* Note: Prices are in Million (M) USD.
Description:
Worthington Steel, Inc. is a steel processor in North America. The company is headquartered in Columbus, Ohio.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $93 M
Debt : $230 M
EBITDA : $226 M
Net Debt (Debt - Cash): $137 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Materials
Industry: Steel
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.98
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $118 M
Average Revenue: $3,266 M
Revenue Converted To Free Cash FLow(%): 4%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 2,145.59%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-05-31): $3,093 M
Revenue 4 Years Ago (2021-05-31): $2,127 M
Last 5 Years Average Revenue Growth: 9%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-05-31): $50 M
Share Count 5 Years Ago (2021-05-31): $50 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.77
Trailing 12-Month Earnings Per Share (EPS): $2.19
Average Earnings Per Share (EPS): $2.48
Dividend Per Share (DPS): $1
Payout Ratio: 26%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 15%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $30
52-Week Low: $21
Threshold Price (15% Above 52-Week Low): $24
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,517 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above Worthington Steel Inc (WS) stock.
Last 2 Years Avg PE (Limited to last 2 years of EPS data) 11, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 12.75.
Value-Trades has assined P/E value 12.75. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.48.
The fair value of Worthington Steel Inc (WS) stock should be (12.75 x $2.48) = $31.62
