175.65 USD
+2.33 (+1.34%)
176.919 USD
+1.27 (+0.72%)
We assign a fundamental rating of 6 out of 10 to STLD. STLD was compared to 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 cheap, but on the other hand it scores bad on growth. STLD also has an excellent dividend rating. This makes STLD very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year STLD was profitable.
- STLD had a positive operating cash flow in the past year.
- STLD had positive earnings in 4 of the past 5 years.
- STLD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.06%, STLD is doing good in the industry, outperforming 79.87% of the companies in the same industry.
- STLD has a Return On Equity of 12.53%. This is amongst the best in the industry. STLD outperforms 81.82% of its industry peers.
- STLD's Return On Invested Capital of 7.75% is fine compared to the rest of the industry. STLD outperforms 70.13% 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 10.32%.
- The last Return On Invested Capital (7.75%) 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 | 7.06% | ||
| ROE | 12.53% | ||
| ROIC | 7.75% |
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
- The Profit Margin of STLD (6.39%) is better than 70.78% of its industry peers.
- In the last couple of years the Profit Margin of STLD has grown nicely.
- With a decent Operating Margin value of 7.96%, STLD is doing good in the industry, outperforming 62.99% of the companies in the same industry.
- In the last couple of years the Operating Margin of STLD has grown nicely.
- Looking at the Gross Margin, with a value of 13.07%, STLD is in line with its industry, outperforming 45.45% 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 | 7.96% | ||
| PM (TTM) | 6.39% | ||
| GM | 13.07% |
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.
- There is no outstanding debt for STLD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 5.24 indicates that STLD is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.24, STLD is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
- The Debt to FCF ratio of STLD is 12.16, which is on the high side as it means it would take STLD, 12.16 years of fcf income to pay off all of its debts.
- STLD has a better Debt to FCF ratio (12.16) than 60.39% of its industry peers.
- A Debt/Equity ratio of 0.42 indicates that STLD is not too dependend on debt financing.
- The Debt to Equity ratio of STLD (0.42) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | 5.24 |
ROIC/WACC0.76
WACC10.25%
2.3 Liquidity
- A Current Ratio of 3.11 indicates that STLD has no problem at all paying its short term obligations.
- STLD's Current ratio of 3.11 is fine compared to the rest of the industry. STLD outperforms 65.58% of its industry peers.
- A Quick Ratio of 1.47 indicates that STLD should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.47, STLD perfoms like the industry average, outperforming 48.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- The earnings per share for STLD have decreased strongly by -18.27% in the last year.
- STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.13% yearly.
EPS 1Y (TTM)-18.27%
EPS 3Y-29.21%
EPS 5Y23.13%
EPS Q2Q%33.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14%
3.2 Future
- The Earnings Per Share is expected to grow by 27.01% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 3.59% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.93, which indicates a rather expensive current valuation of STLD.
- Based on the Price/Earnings ratio, STLD is valued cheaper than 90.26% of the companies in the same industry.
- STLD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- A Price/Forward Earnings ratio of 12.80 indicates a correct valuation of STLD.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 81.17% of the companies listed in the same industry.
- STLD is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.93 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
- 70.13% of the companies in the same industry are more expensive than STLD, based on the Enterprise Value to EBITDA ratio.
- 66.88% 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 | 82.48 | ||
| EV/EBITDA | 14.64 |
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 excellent profitability rating of STLD may justify a higher PE ratio.
- STLD's earnings are expected to grow with 27.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)0.95
EPS Next 2Y37.95%
EPS Next 3Y27.01%
5. Dividend
5.1 Amount
- STLD has a Yearly Dividend Yield of 1.10%.
- STLD's Dividend Yield is a higher than the industry average which is at 1.02.
- STLD's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
- On average, the dividend of STLD grows each year by 14.81%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.81%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
- STLD pays out 25.60% of its income as dividend. This is a sustainable payout ratio.
- The dividend of STLD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.6%
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 8 / 10.
Can you provide the PE and PB ratios for STLD stock?
The Price/Earnings (PE) ratio for STEEL DYNAMICS INC (STLD) is 21.93 and the Price/Book (PB) ratio is 2.85.
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 25.6%.