STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
USA - NASDAQ:STLD - US8581191009 - Common Stock
139.84 USD
+2.99 (+2.18%)
139.84 USD
0 (0%)
Taking everything into account, STLD scores 6 out of 10 in our fundamental rating. STLD was compared to 156 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
STLD had positive earnings in the past year.
STLD had a positive operating cash flow in the past year.
STLD had positive earnings in each of the past 5 years.
STLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STLD (6.69%) is better than 81.41% of its industry peers.
STLD has a Return On Equity of 11.74%. This is amongst the best in the industry. STLD outperforms 83.33% of its industry peers.
STLD has a better Return On Invested Capital (7.28%) than 71.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 12.92%.
The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 11.74% | ||
| ROIC | 7.28% |
ROA(3y)18%
ROA(5y)17.12%
ROE(3y)30.79%
ROE(5y)31.2%
ROIC(3y)21.22%
ROIC(5y)20.87%
1.3 Margins
STLD's Profit Margin of 6.07% is fine compared to the rest of the industry. STLD outperforms 73.08% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.53%, STLD is in the better half of the industry, outperforming 63.46% 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 12.55%, STLD is in line with its industry, outperforming 47.44% 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 | 7.53% | ||
| PM (TTM) | 6.07% | ||
| GM | 12.55% |
OM growth 3Y-22.02%
OM growth 5Y3.27%
PM growth 3Y-20.53%
PM growth 5Y6.45%
GM growth 3Y-18.14%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
STLD 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 STLD has been reduced compared to 1 year ago.
Compared to 5 years ago, STLD has less shares outstanding
STLD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.85 indicates that STLD is not in any danger for bankruptcy at the moment.
The Altman-Z score of STLD (4.85) is better than 68.59% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that STLD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, STLD is doing worse than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.85 |
ROIC/WACC0.8
WACC9.13%
2.3 Liquidity
A Current Ratio of 3.13 indicates that STLD has no problem at all paying its short term obligations.
STLD has a Current ratio of 3.13. This is in the better half of the industry: STLD outperforms 64.10% of its industry peers.
A Quick Ratio of 1.34 indicates that STLD should not have too much problems paying its short term obligations.
STLD has a Quick ratio (1.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.99%.
STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.97% yearly.
The Revenue has decreased by -5.51% in the past year.
The Revenue has been growing by 10.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-44.99%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-26.1%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-1.46%
3.2 Future
The Earnings Per Share is expected to grow by 10.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-6.61%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
EPS Next 5Y10.26%
Revenue Next Year4.54%
Revenue Next 2Y5.9%
Revenue Next 3Y5%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 20.38, STLD is valued on the expensive side.
STLD's Price/Earnings ratio is rather cheap when compared to the industry. STLD is cheaper than 80.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, STLD is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.78, which indicates a very decent valuation of STLD.
STLD's Price/Forward Earnings ratio is rather cheap when compared to the industry. STLD is cheaper than 82.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. STLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 10.78 |
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 64.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.96 |
4.3 Compensation for Growth
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STLD's earnings are expected to grow with 14.29% in the coming years.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y15.05%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, STLD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, STLD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
On average, the dividend of STLD grows each year by 14.82%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.82%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
27.49% of the earnings are spent on dividend by STLD. This is a low number and sustainable payout ratio.
STLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.49%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
139.84
+2.99 (+2.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.3%
Inst Owner Change-4.75%
Ins Owners6.21%
Ins Owner Change-0.39%
Market Cap20.58B
Analysts80
Price Target151.57 (8.39%)
Short Float %1.65%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend1.82
Dividend Growth(5Y)14.82%
DP27.49%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.04%
Min EPS beat(2)-6.16%
Max EPS beat(2)2.08%
EPS beat(4)3
Avg EPS beat(4)0.55%
Min EPS beat(4)-6.16%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)-0.02%
EPS beat(12)7
Avg EPS beat(12)2.29%
EPS beat(16)10
Avg EPS beat(16)2.62%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)2.08%
Revenue beat(4)2
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)2.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.72%
Revenue beat(12)7
Avg Revenue beat(12)-1.55%
Revenue beat(16)9
Avg Revenue beat(16)-0.84%
PT rev (1m)-0.37%
PT rev (3m)0.69%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-10.2%
EPS NY rev (1m)-8.6%
EPS NY rev (3m)-6.96%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 10.78 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 13.19 | ||
| P/B | 2.32 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 12.96 |
EPS(TTM)6.86
EY4.91%
EPS(NY)12.97
Fwd EY9.28%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)10.6
OCFY7.58%
SpS116.5
BVpS60.22
TBVpS55.52
PEG (NY)N/A
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 11.74% | ||
| ROCE | 9.4% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 7.97% | ||
| OM | 7.53% | ||
| PM (TTM) | 6.07% | ||
| GM | 12.55% | ||
| FCFM | N/A |
ROA(3y)18%
ROA(5y)17.12%
ROE(3y)30.79%
ROE(5y)31.2%
ROIC(3y)21.22%
ROIC(5y)20.87%
ROICexc(3y)25.25%
ROICexc(5y)24.52%
ROICexgc(3y)27.22%
ROICexgc(5y)26.63%
ROCE(3y)27.41%
ROCE(5y)26.96%
ROICexcg growth 3Y-30.82%
ROICexcg growth 5Y-3.41%
ROICexc growth 3Y-30.22%
ROICexc growth 5Y-1.67%
OM growth 3Y-22.02%
OM growth 5Y3.27%
PM growth 3Y-20.53%
PM growth 5Y6.45%
GM growth 3Y-18.14%
GM growth 5Y1.78%
F-Score5
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 325.08% | ||
| Cap/Sales | 9.73% | ||
| Interest Coverage | 11.34 | ||
| Cash Conversion | 86.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.85 |
F-Score5
WACC9.13%
ROIC/WACC0.8
Cap/Depr(3y)335.1%
Cap/Depr(5y)332.49%
Cap/Sales(3y)7.85%
Cap/Sales(5y)8.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.99%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-26.1%
EPS Next Y-6.61%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
EPS Next 5Y10.26%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-1.46%
Revenue Next Year4.54%
Revenue Next 2Y5.9%
Revenue Next 3Y5%
Revenue Next 5YN/A
EBIT growth 1Y-49.62%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year16.77%
EBIT Next 3Y19.05%
EBIT Next 5Y13.47%
FCF growth 1Y-103.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.67%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%