NUCOR CORP (NUE) Stock Fundamental Analysis
NYSE:NUE - New York Stock Exchange, Inc. - US6703461052 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NUE. NUE was compared to 150 industry peers in the Metals & Mining industry. NUE has an excellent profitability rating, 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.
NUE had positive earnings in 4 of the past 5 years.
NUE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NUE has a Return On Assets of 7.32%. This is amongst the best in the industry. NUE outperforms 81.82% of its industry peers.
NUE's Return On Equity of 12.28% is amongst the best of the industry. NUE outperforms 81.82% of its industry peers.
NUE has a better Return On Invested Capital (9.72%) than 84.62% of its industry peers.
NUE had an Average Return On Invested Capital over the past 3 years of 26.80%. This is significantly above the industry average of 8.84%.
The last Return On Invested Capital (9.72%) for NUE is well below the 3 year average (26.80%), which needs to be investigated, but indicates that NUE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 12.28% | ||
| ROIC | 9.72% |
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
With a decent Profit Margin value of 8.02%, NUE is doing good in the industry, outperforming 77.62% of the companies in the same industry.
NUE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.58%, NUE is doing good in the industry, outperforming 67.13% of the companies in the same industry.
In the last couple of years the Operating Margin of NUE has grown nicely.
The Gross Margin of NUE (15.52%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.58% | ||
| PM (TTM) | 8.02% | ||
| GM | 15.52% |
OM growth 3Y30.38%
OM growth 5Y5.64%
PM growth 3Y53.93%
PM growth 5Y6.72%
GM growth 3Y26.47%
GM growth 5Y5.75%
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.
The number of shares outstanding for NUE has been reduced compared to 1 year ago.
Compared to 5 years ago, NUE has less shares outstanding
The debt/assets ratio for NUE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.20 indicates that NUE is not in any danger for bankruptcy at the moment.
NUE has a better Altman-Z score (4.20) than 65.73% of its industry peers.
NUE has a debt to FCF ratio of 3.96. This is a good value and a sign of high solvency as NUE would need 3.96 years to pay back of all of its debts.
NUE's Debt to FCF ratio of 3.96 is fine compared to the rest of the industry. NUE outperforms 71.33% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that NUE is not too dependend on debt financing.
The Debt to Equity ratio of NUE (0.29) is worse than 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.95
WACC10.21%
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.
With a Current ratio value of 2.59, NUE perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that NUE should not have too much problems paying its short term obligations.
NUE has a Quick ratio (1.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The earnings per share for NUE have decreased strongly by -50.81% in the last year.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)-50.81%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-61.39%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.16%
3.2 Future
The Earnings Per Share is expected to grow by 4.45% on average over the next years.
Based on estimates for the next years, NUE will show a small growth in Revenue. The Revenue will grow by 4.88% on average per year.
EPS Next Y-17.09%
EPS Next 2Y11.06%
EPS Next 3Y12%
EPS Next 5Y4.45%
Revenue Next Year-0.58%
Revenue Next 2Y4%
Revenue Next 3Y4.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.28, which indicates a correct valuation of NUE.
Based on the Price/Earnings ratio, NUE is valued cheaply inside the industry as 81.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. NUE is valued slightly cheaper when compared to this.
NUE is valuated rather expensively with a Price/Forward Earnings ratio of 18.43.
60.14% of the companies in the same industry are more expensive than NUE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. NUE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
NUE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NUE is cheaper than 76.22% of the companies in the same industry.
80.42% 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 | 18.1 | ||
| EV/EBITDA | 6.91 |
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 12.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y11.06%
EPS Next 3Y12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, NUE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.16, NUE pays a bit more dividend than its industry peers.
NUE's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of NUE grows each year by 6.08%, which is quite nice.
NUE has paid a dividend for at least 10 years, which is 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 Years33
Div Non Decr Years33
5.3 Sustainability
20.69% of the earnings are spent on dividend by NUE. This is a low number and sustainable payout ratio.
The dividend of NUE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.69%
EPS Next 2Y11.06%
EPS Next 3Y12%
135.23
-4.72 (-3.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners79.5%
Inst Owner Change-2.35%
Ins Owners0.53%
Ins Owner Change-0.18%
Market Cap31.75B
Analysts75
Price Target159.17 (17.7%)
Short Float %1.9%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend2.18
Dividend Growth(5Y)6.08%
DP20.69%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
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)-4.83%
PT rev (3m)-12.93%
EPS NQ rev (1m)-28.54%
EPS NQ rev (3m)-30.48%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 18.43 | ||
| P/S | 1.01 | ||
| P/FCF | 18.1 | ||
| P/OCF | 6.66 | ||
| P/B | 1.55 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)8.85
EY6.54%
EPS(NY)7.34
Fwd EY5.43%
FCF(TTM)7.47
FCFY5.52%
OCF(TTM)20.3
OCFY15.01%
SpS133.57
BVpS87.19
TBVpS55.39
PEG (NY)N/A
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 12.28% | ||
| ROCE | 12.46% | ||
| ROIC | 9.72% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 16.77% | ||
| OM | 11.58% | ||
| PM (TTM) | 8.02% | ||
| GM | 15.52% | ||
| FCFM | 5.59% |
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 3Y38.6%
ROICexcg growth 5Y3.31%
ROICexc growth 3Y32.66%
ROICexc growth 5Y1.12%
OM growth 3Y30.38%
OM growth 5Y5.64%
PM growth 3Y53.93%
PM growth 5Y6.72%
GM growth 3Y26.47%
GM growth 5Y5.75%
F-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.96 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 230.01% | ||
| Cap/Sales | 9.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.47% | ||
| Profit Quality | 69.76% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 4.2 |
F-Score5
WACC10.21%
ROIC/WACC0.95
Cap/Depr(3y)186.87%
Cap/Depr(5y)191.63%
Cap/Sales(3y)5.17%
Cap/Sales(5y)5.94%
Profit Quality(3y)94.57%
Profit Quality(5y)109.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-50.81%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-61.39%
EPS Next Y-17.09%
EPS Next 2Y11.06%
EPS Next 3Y12%
EPS Next 5Y4.45%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.16%
Revenue Next Year-0.58%
Revenue Next 2Y4%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
EBIT growth 1Y-47.12%
EBIT growth 3Y56.32%
EBIT growth 5Y12.74%
EBIT Next Year-30.53%
EBIT Next 3Y-6.25%
EBIT Next 5Y-3.8%
FCF growth 1Y-78.88%
FCF growth 3Y61.92%
FCF growth 5Y28.25%
OCF growth 1Y-53.04%
OCF growth 3Y38.16%
OCF growth 5Y24.33%