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WORWorthington Industries, Inc.
$59.70$3.0B
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  4. Financial Ratios

Worthington Industries, Inc. (WOR) Financial Ratios

Latest Ratios: P/E Ratio 18.8x · EV/EBITDA 23.3x · ROE 15.9%. (1997–2026 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

WOR Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Market Cap$3.0B$2.8B$3.0B$2.9B$1.7B$1.5B$2.2B$1.0B$1.2B$1.9B$1.7B
Enterprise Value$3.3B$3.1B$3.0B$2.9B$2.0B$2.3B$2.3B$1.6B$1.9B$2.5B$2.0B
P/E Ratio →18.7717.8530.6825.926.673.863.0513.088.079.578.21
P/S Ratio2.142.022.562.311.200.280.700.340.330.520.56
P/B Ratio2.852.713.153.220.940.911.421.071.311.801.56
P/FCF11.7511.0718.5513.913.17—11.484.2810.929.086.28
P/OCF13.0812.3214.089.902.7320.918.043.076.266.625.00

P/E links to full P/E history page with 30-year chart

WOR EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
EV / Revenue—2.252.632.361.440.430.730.530.500.700.66
EV / EBITDA23.3322.1130.8735.4112.427.528.687.157.958.906.82
EV / EBIT39.3737.3123.1038.8511.484.172.4411.437.7610.076.06
EV / FCF—12.3519.0314.263.80—12.046.7716.7212.147.40

WOR Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Gross Margin27.4%27.4%27.6%23.0%23.9%11.5%18.3%15.2%12.8%15.1%17.2%
Operating Margin6.0%6.0%4.3%0.2%3.7%3.9%5.6%4.4%3.8%4.9%6.7%
Net Profit Margin11.3%11.3%8.3%8.9%18.1%7.2%22.8%2.6%4.1%5.4%6.8%

Return on Capital

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
ROE15.9%15.9%10.5%8.2%14.9%24.0%57.5%8.2%15.5%18.5%20.5%
ROA8.8%8.8%5.8%4.2%7.0%10.8%25.4%3.3%6.0%7.9%9.3%
ROIC5.3%5.3%3.8%0.1%1.7%7.5%8.3%6.4%6.6%8.7%10.9%
ROCE5.3%5.3%3.4%0.1%1.9%7.7%7.9%7.2%7.5%9.3%11.8%

WOR Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Debt / Equity0.340.340.350.360.440.520.480.770.790.720.54
Debt / EBITDA2.492.493.323.814.822.792.813.273.142.681.99
Net Debt / Equity—0.310.080.080.190.500.070.620.690.610.28
Net Debt / EBITDA2.292.290.770.882.062.680.402.632.752.241.04
Debt / FCF—1.280.480.350.63—0.562.495.803.061.12
Interest Coverage13.3313.3357.0842.699.7717.4333.054.466.456.4611.04

WOR Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Current Ratio2.372.373.483.782.601.922.502.531.671.922.29
Quick Ratio1.431.432.622.861.761.101.781.490.981.221.61
Cash Ratio0.130.131.271.370.630.040.810.380.130.190.53
Asset Turnover—0.750.680.760.391.440.941.311.501.371.30
Inventory Turnover4.844.844.935.831.776.114.596.416.776.697.05
Days Sales Outstanding—65.5872.3263.6257.7861.1473.8841.6949.3658.5359.81

WOR Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Dividend Yield1.3%1.3%1.1%2.0%3.5%3.9%2.4%5.2%4.2%2.8%3.0%
Payout Ratio23.6%23.6%35.3%51.4%23.1%15.1%7.3%67.6%34.1%26.4%24.8%

Total Shareholder Return Metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Earnings Yield5.3%5.6%3.3%3.9%15.0%25.9%32.8%7.6%12.4%10.5%12.2%
FCF Yield8.5%9.0%5.4%7.2%31.5%—8.7%23.4%9.2%11.0%15.9%
Buyback Yield1.5%1.6%1.2%0.4%0.1%12.7%8.7%5.6%14.1%11.1%0.5%
Total Shareholder Yield2.7%2.9%2.3%2.4%3.6%16.6%11.1%10.7%18.3%13.8%3.6%
Shares Outstanding—$49M$50M$50M$49M$51M$54M$56M$59M$63M$65M

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetMixed
Cash FlowMixed
Top Statement Risk

Cyclical Margin and Working Capital Volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2027Q1)

Valuation Discount Masks Cyclical Risk

WOR trades at a forward EV/EBITDA of 11.9x, a notable discount to the peer median of 11.7x and its own trailing 23.3x, suggesting the market prices in significant near-term earnings expansion that may be difficult to sustain given cyclical margin pressure.

The forward P/E of 16.2x appears modest but is inflated by a net margin of 12.4% that includes a significant non-operating component, as indicated by the gap between operating and net margins. The stark contraction from a trailing EV/EBITDA of 23.3x implies the market expects a sharp normalization of EBITDA, a scenario that warrants scrutiny given the recent gross margin decline from 29.2% to 26.4% over two years.

Operating Leverage Deficit Constrains Margins

Despite a healthy 26.4% gross margin in 2027Q1, the operating margin of 3.8% reveals that over 22% of revenue is consumed by SG&A, a burden that has prevented the conversion of cyclical revenue growth into meaningful profitability improvement compared to peers.

The disconnect between WOR's gross margin, which is competitive with Reliance Steel's 26.8%, and its operating margin, which is a fraction of peer Steel Dynamics' 10.3%, points to a structural issue in cost control or scale. The net margin of 12.4% is misleadingly high for 2027Q1, as it is heavily influenced by non-operating items, and masks the underlying operational profitability that is chronically low and volatile.

ROIC Remains Below Cost of Capital

WOR's ROIC has hovered near or below 2% for most of the past ten quarters, significantly trailing its peers like Steel Dynamics at 9.2% and indicating a persistent inability to generate returns that exceed its likely weighted average cost of capital.

The recent ROIC of 0.7% is a marked deterioration from the 2.0% seen in 2026Q3, driven by both a decline in operating profitability and an expanded asset base from acquisitions. This prolonged period of subpar returns suggests the company's capital allocation, particularly the large increase in goodwill and fixed assets, has not yet translated into productive earning power.

Leverage Low but Interest Coverage Volatile

While the D/E ratio of 0.33 indicates modest leverage, interest coverage has been erratic, plunging to 8.3x in 2026Q4 before rebounding, reflecting earnings volatility that complicates debt service assessment despite the manageable headline debt levels.

The D/E ratio has improved from 0.36 two years ago, but this stability masks the operational volatility that directly impacts debt serviceability. The wild swings in interest coverage, from 398x to negative in the last ten periods, highlight that debt risk for WOR is less about the absolute level and more about the predictability of its cash flows to service that debt during cyclical downturns.

Eroding Liquidity Buffer Increases Cyclical Vulnerability

The current ratio has compressed from 3.78 in 2024Q4 to 2.67 in 2027Q1, while the quick ratio fell to 1.53, indicating a notable reduction in the liquid asset cushion that could be tested if a sharp revenue decline materializes.

This liquidity drawdown, occurring alongside balance sheet expansion via acquisitions, suggests management has been prioritizing growth investments over maintaining a fortress balance sheet. While a ratio above 2.0 is still technically adequate, the downward trajectory is a key metric to monitor, as it reduces flexibility to navigate industry downturns without seeking external financing.

P/E Multiple Misleads on Cyclical Earnings

The P/E ratio of 18.8x is the most commonly misapplied metric for WOR, as it obscures the extreme volatility of earnings and can appear artificially low during cyclical troughs, providing a false sense of valuation safety.

Investors should instead focus on EV/EBITDA, which better captures the company's operating cash flow generation independent of capital structure and volatile non-cash items. The forward EV/EBITDA of 11.9x is a more reliable indicator, but even this must be contextualized by the company's historical range and the highly cyclical nature of its end markets, where multiples can compress rapidly during downturns.

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WOR — Frequently Asked Questions

Quick answers to the most common questions about buying WOR stock.

What is Worthington Industries, Inc.'s P/E ratio?

Worthington Industries, Inc.'s current P/E ratio is 18.8x. The historical average is 15.2x. This places it at the 90th percentile of its historical range.

What is Worthington Industries, Inc.'s EV/EBITDA?

Worthington Industries, Inc.'s current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.4x.

What is Worthington Industries, Inc.'s ROE?

Worthington Industries, Inc.'s return on equity (ROE) is 15.9%. The historical average is 13.9%.

Is WOR stock overvalued?

Based on historical data, Worthington Industries, Inc. is trading at a P/E of 18.8x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Worthington Industries, Inc.'s dividend yield?

Worthington Industries, Inc.'s current dividend yield is 1.26% with a payout ratio of 23.6%.

What are Worthington Industries, Inc.'s profit margins?

Worthington Industries, Inc. has 27.4% gross margin and 6.0% operating margin.

How much debt does Worthington Industries, Inc. have?

Worthington Industries, Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.