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 155 industry peers in the Metals & Mining industry. STLD has an excellent profitability rating, but 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
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.
Each year in the past 5 years STLD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.20%, STLD belongs to the top of the industry, outperforming 89.03% of the companies in the same industry.
STLD has a better Return On Equity (19.32%) than 90.97% of its industry peers.
With an excellent Return On Invested Capital value of 13.20%, STLD belongs to the best of the industry, outperforming 90.97% 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 8.82%.
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
STLD's Profit Margin of 9.80% is amongst the best of the industry. STLD outperforms 81.29% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
The Operating Margin of STLD (12.42%) is better than 69.68% of its industry peers.
In the last couple of years the Operating Margin of STLD has grown nicely.
STLD has a Gross Margin of 17.27%. This is comparable to the rest of the industry: STLD outperforms 53.55% of its industry peers.
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
STLD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, STLD has less shares outstanding
Compared to 5 years ago, STLD has less shares outstanding
STLD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.82 indicates that STLD is not in any danger for bankruptcy at the moment.
The Altman-Z score of STLD (4.82) is better than 71.61% of its industry peers.
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 62.58% 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.
With a Debt to Equity ratio value of 0.31, STLD is not doing good in the industry: 65.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.25
WACC10.54%
2.3 Liquidity
A Current Ratio of 2.39 indicates that STLD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.39, STLD is in line with its industry, outperforming 53.55% of the companies in the same industry.
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 42.58% of the companies in the same industry.
| 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
Looking at the last year, STLD shows a decrease in Revenue. The Revenue has decreased by -7.67% in the last year.
Measured over the past years, STLD shows a quite strong growth in Revenue. The Revenue has been growing by 9.72% on average per year.
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 -5.51% 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 1.38% on average per year.
EPS Next Y-31.01%
EPS Next 2Y-18.41%
EPS Next 3Y-5.51%
EPS Next 5YN/A
Revenue Next Year-5.23%
Revenue Next 2Y-1.55%
Revenue Next 3Y1.38%
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
Based on the Price/Earnings ratio of 10.47, the valuation of STLD can be described as reasonable.
Based on the Price/Earnings ratio, STLD is valued cheaper than 87.10% of the companies in the same industry.
STLD is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.66, which indicates a very decent valuation of STLD.
68.39% of the companies in the same industry are more expensive than STLD, based on the Price/Forward Earnings ratio.
STLD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than the industry average as 69.68% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STLD indicates a somewhat cheap valuation: STLD is cheaper than 65.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.72 | ||
| EV/EBITDA | 7.06 |
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 -5.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-18.41%
EPS Next 3Y-5.51%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 3.21, STLD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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 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 (12/20/2024, 8:00:00 PM)
After market: 115.69 0 (0%)115.69
+0.4 (+0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners86.48%
Inst Owner Change-3.51%
Ins Owners6.09%
Ins Owner Change-0.41%
Market Cap17.61B
Analysts70
Price Target140.77 (21.68%)
Short Float %2.09%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Dividend Growth(5Y)17.38%
DP16.06%
Div Incr Years12
Div Non Decr Years14
Ex-Date
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)1.94%
PT rev (3m)3.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.04%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 11.66 | ||
| P/S | 0.98 | ||
| P/FCF | 40.72 | ||
| P/OCF | 7.46 | ||
| P/B | 1.94 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)11.05
EY9.55%
EPS(NY)9.92
Fwd EY8.57%
FCF(TTM)2.84
FCFY2.46%
OCF(TTM)15.52
OCFY13.41%
SpS117.59
BVpS59.65
TBVpS54.97
PEG (NY)N/A
PEG (5Y)0.47
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 | 4.82 |
F-Score5
WACC10.54%
ROIC/WACC1.25
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-5.23%
Revenue Next 2Y-1.55%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
EBIT growth 1Y-34.43%
EBIT growth 3Y53.81%
EBIT growth 5Y12.85%
EBIT Next Year-18.43%
EBIT Next 3Y-1.47%
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%