| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 54 | — | 17.3x | Around median | |
Growth | 29 | 69.1% | 7.1% | Bottom tier | |
Quality | 20 | -0.5% | 4.5% | Bottom tier | |
Safety | 30 | 21.5x | 2.6x | Bottom tier | |
Capital Return | 44 | 1.57% | 0.06% | Around median | |
Momentum | 72 | 17.7% | -1.6% | Top tier | |
Sentiment | 20 | 1 | 3 | Bottom tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Worthington Steel processes steel and sells it directly to customers, and processes materials on behalf of customers, serving the automotive, construction, agriculture, truck, and trailer markets. Its value-added operations include galvanizing and pickling, while the acquisition of Kloeckner Metals expands its capabilities, geographic reach, and the industrial markets it serves. In quarter 1 of fiscal year 2027, ended 2026-08-31, consolidated sales reached $2.7 billion and shipments totaled approximately 1.9 million tons, with direct sales accounting for 77% of the shipment mix and toll processing 23%, compared with 63% and 37% in the comparable period.
Worthington Steel recorded a loss from continuing operations attributable to the company of $7 million in quarter 1 of fiscal year 2027, ended 2026-08-31, compared with a profit of $36.8 million in the comparable period, while adjusted earnings per share were $0.57 versus $0.77. Adjusted earnings before interest, taxes, depreciation, and amortization reached $111 million, but net interest expense rose to $38.8 million from $2.9 million, and the step-up in the carrying value of Kloeckner inventory reduced gross margin and adjusted earnings before interest, taxes, depreciation, and amortization by $43 million. Sales from the legacy Worthington Steel business reached $954 million, up 9%, while its total shipments declined 1%; consolidated sales growth therefore combines the acquisition's impact with improved prices and direct sales volumes in the legacy business.
Gross margin declined to 11.7% in fiscal year 2026, ended 2026-05, from 12.6% in fiscal year 2025, ended 2025-05, and net income fell to $8.5 million from $110.7 million. In the last 12 months through 2026-08-31, revenue reached $5.3 billion and the net loss totaled $33.3 million, with positive operating cash flow of $201.5 million and free cash flow of $109.7 million. These figures show the company's expanding scale alongside weak profitability, while converting its new scale into cash and reducing the financing burden remain central to assessing the acquisition.
Last 12 months to 2026-08-31
When: 2026-12-16
Adjusted earnings per share compared with the $0.57 level
Free cash flow compared with a $69 million deficit
The median analyst target is $46, an indicative estimate with low confidence because it is based on one analyst and reflects expectations for growth and future performance, with a Buy consensus. The industry multiple valuation is $42, within a range of $34 to $52, based on next year's earnings and a median multiple of 15.3 across 10 companies, measuring Worthington Steel's value when its earnings are priced like those of its peers. The analyst target falls within the range of the industry multiple method but exceeds its central value, reflecting the difference between expectations for future performance and valuation using peer multiples. Analyst targets tend to be optimistic by nature, while reliance on one analyst makes the difference between $46 and $42 less decisive.
Figures in the text are as of 2026-10-08; the live price is shown at the top of the page.
Worthington Steel closed the acquisition on 2026-06-03 and included 100% of Kloeckner's results in quarter 1 of fiscal year 2027, ended 2026-08-31. Consolidated sales reached $2.7 billion, while sales from the legacy business reached $954 million, and the range of products, processing capabilities, and geographic coverage expanded. Integration opportunities include producing galvanized steel for Kloeckner and improving its inventory management, with a working capital savings target of $150 million. Full integration requires the domination and profit and loss transfer agreement signed on 2026-09-08 to take effect and shareholder approval scheduled for 2026-10.
In quarter 1 of fiscal year 2027, ended 2026-08-31, sales reached $2.7 billion, but adjusted earnings per share declined to $0.57 from $0.77 in the comparable period. Net interest expense rose to $38.8 million from $2.9 million after the acquisition, putting pressure on earnings attributable to shareholders despite adjusted earnings before interest and taxes rising to $78.5 million. The inventory carrying value step-up also reduced gross margin and adjusted earnings before interest, taxes, depreciation, and amortization by $43 million. Reported results included pretax acquisition expenses of $22.6 million and a pretax remeasurement loss of $15.5 million on previously held Kloeckner shares.
Automated analysis for informational purposes only — not investment advice.
When: Quarter 2 of fiscal year 2027
Pretax inventory holding gains within the $10 million to $15 million estimate
In the legacy business during quarter 1 of fiscal year 2027, ended 2026-08-31, direct automotive shipments rose 4%, agriculture shipments rose 40%, and other transportation shipments, which include heavy trucks, rose 39%. Agriculture benefited from demand from equipment manufacturers and grain silos, while transportation benefited from market share gains and new business, and the TWB joint venture received two awards from Subaru. By contrast, energy shipments fell 31% because a customer shifted its purchases to another supplier, and construction shipments declined 9% due to competition and steel shortages. Total shipments from the legacy business fell 1%, showing that gains in the stronger markets did not prevent an overall decline in volumes.
Net debt stood at $1.9 billion and cash at approximately $248 million as of 2026-08-31, and management made cash generation and debt reduction priorities on the 2026-10-07 call. The company generated free cash flow of $109.7 million in the last 12 months through 2026-08-31, but recorded negative free cash flow of $69 million in quarter 1 of fiscal year 2027, ended 2026-08-31. Estimated capital expenditures for fiscal year 2027 are between $160 million and $180 million, so debt reduction depends on improved cash flows and the execution of working capital savings. Becker Stahl is being offered for sale, and management expects to allocate most of Kloeckner's net sale proceeds to debt reduction, without announcing a specific proceeds amount.
The analyst consensus is Buy, and both the average and median targets are $46, while the highest and lowest targets are also $46. However, coverage includes only one analyst, so the target remains indicative and carries low confidence. The industry multiple valuation is $42 within a range of $34 to $52, using a median multiple of 15.3 across 10 companies. The proximity of the two values indicates overlapping estimation ranges, but does not provide a broad diversity of analyst views on the results of the Kloeckner acquisition.