STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - Nasdaq - US8581191009 - Common Stock
Taking everything into account, STLD scores 6 out of 10 in our fundamental rating. STLD was compared to 154 industry peers in the Metals & Mining industry. While STLD has a great profitability rating, there are some minor concerns on its financial health. STLD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STLD had positive earnings in the past year.
In the past year STLD had a positive cash flow from operations.
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
STLD has a better Return On Assets (11.20%) than 89.12% of its industry peers.
STLD has a Return On Equity of 19.32%. This is amongst the best in the industry. STLD outperforms 91.16% of its industry peers.
STLD's Return On Invested Capital of 13.20% is amongst the best of the industry. STLD outperforms 91.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STLD is significantly above the industry average of 8.76%.
The last Return On Invested Capital (13.20%) for STLD is well below the 3 year average (27.90%), which needs to be investigated, but indicates that STLD had better years and this may not be a problem.
| 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
The Profit Margin of STLD (9.80%) is better than 80.95% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.42%, STLD is doing good in the industry, outperforming 70.07% of the companies in the same industry.
STLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.27%, STLD is in line with its industry, outperforming 52.38% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STLD is creating value.
STLD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for STLD has been reduced compared to 5 years ago.
The debt/assets ratio for STLD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.94 indicates that STLD is not in any danger for bankruptcy at the moment.
STLD's Altman-Z score of 4.94 is fine compared to the rest of the industry. STLD outperforms 70.75% of its industry peers.
STLD has a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as STLD would need 8.52 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.52, STLD is doing good in the industry, outperforming 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that STLD is not too dependend on debt financing.
STLD has a Debt to Equity ratio of 0.31. This is in the lower half of the industry: STLD underperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.23
WACC10.69%
2.3 Liquidity
STLD has a Current Ratio of 2.39. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.39, STLD perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that STLD should not have too much problems paying its short term obligations.
STLD's Quick ratio of 1.26 is in line compared to the rest of the industry. STLD outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.67%.
The Earnings Per Share has been growing by 22.10% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.67% in the past year.
The Revenue has been growing by 9.72% on average over the past years. This is quite good.
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
STLD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.51% yearly.
The Revenue is expected to grow by 1.16% on average over the next years.
EPS Next Y-31.01%
EPS Next 2Y-18.41%
EPS Next 3Y-5.51%
EPS Next 5YN/A
Revenue Next Year-5.8%
Revenue Next 2Y-2.3%
Revenue Next 3Y1.16%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.28, which indicates a very decent valuation of STLD.
Compared to the rest of the industry, the Price/Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 87.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STLD to the average of the S&P500 Index (28.29), we can say STLD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.57, the valuation of STLD can be described as correct.
Based on the Price/Forward Earnings ratio, STLD is valued a bit cheaper than 65.99% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, STLD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 12.57 |
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 70.75% 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 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.89 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
STLD's earnings are expected to decrease with -5.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-18.41%
EPS Next 3Y-5.51%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.47%.
STLD's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to the average S&P500 Dividend Yield of 2.28, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of STLD grows each year by 17.38%, which is quite nice.
STLD has been paying a dividend for at least 10 years, so it has a reliable track record.
STLD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.38%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
STLD pays out 16.06% of its income as dividend. This is a sustainable payout ratio.
DP16.06%
EPS Next 2Y-18.41%
EPS Next 3Y-5.51%
STEEL DYNAMICS INC
NASDAQ:STLD (1/21/2025, 8:00:00 PM)
Premarket: 125.82 +1.13 (+0.91%)124.69
-1.14 (-0.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners86.48%
Inst Owner Change0.14%
Ins Owners6.09%
Ins Owner Change-0.41%
Market Cap18.98B
Analysts68.57
Price Target140.61 (12.77%)
Short Float %2.64%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend1.63
Dividend Growth(5Y)17.38%
DP16.06%
Div Incr Years12
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.23%
Max EPS beat(2)1.77%
EPS beat(4)2
Avg EPS beat(4)0.09%
Min EPS beat(4)-3.82%
Max EPS beat(4)2.63%
EPS beat(8)4
Avg EPS beat(8)2.75%
EPS beat(12)7
Avg EPS beat(12)3.29%
EPS beat(16)10
Avg EPS beat(16)3.91%
Revenue beat(2)2
Avg Revenue beat(2)2.16%
Min Revenue beat(2)1.89%
Max Revenue beat(2)2.42%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)2.42%
Revenue beat(8)5
Avg Revenue beat(8)-1.57%
Revenue beat(12)8
Avg Revenue beat(12)-0.39%
Revenue beat(16)11
Avg Revenue beat(16)0.1%
PT rev (1m)-0.11%
PT rev (3m)5.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 12.57 | ||
| P/S | 1.06 | ||
| P/FCF | 43.89 | ||
| P/OCF | 8.04 | ||
| P/B | 2.09 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)11.05
EY8.86%
EPS(NY)9.92
Fwd EY7.95%
FCF(TTM)2.84
FCFY2.28%
OCF(TTM)15.52
OCFY12.44%
SpS117.59
BVpS59.65
TBVpS54.97
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.2% | ||
| ROE | 19.32% | ||
| ROCE | 17.15% | ||
| ROIC | 13.2% | ||
| ROICexc | 15.14% | ||
| ROICexgc | 16.15% | ||
| OM | 12.42% | ||
| PM (TTM) | 9.8% | ||
| GM | 17.27% | ||
| FCFM | 2.42% |
ROA(3y)23.12%
ROA(5y)16.68%
ROE(3y)42.04%
ROE(5y)31.06%
ROIC(3y)27.9%
ROIC(5y)20.5%
ROICexc(3y)33.14%
ROICexc(5y)24.59%
ROICexgc(3y)35.94%
ROICexgc(5y)26.98%
ROCE(3y)36.26%
ROCE(5y)26.64%
ROICexcg growth 3Y29.91%
ROICexcg growth 5Y-1.49%
ROICexc growth 3Y32.2%
ROICexc growth 5Y-0.3%
OM growth 3Y22.95%
OM growth 5Y2.85%
PM growth 3Y31.47%
PM growth 5Y4.15%
GM growth 3Y12.93%
GM growth 5Y1.84%
F-Score5
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 414.94% | ||
| Cap/Sales | 10.78% | ||
| Interest Coverage | 21.93 | ||
| Cash Conversion | 87.84% | ||
| Profit Quality | 24.66% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 4.94 |
F-Score5
WACC10.69%
ROIC/WACC1.23
Cap/Depr(3y)301.55%
Cap/Depr(5y)282.62%
Cap/Sales(3y)6.12%
Cap/Sales(5y)7.03%
Profit Quality(3y)68.39%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.67%
EPS 3Y73.97%
EPS 5Y22.1%
EPS Q2Q%-40.92%
EPS Next Y-31.01%
EPS Next 2Y-18.41%
EPS Next 3Y-5.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y25.1%
Revenue growth 5Y9.72%
Sales Q2Q%-5.35%
Revenue Next Year-5.8%
Revenue Next 2Y-2.3%
Revenue Next 3Y1.16%
Revenue Next 5YN/A
EBIT growth 1Y-34.43%
EBIT growth 3Y53.81%
EBIT growth 5Y12.85%
EBIT Next Year-20.35%
EBIT Next 3Y-0.89%
EBIT Next 5YN/A
FCF growth 1Y-86.78%
FCF growth 3YN/A
FCF growth 5Y9.62%
OCF growth 1Y-41.54%
OCF growth 3Y52.78%
OCF growth 5Y19.98%