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 150 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.
In the past year STLD had a positive cash flow from operations.
Each year in the past 5 years STLD has been profitable.
Each year in the past 5 years STLD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STLD (10.29%) is better than 90.21% of its industry peers.
With an excellent Return On Equity value of 17.20%, STLD belongs to the best of the industry, outperforming 88.11% of the companies in the same industry.
STLD's Return On Invested Capital of 11.76% is amongst the best of the industry. STLD outperforms 89.51% 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 8.84%.
The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(11.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.29% | ||
| ROE | 17.2% | ||
| ROIC | 11.76% |
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 (8.76%) is better than 79.72% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
STLD's Operating Margin of 11.08% is fine compared to the rest of the industry. STLD outperforms 66.43% of its industry peers.
STLD's Operating Margin has improved in the last couple of years.
STLD's Gross Margin of 15.98% is in line compared to the rest of the industry. STLD outperforms 48.25% of its industry peers.
In the last couple of years the Gross Margin of STLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | 8.76% | ||
| GM | 15.98% |
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.
STLD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STLD has less shares outstanding
The debt/assets ratio for STLD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.31 indicates that STLD is not in any danger for bankruptcy at the moment.
STLD's Altman-Z score of 5.31 is fine compared to the rest of the industry. STLD outperforms 72.03% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that STLD is not too dependend on debt financing.
STLD has a worse Debt to Equity ratio (0.31) than 64.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.31 |
ROIC/WACC1.16
WACC10.17%
2.3 Liquidity
A Current Ratio of 2.53 indicates that STLD has no problem at all paying its short term obligations.
STLD's Current ratio of 2.53 is in line compared to the rest of the industry. STLD outperforms 57.34% of its industry peers.
STLD has a Quick Ratio of 1.08. This is a normal value and indicates that STLD is financially healthy and should not expect problems in meeting its short term obligations.
STLD has a worse Quick ratio (1.08) than 65.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for STLD have decreased strongly by -34.23% in the last year.
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.
STLD shows a decrease in Revenue. In the last year, the revenue decreased by -6.68%.
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)-34.23%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-47.89%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-8.53%
3.2 Future
The Earnings Per Share is expected to grow by 9.83% on average over the next years. This is quite good.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
EPS Next Y-10.37%
EPS Next 2Y11.81%
EPS Next 3Y12.83%
EPS Next 5Y9.83%
Revenue Next Year0.39%
Revenue Next 2Y4.76%
Revenue Next 3Y3.93%
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.
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
STLD is valuated correctly with a Price/Earnings ratio of 13.34.
Based on the Price/Earnings ratio, STLD is valued cheaply inside the industry as 86.71% of the companies are valued more expensively.
STLD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 14.88, the valuation of STLD can be described as correct.
STLD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STLD is cheaper than 66.43% of the companies in the same industry.
STLD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 66.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STLD's earnings are expected to grow with 12.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y11.81%
EPS Next 3Y12.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, STLD has a reasonable but not impressive dividend return.
STLD's Dividend Yield is a higher than the industry average which is at 3.16.
With a Dividend Yield of 1.36, STLD pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of STLD is nicely growing with an annual growth rate of 14.73%!
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)14.73%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
STLD pays out 18.39% 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.
DP18.39%
EPS Next 2Y11.81%
EPS Next 3Y12.83%
130.71
-4.36 (-3.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.02%
Inst Owner Change-0.51%
Ins Owners6.09%
Ins Owner Change-0.62%
Market Cap19.90B
Analysts71.43
Price Target144.93 (10.88%)
Short Float %2.11%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend1.81
Dividend Growth(5Y)14.73%
DP18.39%
Div Incr Years12
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.15%
Min EPS beat(2)1.77%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-0.23%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)1.7%
EPS beat(12)8
Avg EPS beat(12)3.75%
EPS beat(16)10
Avg EPS beat(16)3.19%
Revenue beat(2)1
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)1.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)2.42%
Revenue beat(8)4
Avg Revenue beat(8)-2.08%
Revenue beat(12)8
Avg Revenue beat(12)-0.56%
Revenue beat(16)10
Avg Revenue beat(16)-0.21%
PT rev (1m)0.82%
PT rev (3m)2.66%
EPS NQ rev (1m)-30.62%
EPS NQ rev (3m)-40.84%
EPS NY rev (1m)-11.44%
EPS NY rev (3m)-14.22%
Revenue NQ rev (1m)-6.4%
Revenue NQ rev (3m)-10.48%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 14.88 | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | 10.79 | ||
| P/B | 2.23 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)9.8
EY7.5%
EPS(NY)8.78
Fwd EY6.72%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)12.12
OCFY9.27%
SpS115.22
BVpS58.69
TBVpS54.06
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.29% | ||
| ROE | 17.2% | ||
| ROCE | 15.2% | ||
| ROIC | 11.76% | ||
| ROICexc | 12.48% | ||
| ROICexgc | 13.26% | ||
| OM | 11.08% | ||
| PM (TTM) | 8.76% | ||
| GM | 15.98% | ||
| 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 Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 390.06% | ||
| Cap/Sales | 10.65% | ||
| Interest Coverage | 19.24 | ||
| Cash Conversion | 76.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 5.31 |
F-Score4
WACC10.17%
ROIC/WACC1.16
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)-34.23%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-47.89%
EPS Next Y-10.37%
EPS Next 2Y11.81%
EPS Next 3Y12.83%
EPS Next 5Y9.83%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-8.53%
Revenue Next Year0.39%
Revenue Next 2Y4.76%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y-38.34%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year11.04%
EBIT Next 3Y18.73%
EBIT Next 5Y14.13%
FCF growth 1Y-101.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.6%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%