Worthington SteelWS +4.72%21 Gross Margin % is 12.71% as of May. 2026, which is 1% above its 10-year median of 12.56. GuruFocus rates WS with a GF Score™ of 21/100. The stock has 5 warning signs investors should review. Among 597 Steel companies, Worthington Steel ranks worse than 50.59% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Worthington Steel had a gross margin of 12.71% for the quarter that ended in May. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Worthington Steel Gross Margin % Related Terms
Worthington Steel Gross Margin % Historical Data
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The historical data trend for Worthington Steel's Gross Margin % 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.
For the Steel subindustry, Worthington Steel's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Worthington Steel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Worthington Steel's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Worthington Steel (WS) has a Gross Margin % of 12.71% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Worthington Steel and its competitors. This is near median its historical median of 12.56. Over the past decade, Worthington Steel's Gross Margin % has ranged from 9.33 to 17.43. According to the industry distribution chart, Worthington Steel ranks #302 out of 597 companies in the Steel industry, placing it in the top 50.6%.
Is Worthington Steel's Gross Margin % too high?
Worthington Steel's current Gross Margin % of 12.71% is near median its 10-year median of 12.56. Over the past 10 years, this metric has ranged from a low of 9.33 to a high of 17.43. The Steel industry median Gross Margin % is 12.60. Worthington Steel's value of 12.71% is 0.9% above this industry median. Based on the distribution chart, Worthington Steel ranks #302 out of 597 companies in the Steel industry, which is below the industry midpoint. Overall, Worthington Steel has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Worthington Steel's Gross Margin % compare to NWPX and MTUS?
According to the Steel industry distribution chart, Worthington Steel ranks #302 out of 597 companies for Gross Margin %. This places Worthington Steel in the lower half of its industry. The industry median Gross Margin % is 12.60. Worthington Steel's value of 12.71% is 0.9% above this benchmark. Historically, Worthington Steel's own Gross Margin % has ranged from 9.33 to 17.43 over the past decade. While the company's 10-year median is 12.56 vs. the industry median of 12.60, Worthington Steel has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Worthington Steel's current Gross Margin % of 12.71% is 0.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Worthington Steel and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Worthington Steel's current Gross Margin % is 12.71%, which is near median its own 10-year median of 12.56. 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?
Worthington Steel (WS) has a current Gross Margin % of 12.71%. The current Gross Margin % is 12.71%, which is near median its 10-year median of 12.56 and 0.9% above the Steel industry median of 12.60. Worthington Steel's overall GF Score™ is 21/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Worthington Steel (WS), the current Gross Margin % is 12.71% 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.
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.
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