NUCOR CORP (NUE)
US6703461052 - Common Stock
NUE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. NUE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NUE is valued quite cheap, but it does not seem to be growing. These ratings would make NUE suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NUE was profitable.
NUE had a positive operating cash flow in the past year.
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 (9.77%) than 87.18% of its industry peers.
NUE has a Return On Equity of 16.39%. This is amongst the best in the industry. NUE outperforms 86.54% of its industry peers.
With an excellent Return On Invested Capital value of 13.21%, NUE belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NUE is significantly above the industry average of 8.82%.
The 3 year average ROIC (26.80%) for NUE is well above the current ROIC(13.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 16.39% | ||
| ROIC | 13.21% |
ROA(3y)20.8%
ROA(5y)14.57%
ROE(3y)37.05%
ROE(5y)26%
ROIC(3y)26.8%
ROIC(5y)19.48%
1.3 Margins
Looking at the Profit Margin, with a value of 8.50%, NUE belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
In the last couple of years the Profit Margin of NUE has grown nicely.
The Operating Margin of NUE (12.48%) is better than 70.51% of its industry peers.
NUE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.18%, NUE is in line with its industry, outperforming 49.36% of the companies in the same industry.
In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.48% | ||
| PM (TTM) | 8.5% | ||
| GM | 16.18% |
OM growth 3Y30.38%
OM growth 5Y5.64%
PM growth 3Y53.94%
PM growth 5Y6.72%
GM growth 3Y26.47%
GM growth 5Y5.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NUE is creating value.
The number of shares outstanding for NUE has been reduced compared to 1 year ago.
NUE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NUE has been reduced compared to a year ago.
2.2 Solvency
NUE has an Altman-Z score of 4.33. This indicates that NUE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.33, NUE is doing good in the industry, outperforming 68.59% of the companies in the same industry.
The Debt to FCF ratio of NUE is 3.96, which is a good value as it means it would take NUE, 3.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.96, NUE is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that NUE is not too dependend on debt financing.
NUE has a Debt to Equity ratio of 0.29. This is in the lower half of the industry: NUE underperforms 62.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.26
WACC10.47%
2.3 Liquidity
NUE has a Current Ratio of 2.59. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
NUE's Current ratio of 2.59 is in line compared to the rest of the industry. NUE outperforms 56.41% of its industry peers.
NUE has a Quick Ratio of 1.61. This is a normal value and indicates that NUE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.61, NUE is in line with its industry, outperforming 52.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
NUE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.28%.
Measured over the past years, NUE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.68% on average per year.
NUE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.54%.
Measured over the past years, NUE shows a small growth in Revenue. The Revenue has been growing by 6.73% on average per year.
EPS 1Y (TTM)-45.28%
EPS 3Y76%
EPS 5Y18.68%
EPS Q2Q%-67.4%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y19.9%
Revenue growth 5Y6.73%
Sales Q2Q%-15.17%
3.2 Future
Based on estimates for the next years, NUE will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.49% on average per year.
NUE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.36% yearly.
EPS Next Y-52.16%
EPS Next 2Y-28.72%
EPS Next 3Y-12.49%
EPS Next 5YN/A
Revenue Next Year-11.76%
Revenue Next 2Y-5.56%
Revenue Next 3Y-1.36%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 10.80, the valuation of NUE can be described as reasonable.
85.90% of the companies in the same industry are more expensive than NUE, based on the Price/Earnings ratio.
NUE is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.75, the valuation of NUE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NUE indicates a somewhat cheap valuation: NUE is cheaper than 66.03% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NUE to the average of the S&P500 Index (23.73), we can say NUE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NUE is valued cheaper than 89.74% of the companies in the same industry.
80.13% 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 | 15.61 | ||
| EV/EBITDA | 4.59 |
4.3 Compensation for Growth
The excellent profitability rating of NUE may justify a higher PE ratio.
NUE's earnings are expected to decrease with -12.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-28.72%
EPS Next 3Y-12.49%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.90%.
The stock price of NUE dropped by -20.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.21, NUE pays a bit more dividend than its industry peers.
NUE's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of NUE has a limited annual growth rate of 5.86%.
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)5.86%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
NUE pays out 15.50% of its income as dividend. This is a sustainable payout ratio.
DP15.5%
EPS Next 2Y-28.72%
EPS Next 3Y-12.49%
NUCOR CORP
NYSE:NUE (12/20/2024, 8:04:00 PM)
After market: 117.34 +0.76 (+0.65%)116.58
+0.8 (+0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners79.5%
Inst Owner Change0.08%
Ins Owners0.53%
Ins Owner Change-0.21%
Market Cap27.37B
Analysts74.74
Price Target175.96 (50.93%)
Short Float %2.15%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Dividend Growth(5Y)5.86%
DP15.5%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.68%
Min EPS beat(2)0.23%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)3.78%
Min EPS beat(4)-6.27%
Max EPS beat(4)13.12%
EPS beat(8)7
Avg EPS beat(8)7.11%
EPS beat(12)9
Avg EPS beat(12)5.38%
EPS beat(16)11
Avg EPS beat(16)4.88%
Revenue beat(2)2
Avg Revenue beat(2)2.65%
Min Revenue beat(2)1.24%
Max Revenue beat(2)4.06%
Revenue beat(4)2
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)4.06%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)6
Avg Revenue beat(12)0.34%
Revenue beat(16)8
Avg Revenue beat(16)0.26%
PT rev (1m)-3.75%
PT rev (3m)-6.77%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-64.77%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-13.04%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-9.9%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 12.75 | ||
| P/S | 0.69 | ||
| P/FCF | 15.61 | ||
| P/OCF | 5.74 | ||
| P/B | 1.34 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)10.79
EY9.26%
EPS(NY)9.14
Fwd EY7.84%
FCF(TTM)7.47
FCFY6.41%
OCF(TTM)20.3
OCFY17.41%
SpS168.22
BVpS87.19
TBVpS55.39
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 16.39% | ||
| ROCE | 16.93% | ||
| ROIC | 13.21% | ||
| ROICexc | 15.83% | ||
| ROICexgc | 22.78% | ||
| OM | 12.48% | ||
| PM (TTM) | 8.5% | ||
| GM | 16.18% | ||
| FCFM | 4.44% |
ROA(3y)20.8%
ROA(5y)14.57%
ROE(3y)37.05%
ROE(5y)26%
ROIC(3y)26.8%
ROIC(5y)19.48%
ROICexc(3y)32.12%
ROICexc(5y)23.23%
ROICexgc(3y)44.06%
ROICexgc(5y)31.41%
ROCE(3y)34.23%
ROCE(5y)24.88%
ROICexcg growth 3Y38.59%
ROICexcg growth 5Y3.31%
ROICexc growth 3Y32.66%
ROICexc growth 5Y1.12%
OM growth 3Y30.38%
OM growth 5Y5.64%
PM growth 3Y53.94%
PM growth 5Y6.72%
GM growth 3Y26.47%
GM growth 5Y5.75%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.96 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 230.06% | ||
| Cap/Sales | 7.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.36% | ||
| Profit Quality | 52.25% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 4.33 |
F-Score6
WACC10.47%
ROIC/WACC1.26
Cap/Depr(3y)186.89%
Cap/Depr(5y)191.64%
Cap/Sales(3y)5.17%
Cap/Sales(5y)5.94%
Profit Quality(3y)94.57%
Profit Quality(5y)110.01%
High Growth Momentum
Growth
EPS 1Y (TTM)-45.28%
EPS 3Y76%
EPS 5Y18.68%
EPS Q2Q%-67.4%
EPS Next Y-52.16%
EPS Next 2Y-28.72%
EPS Next 3Y-12.49%
EPS Next 5YN/A
Revenue 1Y (TTM)10.54%
Revenue growth 3Y19.9%
Revenue growth 5Y6.73%
Sales Q2Q%-15.17%
Revenue Next Year-11.76%
Revenue Next 2Y-5.56%
Revenue Next 3Y-1.36%
Revenue Next 5YN/A
EBIT growth 1Y-28.17%
EBIT growth 3Y56.32%
EBIT growth 5Y12.75%
EBIT Next Year-28.77%
EBIT Next 3Y-2.44%
EBIT Next 5YN/A
FCF growth 1Y-78.89%
FCF growth 3Y61.91%
FCF growth 5Y28.26%
OCF growth 1Y-53.05%
OCF growth 3Y38.16%
OCF growth 5Y24.33%