Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Worthington Steel's Degree of Operating Leverage for the quarter that ended in May. 2026 was -6.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Worthington Steel's Degree of Operating Leverage or its related term are showing as below:
WS's Degree of Operating Leverage is ranked better than 82.89% of 602
companies
in the Steel industry
Industry Median: 1.28
vs WS: -6.81
Worthington Steel (NYSE:WS) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Worthington Steel Degree of Operating Leverage Related Terms
Worthington Steel Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Worthington Steel's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Worthington Steel Degree of Operating Leverage Chart
WS vs NWPX, MTUS, FRD: Degree of Operating Leverage Comparison
For the Steel subindustry, Worthington Steel's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Worthington Steel Degree of Operating Leverage vs Steel Industry
For the Steel industry and Basic Materials sector, Worthington Steel's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Worthington Steel's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -6.81 mean?
Worthington Steel (WS) has a Degree of Operating Leverage of -6.81 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Worthington Steel and its competitors. According to the industry distribution chart, Worthington Steel ranks #103 out of 602 companies in the Steel industry, placing it in the top 17.1%.
Is Worthington Steel's Degree of Operating Leverage too high?
Worthington Steel's current Degree of Operating Leverage is -6.81. Based on the distribution chart, Worthington Steel ranks #103 out of 602 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Worthington Steel has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Worthington Steel's Degree of Operating Leverage compare to NWPX and MTUS?
According to the Steel industry distribution chart, Worthington Steel ranks #103 out of 602 companies for Degree of Operating Leverage. This places Worthington Steel in the top 17% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.28. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Steel company?
The median Degree of Operating Leverage among Steel companies is 1.28, based on 602 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Worthington Steel and its competitors. For the Steel industry, the median Degree of Operating Leverage is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Worthington Steel's current Degree of Operating Leverage is -6.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Worthington Steel stock overvalued right now?
Based on GuruFocus' analysis, Worthington Steel (WS) is currently considered Fairly Valued. The stock's GF Value™ is $34.35, compared to a current price of $34.01 — trading 1% below its estimated fair value. The current Degree of Operating Leverage is -6.81. Worthington Steel's overall GF Score™ is 54/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Worthington Steel (WS), the current Degree of Operating Leverage is -6.81 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Worthington Steel (WS) Overvalued in 2026?
Based on GuruFocus' analysis, Worthington Steel stock appears to be undervalued.
The current stock price of $34.01 is trading 1% below its estimated GF Value™ of $34.35.
GuruFocus considers Worthington Steel to be Fairly Valued.
Key valuation signals for WS:
Degree of Operating Leverage: -6.81
GF Value™: $34.35 vs. price of $34.01 (1% below fair value)
No single metric tells the full story. See the WS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Worthington Steel Inc is a processor of carbon flat-rolled steel, a producer of laser-welded solutions, and a provider of electrical steel laminations. The company has manufacturing facilities across the United States, Canada, China, India, Germany and Mexico. It buys coils of steel from primary steel producers and processes them to precise type, thickness, length, width, shape, and surface quality required by customer specifications. The company's product lines and processing capabilities include; carbon flat-rolled steel processing, electrical steel laminations, and tailor welded products. Geographically, the company generates a majority of its revenue from the United States followed by Canada, Mexico, and other regions.
54GF Score
Get the complete analysis for WS
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WS has been successfully added to your 
