NUCOR CORP (NUE) Stock Fundamental Analysis
USA - NYSE:NUE - US6703461052 - Common Stock
141.35 USD
-2.4 (-1.67%)
141.35 USD
0 (0%)
Taking everything into account, NUE scores 5 out of 10 in our fundamental rating. 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 is valued correctly, but it does not seem to be growing.
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.
NUE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NUE has a better Return On Assets (3.77%) than 71.79% of its industry peers.
NUE has a Return On Equity of 6.33%. This is in the better half of the industry: NUE outperforms 71.15% of its industry peers.
NUE has a better Return On Invested Capital (5.64%) than 65.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NUE is above the industry average of 13.00%.
The 3 year average ROIC (17.84%) for NUE is well above the current ROIC(5.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.33% | ||
| 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
NUE's Profit Margin of 4.19% is fine compared to the rest of the industry. NUE outperforms 69.87% of its industry peers.
NUE's Profit Margin has improved in the last couple of years.
NUE has a better Operating Margin (6.99%) than 60.90% of its industry peers.
NUE's Operating Margin has improved in the last couple of years.
The Gross Margin of NUE (10.43%) is comparable to the rest of the industry.
NUE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.99% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.43% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NUE is creating value.
Compared to 1 year ago, NUE has less shares outstanding
The number of shares outstanding for NUE has been reduced compared to 5 years ago.
The debt/assets ratio for NUE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.04 indicates that NUE is not in any danger for bankruptcy at the moment.
NUE has a Altman-Z score of 4.04. This is in the better half of the industry: NUE outperforms 63.46% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that NUE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, NUE is not doing good in the industry: 64.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.04 |
ROIC/WACC0.58
WACC9.66%
2.3 Liquidity
NUE has a Current Ratio of 2.83. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NUE (2.83) is comparable to the rest of the industry.
A Quick Ratio of 1.51 indicates that NUE should not have too much problems paying its short term obligations.
NUE's Quick ratio of 1.51 is in line compared to the rest of the industry. NUE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| 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 -55.80%.
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 decrease in Revenue. In the last year, the revenue decreased by -5.78%.
NUE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-55.8%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-1.12%
Revenue 1Y (TTM)-5.78%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%4.69%
3.2 Future
NUE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.45% yearly.
NUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.78% yearly.
EPS Next Y-3.55%
EPS Next 2Y13.5%
EPS Next 3Y16.38%
EPS Next 5Y4.45%
Revenue Next Year7.45%
Revenue Next 2Y5.83%
Revenue Next 3Y5.78%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.06, which indicates a rather expensive current valuation of NUE.
Based on the Price/Earnings ratio, NUE is valued a bit cheaper than 77.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of NUE to the average of the S&P500 Index (27.30), we can say NUE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 12.40, the valuation of NUE can be described as correct.
Based on the Price/Forward Earnings ratio, NUE is valued a bit cheaper than 73.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, NUE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NUE is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
The excellent profitability rating of NUE may justify a higher PE ratio.
NUE's earnings are expected to grow with 16.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y13.5%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, 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 2.71. NUE pays more dividend than 80.13% of the companies in the same industry.
NUE's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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
39.96% of the earnings are spent on dividend by NUE. This is a low number and sustainable payout ratio.
NUE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.96%
EPS Next 2Y13.5%
EPS Next 3Y16.38%
141.35
-2.4 (-1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.05%
Inst Owner Change2.13%
Ins Owners0.47%
Ins Owner Change-0.11%
Market Cap32.45B
Analysts79.05
Price Target160.16 (13.31%)
Short Float %2.49%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend2.18
Dividend Growth(5Y)6.08%
DP39.96%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.09%
Min EPS beat(2)-1.2%
Max EPS beat(2)17.38%
EPS beat(4)3
Avg EPS beat(4)25.32%
Min EPS beat(4)-1.2%
Max EPS beat(4)84.88%
EPS beat(8)6
Avg EPS beat(8)15.34%
EPS beat(12)9
Avg EPS beat(12)12.8%
EPS beat(16)11
Avg EPS beat(16)10.29%
Revenue beat(2)1
Avg Revenue beat(2)2.72%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)2.57%
Min Revenue beat(4)-1.93%
Max Revenue beat(4)7.36%
Revenue beat(8)5
Avg Revenue beat(8)1.96%
Revenue beat(12)7
Avg Revenue beat(12)1.33%
Revenue beat(16)9
Avg Revenue beat(16)0.86%
PT rev (1m)3.29%
PT rev (3m)8.18%
EPS NQ rev (1m)2.25%
EPS NQ rev (3m)7.03%
EPS NY rev (1m)2.1%
EPS NY rev (3m)8.91%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 12.4 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | 10.37 | ||
| P/B | 1.59 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)6.13
EY4.34%
EPS(NY)11.4
Fwd EY8.07%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)13.64
OCFY9.65%
SpS134.21
BVpS88.83
TBVpS57
PEG (NY)N/A
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.33% | ||
| ROCE | 7.16% | ||
| ROIC | 5.64% | ||
| ROICexc | 6.14% | ||
| ROICexgc | 8.34% | ||
| OM | 6.99% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.43% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 243.65% | ||
| Cap/Sales | 11.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 4.04 |
F-Score4
WACC9.66%
ROIC/WACC0.58
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)-55.8%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-1.12%
EPS Next Y-3.55%
EPS Next 2Y13.5%
EPS Next 3Y16.38%
EPS Next 5Y4.45%
Revenue 1Y (TTM)-5.78%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%4.69%
Revenue Next Year7.45%
Revenue Next 2Y5.83%
Revenue Next 3Y5.78%
Revenue Next 5YN/A
EBIT growth 1Y-53.7%
EBIT growth 3Y-31.62%
EBIT growth 5Y8.65%
EBIT Next Year50.03%
EBIT Next 3Y25.47%
EBIT Next 5Y19.61%
FCF growth 1Y-105.98%
FCF growth 3Y-44.08%
FCF growth 5Y-9.56%
OCF growth 1Y-63.03%
OCF growth 3Y-13.89%
OCF growth 5Y7.21%