Highlights

  • Worthington shows 54.69% one-year basic EPS growth, a P/E of 19.23 and PEG of 0.42.
  • First quarter fiscal 2027 net sales were $343.9 million, up 13.2%.
  • Diluted EPS was $0.87 against $0.70; adjusted diluted EPS was $0.82 against $0.78.
  • The company repurchased 335,000 common shares for $18.2 million; 4,230,000 shares remain authorized.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and Worthington Enterprises (NYSE:WOR) shows all three: basic earnings per share grew 54.69% over one year, the trailing twelve-month P/E ratio is 19.23 and the PEG ratio, on an expected basis, is 0.42, with shares trading at USD 63.23 on October 28, 2026, down 0.27%. Alongside those figures, the building and specialty products manufacturer amended and restated its $500.0 million Credit Facility on August 31, announced new names for its two operating segments on September 15, and reported first quarter fiscal 2027 net earnings of $42.6 million in its quarterly report filed in October.

Worthington Enterprises is based in Columbus, Ohio, and is incorporated in Ohio. The company designs and manufactures products and solutions serving building and specialty applications. Its Building Performance Solutions segment offers pressurized containment products, HVAC components, metal roofing clips, ceiling suspension systems through the Worthington Armstrong Venture and light gauge metal-framing products through ClarkDietrich. Its Trade & Specialty Solutions segment offers tools, portable propane and helium, and other specialty products. Its fiscal year ends May 31.

Growth: Fiscal First Quarter 2027 Sales, Earnings and Segments

Net sales for the quarter ended August 31, 2026 were $343.9 million against $303.7 million a year earlier, up 13.2%. Net earnings were $42.6 million against $34.8 million. Basic earnings per share were $0.88 against $0.71, and diluted earnings per share were $0.87 against $0.70. Adjusted diluted EPS, a non-GAAP measure, was $0.82 against $0.78.

Building Performance Solutions net sales were $215.1 million, up 16.4%, which the company attributed primarily to acquisitions, which contributed $19.2 million, and to its water business, partially offset by lower volume and mix in cooling and construction. Trade & Specialty Solutions net sales were $128.8 million, up 8.3%, which the company attributed to higher overall volume and higher average selling prices. Equity income was $40.6 million, up 10.6%.

Valuation: P/E of 19.23, PEG of 0.42 and Cash Flow

The P/E ratio of 19.23 is measured on trailing twelve-month earnings, and the PEG ratio of 0.42 on expected growth. Net cash provided by operating activities was $66.7 million against $41.1 million,. Shareholders' equity was $1,047,192 thousand at August 31, 2026, against $1,027,040 thousand at May 31, 2026.

On the fiscal first quarter 2027 earnings call on September 23, management described free cash flow as one of its most important operating metrics and said it views the working capital improvements behind its cash generation as sustainable.

Capital Returns, Credit Facility and Debt

The company paid $18.2 million to repurchase 335,000 common shares and $9.4 million in dividends in the quarter. At August 31, 2026, 4,230,000 common shares remained available under the 10,000,000 share authorization of March 24, 2021, which has no fixed expiration date. On September 22, 2026, the Board declared a quarterly dividend of $0.20 per common share payable on December 29, 2026. The company said it has paid a dividend every quarter since becoming a public company in 1968, with no guarantee that payments will continue.

Cash and cash equivalents were $55.1 million against $27.7 million at May 31, 2026. Long-term debt was $305,552 thousand against $305,896 thousand. The amended Credit Facility matures August 31, 2031, up from September 27, 2028, with aggregate commitments of $500.0 million and no borrowings outstanding.

Disclosed Risks, Steel Costs and Outlook

Gross margin was 26.4% against 27.1%, and the company cited higher conversion costs in cooling and construction. Interest expense, net was $2.1 million against $0.1 million, which the company attributed to lower interest income on cash on hand. The company said the A2L refrigerant load-in during the prior fiscal year and later customer destocking reduced volume and mix in cooling and construction.

Hot rolled steel averaged approximately $1,157 per ton in the quarter against $834 per ton in August 2025, and the company said domestic steel availability was constrained, with extended lead times. The company expects tariff-related cost pressure on aluminum to persist through fiscal 2027. Sales to one Trade & Specialty Solutions customer accounted for 10.2% of consolidated net sales. The company described conditions in its key end markets as soft and uneven and said it expects demand across both segments to remain uneven in the near term.

The company provided no numeric guidance. On the call, management said it expects engineered ASME tank revenue to grow sequentially through the rest of fiscal 2027, described the second quarter as a continued difficult comparison for cooling and construction, and said normalization is expected in the second half. It announced an Investor Day on November 10.