174.58 USD
-1.07 (-0.61%)
We assign a fundamental rating of 6 out of 10 to STLD. STLD was compared to 154 industry peers in the Metals & Mining industry. STLD has an excellent profitability rating, but there are some minor concerns on its financial health. STLD is valued quite cheap, but it does not seem to be growing. Finally 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.
- Of the past 5 years STLD 4 years were profitable.
- STLD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- STLD has a better Return On Assets (7.06%) than 79.87% of its industry peers.
- STLD has a better Return On Equity (12.53%) than 81.82% of its industry peers.
- With a decent Return On Invested Capital value of 7.75%, STLD is doing good in the industry, outperforming 70.13% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for STLD is significantly above the industry average of 10.32%.
- The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(7.75%). The reason for the recent decline needs to be investigated.
| 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.
- STLD has a better Operating Margin (7.96%) than 62.99% of its industry peers.
- STLD's Operating Margin has improved in the last couple of years.
- STLD has a Gross Margin (13.07%) which is comparable to the rest of the 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
- 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 5.27 indicates that STLD is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.27, 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.
- STLD has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
- STLD has a worse Debt to Equity ratio (0.42) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | 5.27 |
ROIC/WACC0.76
WACC10.25%
2.3 Liquidity
- STLD has a Current Ratio of 3.11. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 3.11, STLD is doing good in the industry, outperforming 65.58% of the companies in the same industry.
- STLD has a Quick Ratio of 1.47. 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 Quick ratio (1.47) which is comparable to the rest of the 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.
- The Earnings Per Share has been growing by 23.13% on average over the past years. This is a very strong growth
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.80, the valuation of STLD can be described as rather expensive.
- 89.61% of the companies in the same industry are more expensive than STLD, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.82. STLD is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 12.73 indicates a correct valuation of STLD.
- Based on the Price/Forward Earnings ratio, STLD is valued cheaply inside the industry as 81.17% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of STLD to the average of the S&P500 Index (25.95), we can say STLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 12.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than 70.13% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STLD indicates a somewhat cheap valuation: STLD is cheaper than 67.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.98 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 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 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 1.15%. Purely for dividend investing, there may be better candidates out there.
- 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 | 1.15% |
5.2 History
- The dividend of STLD is nicely growing with an annual growth rate of 14.81%!
- 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)14.81%
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.
- STLD's earnings are growing more than its dividend. This makes the dividend growth 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 21.8 and the Price/Book (PB) ratio is 2.83.
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%.