$13M	$8.8M	$5.8M	$3.8M	$2.5M	$25M
Value	$339M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2022	05/2023	05/2024	TTM
Net Margins	4%	2%	5%	3%
ROA	-	7%	12%	10%
ROE	-	8%	14%	11%

Bad Net Margins (3.41%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	0.08	3.08	1.46
Debt over Equity	-	0.02	0.26	0.21
Growth Stability	-	-	-	1

Good Debt/FCF ratio (1.46)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.21)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	-11%	-5%	-2%
Earnings YoY growth	-	-52%	78%	31%
Equity YoY growth	-	-9%	-3%	-6%
FCF YoY growth	-	9K%	-64%	-28%