174.38 USD
-1.27 (-0.72%)
174.97 USD
+0.59 (+0.34%)
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 is valued quite cheap, while showing a decent growth score. This is a good combination! STLD also has an excellent dividend rating. This makes STLD very considerable for value and dividend investing!
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
- With an excellent Return On Assets value of 7.22%, STLD belongs to the best of the industry, outperforming 80.52% of the companies in the same industry.
- With an excellent Return On Equity value of 13.24%, STLD belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
- The Return On Invested Capital of STLD (8.14%) is better than 73.38% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for STLD is above the industry average of 10.32%.
- 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.
- STLD has a better Operating Margin (8.12%) than 62.99% of its industry peers.
- In the last couple of years the Operating Margin of STLD has declined.
- STLD has a Gross Margin of 13.16%. This is comparable to the rest of the industry: STLD outperforms 45.45% of its industry peers.
- STLD's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STLD is still creating some value.
- Compared to 1 year ago, STLD has less shares outstanding
- STLD has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, STLD has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.11 indicates that STLD is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.11, STLD is doing good in the industry, outperforming 60.39% 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.
- STLD has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- STLD's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. STLD is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 5.11 |
ROIC/WACC0.79
WACC10.27%
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.
- With a decent Current ratio value of 3.06, STLD is doing good in 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
- STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.27%.
- STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.13% yearly.
- Looking at the last year, STLD shows a small growth in Revenue. The Revenue has grown by 3.63% in the last year.
- Measured over the past years, STLD shows a quite strong growth in Revenue. The Revenue has been growing by 13.61% on average per year.
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
- Based on estimates for the next years, STLD will show a very strong growth in Earnings Per Share. The EPS will grow by 27.01% on average per year.
- 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
- The Price/Earnings ratio is 21.77, which indicates a rather expensive current valuation of STLD.
- Based on the Price/Earnings ratio, STLD is valued cheaply inside the industry as 90.26% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, STLD is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 12.71, the valuation of STLD can be described as correct.
- 80.52% 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 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than 71.43% of the companies in the same industry.
- 74.03% of the companies in the same industry are more expensive than STLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.78 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
- STLD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of STLD 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)0.31
PEG (5Y)0.94
EPS Next 2Y37.95%
EPS Next 3Y27.01%
5. Dividend
5.1 Amount
- STLD has a Yearly Dividend Yield of 1.14%. 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.
- STLD's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
- On average, the dividend of STLD grows each year by 14.78%, 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)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 7 / 10 to STEEL DYNAMICS INC (STLD). This can be considered as Undervalued.
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 21.77 and the Price/Book (PB) ratio is 2.84.
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%.