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On September 16, 2025 Worthington Enterprises published its 2025 Corporate Citizenship and Sustainability Report highlighting safety outperformance, 86% domestic supplier spend, 88% waste recycled or recovered in FY25 and $6.05 million avoided through climate-risk mitigation. On November 5, 2025 the company announced participation in the Baird Global Industrial Conference with senior management presenting strategy on November 13, 2025.
Technical Analysis
ADX at 12.74 indicates no confirmed trend; strength of directional movement remains low and price action has not developed into a sustained trend according to the ADX level.
DI+ at 22.23 shows an increasing trajectory, which reads as bullish presence among directional indicators. DI- at 23.23 recorded a peak-and-reversal, which also registers as a bullish shift in directional balance; together these suggest buyers regained influence after a recent defensive phase, though ADX limits conviction.
MACD at -0.64 has completed a dip-and-reversal and sits above its signal line (-0.81), constituting a bullish momentum crossover. That crossover supports near-term upside momentum even while MACD remains negative overall.
MRO at 19.79 sits positive, indicating current price levels trade above the model target and therefore carry mean-reversion pressure that could check further advance. The positive MRO tempers momentum signals and elevates the risk of short-term pullbacks back toward the target level.
RSI at 45.18 registered a dip-and-reversal, reflecting improving momentum from a recent pullback; the reading below the midpoint suggests room to climb before overbought conditions appear.
Price closed at $55.42, trading just below the 200-day average ($55.59) and the 50-day average ($55.86), but above the 20-day average ($54.36) and the 12-day EMA ($54.53) which itself shows a dip-and-reversal. Bollinger upper band (1x) sits at $55.57, placing the close just inside the upper volatility channel. Ichimoku short-term lines (Tenkan $54.16 / Kijun $55.47) sit near price and indicate short-range consolidation with upside bias if price holds above the 12-day EMA.
Fundamental Analysis
Revenue totaled $303,707,000 with revenue growth down -4.46% YoY and -2.02% QoQ, showing top-line contraction across the most-recent periods. Net income stood at $35,148,000 and EBIT at $45,744,000, producing an EBIT margin of 15.06%.
EBIT margin at 15.06% comes in above the industry peer mean (9.21%) and the industry peer median (10.75%), while remaining below the industry peer high (21.49%); the margin level supports the current valuation narrative by showing relative operating profitability compared with peers.
Earnings per share arrived at $0.74 versus an estimate of $0.70, producing an EPS surprise of 5.71% and a positive difference of $0.04. Forward EPS sits at $0.69, with a forward P/E of 90.04 and a trailing P/E of 84.56, reflecting elevated multiples relative to historical norms despite recent earnings beats.
Liquidity and cash metrics show strength: cash and short-term investments total $167,122,000, current ratio 3.30 and quick ratio 2.24. Net debt equals $138,888,000, producing a modest net leverage position. Operating cash flow totaled $41,061,000 and free cash flow $27,866,000, yielding a free cash flow yield of 0.90%.
Capital structure presents low financing stress: interest expense measured $63,000 and interest coverage registered 726.10x, indicating near-term interest obligations impose negligible pressure on operating results. Dividend payout ratio sits at 24.4% with dividend coverage of 4.10 and a dividend yield of 0.28%.
Return metrics remained modest: return on equity 3.67% and return on assets 2.05%. Inventory days (DIO) 75.34 and receivables days (DSO) 64.58 combine into a cash conversion cycle of 98.07 days, which sits broadly in line with the industry peer mean for cash conversion days (99.27 days) and suggests working-capital intensity consistent with industry norms.
WMDST values the stock as under-valued. That valuation conclusion rests on a combination of above-peer EBIT margin, stronger liquidity and cash holdings offsetting top-line contraction and elevated P/E multiples; these factors create a valuation case that the company’s cash and margin profile exceed what multiples imply.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-08-31 |
| REPORT DATE: | 2025-09-23 |
| NEXT REPORT DATE: | 2025-12-23 |
| CASH FLOW | Begin Period Cash Flow | $ 250.1 M |
| Operating Cash Flow | $ 41.1 M | |
| Capital Expenditures | $ -13.20 M | |
| Change In Working Capital | $ -13.03 M | |
| Dividends Paid | $ -8.58 M | |
| Cash Flow Delta | $ -82.95 M | |
| End Period Cash Flow | $ 167.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 303.7 M | |
| Forward Revenue | $ 73.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 221.4 M | |
| Depreciation | $ 13.1 M | |
| Depreciation and Amortization | $ 13.1 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 292.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 82.3 M | |
| EBITDA | $ 58.8 M | |
| EBIT | $ 45.7 M | |
| Operating Income | $ 11.7 M | |
| Interest Income | — | |
| Interest Expense | $ 63.0 K | |
| Net Interest Income | $ -63.00 K | |
| Income Before Tax | $ 45.7 M | |
| Tax Provision | $ 10.9 M | |
| Tax Rate | 23.774 % | |
| Net Income | $ 35.1 M | |
| Net Income From Continuing Operations | $ 34.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.70 | |
| EPS Actual | $ 0.74 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 5.714 % | |
| Forward EPS | $ 0.69 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.7 B | |
| Intangible Assets | $ 635.2 M | |
| Net Tangible Assets | $ 323.9 M | |
| Total Current Assets | $ 626.0 M | |
| Cash and Short-Term Investments | $ 167.1 M | |
| Cash | $ 167.1 M | |
| Net Receivables | $ 214.1 M | |
| Inventory | $ 201.6 M | |
| Long-Term Investments | $ 20.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 102.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 189.8 M | |
| Net Debt | $ 138.9 M | |
| Total Debt | $ 346.3 M | |
| Total Liabilities | $ 778.3 M | |
| EQUITY | ||
| Total Equity | $ 959.1 M | |
| Retained Earnings | $ 644.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.48 | |
| Shares Outstanding | 49.236 M | |
| Revenue Per-Share | $ 6.17 | |
| VALUATION | Market Capitalization | $ 3.1 B |
| Enterprise Value | $ 3.3 B | |
| Enterprise Multiple | 55.415 | |
| Enterprise Multiple QoQ | -58.2 % | |
| Enterprise Multiple YoY | 12.662 % | |
| Enterprise Multiple IPRWA | high: 103.554 WOR: 55.415 mean: 38.548 median: 34.365 low: -13.929 |
|
| EV/R | 10.734 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.812 | |
| Asset To Liability | 2.233 | |
| Debt To Capital | 0.265 | |
| Debt To Assets | 0.199 | |
| Debt To Assets QoQ | 3.566 % | |
| Debt To Assets YoY | 4356.6 % | |
| Debt To Assets IPRWA | high: 0.528 mean: 0.228 median: 0.207 WOR: 0.199 low: 0.151 |
|
| Debt To Equity | 0.361 | |
| Debt To Equity QoQ | 3.768 % | |
| Debt To Equity YoY | 4324.265 % | |
| Debt To Equity IPRWA | high: 1.471 mean: 0.487 median: 0.368 WOR: 0.361 low: 0.231 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.212 | |
| Price To Book QoQ | 12.124 % | |
| Price To Book YoY | 26.348 % | |
| Price To Book IPRWA | high: 6.441 WOR: 3.212 mean: 2.302 median: 2.061 low: -3.208 |
|
| Price To Earnings (P/E) | 84.559 | |
| Price To Earnings QoQ | 64.367 % | |
| Price To Earnings YoY | -8.649 % | |
| Price To Earnings IPRWA | high: 161.804 WOR: 84.559 mean: 66.862 median: 58.724 low: -45.515 |
|
| PE/G Ratio | -2.801 | |
| Price To Sales (P/S) | 10.144 | |
| Price To Sales QoQ | 20.103 % | |
| Price To Sales YoY | 13.905 % | |
| Price To Sales IPRWA | high: 16.672 WOR: 10.144 mean: 4.822 median: 4.116 low: 0.0 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 90.036 | |
| Forward PE/G | -2.982 | |
| Forward P/S | 41.981 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -101.589 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.177 | |
| Asset Turnover Ratio QoQ | -6.024 % | |
| Asset Turnover Ratio YoY | 12.896 % | |
| Asset Turnover Ratio IPRWA | high: 0.575 mean: 0.221 median: 0.213 WOR: 0.177 low: 0.0 |
|
| Receivables Turnover | 1.413 | |
| Receivables Turnover Ratio QoQ | -6.955 % | |
| Receivables Turnover Ratio YoY | 1.118 % | |
| Receivables Turnover Ratio IPRWA | high: 4.696 median: 2.645 mean: 2.442 WOR: 1.413 low: 1.234 |
|
| Inventory Turnover | 1.194 | |
| Inventory Turnover Ratio QoQ | -11.061 % | |
| Inventory Turnover Ratio YoY | 7.826 % | |
| Inventory Turnover Ratio IPRWA | high: 1.261 WOR: 1.194 median: 1.019 mean: 0.909 low: 0.043 |
|
| Days Sales Outstanding (DSO) | 64.583 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 98.074 | |
| Cash Conversion Cycle Days QoQ | 7.33 % | |
| Cash Conversion Cycle Days YoY | -1.019 % | |
| Cash Conversion Cycle Days IPRWA | high: 188.587 mean: 99.265 WOR: 98.074 median: 83.481 low: 25.763 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.696 | |
| CapEx To Revenue | -0.043 | |
| CapEx To Depreciation | -1.008 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ 323.9 M | |
| Net Working Capital | $ 436.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.881 | |
| Current Ratio | 3.299 | |
| Current Ratio QoQ | -5.262 % | |
| Current Ratio YoY | -4.871 % | |
| Current Ratio IPRWA | high: 6.096 WOR: 3.299 mean: 3.148 median: 3.107 low: 0.105 |
|
| Quick Ratio | 2.237 | |
| Quick Ratio QoQ | -14.675 % | |
| Quick Ratio YoY | -4.454 % | |
| Quick Ratio IPRWA | high: 2.371 WOR: 2.237 median: 1.39 mean: 1.323 low: 0.092 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.886 | |
| Cost Of Debt | -0.015 % | |
| Interest Coverage Ratio | 726.095 | |
| Interest Coverage Ratio QoQ | -626.729 % | |
| Interest Coverage Ratio YoY | 1035.14 % | |
| Interest Coverage Ratio IPRWA | WOR: 726.095 high: 45.262 mean: 16.492 median: 12.225 low: -2.183 |
|
| Operating Cash Flow Ratio | 0.092 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 41.847 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.098 | |
| Dividend Payout Ratio | 0.244 | |
| Dividend Rate | $ 0.17 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.536 % | |
| Revenue Growth | -4.46 % | |
| Revenue Growth QoQ | -201.664 % | |
| Revenue Growth YoY | -76.878 % | |
| Revenue Growth IPRWA | high: 24.542 % mean: 0.85 % median: -1.307 % low: -4.054 % WOR: -4.46 % |
|
| Earnings Growth | -30.189 % | |
| Earnings Growth QoQ | -283.141 % | |
| Earnings Growth YoY | -6.916 % | |
| Earnings Growth IPRWA | high: 36.318 % median: -10.0 % mean: -11.946 % WOR: -30.189 % low: -150.0 % |
|
| MARGINS | ||
| Gross Margin | 27.093 % | |
| Gross Margin QoQ | -7.627 % | |
| Gross Margin YoY | 11.549 % | |
| Gross Margin IPRWA | high: 29.494 % WOR: 27.093 % median: 23.499 % mean: 20.954 % low: -0.972 % |
|
| EBIT Margin | 15.062 % | |
| EBIT Margin QoQ | 478.862 % | |
| EBIT Margin YoY | 23.906 % | |
| EBIT Margin IPRWA | high: 21.494 % WOR: 15.062 % median: 10.748 % mean: 9.211 % low: -3.295 % |
|
| Return On Sales (ROS) | 3.859 % | |
| Return On Sales QoQ | -43.681 % | |
| Return On Sales YoY | -68.254 % | |
| Return On Sales IPRWA | high: 20.894 % median: 11.394 % mean: 9.552 % WOR: 3.859 % low: -4.246 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 27.9 M | |
| Free Cash Flow Yield | 0.904 % | |
| Free Cash Flow Yield QoQ | -50.789 % | |
| Free Cash Flow Yield YoY | -34.255 % | |
| Free Cash Flow Yield IPRWA | high: 2.803 % WOR: 0.904 % median: -0.028 % mean: -0.098 % low: -5.267 % |
|
| Free Cash Growth | -43.509 % | |
| Free Cash Growth QoQ | -494.389 % | |
| Free Cash Growth YoY | 535.353 % | |
| Free Cash Growth IPRWA | high: 347.761 % WOR: -43.509 % mean: -51.71 % median: -91.906 % low: -288.711 % |
|
| Free Cash To Net Income | 0.793 | |
| Cash Flow Margin | 5.745 % | |
| Cash Flow To Earnings | 0.496 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.047 % | |
| Return On Assets QoQ | 790.0 % | |
| Return On Assets YoY | 38.592 % | |
| Return On Assets IPRWA | high: 3.556 % WOR: 2.047 % median: 1.801 % mean: 1.428 % low: -3.138 % |
|
| Return On Capital Employed (ROCE) | 2.954 % | |
| Return On Equity (ROE) | 0.037 | |
| Return On Equity QoQ | 785.266 % | |
| Return On Equity YoY | 36.195 % | |
| Return On Equity IPRWA | high: 0.067 WOR: 0.037 median: 0.026 mean: 0.026 low: -0.046 |
|
| DuPont ROE | 3.707 % | |
| Return On Invested Capital (ROIC) | 2.756 % | |
| Return On Invested Capital QoQ | 422.96 % | |
| Return On Invested Capital YoY | -119.344 % | |
| Return On Invested Capital IPRWA | high: 5.118 % WOR: 2.756 % median: 2.314 % mean: 2.127 % low: -0.864 % |
|