NUCOR CORP (NUE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NUE - US6703461052 - Common Stock
181.65 USD
+1.38 (+0.77%)
181.081 USD
-0.57 (-0.31%)
We assign a fundamental rating of 5 out of 10 to NUE. NUE was compared to 156 industry peers in the Metals & Mining industry. NUE scores excellent on profitability, but there are some minor concerns on its financial health. NUE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year NUE was profitable.
- In the past year NUE had a positive cash flow from operations.
- Each year in the past 5 years NUE has been profitable.
- In the past 5 years NUE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of NUE (4.73%) is better than 73.72% of its industry peers.
- NUE has a better Return On Equity (7.93%) than 69.87% of its industry peers.
- NUE has a better Return On Invested Capital (6.50%) than 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NUE is significantly above the industry average of 10.34%.
- The last Return On Invested Capital (6.50%) 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 | 4.73% | ||
| ROE | 7.93% | ||
| ROIC | 6.5% |
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
- NUE has a better Profit Margin (5.16%) than 67.95% of its industry peers.
- NUE's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 7.90%, NUE is in the better half of the industry, outperforming 62.82% of the companies in the same industry.
- NUE's Operating Margin has improved in the last couple of years.
- NUE's Gross Margin of 11.43% is in line compared to the rest of the industry. NUE outperforms 41.67% of its industry peers.
- In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 5.16% | ||
| GM | 11.43% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for NUE has been reduced compared to 1 year ago.
- The number of shares outstanding for NUE has been reduced compared to 5 years ago.
- Compared to 1 year ago, NUE has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.44 indicates that NUE is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.44, NUE is in line with its industry, outperforming 53.21% of the companies in the same industry.
- NUE has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.33, NUE is doing worse than 64.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.44 |
ROIC/WACC0.64
WACC10.22%
2.3 Liquidity
- A Current Ratio of 2.77 indicates that NUE has no problem at all paying its short term obligations.
- NUE has a Current ratio of 2.77. This is comparable to the rest of the industry: NUE outperforms 57.05% of its industry peers.
- A Quick Ratio of 1.51 indicates that NUE should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.51, NUE is in line with its industry, outperforming 49.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
- NUE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.62%.
- Measured over the past years, NUE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.91% on average per year.
- NUE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.66%.
- Measured over the past years, NUE shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
EPS 1Y (TTM)-32.62%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%76.51%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%14.47%
3.2 Future
- The Earnings Per Share is expected to grow by 4.45% on average over the next years.
- NUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y-6.78%
EPS Next 2Y15.19%
EPS Next 3Y14.69%
EPS Next 5Y4.45%
Revenue Next Year7.13%
Revenue Next 2Y7.08%
Revenue Next 3Y5.87%
Revenue Next 5Y4.83%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.99, NUE is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of NUE indicates a rather cheap valuation: NUE is cheaper than 82.69% of the companies listed in the same industry.
- NUE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- NUE is valuated correctly with a Price/Forward Earnings ratio of 15.47.
- NUE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NUE is cheaper than 72.44% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. NUE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NUE indicates a somewhat cheap valuation: NUE is cheaper than 77.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
- NUE has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as NUE's earnings are expected to grow with 14.69% in the coming years.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y15.19%
EPS Next 3Y14.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.28%, NUE has a reasonable but not impressive dividend return.
- NUE's Dividend Yield is rather good when compared to the industry average which is at 0.96. NUE pays more dividend than 82.05% of the companies in the same industry.
- NUE's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.08%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- NUE pays out 31.17% 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.
DP31.17%
EPS Next 2Y15.19%
EPS Next 3Y14.69%
NUCOR CORP / NUE FAQ
What is the ChartMill fundamental rating of NUCOR CORP (NUE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NUE.
What is the valuation status of NUCOR CORP (NUE) stock?
ChartMill assigns a valuation rating of 4 / 10 to NUCOR CORP (NUE). This can be considered as Fairly Valued.
How profitable is NUCOR CORP (NUE) stock?
NUCOR CORP (NUE) has a profitability rating of 8 / 10.
What is the financial health of NUCOR CORP (NUE) stock?
The financial health rating of NUCOR CORP (NUE) is 5 / 10.
What is the earnings growth outlook for NUCOR CORP?
The Earnings per Share (EPS) of NUCOR CORP (NUE) is expected to decline by -6.78% in the next year.