NUCOR CORP (NUE) Stock Fundamental Analysis
NYSE:NUE - New York Stock Exchange, Inc. - US6703461052 - Common Stock - Currency: USD
NUE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While NUE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NUE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NUE had positive earnings in the past year.
In the past year NUE had a positive cash flow from operations.
NUE had positive earnings in each of the past 5 years.
NUE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.84%, NUE is doing good in the industry, outperforming 71.61% of the companies in the same industry.
NUE has a Return On Equity of 6.64%. This is in the better half of the industry: NUE outperforms 71.61% of its industry peers.
NUE's Return On Invested Capital of 5.64% is fine compared to the rest of the industry. NUE outperforms 65.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NUE is significantly above the industry average of 11.61%.
The last Return On Invested Capital (5.64%) for NUE is well below the 3 year average (17.84%), which needs to be investigated, but indicates that NUE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.64% | ||
| ROIC | 5.64% |
ROA(3y)14.01%
ROA(5y)14.38%
ROE(3y)24.2%
ROE(5y)25.55%
ROIC(3y)17.84%
ROIC(5y)19.27%
1.3 Margins
The Profit Margin of NUE (4.38%) is better than 69.03% of its industry peers.
NUE's Profit Margin has improved in the last couple of years.
The Operating Margin of NUE (6.98%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NUE has grown nicely.
NUE has a Gross Margin (10.46%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 4.38% | ||
| GM | 10.46% |
OM growth 3Y-27.6%
OM growth 5Y2.16%
PM growth 3Y-29.36%
PM growth 5Y3.25%
GM growth 3Y-23.78%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
NUE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NUE has less shares outstanding
Compared to 5 years ago, NUE has less shares outstanding
Compared to 1 year ago, NUE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.92 indicates that NUE is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.92, NUE is doing good in the industry, outperforming 65.81% of the companies in the same industry.
The Debt to FCF ratio of NUE is 15.10, which is on the high side as it means it would take NUE, 15.10 years of fcf income to pay off all of its debts.
NUE's Debt to FCF ratio of 15.10 is fine compared to the rest of the industry. NUE outperforms 61.94% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that NUE is not too dependend on debt financing.
The Debt to Equity ratio of NUE (0.34) is worse than 65.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 15.1 | ||
| Altman-Z | 3.92 |
ROIC/WACC0.59
WACC9.54%
2.3 Liquidity
A Current Ratio of 2.52 indicates that NUE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, NUE is in line with its industry, outperforming 55.48% of the companies in the same industry.
NUE has a Quick Ratio of 1.48. This is a normal value and indicates that NUE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.48, NUE perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The earnings per share for NUE have decreased strongly by -63.76% in the last year.
NUE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.91% yearly.
The Revenue for NUE has decreased by -10.88% in the past year. This is quite bad
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-63.76%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-77.75%
Revenue 1Y (TTM)-10.88%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%-3.77%
3.2 Future
Based on estimates for the next years, NUE will show a small growth in Earnings Per Share. The EPS will grow by 4.45% on average per year.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y-11.58%
EPS Next 2Y10.43%
EPS Next 3Y13.87%
EPS Next 5Y4.45%
Revenue Next Year6.44%
Revenue Next 2Y5.11%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.12, NUE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NUE indicates a somewhat cheap valuation: NUE is cheaper than 73.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. NUE is around the same levels.
Based on the Price/Forward Earnings ratio of 13.20, the valuation of NUE can be described as correct.
NUE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NUE is cheaper than 65.16% of the companies in the same industry.
NUE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NUE is valued a bit cheaper than the industry average as 69.03% of the companies are valued more expensively.
63.87% of the companies in the same industry are more expensive than NUE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.99 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
NUE has an outstanding profitability rating, which may justify a higher PE ratio.
NUE's earnings are expected to grow with 13.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y10.43%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
NUE's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to the average S&P500 Dividend Yield of 2.37, NUE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of NUE is nicely growing with an annual growth rate of 6.08%!
NUE has been paying a dividend for at least 10 years, so it has a reliable track record.
NUE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.08%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
NUE pays out 38.83% of its income as dividend. This is a sustainable payout ratio.
NUE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.83%
EPS Next 2Y10.43%
EPS Next 3Y13.87%
142.4
-0.91 (-0.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners76.98%
Inst Owner Change0.04%
Ins Owners0.47%
Ins Owner Change0.48%
Market Cap32.86B
Analysts76.19
Price Target148.48 (4.27%)
Short Float %2.97%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend2.18
Dividend Growth(5Y)6.08%
DP38.83%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.13%
Min EPS beat(2)17.38%
Max EPS beat(2)84.88%
EPS beat(4)4
Avg EPS beat(4)28.9%
Min EPS beat(4)0.23%
Max EPS beat(4)84.88%
EPS beat(8)7
Avg EPS beat(8)16%
EPS beat(12)10
Avg EPS beat(12)13.58%
EPS beat(16)12
Avg EPS beat(16)10.77%
Revenue beat(2)2
Avg Revenue beat(2)5.47%
Min Revenue beat(2)3.59%
Max Revenue beat(2)7.36%
Revenue beat(4)4
Avg Revenue beat(4)4.06%
Min Revenue beat(4)1.24%
Max Revenue beat(4)7.36%
Revenue beat(8)5
Avg Revenue beat(8)1.95%
Revenue beat(12)8
Avg Revenue beat(12)1.55%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)-0.72%
PT rev (3m)-5.07%
EPS NQ rev (1m)19.78%
EPS NQ rev (3m)23.95%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)5.88%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)2.98%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 13.2 | ||
| P/S | 1.08 | ||
| P/FCF | 62.99 | ||
| P/OCF | 8.46 | ||
| P/B | 1.64 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)6.16
EY4.33%
EPS(NY)10.79
Fwd EY7.58%
FCF(TTM)2.26
FCFY1.59%
OCF(TTM)16.83
OCFY11.82%
SpS131.86
BVpS86.97
TBVpS55.09
PEG (NY)N/A
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.64% | ||
| ROCE | 7.17% | ||
| ROIC | 5.64% | ||
| ROICexc | 6.53% | ||
| ROICexgc | 9.15% | ||
| OM | 6.98% | ||
| PM (TTM) | 4.38% | ||
| GM | 10.46% | ||
| FCFM | 1.71% |
ROA(3y)14.01%
ROA(5y)14.38%
ROE(3y)24.2%
ROE(5y)25.55%
ROIC(3y)17.84%
ROIC(5y)19.27%
ROICexc(3y)21.93%
ROICexc(5y)23.06%
ROICexgc(3y)31.53%
ROICexgc(5y)31.51%
ROCE(3y)22.62%
ROCE(5y)24.46%
ROICexcg growth 3Y-36.34%
ROICexcg growth 5Y-0.84%
ROICexc growth 3Y-38.58%
ROICexc growth 5Y-3.14%
OM growth 3Y-27.6%
OM growth 5Y2.16%
PM growth 3Y-29.36%
PM growth 5Y3.25%
GM growth 3Y-23.78%
GM growth 5Y2.32%
F-Score5
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 15.1 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 238.69% | ||
| Cap/Sales | 11.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.9% | ||
| Profit Quality | 39.15% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.92 |
F-Score5
WACC9.54%
ROIC/WACC0.59
Cap/Depr(3y)202.33%
Cap/Depr(5y)198.22%
Cap/Sales(3y)7.13%
Cap/Sales(5y)6.7%
Profit Quality(3y)85.27%
Profit Quality(5y)96.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-63.76%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-77.75%
EPS Next Y-11.58%
EPS Next 2Y10.43%
EPS Next 3Y13.87%
EPS Next 5Y4.45%
Revenue 1Y (TTM)-10.88%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%-3.77%
Revenue Next Year6.44%
Revenue Next 2Y5.11%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y-63.36%
EBIT growth 3Y-31.62%
EBIT growth 5Y8.65%
EBIT Next Year41.07%
EBIT Next 3Y25.26%
EBIT Next 5Y17.92%
FCF growth 1Y-92.3%
FCF growth 3Y-44.08%
FCF growth 5Y-9.56%
OCF growth 1Y-55.91%
OCF growth 3Y-13.89%
OCF growth 5Y7.21%