STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - Nasdaq - US8581191009 - Common Stock - Currency: USD
Overall STLD gets a fundamental rating of 6 out of 10. We evaluated STLD against 153 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.
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.
In the past 5 years STLD always reported a positive cash flow from operatings.
1.2 Ratios
STLD has a better Return On Assets (7.35%) than 84.21% of its industry peers.
STLD has a better Return On Equity (13.26%) than 85.53% of its industry peers.
The Return On Invested Capital of STLD (8.31%) is better than 78.95% of its industry peers.
STLD had an Average Return On Invested Capital over the past 3 years of 21.22%. This is significantly above the industry average of 8.57%.
The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(8.31%). The reason for the recent decline needs to be investigated.
| 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 76.32% of the companies in the same industry.
In the last couple of years the Profit Margin of STLD has grown nicely.
Looking at the Operating Margin, with a value of 8.52%, STLD is in the better half of the industry, outperforming 64.47% of the companies in the same industry.
In the last couple of years the Operating Margin of STLD has grown nicely.
STLD's Gross Margin of 13.41% is in line compared to the rest of the industry. STLD outperforms 46.05% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STLD is creating value.
STLD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STLD has less shares outstanding
STLD has a worse debt/assets ratio than last year.
2.2 Solvency
STLD has an Altman-Z score of 4.61. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
STLD has a better Altman-Z score (4.61) than 72.37% 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 70.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.61 |
ROIC/WACC0.85
WACC9.73%
2.3 Liquidity
A Current Ratio of 2.74 indicates that STLD has no problem at all paying its short term obligations.
STLD has a better Current ratio (2.74) than 61.84% of its industry peers.
STLD has a Quick Ratio of 1.38. This is a normal value and indicates that STLD is financially healthy and should not expect problems in meeting its short term obligations.
STLD's Quick ratio of 1.38 is in line compared to the rest of the industry. STLD outperforms 47.37% of its industry peers.
| 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%.
STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.97% yearly.
STLD shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
Measured over the past years, STLD shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
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
STLD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.83% yearly.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y3.3%
EPS Next 2Y14.44%
EPS Next 3Y14.28%
EPS Next 5Y9.83%
Revenue Next Year5.13%
Revenue Next 2Y6%
Revenue Next 3Y4.95%
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 16.82, STLD is valued correctly.
Based on the Price/Earnings ratio, STLD is valued a bit cheaper than 78.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, STLD is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.92, which indicates a very decent valuation of STLD.
84.21% of the companies in the same industry are more expensive than STLD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. STLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than the industry average as 61.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STLD does not grow enough to justify the current Price/Earnings ratio.
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
STLD's earnings are expected to grow with 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.1
PEG (5Y)0.65
EPS Next 2Y14.44%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.57%, STLD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.94, STLD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.47, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of STLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.28%
EPS Next 2Y14.44%
EPS Next 3Y14.28%
127.34
-0.04 (-0.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.02%
Inst Owner Change0.34%
Ins Owners6.09%
Ins Owner Change0.95%
Market Cap19.09B
Analysts77.14
Price Target148.59 (16.69%)
Short Float %1.91%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-0.06%
PT rev (3m)5.68%
EPS NQ rev (1m)5.19%
EPS NQ rev (3m)-0.62%
EPS NY rev (1m)5.3%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)2.61%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)3.67%
Revenue NY rev (3m)3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 9.92 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | 11.63 | ||
| P/B | 2.16 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)7.57
EY5.94%
EPS(NY)12.84
Fwd EY10.08%
FCF(TTM)-1.05
FCFYN/A
OCF(TTM)10.95
OCFY8.6%
SpS114.85
BVpS58.87
TBVpS54.22
PEG (NY)5.1
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 | 4.61 |
F-Score4
WACC9.73%
ROIC/WACC0.85
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 Y3.3%
EPS Next 2Y14.44%
EPS Next 3Y14.28%
EPS Next 5Y9.83%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
Revenue Next Year5.13%
Revenue Next 2Y6%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-52.16%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year22.95%
EBIT Next 3Y18.15%
EBIT Next 5Y14.13%
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%