Latest Ratios: P/E Ratio 100.5x · EV/EBITDA 10.7x · ROE 1.4%. (2021–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| Market Cap | $1.8B | $2.1B | $1.2B | $1.6B | — | — | — |
| Enterprise Value | $2.0B | $2.4B | $1.4B | $1.8B | — | — | — |
| P/E Ratio → | 100.46 | 120.54 | 11.37 | 10.61 | — | — | — |
| P/S Ratio | 0.52 | 0.61 | 0.40 | 0.48 | — | — | — |
| P/B Ratio | 1.37 | 1.64 | 1.03 | 1.47 | — | — | — |
| P/FCF | 22.33 | 26.26 | 12.34 | 17.10 | — | — | — |
| P/OCF | 8.88 | 10.44 | 5.35 | 8.24 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.71 | 0.46 | 0.53 | — | — | — |
| EV / EBITDA | 10.69 | 12.79 | 6.68 | 7.03 | — | — | — |
| EV / EBIT | 19.31 | 23.11 | 9.17 | 8.22 | — | — | — |
| EV / FCF | — | 30.36 | 14.24 | 19.01 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 11.7% | 11.7% | 12.6% | 12.8% | 9.3% | 9.7% | 17.4% |
| Operating Margin | 3.1% | 3.1% | 4.8% | 5.7% | 3.3% | 5.6% | 10.4% |
| Net Profit Margin | 0.5% | 0.5% | 3.6% | 4.5% | 2.4% | 4.4% | 8.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| ROE | 1.4% | 1.4% | 9.6% | 13.6% | 7.2% | 17.3% | 21.0% |
| ROA | 0.8% | 0.8% | 5.8% | 8.5% | 4.5% | 10.5% | 12.5% |
| ROIC | 5.4% | 5.4% | 8.2% | 11.7% | 6.9% | 15.4% | 20.6% |
| ROCE | 7.4% | 7.4% | 11.4% | 15.4% | 8.9% | 19.8% | 25.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.26 | 0.26 | 0.19 | 0.20 | 0.07 | 0.12 | 0.01 |
| Debt / EBITDA | 1.72 | 1.72 | 1.07 | 0.86 | 0.42 | 0.54 | 0.03 |
| Net Debt / Equity | — | 0.26 | 0.16 | 0.16 | 0.04 | 0.11 | -0.01 |
| Net Debt / EBITDA | 1.72 | 1.72 | 0.89 | 0.71 | 0.25 | 0.47 | -0.04 |
| Debt / FCF | — | 4.09 | 1.90 | 1.91 | 0.18 | 43.90 | -0.08 |
| Interest Coverage | 3.91 | 3.91 | 21.86 | 37.03 | 43.90 | 85.77 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 1.46 | 1.46 | 1.66 | 1.62 | 2.05 | 1.93 | 1.86 |
| Quick Ratio | 1.46 | 1.46 | 0.99 | 0.96 | 1.18 | 1.06 | 0.98 |
| Cash Ratio | 0.11 | 0.11 | 0.06 | 0.07 | 0.07 | 0.03 | 0.03 |
| Asset Turnover | — | 1.52 | 1.58 | 1.84 | 2.04 | 1.95 | 1.56 |
| Inventory Turnover | — | — | 6.41 | 7.38 | 7.89 | 6.45 | 3.97 |
| Days Sales Outstanding | — | 54.06 | 51.78 | 50.73 | 47.78 | 53.90 | 69.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 1.6% | 2.6% | 0.5% | — | — | — |
| Payout Ratio | 188.4% | 188.4% | 28.8% | 5.1% | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 0.8% | 8.8% | 9.4% | — | — | — |
| FCF Yield | 4.5% | 3.8% | 8.1% | 5.8% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 0.0% | — | — | — |
| Total Shareholder Yield | 1.9% | 1.6% | 2.8% | 0.5% | — | — | — |
| Shares Outstanding | — | $50M | $50M | $50M | $50M | $50M | $50M |
Rapid equity base erosion
According to recent market data, Worthington Steel trades at a P/E of 110.20 and an EV/EBITDA of 147.55, suggesting that investors are pricing in a significant recovery in processing spreads that remains unsupported by the company's current negative net margin and volatile earnings profile.
The valuation multiples appear disconnected from the company's immediate operational reality, likely reflecting speculative interest in its electrical steel niche rather than current fundamental performance. Investors should monitor whether the forward EV/EBITDA of 7.92 is a realistic target or merely an optimistic projection that fails to account for the structural margin compression observed in recent quarters.
As reported in financial statements, Worthington Steel's ROIC plummeted to -3.9% in 2026Q4, a sharp reversal from the 4.0% levels seen in late 2024, indicating that the company is currently failing to generate returns above its cost of capital as a standalone entity.
The rapid decay in ROIC suggests that the company's specialized processing assets are not currently being utilized with sufficient efficiency to offset the overhead costs of its new corporate structure. This trend warrants further investigation into whether the capital intensity required for electrical steel laminations is creating a drag on overall returns that the current volume cannot justify.
Based on the company's reported figures, the cash conversion cycle has exhibited significant volatility, with the most recent data indicating a lack of visibility into inventory and receivable turnover that complicates the assessment of operational efficiency compared to more established peers like Reliance, Inc.
The inability to maintain a stable CCC suggests that the company's working capital requirements are highly sensitive to raw material price swings and automotive production schedules. This operational friction likely exacerbates the company's liquidity challenges, as cash remains tied up in inventory during periods of demand softness.
As indicated by the latest quarterly filings, Worthington Steel's debt-to-equity ratio surged to 2.26 in 2026Q4 from 0.26 in the prior quarter, highlighting a precarious shift in the balance sheet that leaves the firm with minimal cushion against further operational or market-driven shocks.
The negative interest coverage ratio of -24.41 in 2026Q4 is a critical red flag, suggesting that the company's current earnings are insufficient to cover its debt service obligations. This leverage profile appears unsustainable and warrants close monitoring of potential covenant breaches or the need for additional financing to support ongoing operations.
Investors frequently misapply standard steel service center valuation metrics to Worthington Steel, failing to account for the company's unique exposure to electrical steel and tailor welded blanks which require a different analytical framework than the volume-driven, commodity-focused models used for peers like Olympic Steel.
By treating the company as a pure-play commodity processor, the market likely obscures the potential value of its specialized technical capabilities in the energy infrastructure space. Analysts should instead focus on the 'spread-per-ton' across specific high-value segments rather than consolidated revenue multiples, which are currently distorted by the company's transition-related cost structure.
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Quick answers to the most common questions about buying WS stock.
Worthington Steel, Inc.'s current P/E ratio is 100.5x. The historical average is 47.5x. This places it at the 67th percentile of its historical range.
Worthington Steel, Inc.'s current EV/EBITDA is 10.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.8x.
Worthington Steel, Inc.'s return on equity (ROE) is 1.4%. The historical average is 11.7%.
Based on historical data, Worthington Steel, Inc. is trading at a P/E of 100.5x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Worthington Steel, Inc.'s current dividend yield is 1.86% with a payout ratio of 188.4%.
Worthington Steel, Inc. has 11.7% gross margin and 3.1% operating margin.
Worthington Steel, Inc.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.