STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - Nasdaq - US8581191009 - Common Stock - Currency: USD
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STLD is not valued too expensively and it also shows a decent growth rate.
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.
STLD had positive earnings in each of the past 5 years.
In the past 5 years STLD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.35%, STLD belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
STLD's Return On Equity of 13.26% is amongst the best of the industry. STLD outperforms 83.77% of its industry peers.
STLD has a Return On Invested Capital of 8.31%. This is in the better half of the industry: STLD outperforms 76.62% 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 11.67%.
The last Return On Invested Capital (8.31%) for STLD is well below the 3 year average (21.22%), which needs to be investigated, but indicates that STLD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 13.26% | ||
| ROIC | 8.31% |
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
Looking at the Profit Margin, with a value of 6.80%, STLD is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
STLD's Profit Margin has improved in the last couple of years.
STLD's Operating Margin of 8.52% is fine compared to the rest of the industry. STLD outperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of STLD has grown nicely.
With a Gross Margin value of 13.41%, STLD perfoms like the industry average, outperforming 46.10% 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 | 8.52% | ||
| PM (TTM) | 6.8% | ||
| GM | 13.41% |
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.
STLD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STLD is higher compared to a year ago.
2.2 Solvency
STLD has an Altman-Z score of 4.64. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
STLD has a better Altman-Z score (4.64) than 74.03% 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 73.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.64 |
ROIC/WACC0.98
WACC8.52%
2.3 Liquidity
STLD has a Current Ratio of 2.74. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.74, STLD is doing good in the industry, outperforming 61.69% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that STLD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, STLD is in line with its industry, outperforming 46.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.01%.
Measured over the past years, STLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.97% on average per year.
Looking at the last year, STLD shows a decrease in Revenue. The Revenue has decreased by -7.42% in the last year.
STLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.88% yearly.
EPS 1Y (TTM)-48.01%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-60.76%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
3.2 Future
Based on estimates for the next years, STLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.93% on average per year.
STLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y2.21%
EPS Next 2Y15.08%
EPS Next 3Y14.49%
EPS Next 5Y9.93%
Revenue Next Year5.66%
Revenue Next 2Y5.73%
Revenue Next 3Y5.14%
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.
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
Based on the Price/Earnings ratio of 16.91, the valuation of STLD can be described as correct.
79.22% of the companies in the same industry are more expensive than STLD, based on the Price/Earnings ratio.
STLD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.98.
STLD is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
Based on the Price/Forward Earnings ratio, STLD is valued a bit cheaper than 73.38% of the companies in the same industry.
STLD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than 64.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
STLD's earnings are expected to grow with 14.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.64
PEG (5Y)0.65
EPS Next 2Y15.08%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, STLD has a reasonable but not impressive dividend return.
STLD's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to the average S&P500 Dividend Yield of 2.42, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
On average, the dividend of STLD grows each year by 14.82%, which is quite nice.
STLD has paid a dividend for at least 10 years, which is 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
STLD pays out 24.28% of its income as dividend. This is a sustainable payout ratio.
STLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.28%
EPS Next 2Y15.08%
EPS Next 3Y14.49%
128.01
-3.2 (-2.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.98%
Inst Owner Change-1.25%
Ins Owners6.22%
Ins Owner Change1.05%
Market Cap19.00B
Analysts78.1
Price Target151.37 (18.25%)
Short Float %2.29%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend1.82
Dividend Growth(5Y)14.82%
DP24.28%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.3%
Min EPS beat(2)2.08%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)2.04%
Min EPS beat(4)-0.23%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)3.56%
EPS beat(16)10
Avg EPS beat(16)2.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)2.08%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)2.42%
Revenue beat(8)5
Avg Revenue beat(8)-1.31%
Revenue beat(12)8
Avg Revenue beat(12)-0.61%
Revenue beat(16)10
Avg Revenue beat(16)-0.21%
PT rev (1m)1.1%
PT rev (3m)1.81%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)7.18%
EPS NY rev (1m)1.82%
EPS NY rev (3m)4.19%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)4.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 9.86 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 11.57 | ||
| P/B | 2.15 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)7.57
EY5.91%
EPS(NY)12.98
Fwd EY10.14%
FCF(TTM)-1.06
FCFYN/A
OCF(TTM)11.06
OCFY8.64%
SpS115.97
BVpS59.45
TBVpS54.75
PEG (NY)7.64
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 13.26% | ||
| ROCE | 10.74% | ||
| ROIC | 8.31% | ||
| ROICexc | 9.12% | ||
| ROICexgc | 9.66% | ||
| OM | 8.52% | ||
| PM (TTM) | 6.8% | ||
| GM | 13.41% | ||
| 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-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 361.71% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 12.21 | ||
| Cash Conversion | 83.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.64 |
F-Score4
WACC8.52%
ROIC/WACC0.98
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)-48.01%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-60.76%
EPS Next Y2.21%
EPS Next 2Y15.08%
EPS Next 3Y14.49%
EPS Next 5Y9.93%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
Revenue Next Year5.66%
Revenue Next 2Y5.73%
Revenue Next 3Y5.14%
Revenue Next 5YN/A
EBIT growth 1Y-52.16%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year25.38%
EBIT Next 3Y17.98%
EBIT Next 5Y13.65%
FCF growth 1Y-104.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.47%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%