Stock fact sheet · data as of
Worthington Steel, Inc. (WS): fair value, margin of safety and Wheel Score
Basic Materials · Steel · United States · Speculative / Distressed
Is WS undervalued?
WS closed at 38.75 on 16 Oct 2026, more than 30% above the GLS average fair value of 25.54. Only 1 of the 3 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
Only 3 of the nine models produced a value (DCF, 10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files WS under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for WS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 4.33 | -89% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 62.88 | +62% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 9.42 | -76% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 2.73 | -93% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 46.00 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: WS passes 3 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 1.2%, ROE 1.6%, ROA 0.8% - with debt at 0.33 times equity and a free-cash-flow yield of 5.1%.
The dividend yield is 1.65% at a payout ratio of -111%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Steel Processing 100% (quarter Q4 FY2026).
Institutional ownership scores 7/10, insider activity 4/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 1.2% |
|---|---|---|---|
| GLS Moat | 3.6 / 10 | ROE | 1.6% |
| Debt / equity | 0.33 | ROA | 0.8% |
| Free-cash-flow yield | 5.1% | Payout ratio | -111% |
| Institutions | 7 / 10 | Insiders · Congress | 4 · 5 / 10 |
Wheel Score 42: Weak
WS scores 42 out of 100 on the Wheel Score, in the Weak band (under 50). Value 0/25, Health 7/20, Moat 5/15, Premium 20/20, Stability 10/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 47% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,909 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 489k shares a day on a market cap of $2.0B, with a beta of 2.23 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -52% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 5 / 15 | moat 3.6/10 | |
| Premium | 20 / 20 | implied volatility 47% | |
| Stability | 10 / 20 | 489k shares/day, $2.0B cap, beta 2.23 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 16 Dec 2026, 61 days away - outside the window of a 30-45-day put sold today. The next ex-dividend date is 14 Dec 2026 (0.1600 per share).
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Steel
The 12 companies below are the closest to Worthington Steel, Inc. by market cap within the Steel industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SID Companhia Siderúrgica Nacional | 1.21 | 15.90 | +92% | 45Weak | $1.6B |
| SIM Grupo Simec, S.A.B. de C.V. | 26.32 | 198.95 | +87% | 39No options | $4.4B |
| SXC SunCoke Energy, Inc. | 10.13 | 10.24 | +1% | 45Weak | $860M |
| MTUS Metallus Inc. | 20.42 | 6.80 | -200% | 45Weak | $846M |
| CLF Cleveland-Cliffs Inc. | 12.15 | 21.10 | +42% | 45Weak | $6.9B |
| CMC Commercial Metals Company | 65.37 | 61.15 | -7% | 65Good | $7.2B |
| ASTL Algoma Steel Group Inc. | 4.10 | - | - | 43Weak | $433M |
| GGB Gerdau S.A. | 5.05 | 14.59 | +65% | 85Prime | $9.9B |
| TX Ternium S.A. | 58.55 | 38.74 | -51% | 51Fair | $11.5B |
| FRD Friedman Industries, Incorporated | 41.26 | 27.04 | -53% | 20No options | $298M |
| WEBC Webco Industries, Inc. | 353.00 | 345.40 | -2% | 33No options | $241M |
| MSB Mesabi Trust | 18.04 | 16.69 | -8% | 50Fair | $237M |
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Start free See the Sunday ScanQuestions about WS
Is WS undervalued right now?
No: at 38.75 the stock trades 52% above the GLS average fair value of 25.54 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of WS and what does it mean?
WS scores 42 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WS?
25.54 per share as of 16 Oct 2026 - the simple average of the 3 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Worthington Steel, Inc. report earnings next?
The next earnings report is due on 16 Dec 2026, 61 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WS have listed options, and how liquid are they?
Yes. The nightly snapshot found 66 listed contracts with 1,909 open interest across all expiries and implied volatility of 47% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.