Stock fact sheet · data as of
Worthington Steel, Inc. (WS): fair value, margin of safety and Wheel Score
Ticker symbol WS · Basic Materials · Steel · United States · Speculative
Is WS undervalued?
WS closed at 40.48 on 5 Nov 2026, more than 30% above the GLS average fair value of 25.82. 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 "below fair value" Wheel Trade Filter keeps names like this under 70.
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 - it is losing money or its Piotroski health score is 3 or lower - 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 | 5.21 | -87% | 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 | 62.84 | +55% | 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 | -77% | 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) | 2.72 | -93% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 46.00 | +14% | 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 scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 6.4 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
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 4.8%.
The dividend yield is 1.58% 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 Q1 FY2027).
Institutional ownership scores 7/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 15 Oct 2026.
| Piotroski F-score | 3 / 9 | ROIC | 1.2% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 1.6% |
| Debt / equity | 0.33 | ROA | 0.8% |
| Free-cash-flow yield | 4.8% | Payout ratio | -111% |
| Institutions | 7 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 25: Weak
WS scores 25 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (294 open interest, 52 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 3, below fair value - trades 57% above our fair value; and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 6, no serious red flags - Red Flags score 45 (under 60), and the parts are thin too - value weak, premium strong, moat good, health weak, red flags weak, option trading weak, stability weak. 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 57% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 294 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 372k shares a day on a market cap of $2.1B, with a beta of 2.10 - 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 rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (294 open interest, 52 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Fails | trades 57% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 45 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 57% above fair value | |
| Premium | Strong | implied volatility 57% | |
| Moat | Good | moat 6.4/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Weak | Red Flags score 45/100 | |
| Option trading | Weak | 52 contracts a day, 294 open interest | |
| Stability | Weak | beta 2.10, $2.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 16 Dec 2026 (after the close), 41 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The next ex-dividend date is 14 Dec 2026 (0.1600 per share).
No analyst upgrades or downgrades were recorded in the last 30 days.
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 |
|---|---|---|---|---|---|
| SIM Grupo Simec, S.A.B. de C.V. | 24.80 | 23.39 | -6% | 19No options | $4.1B |
| SID Companhia Siderúrgica Nacional | 0.7766 | 8.77 | +91% | 27Weak | $1.0B |
| SXC SunCoke Energy, Inc. | 10.45 | 20.15 | +48% | 46Weak | $887M |
| MTUS Metallus Inc. | 17.87 | 13.96 | -28% | 34Weak | $741M |
| CMC Commercial Metals Company | 66.46 | 59.09 | -12% | 37Weak | $7.3B |
| CLF Cleveland-Cliffs Inc. | 12.84 | 22.31 | +42% | 50Fair | $7.3B |
| ASTL Algoma Steel Group Inc. | 5.27 | 1.48 | -256% | 20Weak | $557M |
| GGB Gerdau S.A. | 4.60 | 5.98 | +23% | 49Weak | $9.1B |
| TX Ternium S.A. | 51.40 | 38.52 | -33% | 36Weak | $10.1B |
| CRS Carpenter Technology Corporation | 292.10 | 252.04 | -16% | 40Weak | $14.5B |
| FRD Friedman Industries, Incorporated | 38.79 | 27.23 | -42% | 15No options | $280M |
| PKX POSCO Holdings Inc. | 51.60 | 44.28 | -17% | 32Weak | $15.6B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about WS
Is WS undervalued right now?
No: at 40.48 the stock trades 57% above the GLS average fair value of 25.82 (data as of 5 Nov 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 25 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 3, 4, 6. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for WS?
25.82 per share as of 5 Nov 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 (after the close), 41 days from the data date of 5 Nov 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 22 listed contracts with 294 open interest across all expiries and implied volatility of 57% 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.