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Is NUCOR CORP (NYSE:NUE) a Strong Candidate for Quality Investing?

By Mill Chart

Last update: Apr 10, 2024

In this article we will dive into NUCOR CORP (NYSE:NUE) as a possible candidate for quality investing. Investors should always do their own research, but we noticed NUCOR CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • NUCOR CORP has demonstrated significant revenue growth over the past 5 years, with a 6.73% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 29.39%, NUCOR CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 1.4, NUCOR CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of NUCOR CORP stands at 110.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • NUCOR CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.74%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • NUCOR CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NYSE:NUE

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, NUE scores 7 out of 10 in our fundamental rating. NUE was compared to 156 industry peers in the Metals & Mining industry. NUE gets an excellent profitability rating and is at the same time showing great financial health properties. NUE is valued correctly, but it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of NUE

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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