Is the business good?
How good a business is WS?
Worthington Steel, Inc. earns 8.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.6%
Return on invested capital · cost of capital 9.0% · 0.43 points below what the capital costs: growth destroys value
- Operating margin
- 4.2%
Operating margin · Steel median 6.4% · 12 months to Q3 2026
- Cash conversion
- 0.66×
Cash conversion · 0.76× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.79%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2022 | 5.6% |
| FY2023 | 3.3% |
| FY2024 | 5.7% |
| FY2025 | 4.8% |
Details›
- Gross margin12 months to Q3 2026
- 12%
- Operating margin12 months to Q3 2026
- 4.2%
- Net margin12 months to Q3 2026
- 3.6%
- Free cash flow margin
- 2.4%
- Revenue, trailing twelve months
- $3.35B
- Free cash flow, trailing twelve months
- $81M
- Net income, trailing twelve months
- $122M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.