
WS Stock Forecast & Price Target
WS Analyst Ratings
Bulls say
Worthington Steel Inc has demonstrated robust growth, with a 37% increase in topline revenue since fiscal 2019, primarily driven by a 30% rise in average selling prices and a 5% increase in sales volume. The company is positioned to benefit from higher margins and returns during pricing upcycles, further bolstered by strategic investments in higher-margin electrical steel, which enhances its product mix and long-term profitability. Additionally, expectations for capacity expansion and strong growth in the electric vehicle market support a favorable outlook as the company anticipates improving margins and substantial returns in the coming years.
Bears say
Worthington Steel Inc. has experienced a significant decline in its steel EBITDA, falling from $92 million in the first quarter of fiscal 2024 to just $20 million in the second quarter, indicating a sharp negative swing attributed to both holding gains and losses. The company faces ongoing challenges such as compression of margins in a deflationary environment, yield losses during processing, and heightened pricing volatility, particularly exacerbated by a widening scrap gap amid inflationary pressures. Additionally, persistent overcapacity in the Chinese steel market, combined with risks related to electric vehicle adoption, global transformer market growth, and sector-specific dynamics, further contribute to a negative financial outlook for the company.
This aggregate rating is based on analysts' research of Worthington Steel, Inc. and is not a guaranteed prediction by Public.com or investment advice.
WS Analyst Forecast & Price Prediction
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