Worthington Steel
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 1/4
| Measure | WS | Checked against | |
|---|---|---|---|
| Owner earnings | $-28.50m | positive | ✗ |
| Return on equity | 0.8% | median 11.7% | ✗ |
| Debt to equity | 0.07x | median 0.79x | ✓ |
| Operating margin | -0.0% | median 15.0% | ✗ |
Passes 1 of 4. To be clear: Warren Buffett has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | WS | Checked against | |
|---|---|---|---|
| Return on capital employed | -0.1% | median 10.1% | ✗ |
| Cash conversion | 23.67x | median 1.78x | ✓ |
| Operating margin | -0.0% | median 15.0% | ✗ |
| Debt to equity | 0.07x | median 0.79x | ✓ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 0/3
| Measure | WS | Checked against | |
|---|---|---|---|
| Return on capital employed | -0.1% | median 10.1% | ✗ |
| Return on equity | 0.8% | median 11.7% | ✗ |
| Operating margin | -0.0% | median 15.0% | ✗ |
Passes 0 of 3. To be clear: Charlie Munger has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 2/3
| Measure | WS | Checked against | |
|---|---|---|---|
| Return on equity | 0.8% | median 11.7% | ✗ |
| Debt to equity | 0.07x | median 0.79x | ✓ |
| Cash conversion | 23.67x | median 1.78x | ✓ |
Passes 2 of 3. To be clear: Chuck Akre has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 0/4
| Measure | WS | Checked against | |
|---|---|---|---|
| Operating margin | -0.0% | median 15.0% | ✗ |
| Net margin | 0.2% | median 10.2% | ✗ |
| Return on capital employed | -0.1% | median 10.1% | ✗ |
| Operating margin, held or improving | -0.0% | 10-yr median 4.8% | ✗ |
Passes 0 of 4. To be clear: Philip Fisher has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | WS | Checked against | |
|---|---|---|---|
| Current ratio | 1.46x | median 1.25x | ✓ |
| Debt to equity | 0.07x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/2
| Measure | WS | Checked against | |
|---|---|---|---|
| Current ratio | 1.46x | 2.00x published | ✗ |
| Long-term debt to working capital | 0.13x | 1.00x published | ✓ |
Passes 1 of 2. To be clear: Benjamin Graham has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 0/1
| Measure | WS | Checked against | |
|---|---|---|---|
| Return on capital employed | -0.1% | median 10.1% | ✗ |
Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/2
| Measure | WS | Checked against | |
|---|---|---|---|
| Debt to equity | 0.07x | median 0.79x | ✓ |
| Net margin | 0.2% | median 10.2% | ✗ |
Passes 1 of 2. To be clear: Peter Lynch has never said anything about Worthington Steel. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 376.5% | whyA single year's earnings for a commodity producer can be several times the through-cycle average. This ratio computed in a trough looks alarming and in a peak looks trivial; neither describes whether the dividend is affordable across a cycle. |
| Operating cash flow | 16.2% | whyBefore capital spending. |
| Free cash flow | 40.8% | whyNets out the capital spending producers cut in downturns — so it flatters a trough year. |
Spread between highest and lowest: 360.3 percentage points. Same filings, different denominators.
Coverage rating 28 / 100 — Strained. ? Peer standing 24/50Direction 4/30Stability 0/20
Free cash flow payout, last 3 years
| Fiscal year | Payout |
|---|---|
| 2026-05-31 | 40.8% |
| 2025-05-31 | 31.9% |
| 2024-05-31 | 8.2% |
Coverage has deteriorated three years running, 8.2% to 40.8%. Still covered, but moving the wrong way.
47% of the 36 materials here pay out more.
The arithmetic
- GAAP earnings — dividends declared per share $0.640 ÷ diluted EPS $0.170
- Operating cash flow — dividends paid $32.6m ÷ operating cash flow $201m
- Free cash flow — dividends paid $32.6m ÷ (operating cash flow $201m − capex $121m)
Where the figures came from
- 10-K filed 2026-07-30 · accession 0001968487-26-000026
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: uncovered on earnings, covered on the basis that applies · rated strained · when it files.
When this changes
Every figure above is recomputed whenever Worthington Steel files. The monthly letter carries what filed, what moved, and one finding computed across every company here.