WORTHINGTON ENTERPRISES, INC (WOR): what the price assumes
In the published model solve dated 2026-Q2, anchored at $57.32, WORTHINGTON ENTERPRISES, INC (WOR) is priced for today's economics sustained for ~9.3 years. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-28.
Generated: 2026-08-30 · Source: https://boothcheck.com/report/WOR
Headline
| Field | Value |
|---|---|
| Ticker | WOR |
| Company | WORTHINGTON ENTERPRISES, INC |
| Current price | $57.32/sh |
| Composition | Building Products 62% / Consumer Products 38% / Other 0% |
What The Price Assumes (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | whole-company |
| Operating margin (value-band context) | 3.7% |
| Operating margin today | 5.5% |
| Margin compression (value-band) | -1.8pp |
| Must persist for | 9.3y |
| Multiple paid | 40x operating income |
The operating-margin figure is value-band context at year 10: derived from the framework's value band, a separate calculation — not part of the priced-in solve.
Solve inputs: computed at a 9.9% cost of capital; growth searched up to the 25% self-funding ceiling.
How unusual the bet is: elevated (limited comparison data)
| Reference | Value |
|---|---|
| vs own history | -0.10σ |
| cohort percentile (of 78 peers) | 91 |
Valuation X-Ray
The price is justified by relative-multiple and growth-DCF; earnings-power land below the price.
How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.
| Family | Median price/FV | Models | Reads |
|---|---|---|---|
| Asset | 1.49x | 5 | expensive |
| Earnings | 1.77x | 4 | expensive |
| Relative | 1.00x | 2 | justifies |
| Growth | 0.74x | 3 | justifies |
Families that justify the price: Relative, Growth Families that call it expensive: Earnings
The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.3%); the inversion above states its own rate.
Per-Model Detail (n=14)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $112.05 | 0.51x | yes | FCF base $0.2B, growth 20% (input: historical growth), terminal g 4.0%, WACC 8.3%, 5yr projection |
| DCF Exit Multiple | Growth | $77.88 | 0.74x | yes | Exit EV/EBITDA: 18.4x / 23.4x / 28.4x (bear / base = today's held flat / bull), 5yr |
| Relative Valuation | Relative | — | — | no | P/E 14x (static sector reference · 2026-04), scenarios: 10.5x / 14.0x / 16.8x (bear / base = reference held flat / bull), EV/EBITDA 12.63x |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $34.48 | 1.66x | yes | BV/sh $20.99, ROE (TTM) 15.2%, ke 9.3% |
| Two-Stage Excess Return | Asset | $43.67 | 1.31x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $63.96 | 0.90x | yes | Rev $1.4B, growth 20% (input: historical growth; tapered), Terminal P/S: 1.5x / 2.0x / 2.4x (bear / base = today's held flat / bull, cap 6x) |
| Peter Lynch Fair Value | Relative | $37.68 | 1.52x | yes | EPS $3.14, growth 2% (input: historical EPS growth), PEG=8.98 (Overvalued) |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | — | — | no | — |
| Residual Income | Asset | $44.72 | 1.28x | yes | BV $20.99 + 5yr PV of (ROE (TTM) 15.2% − Kₑ 9.3%) × BV; BV grows 8.8%/yr |
| Graham Number | Asset | $38.51 | 1.49x | yes | √(22.5 × EPS $3.14 × BVPS $20.99) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | — | — | no | EBITDA $0.13B × sector EV/EBITDA 8.0x |
| FCF Yield | Earnings | $31.00 | 1.85x | yes | FCF $170.2M / Kₑ 9.3% — zero-growth perpetuity |
| SBC-Adj FCF Yield | Earnings | $27.97 | 2.05x | yes | SBC-adj FCF $0.16B (FCF $0.17B − SBC $0.01B) capitalized at Kₑ |
| Ben Graham Formula | Earnings | $101.32 | 0.57x | yes | EPS $3.14 × (8.5 + 2×15.0%) × (4.4 / 5.3%) |
| ROIC-Justified P/B | Asset | $3.49 | 16.42x | yes | BV $20.99 × (ROIC 1.4% / WACC 8.3%) |
| P/Sales Sector | Relative | — | — | no | Revenue $1.38B × sector P/S 1.5x |
| PEG Fair Value | Relative | $117.75 | 0.49x | yes | EPS $3.14 × (PEG 1.5 × growth 25.0% (input: historical EPS growth)) → PE 37.5x |
| Earnings Yield | Earnings | $33.95 | 1.69x | yes | EPS $3.14 / required return 9.3% (Rf 4.3% + ERP 5.0%) |
| Funds From Operations Multiple | Relative | — | — | no | — |
| Clinical Phase NPV | Growth | — | — | no | — |
| Merton | Asset | — | — | no | — |
| V5 Mechanical | — | — | — | no | — |
Economic-Unit Decomposition (Sum Of The Parts)
One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.
| Unit | Role | Valuation basis | Revenue | Reported profit | Value evidence | Status |
|---|---|---|---|---|---|---|
| Building Products | operating | enterprise | $861.5m | — | withheld | unresolved no unit value |
| Consumer Products | operating | enterprise | $519.8m | — | withheld | unresolved no unit value |
No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.
Solvency
| Field | Value |
|---|---|
| Net debt | $284.0m |
| Net debt / NOPAT (after-tax) | 4.63x |
| Net debt / operating income (pre-tax) | 3.73x |
| Interest coverage | 12.2x |
| Share count CAGR (buyback) | -0.5% |
| Burning cash | no |
Bullet Takeaways
- Capital allocation is the story: the 50/50 WAVE joint venture with Armstrong has paid Worthington more than 500 million dollars in dividends since fiscal 2022, and equity income from WAVE and ClarkDietrich totaled 144.8 million dollars in the latest year (FY2025 10-K, accession 0000950170-25-100137), cash collected from ventures it co-owns rather than operates.
- Fiscal 2026 fourth-quarter sales rose 17 percent to 371.5 million dollars and EPS jumped to 0.97 dollars, supported by the Ragasco acquisition, a consistent 0.19-dollar quarterly dividend, share repurchases, and conservative leverage.
- The risk is that the profit is venture-dependent and the moat shared: JV equity income recently declined from 167.7 to 144.8 million dollars, the standalone earnings-power frame reads near zero, and the price sits well above all asset and earnings-power frames, implying roughly 22 percent growth against low-single-digit organic results.
Bull Case
Worthington Enterprises deploys capital in a way that quietly compounds, and the clearest example is what it does not have to spend. Its 50/50 WAVE joint venture with Armstrong World Industries, the North American leader in ceiling-suspension systems, has paid Worthington more than 500 million dollars in cash dividends since fiscal 2022, cash that arrives without Worthington funding the working capital or capex itself. Equity income from WAVE and ClarkDietrich, reported within the Building Products segment, totaled 144.8 million dollars in the most recent fiscal year (FY2025 10-K, accession 0000950170-25-100137). A company that collects nine-figure cash distributions from joint ventures it does not have to operate day to day is generating returns on a capital base far smaller than its reported equity, which is why a modest 11 percent ROE understates the true economics.
Management is recycling that cash into a disciplined, returns-focused portfolio. Worthington acquired Hexagon Ragasco for roughly 98 million dollars and restructured its energy exposure by forming a joint venture with Hexagon Composites, sharpening the company around its two core segments, Consumer Products and Building Products. It maintains a consistent dividend, recently declared at 0.19 dollars a quarter, alongside meaningful share repurchases, and runs a conservative balance sheet that analysts cite approvingly. The fiscal 2026 fourth quarter showed the portfolio working: net sales rose 17 percent to 371.5 million dollars, including acquisitions plus 3 percent organic growth, and net earnings jumped to 48.1 million dollars from 3.6 million a year earlier, with EPS of 0.97 dollars.
The demand backdrop favors the building-products mix. WAVE's equity earnings are growing on commercial demand tied to data centers, healthcare, and education construction, the same secular verticals lifting the broader building-materials sector. Worthington's Building Products segment spans HVAC, metal roofing components, ceiling grid, and metal framing, products levered to non-residential construction and renovation. The valuation engine reads the price as a moat-and-durability premium, with only the growth-DCF reaching it, which fits a company whose value sits in durable joint-venture cash flows and a focused branded-products portfolio that single-period frames cannot fully capture. The bull case is a well-managed capital allocator collecting JV cash, buying carefully, and returning the rest to shareholders.
Bear Case
The advantage Worthington leans on, its joint ventures and its branded building products, is more exposed to erosion than the headline equity income suggests. The 144.8 million dollars of equity income from WAVE and ClarkDietrich is the single largest pillar of profitability, and it is not wholly within Worthington's control: WAVE is a 50/50 venture with Armstrong, and ClarkDietrich is a metal-framing business in a commoditized, cyclical category. Equity income from these ventures actually declined in the recent period, falling from 167.7 million dollars to 144.8 million dollars (FY2025 10-K, accession 0000950170-25-100137), a reminder that the cash distributions the bull case celebrates can shrink. When a company's profitability depends on ventures it co-owns rather than controls, the moat is shared, and a partner's strategy or a downturn in commercial construction can reduce the contribution without Worthington being able to offset it.
The core wholly-owned operations carry thinner, more contested economics. The Consumer Products segment sells tools, propane cylinders, and outdoor-living products into retail channels where private-label and lower-cost competitors steadily pressure shelf space and price. The Building Products segment competes in metal framing, ceiling grid, and HVAC components against larger, well-capitalized building-materials players. The normalized earnings-power read on the wholly-owned business is strikingly weak, with the zero-growth earnings-power value landing near zero, because the five-year-average operating income of the standalone enterprise, stripped of equity income and adjusted for the spinoff transition, is thin. That gap between strong reported earnings and weak normalized earnings power is the warning that much of the profit is venture-dependent.
Valuation leaves little protection for a business in transition. Worthington became a standalone company only after separating from its steel-processing operations, and the short operating history as Worthington Enterprises makes the durable-compounding premium harder to underwrite. The asset and earnings-power frames both read the stock as richly valued, with the price more than twice the asset-based excess-return reads on a book value of 20.18 dollars per share. The inversion implies roughly 22 percent annual operating growth, far above the low-single-digit organic growth the business has shown, so the price is leaning heavily on acquisitions and JV recovery to deliver. If commercial construction softens, if a JV partner shifts strategy, or if the acquisition pipeline slows, the premium has no asset or earnings-power floor near the price to fall back on.
Valuation
Worthington Enterprises is a hybrid of wholly-owned branded products and joint-venture equity income, and that structure makes its valuation X-ray unusually split. The growth-DCF family reaches the 60-dollar price, with perpetual-growth DCF near 56 dollars and exit-multiple DCF near 57 dollars. Every static frame lands lower. The relative-valuation read at a blended P/E near 18 times lands around 31 dollars, the asset-based excess-return reads near 24 to 27 dollars on a book value of 20.18 dollars per share, and the Graham number near 32 dollars. The earnings-power frame is the extreme outlier, reading near zero, because the normalized five-year-average operating income of the standalone wholly-owned business is thin once joint-venture equity income is excluded.
The engine characterizes the premium as a moat-and-durability bet, and that is a fair description: a meaningful share of Worthington's economic earnings comes from joint ventures like WAVE that the income statement reports as equity income rather than operating income, so the single-period operating-based frames understate the true profitability. Inverting the price puts the embedded bet at roughly 22 percent annual operating growth, which is high relative to the low-single-digit organic growth the segments produce, with each one-percentage-point change in the cost of capital moving the implied growth by about 7.8 points, so read it directionally.
The honest synthesis is that the right way to value Worthington is to credit the joint-venture cash flows the operating frames miss, while discounting for the fact that those flows are shared and have recently declined. The asset floor near 24 to 32 dollars is real but far below the price, so the downside in a building-construction downturn is substantial. The price is defensible only if you believe the JV income stream is durable and the acquisition-led growth continues; on the wholly-owned operations alone, the static frames say the stock is expensive. This is a quality-conglomerate-style name where the sum-of-the-parts, including the off-balance-sheet earnings, matters more than any single multiple, and the premium assumes the parts keep delivering.
Catalysts
The dominant catalyst is the trajectory of joint-venture equity income, particularly WAVE. Equity income from WAVE and ClarkDietrich declined in the most recent year, so whether it reaccelerates on commercial construction demand tied to data centers, healthcare, and education, or continues to soften, is the single largest swing factor for reported earnings. Each quarter's equity-income contribution and WAVE cash distribution is the metric to watch, because it drives a disproportionate share of profitability.
The second catalyst is the acquisition-and-portfolio strategy. The Ragasco acquisition and the Hexagon Composites energy joint venture show management actively reshaping the portfolio, so the pace of further bolt-on deals, their accretion, and the integration of recent acquisitions will determine whether the implied growth is achievable. Organic demand in the Consumer Products and Building Products segments, levered to retail and non-residential construction respectively, is the underlying signal beneath the deal activity. Capital return is a steady catalyst: the 0.19-dollar quarterly dividend and the share-repurchase pace reflect management's confidence and conservative balance-sheet posture, and the completion of facility modernization targeted by mid-fiscal-2027 should support margins.
Sources: Worthington Enterprises boosts sales 20 percent and hikes dividend, stocktitan.net; Worthington Enterprises reports Q4 and full-year fiscal 2026 results, globenewswire.com; Worthington Q4 FY26 slides, investing.com; Worthington Q3 2026 earnings transcript, fool.com.
Peer Cohorts (Per Segment, With Filing Citations)
Building Products (reported)
- AOS (A. O. Smith Corporation)
- FY2025 10-K: …lines of residential and commercial gas and electric water heaters, boilers, heat pumps, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Our Rest of World segment is primarily comprised of China, India, and Europe. NORTH AMERICA Sales in our…
- FY2025 10-K: …in such accruals may be required if actual sales volume differs from estimated sales volume or if future returns differ from historical experience. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold and are activities performed to…
- AWI (ARMSTRONG WORLD INDUSTRIES, INC.)
- FY2025 10-K: …Specialties or Unallocated Corporate segment, including all property and related depreciation associated with our Lancaster, Pennsylvania headquarters. Operating results for the Mineral Fiber segment include a significant majority of allocated Corporate administrative expenses that represent a reasonable allocation…
- FY2025 10-K: …and sells suspension system (grid) products and ceiling component products that are invoiced by both AWI and WAVE. Segment results relating to WAVE consist primarily of equity earnings and reflect our 50 % equity interest in the joint venture. Ceiling component products consist of ceiling perimeters and trim, in…
- EXP (EAGLE MATERIALS INC.)
- FY2025 10-K: …and taxes are managed on a centralized basis, and not included in segment operating information. Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes…
- FY2025 10-K: …cement, concrete, aggregates, gypsum wallboard, and recycled paperboard. The majority of Revenue from the sale of concrete, aggregates, and gypsum wallboard is originated by purchase orders from our customers, who are mainly third-party contractors and suppliers. Revenue from the sale of cement is sold point-of-sale…
- MAS (Masco Corporation)
- FY2025 10-K: …Products segment, which are aggregated by product similarity. Our Decorative Architectural Products segment is impacted by seasonality and normally experiences stronger sales during the second and third calendar quarters, corresponding with the peak season for repair and remodel activity. 2 Plumbing Products The…
- FY2025 10-K: …encountered price volatility with respect to certain of these materials. To help reduce the impact of this price volatility, we have and may in the future enter into long-term agreements with certain significant suppliers. We import certain materials and products for this segment that have been and may in the future…
- FBIN (Fortune Brands Innovations, Inc.)
- FY2025 10-K: Segment Raw Materials Water Brass, zinc, resins, stainless steel and aluminum Outdoors Wood, aluminum, steel, plastics, resins, glass, vinyl and insulating foam Security Steel, zinc, brass and resins Intellectual property. Product innovation and branding are important to the success of our business. In addition to the…
- FY2025 10-K: …centers and mass merchandisers. This segment is increasingly investing in and developing digital products and "smart" home capabilities. In aggregate, sales to The Home Depot and Lowe's comprised approximately 21% of net sales of the Water segment in 2025. This segment's chief competitors include Masco, Kohler, LIXIL…
- OC (Owens Corning)
- FY2025 10-K: …residential construction. Roofing also manufactures and sells glass mat and specialty veil materials used in building and construction applications. Insulation - Within our Insulation segment, the Company manufactures and sells thermal and acoustical batts, loose fill insulation, spray foam insulation, wet use…
- FY2025 10-K: …improved acoustical performance and convenience of installation and use. Our Insulation segment includes a diverse portfolio of high, mid and low-temperature products with a geographic mix of United States, Canada, Europe and Latin America, a market mix of residential, commercial, industrial and other markets, and a…
Consumer Products (reported)
- MLI (MUELLER INDUSTRIES INC)
- FY2025 10-K: …references to share and per share amounts presented in the Consolidated Financial Statements and this Annual Report on Form 10-K have been adjusted retroactively to reflect the stock split. Revenue Recognition Given the nature of the Company's business and product offerings, sales transactions with customers are…
- FY2025 10-K: …mli:TubeAndFittingsMember mli:PipingSystemsMember 2023-01-01 2023-12-30 0000089439 us-gaap:OperatingSegmentsMember mli:TubeAndFittingsMember mli:IndustrialMetalsMember 2023-01-01 2023-12-30 0000089439 us-gaap:OperatingSegmentsMember mli:TubeAndFittingsMember mli:ClimateMember 2023-01-01 2023-12-30 0000089439…
- TRS (TRIMAS CORPORATION)
- FY2025 10-K: …benefit of $45.8 million, a $1.5 million decrease in interest expense, and a $0.8 million increase in other income. See below for a discussion of operating results by segment. Packaging. Net sales increased $23.2 million, or 4.5% (of which 4.1% was organic and 0.4% was foreign currency exchange), to $535.5 million in…
- FY2025 10-K: …and/or focused market product offerings within each of our businesses. Useful lives assigned to customer relationship intangibles range from five to 25 years and have been estimated using historic customer retention and turnover data. Other factors considered in evaluating estimated useful lives include the diverse…
- SWK (STANLEY BLACK & DECKER, INC.)
- FY2025 10-K: ITCH®, FATMAX®, Powers®, Guaranteed Tough®, MAC TOOLS®, PROTO®, Vidmar®, FACOM®, Expert®, CribMaster®, LISTA®, MTD®, CUB CADET®, TROY-BILT®, HUSTLER®, and the yellow & black color scheme for power tools and accessories. Significant trademarks in the Engineered Fastening segment include STANLEY®, NELSON®, POP®, Avdel®,…
- FY2025 10-K: …condition and cash flows. Changes in customer or end-user preferences, the inability to maintain mutually beneficial relationships with large customers, inventory reductions by customers, and the inability to penetrate new channels of distribution could adversely affect the Company's business. The Company has certain…
- MAS (Masco Corporation)
- FY2025 10-K: 34 ) ( 36 ) Accumulated other comprehensive income $ 298 $ 201 O. SEGMENT INFORMATION Our reportable segments are as follows: Plumbing Products - principally includes faucets, plumbing system components and valves, showerheads and handheld showers, bath hardware and accessories, bathing units, tubs and shower bases…
- FY2025 10-K: …Products segment, which are aggregated by product similarity. Our Decorative Architectural Products segment is impacted by seasonality and normally experiences stronger sales during the second and third calendar quarters, corresponding with the peak season for repair and remodel activity. 2 Plumbing Products The…
- FBIN (Fortune Brands Innovations, Inc.)
- FY2025 10-K: …statement of income and consolidated balance sheet in the period in which such changes occur. As of December 27, 2025 , we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $ 21.1 million. Revenue Recognition The Comp any recognizes revenue for the sale of goods based on its…
- FY2025 10-K: 2023-12-31 2024-12-28 0001519751 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2023-12-31 2024-12-28 0001519751 us-gaap:SalesRevenueNetMember fbin:LowesMember us-gaap:CustomerConcentrationRiskMember 2023-12-31 2024-12-28 0001519751…
- AOS (A. O. Smith Corporation)
- FY2025 10-K: …lines of residential and commercial gas and electric water heaters, boilers, heat pumps, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Our Rest of World segment is primarily comprised of China, India, and Europe. NORTH AMERICA Sales in our…
- FY2025 10-K: …for the majority of its customers are 30 to 90 days from shipment. Additionally, certain customers in China pay the Company prior to the shipment of products resulting in a customer deposits liability of $ 34.2 million and $ 54.4 million at December 31, 2025 and December 31, 2024, respectively. Customer deposit…
Methodology Note
- Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
- Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
- Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
- Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
- Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.
Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.