181.97 USD
+7.59 (+4.35%)
181.84 USD
-0.13 (-0.07%)
Overall STLD gets a fundamental rating of 6 out of 10. We evaluated STLD against 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 decent growth rate and is not valued too expensively. Finally STLD also has an excellent dividend rating. These ratings could make STLD a good candidate for dividend investing.
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
- STLD has a better Return On Assets (7.22%) than 80.52% of its industry peers.
- Looking at the Return On Equity, with a value of 13.24%, STLD belongs to the top of the industry, outperforming 83.12% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.14%, STLD is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
- STLD had an Average Return On Invested Capital over the past 3 years of 13.29%. This is above the industry average of 10.33%.
- The 3 year average ROIC (13.29%) for STLD is well above the current ROIC(8.14%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 13.24% | ||
| ROIC | 8.14% |
ROA(3y)11.32%
ROA(5y)17.38%
ROE(3y)19.36%
ROE(5y)31.31%
ROIC(3y)13.29%
ROIC(5y)21.18%
1.3 Margins
- Looking at the Profit Margin, with a value of 6.52%, STLD is in the better half of the industry, outperforming 70.78% of the companies in the same industry.
- In the last couple of years the Profit Margin of STLD has grown nicely.
- The Operating Margin of STLD (8.12%) is better than 62.99% of its industry peers.
- In the last couple of years the Operating Margin of STLD has declined.
- Looking at the Gross Margin, with a value of 13.16%, STLD is in line with its industry, outperforming 45.45% of the companies in the same industry.
- In the last couple of years the Gross Margin of STLD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.12% | ||
| PM (TTM) | 6.52% | ||
| GM | 13.16% |
OM growth 3Y-29.19%
OM growth 5Y-2.09%
PM growth 3Y-27.83%
PM growth 5Y2.6%
GM growth 3Y-21.76%
GM growth 5Y-2.51%
2. Health
2.1 Basic Checks
- STLD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, STLD has less shares outstanding
- Compared to 5 years ago, STLD has less shares outstanding
- The debt/assets ratio for STLD is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.20 indicates that STLD is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.20, STLD is doing good in the industry, outperforming 62.99% of the companies in the same industry.
- STLD has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as STLD would need 8.40 years to pay back of all of its debts.
- STLD has a better Debt to FCF ratio (8.40) than 62.99% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that STLD is not too dependend on debt financing.
- The Debt to Equity ratio of STLD (0.47) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 5.2 |
ROIC/WACC0.79
WACC10.36%
2.3 Liquidity
- STLD has a Current Ratio of 3.06. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.06, STLD is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
- A Quick Ratio of 1.29 indicates that STLD should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.29, STLD perfoms like the industry average, outperforming 42.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
- The earnings per share for STLD have decreased strongly by -18.27% in the last year.
- Measured over the past years, STLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.13% on average per year.
- STLD shows a small growth in Revenue. In the last year, the Revenue has grown by 3.63%.
- The Revenue has been growing by 13.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.27%
EPS 3Y-29.21%
EPS 5Y23.13%
EPS Q2Q%33.82%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y-6.53%
Revenue growth 5Y13.61%
Sales Q2Q%14%
3.2 Future
- The Earnings Per Share is expected to grow by 27.01% on average over the next years. This is a very strong growth
- STLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y71.27%
EPS Next 2Y37.95%
EPS Next 3Y27.01%
EPS Next 5YN/A
Revenue Next Year11.9%
Revenue Next 2Y6.71%
Revenue Next 3YN/A
Revenue Next 5Y3.59%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.72, STLD is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 85.71% of the companies listed in the same industry.
- STLD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 13.26 indicates a correct valuation of STLD.
- Based on the Price/Forward Earnings ratio, STLD is valued a bit cheaper than the industry average as 76.62% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. STLD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
- STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 70.13% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, STLD is valued a bit cheaper than 74.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.99 | ||
| EV/EBITDA | 14.8 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- STLD has a very decent 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 27.01% in the coming years.
PEG (NY)0.32
PEG (5Y)0.98
EPS Next 2Y37.95%
EPS Next 3Y27.01%
5. Dividend
5.1 Amount
- STLD has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.02, STLD pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
- The dividend of STLD is nicely growing with an annual growth rate of 14.78%!
- 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)14.78%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
- STLD pays out 24.56% of its income as dividend. This is a sustainable payout ratio.
- STLD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.56%
EPS Next 2Y37.95%
EPS Next 3Y27.01%
STEEL DYNAMICS INC / STLD FAQ
Can you provide the ChartMill fundamental rating for STEEL DYNAMICS INC?
ChartMill assigns a fundamental rating of 6 / 10 to STLD.
What is the valuation status of STEEL DYNAMICS INC (STLD) stock?
ChartMill assigns a valuation rating of 6 / 10 to STEEL DYNAMICS INC (STLD). This can be considered as Fairly Valued.
Can you provide the profitability details for STEEL DYNAMICS INC?
STEEL DYNAMICS INC (STLD) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for STLD stock?
The Price/Earnings (PE) ratio for STEEL DYNAMICS INC (STLD) is 22.72 and the Price/Book (PB) ratio is 2.97.
Is the dividend of STEEL DYNAMICS INC sustainable?
The dividend rating of STEEL DYNAMICS INC (STLD) is 7 / 10 and the dividend payout ratio is 24.56%.