NUCOR CORP (NUE) Stock Fundamental Analysis
USA - NYSE:NUE - US6703461052 - Common Stock
136.97 USD
+3.32 (+2.48%)
135.2 USD
-1.77 (-1.29%)
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 has an excellent profitability rating, but 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
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.
In the past 5 years NUE always reported a positive cash flow from operatings.
1.2 Ratios
NUE has a Return On Assets of 3.77%. This is in the better half of the industry: NUE outperforms 71.79% of its industry peers.
With a decent Return On Equity value of 6.33%, NUE is doing good in the industry, outperforming 71.15% of the companies in the same industry.
The Return On Invested Capital of NUE (5.64%) is better than 64.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NUE is significantly above the industry average of 12.18%.
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 has a better Profit Margin (4.19%) than 69.87% of its industry peers.
NUE's Profit Margin has improved in the last couple of years.
NUE's Operating Margin of 6.99% is fine compared to the rest of the industry. NUE outperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NUE is creating value.
Compared to 1 year ago, NUE has less shares outstanding
Compared to 5 years ago, NUE has less shares outstanding
NUE has a worse debt/assets ratio than last year.
2.2 Solvency
NUE has an Altman-Z score of 4.00. This indicates that NUE is financially healthy and has little risk of bankruptcy at the moment.
NUE has a Altman-Z score (4.00) which is in line with its industry peers.
NUE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NUE (0.34) is worse than 66.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4 |
ROIC/WACC0.61
WACC9.26%
2.3 Liquidity
A Current Ratio of 2.83 indicates that NUE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.83, NUE is in line with its industry, outperforming 58.33% of the companies in the same industry.
NUE has a Quick Ratio of 1.51. 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 1.51, NUE is in line with its industry, outperforming 48.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for NUE have decreased strongly by -55.80% 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 has decreased by -5.78% in the past year.
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)-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
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.
Based on estimates for the next years, NUE will show a small growth in Revenue. The Revenue will grow by 5.80% on average per year.
EPS Next Y-5.45%
EPS Next 2Y14.21%
EPS Next 3Y15.9%
EPS Next 5Y4.45%
Revenue Next Year6.64%
Revenue Next 2Y5.96%
Revenue Next 3Y5.8%
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.
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
NUE is valuated rather expensively with a Price/Earnings ratio of 22.34.
Based on the Price/Earnings ratio, NUE is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.34. NUE is around the same levels.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of NUE.
Based on the Price/Forward Earnings ratio, NUE is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. NUE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NUE is valued a bit cheaper than the industry average as 78.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
The excellent profitability rating of NUE may justify a higher PE ratio.
A more expensive valuation may be justified as NUE's earnings are expected to grow with 15.90% in the coming years.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y14.21%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.59%.
NUE's Dividend Yield is rather good when compared to the industry average which is at 2.41. NUE pays more dividend than 82.69% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, NUE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 39.96% 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.
DP39.96%
EPS Next 2Y14.21%
EPS Next 3Y15.9%
136.97
+3.32 (+2.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.34%
Inst Owner Change0.01%
Ins Owners0.45%
Ins Owner Change-0.15%
Market Cap31.44B
Analysts80
Price Target159.92 (16.76%)
Short Float %2.32%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)2.05%
PT rev (3m)7.7%
EPS NQ rev (1m)-13.82%
EPS NQ rev (3m)-16.24%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-2.15%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 11.87 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 10.04 | ||
| P/B | 1.54 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)6.13
EY4.48%
EPS(NY)11.54
Fwd EY8.43%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)13.64
OCFY9.96%
SpS134.21
BVpS88.83
TBVpS57
PEG (NY)N/A
PEG (5Y)1.4
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 |
F-Score4
WACC9.26%
ROIC/WACC0.61
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-5.45%
EPS Next 2Y14.21%
EPS Next 3Y15.9%
EPS Next 5Y4.45%
Revenue 1Y (TTM)-5.78%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%4.69%
Revenue Next Year6.64%
Revenue Next 2Y5.96%
Revenue Next 3Y5.8%
Revenue Next 5YN/A
EBIT growth 1Y-53.7%
EBIT growth 3Y-31.62%
EBIT growth 5Y8.65%
EBIT Next Year49.97%
EBIT Next 3Y25.02%
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%