STEEL DYNAMICS INC (STLD)
US8581191009 - Common Stock
STLD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. While STLD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STLD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STLD was profitable.
In the past year STLD had a positive cash flow from operations.
In the past 5 years STLD has always been profitable.
Each year in the past 5 years STLD had a positive operating cash flow.
1.2 Ratios
STLD's Return On Assets of 11.20% is amongst the best of the industry. STLD outperforms 90.45% of its industry peers.
STLD has a Return On Equity of 19.32%. This is amongst the best in the industry. STLD outperforms 90.45% of its industry peers.
STLD's Return On Invested Capital of 13.20% is amongst the best of the industry. STLD outperforms 91.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 8.23%.
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
STLD's Profit Margin of 9.80% is amongst the best of the industry. STLD outperforms 81.53% of its industry peers.
In the last couple of years the Profit Margin of STLD has grown nicely.
Looking at the Operating Margin, with a value of 12.42%, STLD is in the better half of the industry, outperforming 69.43% of the companies in the same industry.
In the last couple of years the Operating Margin of STLD has grown nicely.
The Gross Margin of STLD (17.27%) is comparable to the rest of the industry.
STLD's Gross Margin has improved in the last couple of years.
| 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.
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
The debt/assets ratio for STLD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.11 indicates that STLD is not in any danger for bankruptcy at the moment.
The Altman-Z score of STLD (5.11) is better than 70.70% 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.
Looking at the Debt to FCF ratio, with a value of 8.52, STLD is in the better half of the industry, outperforming 65.61% of the companies in the same industry.
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 63.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 5.11 |
ROIC/WACC1.4
WACC9.45%
2.3 Liquidity
A Current Ratio of 2.39 indicates that STLD has no problem at all paying its short term obligations.
STLD's Current ratio of 2.39 is in line compared to the rest of the industry. STLD outperforms 52.23% of its industry peers.
A Quick Ratio of 1.26 indicates that STLD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, STLD is in line with its industry, outperforming 43.31% 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.
The Earnings Per Share has been growing by 22.10% on average over the past years. This is a very strong growth
Looking at the last year, STLD shows a decrease in Revenue. The Revenue has decreased by -7.67% in the last year.
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
STLD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.36% yearly.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 1.23% on average per year.
EPS Next Y-27.62%
EPS Next 2Y-17.32%
EPS Next 3Y-4.36%
EPS Next 5YN/A
Revenue Next Year-5.23%
Revenue Next 2Y-1.98%
Revenue Next 3Y1.23%
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
With a Price/Earnings ratio of 12.02, STLD is valued correctly.
Based on the Price/Earnings ratio, STLD is valued cheaper than 84.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of STLD to the average of the S&P500 Index (30.69), we can say STLD is valued rather cheaply.
A Price/Forward Earnings ratio of 13.04 indicates a correct valuation of STLD.
Based on the Price/Forward Earnings ratio, STLD is valued a bit cheaper than 67.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, STLD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 69.43% of the companies in the same industry.
STLD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STLD is cheaper than 64.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.36 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
The excellent profitability rating of STLD may justify a higher PE ratio.
A cheap valuation may be justified as STLD's earnings are expected to decrease with -4.36% in the coming years.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-17.32%
EPS Next 3Y-4.36%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.41%.
Compared to an average industry Dividend Yield of 2.84, STLD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.22, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 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-17.32%
EPS Next 3Y-4.36%
STEEL DYNAMICS INC
NASDAQ:STLD (10/30/2024, 8:00:00 PM)
After market: 132.77 0 (0%)132.77
-2.39 (-1.77%)
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 Cap20.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 12.02 | ||
| Fwd PE | 13.04 | ||
| 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)0.54
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-27.62%
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