STEEL DYNAMICS INC (STLD)
US8581191009 - Common Stock
Taking everything into account, STLD scores 6 out of 10 in our fundamental rating. STLD was compared to 157 industry peers in the Metals & Mining industry. STLD scores excellent on profitability, but there are some minor concerns on its financial health. STLD 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 STLD was profitable.
STLD had a positive operating cash flow in the past year.
In the past 5 years STLD has always been profitable.
STLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STLD (11.20%) is better than 89.81% of its industry peers.
With an excellent Return On Equity value of 19.32%, STLD belongs to the best of the industry, outperforming 89.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.20%, STLD belongs to the top of the industry, outperforming 91.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 8.31%.
The 3 year average ROIC (27.90%) for STLD is well above the current ROIC(13.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.2% | ||
| ROE | 19.32% | ||
| ROIC | 13.2% |
ROA(3y)23.12%
ROA(5y)16.68%
ROE(3y)42.04%
ROE(5y)31.06%
ROIC(3y)27.9%
ROIC(5y)20.5%
1.3 Margins
Looking at the Profit Margin, with a value of 9.80%, STLD belongs to the top of the industry, outperforming 81.53% of the companies in the same industry.
In the last couple of years the Profit Margin of STLD has grown nicely.
STLD has a better Operating Margin (12.42%) than 70.06% of its industry peers.
In the last couple of years the Operating Margin of STLD has grown nicely.
Looking at the Gross Margin, with a value of 17.27%, STLD is in line with its industry, outperforming 52.23% of the companies in the same industry.
In the last couple of years the Gross Margin of STLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.42% | ||
| PM (TTM) | 9.8% | ||
| GM | 17.27% |
OM growth 3Y22.95%
OM growth 5Y2.85%
PM growth 3Y31.47%
PM growth 5Y4.15%
GM growth 3Y12.93%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STLD is creating value.
Compared to 1 year ago, STLD has less shares outstanding
STLD has less shares outstanding than it did 5 years ago.
STLD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.25 indicates that STLD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.25, STLD is in the better half of the industry, outperforming 73.25% of the companies in the same industry.
The Debt to FCF ratio of STLD is 8.52, which is on the high side as it means it would take STLD, 8.52 years of fcf income to pay off all of its debts.
STLD's Debt to FCF ratio of 8.52 is fine compared to the rest of the industry. STLD outperforms 64.97% of its industry peers.
STLD has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
STLD's Debt to Equity ratio of 0.31 is on the low side compared to the rest of the industry. STLD is outperformed by 64.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 5.25 |
ROIC/WACC1.24
WACC10.66%
2.3 Liquidity
A Current Ratio of 2.39 indicates that STLD has no problem at all paying its short term obligations.
STLD has a Current ratio of 2.39. This is comparable to the rest of the industry: STLD outperforms 52.23% of its industry peers.
STLD has a Quick Ratio of 1.26. This is a normal value and indicates that STLD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.26, STLD perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for STLD have decreased strongly by -33.67% in the last year.
STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.10% yearly.
STLD shows a decrease in Revenue. In the last year, the revenue decreased by -7.67%.
STLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.72% yearly.
EPS 1Y (TTM)-33.67%
EPS 3Y73.97%
EPS 5Y22.1%
EPS Q2Q%-40.92%
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y25.1%
Revenue growth 5Y9.72%
Sales Q2Q%-5.35%
3.2 Future
The Earnings Per Share is expected to decrease by -6.52% on average over the next years.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 1.57% on average per year.
EPS Next Y-30.71%
EPS Next 2Y-17.1%
EPS Next 3Y-6.52%
EPS Next 5YN/A
Revenue Next Year-5.46%
Revenue Next 2Y-1.51%
Revenue Next 3Y1.57%
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 13.15, the valuation of STLD can be described as correct.
Based on the Price/Earnings ratio, STLD is valued cheaply inside the industry as 85.99% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. STLD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 14.19, STLD is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STLD indicates a somewhat cheap valuation: STLD is cheaper than 68.79% of the companies listed in the same industry.
STLD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STLD indicates a somewhat cheap valuation: STLD is cheaper than 68.15% of the companies listed in the same industry.
STLD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STLD is cheaper than 64.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.86 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
The excellent profitability rating of STLD may justify a higher PE ratio.
STLD's earnings are expected to decrease with -6.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-17.1%
EPS Next 3Y-6.52%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 2.98, STLD pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.34, STLD pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of STLD grows each year by 17.38%, which is quite nice.
STLD has paid a dividend for at least 10 years, which is a reliable track record.
STLD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.38%
Div Incr Years11
Div Non Decr Years13
5.3 Sustainability
16.06% of the earnings are spent on dividend by STLD. This is a low number and sustainable payout ratio.
DP16.06%
EPS Next 2Y-17.1%
EPS Next 3Y-6.52%
STEEL DYNAMICS INC
NASDAQ:STLD (11/22/2024, 12:15:46 PM)
145.36
+0.4 (+0.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 14.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.2% | ||
| ROE | 19.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.42% | ||
| PM (TTM) | 9.8% | ||
| GM | 17.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.67%
EPS 3Y73.97%
EPS 5Y
EPS Q2Q%
EPS Next Y-30.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y25.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y